Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-1687 | ||
Entity Registrant Name | PPG INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 25-0730780 | ||
Entity Address, Address Line One | One PPG Place | ||
Entity Address, City or Town | Pittsburgh | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15272 | ||
City Area Code | 412 | ||
Local Phone Number | 434-3131 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 30,608 | $ 26,830 | |
Entity Common Stock, Shares Outstanding | 235,179,993 | ||
Documents Incorporated by Reference | Portions of PPG Industries, Inc. Proxy Statement for its 2023 Annual Meeting of Shareholders (the “Proxy Statement”) to be filed with the Securities and Exchange Commission within 120 days after the end of the Company’s fiscal year, are incorporated herein by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000079879 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock – Par Value $1.66 2/3 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock – Par Value $1.66 2/3 | ||
Trading Symbol | PPG | ||
Security Exchange Name | NYSE | ||
0.875% Notes due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.875% Notes due 2025 | ||
Trading Symbol | PPG 25 | ||
Security Exchange Name | NYSE | ||
1.875% Notes Due 2025 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.875% Notes due 2025 | ||
Trading Symbol | PPG 25A | ||
Security Exchange Name | NYSE | ||
1.400% Notes due 2027 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.400% Notes due 2027 | ||
Trading Symbol | PPG 27 | ||
Security Exchange Name | NYSE | ||
2.750% Notes Due 2029 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.750% Notes due 2029 | ||
Trading Symbol | PPG 29A | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Pittsburgh, Pennsylvania |
Auditor Firm ID | 238 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 17,652 | $ 16,802 | $ 13,834 |
Cost of sales, exclusive of depreciation and amortization | 11,096 | 10,286 | 7,777 |
Selling, general and administrative | 3,842 | 3,780 | 3,389 |
Depreciation | 388 | 389 | 371 |
Amortization | 166 | 172 | 138 |
Research and development, net | 448 | 439 | 379 |
Interest expense | 167 | 121 | 138 |
Interest income | (54) | (26) | (23) |
Impairment and other related charges, net | 245 | 21 | 93 |
Pension settlement charge | 0 | 50 | 0 |
Asbestos-related claims reserve adjustment | 0 | (133) | 0 |
Business restructuring, net | 33 | 31 | 174 |
Other (income)/charges, net | (60) | (143) | 36 |
Income before income taxes | 1,381 | 1,815 | 1,362 |
Income tax expense | 325 | 374 | 291 |
Income from continuing operations | 1,056 | 1,441 | 1,071 |
(Loss)/income from discontinued operations, net of tax | (2) | 19 | 3 |
Net income attributable to the controlling and noncontrolling interests | 1,054 | 1,460 | 1,074 |
Less: Net income attributable to noncontrolling interests | 28 | 21 | 15 |
Net income (attributable to PPG) | 1,026 | 1,439 | 1,059 |
Income from continuing operations, net of tax | 1,028 | 1,420 | 1,056 |
(Loss)/income from discontinued operations, net of tax | $ (2) | $ 19 | $ 3 |
Earnings per common share | |||
Continuing operations (in dollars per share) | $ 4.35 | $ 5.98 | $ 4.46 |
Discontinued operations (in dollars per share) | (0.01) | 0.08 | 0.01 |
Net Income (attributable to PPG) (in dollars per share) | 4.34 | 6.06 | 4.47 |
Earnings per common share - assuming dilution | |||
Continuing operations (in dollars per share) | 4.33 | 5.93 | 4.44 |
Discontinued operations (in dollars per share) | (0.01) | 0.08 | 0.01 |
Net Income (attributable to PPG) (in dollars per share) | $ 4.32 | $ 6.01 | $ 4.45 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to the controlling and noncontrolling interests | $ 1,054 | $ 1,460 | $ 1,074 |
Defined benefit pension and other postretirement benefit adjustments | 206 | 174 | (213) |
Unrealized foreign currency translation adjustments | (279) | (330) | (36) |
Other comprehensive loss, net of tax | (73) | (156) | (249) |
Total comprehensive income | 981 | 1,304 | 825 |
Less: amounts attributable to noncontrolling interests: | |||
Net income | (28) | (21) | (15) |
Unrealized foreign currency translation adjustments | 13 | 5 | |
Comprehensive income attributable to PPG | $ 966 | $ 1,288 | $ 810 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 1,099 | $ 1,005 |
Short-term investments | 55 | 67 |
Receivables | 3,303 | 3,152 |
Inventories | 2,272 | 2,171 |
Other current assets | 444 | 379 |
Total current assets | 7,173 | 6,774 |
Property, plant and equipment, net | 3,328 | 3,442 |
Goodwill | 6,078 | 6,248 |
Identifiable intangible assets, net | 2,414 | 2,783 |
Deferred income taxes | 95 | 197 |
Investments | 244 | 274 |
Operating lease right-of-use assets | 829 | 891 |
Other assets | 583 | 742 |
Total | 20,744 | 21,351 |
Current liabilities | ||
Accounts payable and accrued liabilities | 4,087 | 4,392 |
Restructuring reserves | 138 | 173 |
Short-term debt and current portion of long-term debt | 313 | 9 |
Current portion of operating lease liabilities | 183 | 192 |
Total current liabilities | 4,721 | 4,766 |
Long-term debt | 6,503 | 6,572 |
Operating lease liabilities | 636 | 693 |
Accrued pensions | 566 | 834 |
Other postretirement benefits | 476 | 672 |
Deferred income taxes | 501 | 646 |
Other liabilities | 632 | 757 |
Total liabilities | 14,035 | 14,940 |
Commitments and contingent liabilities (See Note 15) | ||
Shareholders’ equity | ||
Common stock | 969 | 969 |
Additional paid-in capital | 1,130 | 1,081 |
Retained earnings | 20,828 | 20,372 |
Treasury stock, at cost | (13,525) | (13,386) |
Accumulated other comprehensive loss | (2,810) | (2,750) |
Total PPG shareholders’ equity | 6,592 | 6,286 |
Noncontrolling interests | 117 | 125 |
Total shareholders’ equity | 6,709 | 6,411 |
Total | $ 20,744 | $ 21,351 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total PPG | Noncontrolling Interests |
Beginning balance at Dec. 31, 2019 | $ 5,403 | $ 969 | $ 950 | $ 18,906 | $ (13,191) | $ (2,350) | $ 5,284 | $ 119 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 1,074 | 1,059 | 1,059 | 15 | ||||
Other comprehensive loss, net of tax | (249) | (249) | (249) | |||||
Cash dividends | (496) | (496) | (496) | |||||
Issuance of treasury stock | 78 | 45 | 33 | 78 | ||||
Stock-based compensation activity | 13 | 13 | 13 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (4) | (4) | ||||||
Reductions in noncontrolling interests | (4) | (4) | ||||||
Ending balance at Dec. 31, 2020 | 5,815 | 969 | 1,008 | 19,469 | (13,158) | (2,599) | 5,689 | 126 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 1,460 | 1,439 | 1,439 | 21 | ||||
Other comprehensive loss, net of tax | (156) | (151) | (151) | (5) | ||||
Cash dividends | (536) | (536) | (536) | |||||
Purchase of treasury stock | (250) | (250) | (250) | |||||
Issuance of treasury stock | 70 | 48 | 22 | 70 | ||||
Stock-based compensation activity | 25 | 25 | 25 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (6) | (6) | ||||||
Reductions in noncontrolling interests | (11) | (11) | ||||||
Ending balance at Dec. 31, 2021 | 6,411 | 969 | 1,081 | 20,372 | (13,386) | (2,750) | 6,286 | 125 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 1,054 | 1,026 | 1,026 | 28 | ||||
Other comprehensive loss, net of tax | (73) | (60) | (60) | (13) | ||||
Cash dividends | (570) | (570) | (570) | |||||
Purchase of treasury stock | (150) | (150) | (150) | |||||
Issuance of treasury stock | 47 | 36 | 11 | 47 | ||||
Stock-based compensation activity | 10 | 10 | 10 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (13) | (13) | ||||||
Reductions in noncontrolling interests | (10) | (10) | ||||||
Other | 3 | 0 | 3 | 0 | 0 | 0 | 3 | 0 |
Ending balance at Dec. 31, 2022 | $ 6,709 | $ 969 | $ 1,130 | $ 20,828 | $ (13,525) | $ (2,810) | $ 6,592 | $ 117 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Income from continuing operations | $ 1,056 | $ 1,441 | $ 1,071 |
Adjustments to reconcile net income to cash from operations: | |||
Depreciation and amortization | 554 | 561 | 509 |
Asbestos-related claims reserve adjustment | 0 | (133) | 0 |
Business restructuring, net | 33 | 31 | 174 |
Impairment and other related charges, net | 245 | 21 | 93 |
Stock-based compensation expense | 35 | 57 | 44 |
Deferred income taxes | (157) | 35 | (47) |
Cash contributions to pension plans | (11) | (10) | (17) |
Cash used for restructuring actions | (85) | (77) | (126) |
Change in certain asset and liability accounts (net of acquisitions): | |||
Receivables | (268) | (63) | 187 |
Inventories | (227) | (279) | 111 |
Other current assets | (60) | 32 | 49 |
Accounts payable and accrued liabilities | (8) | 295 | 127 |
Noncurrent assets and liabilities, net | (136) | (109) | (25) |
Taxes and interest payable | 143 | (64) | (108) |
Other | (151) | (176) | 88 |
Cash from operating activities | 963 | 1,562 | 2,130 |
Investing activities | |||
Capital expenditures | (518) | (371) | (304) |
Business acquisitions, net of cash balances acquired | (114) | (2,137) | (1,169) |
Proceeds from asset sales | 117 | 47 | 0 |
Other | 54 | 57 | 26 |
Cash used for investing activities | (461) | (2,404) | (1,447) |
Financing activities | |||
Proceeds from Term Loan Credit Agreement, net of fees | 0 | 1,399 | 0 |
Repayment of Term Loan Credit Agreement | (300) | 0 | 0 |
Net (payments on)/proceeds from commercial paper and short-term debt | (439) | 190 | 150 |
Proceeds from Term Loan, net of fees | 0 | 0 | 1,497 |
Repayment of Term Loan | 0 | (400) | (1,100) |
Proceeds from revolving credit facility | 0 | 0 | 800 |
Repayment of revolving credit facility | 0 | 0 | (800) |
Proceeds from the issuance of debt, net of discounts and fees | 1,116 | 692 | 415 |
Repayment of long-term debt | 0 | (847) | (500) |
Repayment of acquired debt | (2) | (207) | (13) |
Purchase of treasury stock | (190) | (210) | 0 |
Dividends paid on PPG common stock | (570) | (536) | (496) |
Other | (24) | 12 | (12) |
Cash (used for)/from financing activities | (409) | 93 | (59) |
Effect of currency exchange rate changes on cash and cash equivalents | 1 | (72) | 6 |
Cash reclassified to assets held for sale | 0 | 0 | (20) |
Net increase/(decrease) in cash and cash equivalents | 94 | (821) | 610 |
Cash and cash equivalents, beginning of year | 1,005 | 1,826 | 1,216 |
Cash and cash equivalents, end of year | 1,099 | 1,005 | 1,826 |
Supplemental disclosures of cash flow information: | |||
Interest paid, net of amount capitalized | 156 | 140 | 153 |
Taxes paid, net of refunds | 452 | 491 | 367 |
Capital expenditures accrued within Accounts payable and accrued liabilities at year-end | 76 | 163 | 37 |
Purchases of treasury stock transacted but not yet settled | $ 0 | $ 40 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of PPG Industries, Inc. (“PPG” or the “Company”) and all subsidiaries, both U.S. and non-U.S., that it controls. PPG owns more than 50% of the voting stock of most of the subsidiaries that it controls. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which PPG owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, PPG’s share of income or losses from such equity affiliates is included in the consolidated statement of income and PPG’s share of these companies’ shareholders’ equity is included in Investments on the consolidated balance sheet. Transactions between PPG and its subsidiaries are eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Such estimates also include the fair value of assets acquired and liabilities assumed resulting from the allocation of the purchase price related to business combinations consummated. Actual outcomes could differ from those estimates. Revenue Recognition Revenue is recognized as performance obligations with the customer are satisfied, at an amount that is determined to be collectible. For the sale of products, this generally occurs at the point in time when control of the Company’s products transfers to the customer based on the agreed upon shipping terms. Shipping and Handling Costs Amounts billed to customers for shipping and handling are reported in Net sales in the consolidated statement of income. Shipping and handling costs incurred by the Company for the delivery of goods to customers are included in Cost of sales, exclusive of depreciation and amortization in the consolidated statement of income. Selling, General and Administrative Costs Amounts presented in Selling, general and administrative in the consolidated statement of income are comprised of selling, customer service, distribution and advertising costs, as well as the costs of providing corporate-wide functional support in areas such as finance, law, human resources and planning. Distribution costs pertain to the movement and storage of finished goods inventory at company-owned and leased warehouses and other distribution facilities. Advertising Costs Advertising costs are charged to expense as incurred and totaled $252 million, $243 million and $223 million in 2022, 2021 and 2020, respectively. Research and Development Research and development costs, which consist primarily of employee-related costs, are charged to expense as incurred. ($ in millions) 2022 2021 2020 Research and development – total $470 $463 $401 Less: depreciation on research facilities 22 24 22 Research and development, net $448 $439 $379 Legal Costs Legal costs, which primarily include costs associated with acquisition and divestiture transactions, general litigation, environmental regulation compliance, patent and trademark protection and other general corporate purposes, are charged to expense as incurred. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating losses and tax credit carryforwards as well as differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in Income tax expense in the consolidated statement of income in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets in situations where PPG determines it is more likely than not such assets will not ultimately be realized. PPG does not recognize a tax benefit unless it concludes that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, PPG recognizes a tax benefit measured at the largest amount of the tax benefit that, in PPG’s judgment, is greater than 50 percent likely to be realized. PPG records interest and penalties related to uncertain tax positions in Income tax expense in the consolidated statement of income. Foreign Currency Translation The functional currency of most significant non-U.S. operations is their local currency. Assets and liabilities of those operations are translated into U.S. dollars using year-end exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Unrealized foreign currency translation gains and losses are deferred in Accumulated other comprehensive loss on the consolidated balance sheet. Cash Equivalents Cash equivalents are highly liquid investments (valued at cost, which approximates fair value) acquired with an original maturity of three months or less. Short-term Investments Short-term investments are highly liquid, high credit quality investments (valued at cost plus accrued interest) that have stated maturities of greater than three months to less than one year. The purchases and sales of these investments are classified as Investing activities in the consolidated statement of cash flows. Marketable Equity Securities The Company’s investment in marketable equity securities is recorded at fair market value and reported as Other current assets and Investments on the consolidated balance sheet with changes in fair market value recorded in income. Inventories Inventories are stated at the lower of cost or net realizable value. Most U.S. inventories are stated at cost, using the last-in, first-out (“LIFO”) method of accounting, which does not exceed net realizable value. All other inventories are stated at cost, using the first-in, first-out (“FIFO”) method of accounting, which does not exceed net realizable value. PPG determines cost using either average or standard factory costs, which approximate actual costs, excluding certain fixed costs such as depreciation and property taxes. Refer to Note 3, “Working Capital Detail” for further information concerning the Company’s inventories. Derivative Financial Instruments The Company recognizes all derivative financial instruments (a “derivative”) as either assets or liabilities at fair value on the consolidated balance sheet. The accounting for changes in the fair value of a derivative depends on the use of the instrument. For derivative instruments that are designated and qualify as cash flow hedges, the unrealized gains or losses on the derivatives are recorded in the consolidated statement of comprehensive income. Amounts in Accumulated other comprehensive loss on the consolidated balance sheet are reclassified into Income before income taxes in the consolidated statement of income in the same period or periods during which the hedged transactions are recorded in Income before income taxes in the consolidated statement of income. For derivative instruments that are designated and qualify as fair value hedges, the change in the fair value of the derivatives are reported in Income before income taxes in the consolidated statement of income, offsetting the gain or loss recognized for the change in fair value of the asset, liability, or firm commitment that is being hedged. For derivatives, debt or other financial instruments that are designated and qualify as net investment hedges, the gains or losses associated with the financial instruments are reported as translation gains or losses in Accumulated other comprehensive loss on the consolidated balance sheet. Gains and losses in Accumulated other comprehensive loss related to hedges of the Company’s net investments in foreign operations are reclassified out of Accumulated other comprehensive loss and recognized in Income before income taxes in the consolidated statement of income upon a substantial liquidation, sale or partial sale of such investments or upon impairment of all or a portion of such investments. The cash flow impact of these instruments is classified as Investing activities in the consolidated statement of cash flows. Changes in the fair value of derivative instruments not designated as hedges for hedge accounting purposes are recognized in Income before income taxes in the consolidated statement of income in the period of change. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation is computed on a straight-line method based on the estimated useful lives of related assets. Accelerated depreciation expense is recorded when facilities or equipment are subject to abnormal economic conditions, restructuring actions or obsolescence. The cost of significant improvements that add to productive capacity or extend the lives of properties are capitalized. Costs for repairs and maintenance are charged to expense as incurred. When a capitalized asset is retired or otherwise disposed of, the original cost and related accumulated depreciation balance are removed from the accounts and any related gain or loss is recorded in Income before income taxes in the consolidated statement of income. The amortization cost of finance lease assets is recorded in Depreciation expense in the consolidated statement of income. Property and other long-lived assets are reviewed for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable. Refer to Note 4, “Property, Plant and Equipment” for further details. Goodwill and Identifiable Intangible Assets Goodwill represents the excess of the cost over the fair value of acquired identifiable tangible and intangible assets less liabilities assumed from acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon their fair value at the date of acquisition. 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. These operating segments are also the Company’s reporting units for purposes of testing goodwill for impairment, which is tested at least annually in connection with PPG’s strategic planning process or more frequently if an indication of impairment exists. The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a quantitative test. Quantitative goodwill impairment testing, if deemed necessary, is performed during the fourth quarter of each year by comparing the estimated fair value of an associated reporting unit as of September 30 to its carrying value. Fair value is estimated using a discounted cash flow model. Key assumptions and estimates used in the discounted cash flow model include projected future revenues, discount rates, operating cash flows, capital expenditures and tax rates. In 2022, the annual impairment testing review of goodwill did not result in impairment of the Company’s reporting units. The Company has determined that certain acquired trademarks have indefinite useful lives. The Company tests the carrying value of these trademarks for impairment at least annually, or as needed whenever events and circumstances indicate that their carrying amount may not be recoverable. In the first quarter 2022, due to the adverse economic impacts of Russian military forces invading Ukraine, the Company identified indicators that the carrying value of an indefinite-lived intangible asset and certain definite-lived intangible assets associated with the Company's operations in Russia may not be recoverable as of March 31, 2022, and the carrying value of those assets was assessed for impairment. As a result of this assessment, the Company recorded impairment charges of $124 million related to the indefinite-lived intangible asset and $23 million related to definite-lived intangible assets in the consolidated statement of income for the year ended December 31, 2022. Refer to Note 7, "Impairment and Other Related Charges, Net" for additional information. The annual assessment takes place in the fourth quarter of each year either by completing a qualitative assessment or quantitatively by comparing the estimated fair value of each trademark as of September 30 to its carrying value. Fair value is estimated by using the relief from royalty method (a discounted cash flow methodology). The qualitative assessment includes consideration of factors, including revenue relative to the asset being assessed, the operating results of the related business as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. In 2022, the annual impairment testing review of indefinite-lived intangibles performed as of September 30, 2022 resulted in the Company recognizing a pretax impairment charge of $4 million. Refer to Note 6, “Goodwill and Other Identifiable Intangible Assets” for further details. Identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives (1 to 30 years) and are reviewed for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable. Receivables and Allowances All trade receivables are reported on the consolidated balance sheet at the outstanding principal adjusted for any allowance for doubtful accounts and any charge offs. The Company provides an allowance for doubtful accounts to reduce receivables to their estimated net realizable value when it is probable that a loss will be incurred. Those estimates are based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers, and forward-looking information. Refer to Note 20, “Revenue Recognition” for further details. Leases The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying. Nearly all of PPG’s lease contracts do not provide a readily determinable implicit rate. For these contracts, PPG’s estimated incremental borrowing rate is based on information available at the inception of the lease. Product Warranties The Company accrues for product warranties at the time the associated products are sold based on historical claims experience. The reserve, pretax charges against income and cash outlays for product warranties were not significant to the consolidated financial statements of the Company for any year presented. Asset Retirement Obligations An asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. PPG recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. PPG’s asset retirement obligations are primarily associated with the retirement or closure of certain assets used in PPG’s manufacturing process. The accrued asset retirement obligation is recorded in Accounts payable and accrued liabilities and Other liabilities on the consolidated balance sheet and was $23 million and $22 million as of December 31, 2022 and 2021, respectively. PPG’s only conditional asset retirement obligation relates to the possible future abatement of asbestos contained in certain PPG production facilities. The asbestos in PPG’s production facilities arises from the application of normal and customary building practices in the past when the facilities were constructed. This asbestos is encapsulated in place and, as a result, there is no current legal requirement to abate it. Because there is no requirement to abate, the Company does not have any current plans or an intention to abate and therefore the timing, method and cost of future abatement, if any, are not known. The Company has not recorded an asset retirement obligation associated with asbestos abatement, given the uncertainty concerning the timing of future abatement, if any. Environmental Contingencies It is PPG’s policy to accrue expenses for environmental contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. Assets and Liabilities Held for Sale The Company classifies assets and liabilities as held for sale (a “disposal group”) when management commits to a plan to sell the disposal group, the sale is probable within one year and the disposal group is available for immediate sale in its present condition. The Company considers various factors, particularly whether actions required to complete the plan indicate it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets held for sale are measured at the lower of carrying value or fair value less costs to sell. Any loss resulting from the measurement is recognized in the period the held-for-sale criteria are met. Conversely, gains are not recognized until the date of the sale. When the disposal group is classified as held for sale, depreciation and amortization ceases and the Company tests the assets for impairment. Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. These reclassifications had no impact on our previously reported Net income, cash flows or shareholders’ equity. Accounting Standards Adopted in 2022 Effective January 1, 2022, PPG adopted Accounting Standards Update ("ASU") No. 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)." This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Adoption of this standard did not materially impact PPG's consolidated financial position, results of operations or cash flows. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform." This ASU provided optional expedients and exceptions to U.S. GAAP for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU applied only to contracts, hedging relationships, and other transactions that referenced LIBOR or another reference rate expected to be discontinued. The amendments in this ASU were effective through December 31, 2022. PPG did not apply any of the optional expedients or exceptions allowed under this ASU. Accounting Standards to be Adopted in Future Years There were no accounting pronouncements promulgated prior to December 31, 2022 that are not effective until a future date which are expected to have a material impact on PPG’s consolidated financial position, results of operations or cash flows. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The pro-forma impact of the following acquisitions on PPG’s sales and results of operations, including the pro-forma effect of events that are directly attributable to each acquisition, was not significant. Tikkurila On June 10, 2021, PPG completed its tender offer for all of the outstanding shares of Tikkurila Oyj ("Tikkurila"). Tikkurila is a leading Nordic producer and distributor of decorative paint and coatings, including an industrial paint business that produces paints and coatings for the wood and metal industries, among others. Immediately prior to the June 10, 2021 acquisition date, PPG owned 9.3% of Tikkurila’s issued and outstanding shares. Immediately following the acquisition date, PPG owned 97.1% of Tikkurila’s issued and outstanding shares. PPG continued to acquire the remaining shares not tendered during the tender offer period through a squeeze out process, ultimately achieving 100% ownership of Tikkurila’s outstanding shares during the fourth quarter of 2021. The results of this business since the date of acquisition have been reported within two operating segments: the architectural coatings – EMEA business and the industrial coatings business. The architectural coatings – EMEA business is included within the Performance Coatings reportable business segment and the industrial coatings business is included within the Industrial Coatings reportable business segment. Ennis-Flint On December 23, 2020, PPG completed the acquisition of Ennis-Flint, a global manufacturer of a broad portfolio of pavement marking products, including traffic paint, hot-applied and preformed thermoplastics and raised pavement markers. PPG funded this transaction using cash on hand. The results of this business since the date of acquisition have been reported within the traffic solutions business within the Performance Coatings reportable business segment. |
Working Capital Detail
Working Capital Detail | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Components Of Working Capital Detail [Abstract] | |
Working Capital Detail | Working Capital Detail ($ in millions) 2022 2021 Receivables Trade - net $2,824 $2,687 Other - net 479 465 Total $3,303 $3,152 Inventories (1) Finished products $1,209 $1,175 Work in process 238 234 Raw materials 784 723 Supplies 41 39 Total $2,272 $2,171 Accounts payable and accrued liabilities Trade $2,538 $2,734 Accrued payroll 501 534 Customer rebates 377 368 Other postretirement and pension benefits 77 87 Income taxes 37 36 Other 557 633 Total $4,087 $4,392 (1) Inventories valued using the LIFO method of inventory valuation comprised 21% and 29% of total gross inventory values as of December 31, 2022 and 2021, respectively. If the FIFO method of inventory valuation had been used, inventories would have been $272 million and $174 million higher as of December 31, 2022 and 2021, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment ($ in millions) Useful Lives (years) 2022 2021 Land and land improvements 1-30 $548 $570 Buildings 20-40 1,774 1,769 Machinery and equipment 5-25 3,960 3,949 Other 3-20 1,203 1,177 Construction in progress 492 509 Total $7,977 $7,974 Less: accumulated depreciation 4,649 4,532 Net $3,328 $3,442 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments ($ in millions) 2022 2021 Investments in equity affiliates $134 $126 Marketable equity securities (See Note 11) 61 98 Other 49 50 Total $244 $274 Investments in equity affiliates represent PPG’s ownership interests in entities between 20% and 50% that manufacture and sell coatings and certain chemicals. PPG’s share of undistributed net earnings of equity affiliates was $25 million, $15 million and $8 million in 2022, 2021 and 2020, respectively. Dividends received from equity affiliates were $17 million, $9 million and $18 million in 2022, 2021 and 2020, respectively. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets Goodwill ($ in millions) Performance Coatings Industrial Coatings Total January 1, 2021 $4,023 $1,079 $5,102 Acquisitions, including purchase accounting adjustments 1,188 177 1,365 Foreign currency impact (177) (42) (219) December 31, 2021 $5,034 $1,214 $6,248 Acquisitions, including purchase accounting adjustments 31 15 46 Divestitures (40) — (40) Foreign currency impact (144) (32) (176) December 31, 2022 $4,881 $1,197 $6,078 Identifiable Intangible Assets December 31, 2022 December 31, 2021 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,325 $— $1,325 $1,449 $— $1,449 Definite-Lived Identifiable Intangible Assets Acquired technology $827 ($636) $191 $862 ($616) $246 Customer-related 1,855 (1,112) 743 1,956 (1,064) 892 Trade names 311 (158) 153 336 (144) 192 Other 50 (48) 2 51 (47) 4 Total Definite Lived Intangible Assets $3,043 ($1,954) $1,089 $3,205 ($1,871) $1,334 Total Identifiable Intangible Assets $4,368 ($1,954) $2,414 $4,654 ($1,871) $2,783 In the first quarter 2022, due to the adverse economic impacts of the Russian invasion in Ukraine, the Company recognized $147 million of Impairment and other related charges, net in the consolidated statement of income related to certain definite-lived and indefinite-lived intangible assets in the Performance Coatings segment. Refer to Note 7, “Impairment and Other Related Charges, Net” for further details. In the fourth quarter, the Company tests the carrying value of indefinite-lived trademarks for impairment, as discussed in Note 1, “Summary of Significant Accounting Policies.” In conjunction with both the 2022 and 2020 annual impairment assessments, the long-term forecast of net sales for certain trademarks in the Performance Coatings segment was reduced as a result of historical performance, resulting in recognition of pretax impairment charges of $4 million and $38 million, respectively, in Impairment and other related charges, net in the accompanying consolidated statements of income. In 2021, the annual impairment testing review of indefinite-lived intangibles did not result in an impairment. Aggregate amortization expense was $166 million, $172 million and $138 million in 2022, 2021 and 2020, respectively. ($ in millions) 2023 2024 2025 2026 2027 Estimated future amortization expense $150 $127 $115 $93 $85 |
Impairment and Other Related Ch
Impairment and Other Related Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Other Related Charges | 7. Impairment and Other Related Charges, Net Wind Down of Russia Operations In the first quarter 2022, Russian military forces invaded Ukraine. This military action had significant and immediate adverse economic impacts on businesses operating in Russia and Ukraine. Based on deteriorating business conditions and regulatory restrictions, including the impact of economic sanctions imposed on Russia by the United States, the European Union and other governments, PPG immediately ceased sales to Russian state-owned entities, announced that the Company would cease all new investments in Russia and commenced actions to wind down most of the Company’s operations in Russia. Based on this change in facts and circumstances, the long-term cash flow forecast for the Company’s operations in Russia was significantly reduced. This reduction in the long-term cash flow forecast indicated that the carrying amounts of long-lived assets and certain indefinite-lived intangible assets associated with the Company’s operations in Russia may not be recoverable, and the carrying value of these assets was tested for impairment. Additionally, the Company evaluated trade receivables for estimated future credit losses, inventories for declines in net realizable value and other current assets for impairment in light of the deteriorating economic conditions in Russia and Ukraine. As a result, during the three months ended March 31, 2022, the Company recognized $290 million of Impairment and other related charges, net in the consolidated statement of income, comprised of $201 million of long-lived asset impairment charges and $89 million of other related charges. The $201 million of long-lived asset impairment charges recorded during first quarter 2022 was comprised of $124 million related to indefinite-lived intangible assets, $54 million related to property, plant and equipment, net and $23 million related to definite-lived intangible assets. The $89 million of other related charges represented reserves established for receivables and other current assets and the write-down of inventories impacted by the adverse economic consequences of the Russian invasion of Ukraine. Subsequently, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories, resulting in recognition of income of $63 million within Impairment and other related charges, net. The Company continues to consider actions to exit Russia, including a possible sale of its Russian business or controlled withdrawal from the Russia market. During both the years ended December 31, 2022 and 2021, net sales in Russia represented approximately 1% of PPG net sales. Businesses Classified as Held for Sale |
Business Restructuring
Business Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Business Restructuring | Business Restructuring The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company will also incur incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected asset life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 21, “Reportable Business Segment Information” for additional information. In the third quarter 2022, the Company approved a business restructuring plan which included actions to reduce its global cost structure in response to current economic conditions, including softening demand in Europe and lower than expected demand recovery in China. The Company performed a comprehensive evaluation to identify opportunities to reduce costs and improve the profitability of the overall business portfolio. The program includes actions to right-size employee headcount, reductions in functional and administrative costs and other cost savings actions. The majority of these restructuring actions are expected to be completed by the end of 2023. In the fourth quarter 2021, the Company approved business restructuring actions related to recent acquisitions targeting further consolidation of its manufacturing footprint and headcount reductions. The majority of these restructuring actions are expected to be completed by the end of 2023. In the second quarter 2020, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program addressed weakened global economic conditions stemming from the pandemic and related pace of recovery in a few end-use markets along with further opportunities to optimize supply chain and functional costs. In the second quarter 2019, the Company approved a business restructuring plan which included actions to reduce its global cost structure. Substantially all actions of the 2020 and 2019 restructuring programs have been completed. The following table summarizes restructuring reserve activity for the years ended December 31, 2022 and 2021: Total Reserve ($ in millions) 2022 2021 January 1 $231 $293 Approved restructuring actions 84 54 Release of prior reserves and other adjustments (a) (51) (23) Cash payments (85) (77) Foreign currency impact (10) (16) December 31 $169 $231 (a) Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment. The components of lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows: ($ in millions) Classification in the Consolidated Statement of Income 2022 2021 2020 Operating lease cost Cost of sales, exclusive of depreciation and amortization $43 $41 $34 Operating lease cost Selling, general and administrative 216 219 206 Total operating lease cost $259 $260 $240 Finance lease cost: Amortization of right-of-use assets Depreciation $2 $2 $2 Interest on lease liabilities Interest expense 1 1 1 Total finance lease cost $3 $3 $3 Total lease cost $262 $263 $243 Total operating lease cost for the years ended December 31, 2022, 2021 and 2020 is inclusive of the following: ($ in millions) 2022 2021 2020 Variable lease costs $18 $18 $17 Short-term lease costs $22 $16 $8 The lease amounts included in the consolidated balance sheet as of December 31, 2022 and 2021 were as follows: ($ in millions) Classification on the Consolidated Balance Sheet 2022 2021 Assets: Operating Operating lease right-of-use assets $829 $891 Finance (1) Property, plant, and equipment, net 15 13 Total leased assets $844 $904 Liabilities: Current Operating Current portion of operating lease liabilities $183 $192 Finance Short-term debt and current portion of long-term debt 3 3 Noncurrent Operating Operating lease liabilities $636 $693 Finance Long-term debt 7 7 Total lease liabilities $829 $895 (1) Net of accumulated depreciation of $14 million and $13 million as of December 31, 2022 and 2021, respectively. Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows: ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $218 $224 $212 Operating cash flows paid for finance leases $1 $1 $1 Financing cash flows paid for finance leases $2 $3 $2 Right-of-use assets obtained in exchange for lease obligations: Operating leases $161 $253 $227 Finance leases $3 $— $4 Lease terms and discount rates as of December 31, 2022, 2021 and 2020 were as follows: 2022 2021 2020 Weighted-average remaining lease term (in years) Operating leases 6.7 7.1 7.4 Finance leases 9.0 6.4 6.1 Weighted-average discount rate Operating leases 2.6 % 2.1 % 2.4 % Finance leases 5.7 % 5.8 % 7.0 % As of December 31, 2022, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2023 $201 $3 2024 166 2 2025 129 2 2026 100 1 2027 78 1 Thereafter 219 3 Total lease payments $893 $12 Less: Interest 74 2 Total lease obligations $819 $10 |
Leases | Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment. The components of lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows: ($ in millions) Classification in the Consolidated Statement of Income 2022 2021 2020 Operating lease cost Cost of sales, exclusive of depreciation and amortization $43 $41 $34 Operating lease cost Selling, general and administrative 216 219 206 Total operating lease cost $259 $260 $240 Finance lease cost: Amortization of right-of-use assets Depreciation $2 $2 $2 Interest on lease liabilities Interest expense 1 1 1 Total finance lease cost $3 $3 $3 Total lease cost $262 $263 $243 Total operating lease cost for the years ended December 31, 2022, 2021 and 2020 is inclusive of the following: ($ in millions) 2022 2021 2020 Variable lease costs $18 $18 $17 Short-term lease costs $22 $16 $8 The lease amounts included in the consolidated balance sheet as of December 31, 2022 and 2021 were as follows: ($ in millions) Classification on the Consolidated Balance Sheet 2022 2021 Assets: Operating Operating lease right-of-use assets $829 $891 Finance (1) Property, plant, and equipment, net 15 13 Total leased assets $844 $904 Liabilities: Current Operating Current portion of operating lease liabilities $183 $192 Finance Short-term debt and current portion of long-term debt 3 3 Noncurrent Operating Operating lease liabilities $636 $693 Finance Long-term debt 7 7 Total lease liabilities $829 $895 (1) Net of accumulated depreciation of $14 million and $13 million as of December 31, 2022 and 2021, respectively. Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows: ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $218 $224 $212 Operating cash flows paid for finance leases $1 $1 $1 Financing cash flows paid for finance leases $2 $3 $2 Right-of-use assets obtained in exchange for lease obligations: Operating leases $161 $253 $227 Finance leases $3 $— $4 Lease terms and discount rates as of December 31, 2022, 2021 and 2020 were as follows: 2022 2021 2020 Weighted-average remaining lease term (in years) Operating leases 6.7 7.1 7.4 Finance leases 9.0 6.4 6.1 Weighted-average discount rate Operating leases 2.6 % 2.1 % 2.4 % Finance leases 5.7 % 5.8 % 7.0 % As of December 31, 2022, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2023 $201 $3 2024 166 2 2025 129 2 2026 100 1 2027 78 1 Thereafter 219 3 Total lease payments $893 $12 Less: Interest 74 2 Total lease obligations $819 $10 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | Borrowings and Lines of Credit Long-term Debt Obligations ($ in millions) Maturity Date 2022 2021 3.2% notes ($300) (1) 2023 $300 $299 Term Loan Credit Agreement, due 2024 ($1,400) 2024 1,099 1,399 2.4% notes ($300) 2024 299 298 0.875% notes (€600) 2025 639 677 1.875% notes (€300) 2025 319 — 1.200% notes ($700) 2026 694 692 1.4% notes (€600) 2027 638 677 3.75% notes ($800) (2) 2028 809 811 2.5% notes (€80) 2029 85 90 2.8% notes ($300) 2029 298 298 2.750% notes (€700) 2029 743 — 2.55% notes ($300) 2030 297 296 1.95% note (€50) 2037 52 — 7.70% notes ($176) 2038 174 174 5.5% notes ($250) 2040 247 247 3.0% notes (€120) 2044 122 130 Commercial paper Various — 440 Various other non-U.S. debt (3) Various 1 1 Finance lease obligations Various 10 10 Impact of derivatives on debt (4) N/A (20) 36 Total $6,806 $6,575 Less payments due within one year N/A 303 3 Long-term debt $6,503 $6,572 (1) In February 2018, PPG entered into interest rate swaps which converted $150 million of the notes from a fixed interest rate to a floating interest rate based on the three month London Interbank Offered Rate (LIBOR). The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 2.2% and 0.6% for the years ended December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (2) In February 2018, PPG entered into interest rate swaps which converted $375 million of the notes from a fixed interest rate to a floating interest rate based on the three month LIBOR. The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 2.6% and 1.0% for the years ended December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (3) Weighted average interest rate of 4.4% and 3.1% as of December 31, 2022 and 2021, respectively. (4) Fair value adjustment of the 3.2% $300 million notes and 3.75% $800 million notes as a result of fair value hedge accounting treatment related to the outstanding interest rate swaps as of December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. Long-term Debt Activities In May 2022, PPG completed a public offering of €300 million 1.875% Notes due 2025 and €700 million 2.750% Notes due 2029. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2022 Indenture"). The 2022 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the 2022 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $1,061 million. The notes are denominated in euro and have been designated as hedges of net investments in the Company’s European operations. For more information, refer to Note 11 “Financial Instruments, Hedging Activities and Fair Value Measurements.” In March 2022, PPG privately placed a 15-year €50 million 1.95% fixed interest note. This note contains covenants materially consistent with the 1.200% notes discussed below. This debt arrangement is denominated in euros and has been designated as a net investment hedge of the Company's European operations. Refer to Note 11 "Financial Instruments, Hedging Activities and Fair Value Measurements" for additional information. In December 2021, PPG completed an early redemption of the 0.875% notes due March 2022 using cash on hand. In the second quarter of 2021, two of PPG's long-term debt obligations matured; $134 million 9% non-callable debentures and non-U.S. debt of €30 million. The Company paid $170 million to settle these obligations using cash on hand. In March 2021, PPG completed a public offering of $700 million aggregate principal amount of 1.200% notes due 2026. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to the Indenture between the Company and the Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2021 Indenture"). The 2021 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase the notes upon a Change of Control Triggering Event (as defined in the 2021 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the 2021 Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $692 million. In February 2021, PPG entered into a $2.0 billion Term Loan Credit Agreement (the "Term Loan Credit Agreement"). The Term Loan Credit Agreement provided the Company with the ability to borrow up to an aggregate principal amount of $2.0 billion on an unsecured basis prior to December 31, 2021, to be used for working capital and general corporate purposes. The Term Loan Credit Agreement contains covenants that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan Credit Agreement matures and all outstanding borrowings are due and payable on the third anniversary of the date of the initial borrowing under the Agreement. In June 2021, PPG borrowed $700 million under Term Loan Credit Agreement to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. In December 2021, PPG borrowed an additional $700 million under the Term Loan Credit Agreement. In 2022, PPG repaid $300 million of the Term Loan Credit Agreement using cash on hand. Borrowings of $1.1 billion and $1.4 billion were outstanding under the Term Loan Credit Agreement as of December 31, 2022 and December 31, 2021, respectively. In August 2020, PPG completed a public offering of $100 million aggregate principal amount of 3.75% notes due March 2028. These notes were issued as additional notes pursuant to PPG’s existing shelf registration statement and pursuant to the Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2018 Indenture"), which is the same Indenture pursuant to which we previously issued $700 million in aggregate principle amount of our 3.75% notes due March 2028 on February 27, 2018. The new notes will be treated as a single series of notes with the existing notes under the 2018 Indenture, have the same CUSIP number as the existing notes, and be fungible with the existing notes for US federal income tax purposes. The Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase the notes upon a Change of Control Triggering Event (as defined in the 2018 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the 2018 Indenture. The aggregate cash proceeds from the notes, including the premium received at issuance, net of fees, was $119 million. In June 2020, PPG completed an early redemption of the $500 million 3.6% notes due November 2020 using proceeds from the May 2020 public offering and cash on hand. The Company recorded a charge of $7 million in the second quarter for the debt redemption which consists of the aggregate make-whole cash premium of $6 million and a balance of unamortized fees and discounts of $1 million related to the debt redeemed. In May 2020, PPG completed a public offering of $300 million aggregate principal amount of 2.55% notes due 2030. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2020 Indenture"). The 2020 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase the notes upon a Change of Control Triggering Event (as defined in the 2020 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the 2020 Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $296 million. In April 2020, PPG entered into a $1.5 billion 364-Day Term Loan Credit Agreement (the “Term Loan”). The Term Loan contained covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. In 2020, PPG repaid $1.1 billion of the Term Loan using cash on hand. In the first quarter 2021, PPG repaid the remaining $400 million of the Term Loan using cash on hand. The Term Loan terminated on April 13, 2021. Credit agreements In August 2019, PPG amended and restated its five Borrowings under the Credit Agreement may be made in U.S. Dollars or in euros. The Credit Agreement provides that loans will bear interest at rates based, at the Company’s option, on one of two specified base rates plus a margin based on certain formulas defined in the Credit Agreement. Additionally, the Credit Agreement contains a Commitment Fee, as defined in the Credit Agreement, on the amount of unused commitments under the Credit Agreement ranging from 0.060% to 0.125% per annum. The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. There were no commercial paper borrowings outstanding as of December 31, 2022. There were $440 million commercial paper borrowings outstanding as of December 31, 2021. The Credit Agreement contains usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Credit Agreement also requires the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of December 31, 2022, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 49%. The Credit Agreement contains, among other things, customary events of default that would permit the lenders to accelerate the loans, including the failure to make timely payments when due under the Credit Agreement or other material indebtedness, the failure to satisfy covenants contained in the Credit Agreement, a change in control of the Company and specified events of bankruptcy and insolvency. Restrictive Covenants and Cross-Default Provisions As of December 31, 2022, PPG was in full compliance with the restrictive covenants under its various credit agreements, loan agreements and indentures. Additionally, the Company’s Credit Agreement contains customary cross-default provisions. These provisions provide that a default on a debt service payment of $50 million or more for longer than the grace period provided under another agreement may result in an event of default under this agreement. None of the Company’s primary debt obligations are secured or guaranteed by the Company’s affiliates. Long-term Debt Maturities ($ in millions) Maturity per year 2023 $303 2024 $1,396 2025 $959 2026 $698 2027 $642 Thereafter $2,808 Short-term Debt Obligations ($ in millions) 2022 2021 Various, weighted average 2.7% and 0.7% as of December 31, 2022 and 2021, respectively. $10 $6 Lines of Credit, Letters of Credit and Surety Bonds PPG’s non-U.S. operations have uncommitted lines of credit totaling $539 million of which $4 million was used as of December 31, 2022. These uncommitted lines of credit are subject to cancellation at any time and are generally not subject to any commitment fees. The Company had outstanding letters of credit and surety bonds of $231 million and $173 million as of December 31, 2022 and 2021, respectively. The letters of credit secure the Company’s performance to third parties under certain self-insurance programs and other commitments made in the ordinary course of business. The Company does not believe any loss related to these letters of credit or surety bonds is likely. |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments, Hedging Activities and Fair Value Measurements | Financial Instruments, Hedging Activities and Fair Value Measurements Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at December 31, 2022 and 2021, in the aggregate, except for long-term debt instruments. Hedging Activities The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge a portion of these underlying economic exposures. Certain of these instruments qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred. PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the three-year period ended December 31, 2022. All of PPG’s outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement. In 2022 and 2021, there were no derivative instruments de-designated or discontinued as a hedging instrument. There were no gains or losses deferred in Accumulated other comprehensive loss on the consolidated balance sheet that were reclassified to Income before income taxes in the consolidated statement of income during the three-year period ended December 31, 2022 related to hedges of anticipated transactions that were no longer expected to occur. Fair Value Hedges The Company uses interest rate swaps from time to time to manage its exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value. In February 2018, PPG entered into interest rate swaps which converted $525 million of fixed rate debt to variable rate debt. The swaps are designated as fair value hedges and are carried at fair value. Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in Interest expense in the accompanying consolidated statement of income. The fair value of these interest rate swaps was a liability of $20 million and an asset of $36 million at December 31, 2022 and 2021, respectively. Cash Flow Hedges At times, PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. There were no outstanding cash flow hedges at December 31, 2022 and December 31, 2021, respectively. Net Investment Hedges PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a significant portion of its net investment in its European operations, as follows: As of December 31, 2022 and December 31, 2021, PPG had U.S. dollar to euro cross currency swap contracts with total notional amounts of $775 million and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payment in U.S. dollars and make payments in euros to the counterparties. As of December 31, 2022 and 2021, the fair value of these contracts were net assets of $88 million and $50 million, respectively. At December 31, 2022 and 2021, PPG had designated €2.5 billion and €1.4 billion, respectively, of euro-denominated borrowings as hedges of a portion of its net investment in the Company’s European operations. The carrying value of these instruments at December 31, 2022 and 2021 was $2.6 billion and $1.6 billion, respectively. There were no foreign currency forward contracts designated as net investment hedges used or outstanding as of and for the periods ended December 31, 2022, 2021 and 2020. Other Financial Instruments PPG uses foreign currency forward contracts to manage net transaction exposures that do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other (income)/charges, net in the consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $1.8 billion and $1.9 billion at December 31, 2022 and 2021, respectively. The fair values of these contracts was a net asset of $24 million a s of both December 31, 2022 and 2021. Gains/Losses Deferred in Accumulated Other Comprehensive Loss As of December 31, 2022 and 2021, the Company had accumulated pretax unrealized translation gains in Accumulated other comprehensive loss on the consolidated balance sheet related to the euro-denominated borrowings, foreign currency forward contracts, and the cross currency swaps of $327 million and $204 million, respectively. The following table summarizes the amount of gains/(losses) deferred in Other comprehensive (loss)/income ("OCI") and the amount and location of gains recognized within the consolidated statement of income related to derivative and debt financial instruments for the years ended December 31, 2022, 2021 and 2020. All dollar amounts are shown on a pretax basis. 2022 2021 2020 Caption in Consolidated Statement of Income ($ in millions) Gain Deferred in OCI Gain Recognized Gain Deferred in OCI Gain Recognized Loss Deferred in OCI Gain Recognized Fair Value Interest rate swaps $8 $15 $12 Interest expense Total Fair Value $8 $15 $12 Net Investment Cross currency swaps $38 $16 $53 $13 ($57) $16 Interest expense Foreign denominated debt 85 — 173 — (200) — Total Net Investment $123 $16 $226 $13 ($257) $16 Economic Foreign currency forward contracts $43 $23 $30 Other (income)/charges, net Fair Value Measurements The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of December 31, 2022 and 2021, respectively, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 14, “Employee Benefit Plans” for further details). The Company’s financial assets and liabilities are measured using inputs from the following three levels: Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges. Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments’ contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves. Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company does not have any recurring financial assets or liabilities that are recorded in its consolidated balance sheets as of December 31, 2022 and 2021 that are classified as Level 3 inputs. Assets and liabilities reported at fair value on a recurring basis December 31, 2022 December 31, 2021 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $9 $— $— $6 $— $— Foreign currency forward contracts (a) — 27 — — 28 — Cross currency swaps (b) — 39 — — — — Investments: Marketable equity securities $61 $— $— $98 $— $— Other assets: Cross currency swaps (b) $— $49 $— $— $50 $— Interest rate swaps (c) — — — — 36 — Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (a) $— $3 $— $— $4 $— Interest rate swaps (c) — 1 — — — — Other liabilities: Interest rate swaps (c) $— $19 $— $— $— $— (a) Derivatives not designated as hedging instruments (b) Net investment hedges (c) Fair value hedges Long-Term Debt ($ in millions) December 31, 2022 (a) December 31, 2021 (b) Long-term debt - carrying value $6,796 $6,565 Long-term debt - fair value $6,375 $6,958 (a) Excluding finance lease obligations of $10 million and short term borrowings of $10 million as of December 31, 2022. (b) Excluding finance lease obligations of $10 million and short term borrowings of $6 million as of December 31, 2021. The fair values of the debt instruments were measured using Level 2 inputs, including discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share ($ in millions, except per share amounts) 2022 2021 2020 Earnings per common share (attributable to PPG) Income from continuing operations, net of tax $1,028 $1,420 $1,056 (Loss)/income from discontinued operations, net of tax (2) 19 3 Net income (attributable to PPG) $1,026 $1,439 $1,059 Weighted average common shares outstanding 236.1 237.6 236.8 Effect of dilutive securities: Stock options 0.5 1.0 0.4 Other stock compensation plans 0.7 0.8 0.7 Potentially dilutive common shares 1.2 1.8 1.1 Adjusted weighted average common shares outstanding 237.3 239.4 237.9 Earnings per common share (attributable to PPG) Income from continuing operations, net of tax $4.35 $5.98 $4.46 (Loss)/income from discontinued operations, net of tax (0.01) 0.08 0.01 Net income (attributable to PPG) $4.34 $6.06 $4.47 Earnings per common share - assuming dilution (attributable to PPG) Income from continuing operations, net of tax $4.33 $5.93 $4.44 (Loss)/income from discontinued operations, net of tax (0.01) 0.08 0.01 Net income (attributable to PPG) $4.32 $6.01 $4.45 Excluded from the computation of earnings per diluted share due to their antidilutive effect were 0.9 million, zero, and 1.4 million outstanding stock options in 2022, 2021 and 2020, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes by taxing jurisdiction and by significant components consisted of the following: ($ in millions) 2022 2021 2020 Current U.S. federal $137 $25 $12 U.S. state and local 20 13 6 Foreign 325 301 320 Total current income tax expense $482 $339 $338 Deferred U.S. federal ($79) $12 $1 U.S. state and local (7) 3 (3) Foreign (71) 20 (45) Total deferred income tax (benefit)/expense ($157) $35 ($47) Total income tax expense $325 $374 $291 A reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective tax rate follows: 2022 2021 2020 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Changes in rate due to: Taxes on non-U.S. earnings 3.6 2.7 3.3 U.S. state and local taxes 0.7 0.8 0.3 U.S. tax (benefit)/cost on foreign operations (0.4) (1.6) 0.1 Tax benefits from equity awards (0.3) (0.3) (0.4) Change in valuation allowance reserves 0.6 — (1.4) U.S. tax incentives (1.0) (0.6) (0.9) Uncertain tax positions (0.4) (1.4) 0.9 Other (0.3) — (1.5) Effective income tax rate 23.5 % 20.6 % 21.4 % The effective tax rate for the year-ended December 31, 2022 was 23.5%, an increase of 2.9% from the prior year primarily driven by charges associated with PPG’s operations in Russia along with a reduction in the release of reserves for uncertain tax positions compared to the prior year. Income before income taxes of the Company’s U.S. operations for 2022, 2021 and 2020 was $288 million, $469 million and $190 million, respectively. Income before income taxes of the Company’s foreign operations for 2022, 2021 and 2020 was $1,093 million, $1,346 million and $1,172 million, respectively. Deferred income taxes Deferred income taxes are provided for the effect of temporary differences that arise because there are certain items treated differently for financial accounting than for income tax reporting purposes. The deferred tax assets and liabilities are determined by applying the enacted tax rate in the year in which the temporary difference is expected to reverse. ($ in millions) 2022 2021 Deferred income tax assets related to Employee benefits $275 $386 Contingent and accrued liabilities 67 74 Operating loss and other carry-forwards 218 278 Operating lease liabilities 203 215 Research and development amortization 149 68 Other 168 121 Valuation allowance (182) (172) Total $898 $970 Deferred income tax liabilities related to Property $223 $278 Intangibles 720 814 Employee benefits 81 75 Operating lease right-of-use assets 206 216 Other 74 36 Total $1,304 $1,419 Deferred income tax liabilities – net ($406) ($449) Net operating loss and credit carryforwards ($ in millions) 2022 2021 Expiration Available net operating loss carryforwards, tax effected: Indefinite expiration $84 $106 NA Definite expiration 66 77 2023-2042 Total $150 $183 Income tax credit carryforwards $89 $115 2023-2042 A valuation allowance of $182 million and $172 million has been established for carry-forwards and certain other items at December 31, 2022 and 2021, respectively, when the ability to utilize them is not likely. Undistributed foreign earnings The Company had $4.6 billion of undistributed earnings of non-U.S. subsidiaries as of December 31, 2022. This amount relates to approximately 280 subsidiaries in approximately 80 taxable jurisdictions. The Company estimates repatriation of undistributed earnings of non-U.S. subsidiaries as of December 31, 2022 would result in a tax cost o f $101 million. As of December 31, 2022, the Company had not changed its intention to reinvest foreign earnings indefinitely or repatriate when it is tax effective to do so, and as such, has not established a liability for foreign withholding taxes or other costs that would be incurred if the earnings were repatriated. Unrecognized tax benefits The Company files federal, state and local income tax returns in numerous domestic and foreign jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. The Company is no longer subject to examinations by tax authorities in any major tax jurisdiction for years before 2008. Additionally, the Company is no longer subject to examination by the Internal Revenue Service for U.S. federal income tax returns filed for years through 2016. The examinations of the Company’s U.S. federal income tax returns for 2017 and 2018 are currently underway. A reconciliation of the total amounts of unrecognized tax benefits (excluding interest and penalties) as of December 31 follows: ($ in millions) 2022 2021 2020 January 1 $158 $175 $167 Current year tax positions - additions 19 12 25 Prior year tax positions - additions 2 10 5 Prior year tax positions - reductions (2) (2) (2) Statute of limitations expirations (23) (19) (8) Settlements (3) (21) (11) Foreign currency translation (6) 3 (1) December 31 $145 $158 $175 The Company expects that any reasonably possible change in the amount of unrecognized tax benefits in the next 12 months would not be significant. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $120 million as of December 31, 2022. Interest and penalties ($ in millions) 2022 2021 2020 Accrued interest and penalties related to unrecognized tax benefits $17 $17 $18 Loss/(income) recognized in income tax expense related to interest and penalties $1 ($2) $2 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plans PPG has defined benefit pension plans that cover certain employees worldwide. The principal defined benefit pension plans are those in the U.S., Canada, Germany, the Netherlands and the U.K. These plans in the aggregate represent approximately 95% of PPG’s total projected benefit obligation at December 31, 2022, of which the U.S. defined benefit pension plans represent the largest component. As of January 1, 2006, the Company’s U.S. salaried defined benefit plans were closed to new entrants. In 2011 and 2012, the Company approved amendments related to its U.S. and Canadian defined benefit plans pursuant to which employees stopped accruing benefits at certain dates based on the affected employee’s combined age and years of service to PPG. As of December 31, 2020, the Company’s U.S. and Canadian defined benefit plans were frozen for all participants. The Company plans to continue reviewing and potentially amending PPG defined benefit plans in the future. Canadian pension annuity contracts In December 2021, the Company purchased group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in Canada who were receiving their monthly retirement benefit payments from PPG’s Canadian pension plans to a third-party insurance company. The amount of each affected retiree’s annuity payment is equal to the amount of such individual’s pension benefit. The purchase of group annuity contracts was funded directly by the assets of the Canadian plans. By transferring the obligations and assets to the insurance company, the Company reduced its overall pension projected benefit obligation by approximately $175 million and recognized a non-cash pension settlement charge of $50 million in the consolidated statement of income for the year ended December 31, 2021. Postretirement medical PPG sponsors welfare benefit plans that provide postretirement medical and life insurance benefits for certain U.S. and Canadian employees and their dependents of which the U.S. welfare benefit plans represent approximately 87% of PPG’s total projected benefit obligation at December 31, 2022. Salaried and certain hourly employees in the U.S. hired on or after October 1, 2004, or rehired on or after October 1, 2012 are not eligible for postretirement medical benefits. These plans in the U.S. and Canada require retiree contributions based on retiree-selected coverage levels for certain retirees and their dependents and provide for sharing of future benefit cost increases between PPG and participants based on management discretion. The Company has the right to modify, amend or terminate certain of these benefit plans in the future. Effective January 1, 2017, the Company-sponsored Medicare-eligible plans were replaced by a Medicare private exchange. The announcement of this plan design change triggered a remeasurement of PPG’s retiree medical benefit obligation using prevailing interest rates. The plan design change resulted in a $306 million reduction in the Company's postretirement benefit obligation. PPG accounted for the plan design change prospectively, and the impact was amortized to periodic postretirement benefit cost over a 5.6 year period through mid-2022. The following table sets forth the changes in projected benefit obligations (“PBO”), plan assets, the funded status and the amounts recognized on the accompanying consolidated balance sheet for the Company’s defined benefit pension and other postretirement benefit plans: Defined Benefit Pension Plans United States International Total PPG ($ in millions) 2022 2021 2022 2021 2022 2021 Projected benefit obligation, January 1 $1,920 $2,042 $1,614 $1,933 $3,534 $3,975 Service cost — — 9 9 9 9 Interest cost 45 39 28 26 73 65 Actuarial gains (449) (72) (485) (91) (934) (163) Benefits paid (91) (89) (49) (60) (140) (149) Acquisitions — — — 48 — 48 Foreign currency translation adjustments — — (126) (51) (126) (51) Settlements and curtailments — — (22) (198) (22) (198) Other — — (8) (2) (8) (2) Projected benefit obligation, December 31 $1,425 $1,920 $961 $1,614 $2,386 $3,534 Market value of plan assets, January 1 $1,329 $1,335 $1,646 $1,881 $2,975 $3,216 Actual return on plan assets (228) 66 (506) 42 (734) 108 Company contributions — — 11 10 11 10 Benefits paid (73) (72) (41) (51) (114) (123) Acquisitions — — — 3 — 3 Plan settlements — — (22) (198) (22) (198) Foreign currency translation adjustments — — (140) (38) (140) (38) Other — — (2) (3) (2) (3) Market value of plan assets, December 31 $1,028 $1,329 $946 $1,646 $1,974 $2,975 Funded Status ($397) ($591) ($15) $32 ($412) ($559) Amounts recognized in the Consolidated Balance Sheet: Other assets (long-term) — — 183 310 183 310 Accounts payable and accrued liabilities (17) (23) (12) (12) (29) (35) Accrued pensions (380) (568) (186) (266) (566) (834) Net (liability)/asset recognized ($397) ($591) ($15) $32 ($412) ($559) Other Postretirement Benefit Plans United States International Total PPG ($ in millions) 2022 2021 2022 2021 2022 2021 Projected benefit obligation, January 1 $631 $682 $93 $104 $724 $786 Service cost 8 11 — 1 8 12 Interest cost 13 12 3 2 16 14 Actuarial gains (154) (33) (20) (10) (174) (43) Benefits paid (40) (41) (4) (4) (44) (45) Foreign currency translation adjustments — — (6) — (6) — Projected benefit obligation, December 31 $458 $631 $66 $93 $524 $724 Amounts recognized in the Consolidated Balance Sheet: Accounts payable and accrued liabilities (44) (47) (4) (5) (48) (52) Other postretirement benefits (414) (584) (62) (88) (476) (672) Net liability recognized ($458) ($631) ($66) ($93) ($524) ($724) The PBO is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation (“ABO”) is the actuarial present value of benefits attributable to employee service rendered to date, but does not include the effects of estimated future pay increases. The ABO for all defined benefit pension plans as of December 31, 2022 and 2021 was $2.3 billion and $3.5 billion, respectively. The following table details the pension plans where the benefit liability exceeds the fair value of the plan assets: Pensions ($ in millions) 2022 2021 Plans with PBO in Excess of Plan Assets: Projected benefit obligation $1,863 $2,232 Fair value of plan assets $1,270 $1,366 Plans with ABO in Excess of Plan Assets: Accumulated benefit obligation $1,833 $2,197 Fair value of plan assets $1,266 $1,362 Net actuarial losses/(gains) and prior service cost/(credit) deferred in accumulated other comprehensive loss Pensions Other Postretirement Benefits ($ in millions) 2022 2021 2022 2021 Accumulated net actuarial losses/(gains) $748 $857 ($16) $170 Accumulated prior service cost/(credit) — 5 (10) (21) Total $748 $862 ($26) $149 The accumulated net actuarial losses (gains) for pensions and other postretirement benefits relate primarily to historical changes in the discount rates. The accumulated net actuarial losses exceeded 10% of the higher of the market value of plan assets or the PBO at the beginning of each of the last three years; therefore, amortization of such excess has been included in net periodic benefit costs for pension and other postretirement benefits in these periods. The amortization period is the average remaining service period of active employees expected to receive benefits unless a plan is mostly inactive in which case the amortization period is the average remaining life expectancy of the plan participants. Accumulated prior service cost (credit) is amortized over the future service periods of those employees who are active at the dates of the plan amendments and who are expected to receive benefits. The net decrease in Accumulated other comprehensive loss (pretax) in 2022 relating to defined benefit pension and other postretirement benefits is primarily attributable to pension and other postretirement plan discount rate increases, as follows: ($ in millions) Pensions Other Postretirement Benefits Net actuarial gain arising during the year ($60) ($174) New prior service cost (5) — Amortization of actuarial loss (34) (12) Amortization of prior service credit — 11 Foreign currency translation adjustments (9) — Impact of settlements (6) — Net decrease ($114) ($175) The 2022 net actuarial gain related to the Company’s pension and other postretirement benefit plans was primarily due to an increase in the weighted average discount rate used to determine the benefit obligation at December 31, 2022. Net periodic benefit (income)/cost Pensions Other Postretirement Benefits ($ in millions) 2022 2021 2020 2022 2021 2020 Service cost $9 $9 $24 $8 $12 $10 Interest cost 73 65 87 16 14 20 Expected return on plan assets (140) (152) (144) — — — Amortization of prior service credit — — — (11) (54) (59) Amortization of actuarial losses 34 39 71 12 20 15 Settlements, curtailments, and special termination benefits 6 53 18 — — — Net periodic benefit (income)/cost ($18) $14 $56 $25 ($8) ($14) Service cost for net periodic pension and other postretirement benefit costs is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying consolidated statements of income. Except for the Canadian pension settlement charge in 2021, all other components of net periodic benefit cost are recorded in Other (income)/charges, net in the accompanying consolidated statements of income. Key assumptions The following weighted average assumptions were used to determine the benefit obligation for the Company’s defined benefit pension and other postretirement plans as of December 31, 2022 and 2021: United States International Total PPG 2022 2021 2022 2021 2022 2021 Discount rate 5.4 % 2.8 % 4.9 % 2.0 % 5.2 % 2.5 % Rate of compensation increase 2.5 % 2.5 % 3.1 % 2.8 % 2.7 % 2.6 % The following weighted average assumptions were used to determine the net periodic benefit cost for the Company’s defined benefit pension and other postretirement benefit plans for the three years in the period ended December 31, 2022: 2022 2021 2020 Discount rate 2.5 % 2.1 % 2.8 % Expected return on assets 5.0 % 4.8 % 5.0 % Rate of compensation increase 2.6 % 1.5 % 2.6 % These assumptions for each plan are reviewed on an annual basis. In determining the expected return on plan asset assumption, the Company evaluates the mix of investments that comprise each plan’s assets and external forecasts of future long-term investment returns. The Company compares the expected return on plan assets assumption to actual historic returns to ensure reasonability. For 2022, the return on plan assets assumption for PPG’s U.S. defined benefit pension plans was 7.4%. A change in the rate of return of 75 basis points, with other assumptions held constant, would impact 2023 net periodic pension expense by $8 million. The global expected return on plan assets assumption to be used in determining 2023 net periodic pension expense will be 6.5% (7.4% for the U.S. plans only). The discount rates used in accounting for pension and other postretirement benefits are determined using a yield curve constructed of high-quality fixed-income securities as of the measurement date and using the plans’ projected benefit payments. The Company has elected to use a full yield curve approach in the estimation of the service and interest cost components of net periodic pension benefit cost (income) for countries with significant pension plans. The full yield curve approach (also known as the split-rate or spot-rate method) allows the Company to align the applicable discount rates with the cost of additional service being earned and the interest being accrued on these obligations. A change in the discount rate of 75 basis points, with all other assumptions held constant, would impact 2023 net periodic benefit expense for our defined benefit pension and other postretirement benefit plans by $5 million and $1 million, respectively. The weighted-average health care cost trend rate (inflation) used for 2022 was 5.4% declining to a projected 4.0% in the year 2046. For 2023, the assumed weighted-average health care cost trend rate used will be 5.8% declining to a projected 3.9% between 2023 and 2047 for medical and prescription drug costs, respectively. These assumptions are reviewed on an annual basis. In selecting rates for current and long-term health care cost assumptions, the Company takes into consideration a number of factors, including the Company’s actual health care cost increases, the design of the Company’s benefit programs, the demographics of the Company’s active and retiree populations and external expectations of future medical cost inflation rates. Contributions to defined benefit pension plans ($ in millions) 2022 2021 2020 Non-U.S. defined benefit pension plans $11 $10 $17 Contributions made to PPG’s non-U.S. defined benefit pension plans in 2022, 2021, and 2020 were required by local funding requirements. PPG expects to make contributions to its defined benefit pension plans in the range of $10 million to $20 million in 2023. PPG may make voluntary contributions to its defined benefit pension plans in 2023 and beyond. Benefit payments The estimated benefits expected to be paid under the Company’s defined benefit pension and other postretirement benefit plans are: ($ in millions) Pensions Other Postretirement Benefits 2023 $148 $48 2024 $166 $47 2025 $153 $46 2026 $157 $43 2027 $160 $42 2028 to 2032 $825 $192 Plan assets Each PPG sponsored defined benefit pension plan is managed in accordance with the requirements of local laws and regulations governing defined benefit pension plans for the exclusive purpose of providing pension benefits to participants and their beneficiaries. Investment committees comprised of PPG managers have fiduciary responsibility to oversee the management of pension plan assets by third party asset managers. Pension plan assets are held in trust by financial institutions and managed on a day-to-day basis by the asset managers. The asset managers receive a mandate from each investment committee that is aligned with the asset allocation targets established by each investment committee to achieve the plan’s investment strategies. The performance of the asset managers is monitored and evaluated by the investment committees throughout the year. Pension plan assets are invested to generate investment earnings over an extended time horizon to help fund the cost of benefits promised under the plans while mitigating investment risk. The asset allocation targets established for each pension plan are intended to diversify the investments among a variety of asset categories and among a variety of individual securities within each asset category to mitigate investment risk and provide each plan with sufficient liquidity to fund the payment of pension benefits to retirees. The following summarizes the weighted average target pension plan asset allocation as of December 31, 2022 and 2021 for all PPG defined benefit plans: Asset Category 2022 2021 Equity securities 15-45% 15-45% Debt securities 30-65% 30-65% Real estate 0-10% 0-10% Other 20-40% 20-40% The fair values of the Company’s pension plan assets at December 31, 2022 and 2021, by asset category, are as follows: December 31, 2022 December 31, 2021 ($ in millions) Level 1 (1) Level 2 (1) Level 3 (1) Total Level 1 (1) Level 2 (1) Level 3 (1) Total Asset Category Equity securities: U.S. Large cap $66 $43 $— $109 $79 $78 $— $157 Small cap 25 — — 25 48 — — 48 Non-U.S. Developed and emerging markets (2) 99 43 — 142 130 76 — 206 Debt securities: Cash and cash equivalents 7 47 — 54 8 42 — 50 Corporate (3) U.S. (4) — 168 80 248 — 232 100 332 Developed and emerging markets (2) — 1 — 1 — 1 — 1 Diversified (5) — 13 — 13 — 57 — 57 Government U.S. (4) 49 10 — 59 68 13 — 81 Developed and emerging markets (2) — 6 — 6 — 10 — 10 Other (6) — — 235 235 — — 367 367 Real estate, hedge funds, and other — 275 362 637 — 562 487 1,049 Total assets in the fair value hierarchy $246 $606 $677 $1,529 $333 $1,071 $954 $2,358 Common-collective trusts (7) — — — 445 — — — 617 Total Investments $246 $606 $677 $1,974 $333 $1,071 $954 $2,975 (1) These levels refer to the accounting guidance on fair value measurement described in Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements.” (2) These amounts represent holdings in investment grade debt or equity securities of issuers in both developed markets and emerging economies. (3) This category represents investment grade debt securities from a diverse set of industry issuers. (4) These investments are primarily long duration fixed income securities. (5) This category represents commingled funds invested in diverse portfolios of debt securities. (6) This category includes mortgage-backed and asset backed debt securities, municipal bonds and other debt securities including derivatives. (7) Certain investments that are measured at net asset value per share (or its equivalent) are not required to be classified in the fair value hierarchy. The change in the fair value of the Company’s Level 3 pension assets for the years ended December 31, 2022 and 2021 was as follows: ($ in millions) Real Estate Other Debt Securities Hedge Funds and Other Assets Total January 1, 2021 $124 $421 $371 $916 Realized gains/(losses) 3 (11) 9 1 Unrealized gains 22 — 8 30 Transfers in/(out), net 8 (14) 44 38 Foreign currency losses — (29) (2) (31) December 31, 2021 $157 $367 $430 $954 Realized gains/(losses) 1 (99) (1) (99) Unrealized gains/(losses) 6 — (3) 3 Transfers out, net (10) (12) (100) (122) Foreign currency losses (5) (21) (33) (59) December 31, 2022 $149 $235 $293 $677 Real estate properties are externally appraised at least annually by reputable, independent appraisal firms. Property valuations are also reviewed on a regular basis and are adjusted if there has been a significant change in circumstances related to the property since the last valuation. Other debt securities consist of insurance contracts, which are valued externally by insurance companies based on the present value of the expected future cash flows. Hedge funds consist of a wide range of investments which target a relatively stable investment return. The underlying funds are valued at different frequencies, some monthly and some quarterly, based on the value of the underlying investments. Other assets consist primarily of small investments in private equity funds and senior secured debt obligations of non-investment grade borrowers. Other Plans Employee savings plans PPG’s Employee Savings Plans (“Savings Plans”) cover substantially all employees in the U.S., Puerto Rico and Canada. The Company makes matching contributions to the Savings Plans, at management’s discretion, based upon participants’ savings, subject to certain limitations. For most participants, Company-matching contributions are established each year at the discretion of the Company and are applied to participant accounts up to a maximum of 6% of eligible participant compensation. The Company-matching contribution remained at 100% for 2022. Compensation expense and cash contributions related to the Company match of participant contributions to the Savings Plans for 2022, 2021, and 2020 totaled $56 million, $52 million and $50 million, respectively. A portion of the Savings Plans qualifies under the Internal Revenue Code as an Employee Stock Ownership Plan. Accordingly, dividends received on PPG shares held in that portion of the Savings Plans totaling $11 million, $10 million, and $11 million for 2022, 2021, and 2020, respectively, are deductible for PPG’s U.S. Federal tax purposes. Defined contribution plans Additionally, the Company has defined contribution plans for certain employees in the U.S., China, United Kingdom, Australia, Italy and other countries. The U.S. defined contribution plan is part of the Employee Savings Plan, and eligible employees receive a contribution equal to between 2% and 5% of annual compensation, based on age and years of service. For the years ended December 31, 2022, 2021 and 2020, the Company recognized expense for its defined contribution retirement plans of $92 million, $88 million and $64 million, respectively. The Company’s annual cash contributions to its defined contribution retirement plans approximated the expense recognized in each year. Deferred compensation plan The Company has a deferred compensation plan for certain key managers which allows them to defer a portion of their compensation in a phantom PPG stock account or other phantom investment accounts. The amount deferred earns a return based on the investment options selected by the participant. The amount owed to participants is an unfunded and unsecured general obligation of the Company. Upon retirement, death, disability, termination of employment, scheduled payment or unforeseen emergency, the compensation deferred and related accumulated earnings are distributed in accordance with the participant’s election in cash or in PPG stock, based on the accounts selected by the participant. The plan provides participants with investment alternatives and the ability to transfer amounts between the phantom non-PPG stock investment accounts. To mitigate the impact on compensation expense of changes in the market value of the liability, the Company has purchased a portfolio of marketable securities that mirror the phantom non-PPG stock investment accounts selected by the participants, except the money market accounts. These investments are carried by PPG at fair market value, and the changes in market value of these securities are also included in Income before income taxes in the consolidated statement of income. Trading occurs in this portfolio to align the securities held with the participant’s phantom non-PPG stock investment accounts, except the money market accounts. The cost of the deferred compensation plan, comprised of dividend equivalents accrued on the phantom PPG stock account, investment income and the change in market value of the liability, was $23 million, $20 million and $25 million in 2022, 2021 and 2020, respectively. These amounts are included in Selling, general and administrative in the consolidated statements of income. The change in market value of the investment portfolio was income of $24 million, $18 million, and $24 million in 2022, 2021 and 2020, respectively, and is also included in Selling, general and administrative in the consolidated statements of income. The Company’s obligations under this plan, which are included in Accounts payable and accrued liabilities and Other liabilities on the consolidated balance sheet, totaled $105 million and $139 million as of December 31, 2022 and 2021, respectively, and the investments in marketable securities, which are included in Investments and Other current assets on the accompanying consolidated balance sheet, were $70 million and $104 million as of December 31, 2022 and 2021, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, antitrust, employment and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury, property damage and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers may contest coverage with respect to some claims in the future. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters. The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Asbestos Matters As of December 31, 2022, the Company was aware of certain asbestos-related claims pending against the Company and certain of its subsidiaries. The Company is defending these asbestos-related claims vigorously. The asbestos-related claims consist of claims against the Company alleging: • exposure to asbestos or asbestos-containing products manufactured, sold or distributed by the Company or its subsidiaries (“Products Claims”); • personal injury caused by asbestos on premises presently or formerly owned, leased or occupied by the Company (“Premises Claims”); and • asbestos-related claims against a subsidiary the Company acquired in 2013 (“Subsidiary Claims”). The Company monitors and reviews the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. Additionally, as a supplement to its periodic monitoring and review, the Company conducts discussions with counsel and engages valuation consultants to analyze its claims history and estimate the amount of the Company’s potential liability for asbestos-related claims. In 2022, no adjustments to the Company’s estimate of its asbestos-related liabilities were required. In 2021, based on the results of the Company’s valuation analysis, the Company reduced its estimate of potential liability for Products Claims by $146 million. The 2021 valuation analysis with respect to Products Claims was based, in part, upon a review of claims data following the expiration in May 2016 of the U.S. Bankruptcy Court’s injunction staying most asbestos claims against the Company that had been in effect since April 2000; annual filings by disease and year; pending, paid and dismissed claims; indemnity cash flows; and estimates of future claim, indemnity and acceptance rates. The Company also adjusted its estimates of potential liability for Premises Claims and Subsidiary Claims in the fourth quarter of 2021. As a result of the Company’s 2021 review of its asbestos-related liabilities, income of $133 million was recorded in the consolidated statement of income to reduce the reserve to reflect the Company’s current estimate of potential liability for asbestos-related bodily injury claims through December 31, 2057. As of December 31, 2022 and 2021, the Company’s asbestos-related reserves totaled $51 million and $54 million, respectively. The Company believes that, based on presently available information, the total reserves of $51 million for asbestos-related claims will be sufficient to encompass all of the Company’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying consolidated balance sheets, involve significant management judgment and represent the Company’s current best estimate of its liability for these claims. The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) whether closed, dismissed or dormant claims are reinstituted, reinstated or revived; (iii) the amounts required to resolve both currently known and future unknown claims; (iv) the amount of insurance, if any, available to cover such claims; (v) the unpredictable aspects of the tort system, including a changing trial docket and the jurisdictions in which trials are scheduled; (vi) the outcome of any trials, including potential judgments or jury verdicts; (vii) the lack of specific information in many cases concerning exposure for which the Company is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (viii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. While the ultimate outcome of the Company’s asbestos litigation cannot be predicted with certainty, the Company believes that any financial exposure resulting from its asbestos-related claims will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations. Environmental Matters In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time. As remediation at certain environmental sites progresses, PPG continues to refine its assumptions underlying the estimates of the expected future costs of its remediation programs. PPG’s ongoing evaluation may result in additional charges against income to adjust the reserves for these sites. In 2022, 2021 and 2020, certain charges have been recorded based on updated estimates to increase existing reserves for these sites. Certain other charges related to environmental remediation actions are expensed as incurred. As of December 31, 2022 and 2021, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, New Jersey (“New Jersey Chrome”), glass and chemical manufacturing sites, and for other environmental contingencies, including current manufacturing locations and National Priority List sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying consolidated balance sheet. Environmental Reserves ($ in millions) 2022 2021 New Jersey Chrome $58 $89 Glass and chemical 60 83 Other 99 110 Total $217 $282 Current Portion $50 $97 Pretax charges against income for environmental remediation costs are included in Other (income)/charges, net in the accompanying consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation in 2022, 2021 and 2020, were as follows: ($ in millions) 2022 2021 2020 New Jersey Chrome $— $25 $15 Glass and chemical 3 12 15 Other 10 7 8 Total $13 $44 $38 Cash outlays for environmental spending $78 $56 $60 In the fourth quarter 2021, PPG released an environmental reserve previously established at the time of the sale of the flat glass business under the terms of the separation agreement, resulting in recognition of $25 million of income from discontinued operations, or $19 million net of tax. The Company continues to analyze, assess and remediate the environmental issues associated with New Jersey Chrome as further discussed below. Excluding the charges related to New Jersey Chrome, pretax charges against income for environmental remediation have ranged between approximately $5 million and $35 million per year for the past 10 years. Management expects cash outlays for environmental remediation costs to range from $40 million to $60 million in 2023, and $20 million to $75 million annually from 2024 through 2027. Actual future cash outlays may vary from expected future cash outlays and actual future costs may vary from accrued estimates due to the inherent uncertainties involved in estimating future environmental remediation costs, including possible technological, regulatory and enforcement developments, the results of environmental studies and other factors. Specifically, the level of expected future remediation costs and cash outlays is highly dependent upon activity related to New Jersey Chrome as discussed below. Remediation: New Jersey Chrome In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and a number of additional surrounding sites. Remediation of the New Jersey Chrome sites requires PPG to remediate soil and groundwater contaminated by hexavalent chromium, as well as perform certain other environmental remediation activities. The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites relate to the extent and concentration of chromium in the soil. PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non-hazardous soils, daily soil excavation rates, and engineering, administrative and other associated costs. Based on these assessments, the reserve is adjusted accordingly. As of December 31, 2022 and 2021, PPG’s reserve for remediation of all New Jersey Chrome sites was $58 million and $89 million, respectively. The major cost components of this liability are related to excavation of impacted soil, as well as groundwater remediation. These components each account for approximately 65% and 15% of the amount accrued at December 31, 2022, respectively. There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Further resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will continue to be adjusted. Remediation: Glass, Chemicals and Other Sites Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a chemical manufacturing site in Barberton, Ohio where PPG has completed a Facility Investigation and Corrective Measure Study under the United States Environmental Protection Agency's Resource Conservation and Recovery Act Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations. With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites. Remediation: Reasonably Possible Matters In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million. Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them. The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity A class of 10 million shares of preferred stock, without par value, is authorized but unissued. Common stock has a par value of $1.66 2 / 3 per share; 1.2 billion shares are authorized. Common Stock Treasury Stock Shares Outstanding January 1, 2020 581,146,136 (345,465,666) 235,680,470 Issuances — 1,005,795 1,005,795 December 31, 2020 581,146,136 (344,459,871) 236,686,265 Purchases — (1,521,765) (1,521,765) Issuances — 742,526 742,526 December 31, 2021 581,146,136 (345,239,110) 235,907,026 Purchases — (1,269,830) (1,269,830) Issuances — 436,730 436,730 December 31, 2022 581,146,136 (346,072,210) 235,073,926 Per share cash dividends paid were $2.42, $2.26 and $2.10 in 2022, 2021 and 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss (AOCL) ($ in millions) Foreign Currency Translation Adjustments (1) Pension and Other Postretirement Benefit Adjustments, net of tax (2) Unrealized Gain on Derivatives, net of tax Accumulated Other Comprehensive Loss January 1, 2020 ($1,627) ($724) $1 ($2,350) Current year deferrals to AOCL (36) (237) — (273) Reclassifications from AOCL to net income — 24 — 24 December 31, 2020 ($1,663) ($937) $1 ($2,599) Current year deferrals to AOCL (325) 132 — (193) Reclassifications from AOCL to net income — 42 — 42 December 31, 2021 ($1,988) ($763) $1 ($2,750) Current year deferrals to AOCL (301) 175 — (126) Reclassifications from AOCL to net income 35 31 — 66 December 31, 2022 ($2,254) ($557) $1 ($2,810) (1) The tax cost/(benefit) related to unrealized foreign currency translation adjustments on net investment hedges as of December 31, 2022, 2021 and 2020 was $73 million, $55 million and $(6) million, respectively. (2) The tax cost/(benefit) related to the adjustment for pension and other postretirement benefits as of December 31, 2022, 2021 and 2020 was $83 million, $48 million and $(70) million, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit costs (see Note 14, “Employee Benefit Plans"). |
Other (Income)_Charges, Net
Other (Income)/Charges, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Earnings | Other (Income)/Charges, Net ($ in millions) 2022 2021 2020 Gain on sale of assets (1) ($10) ($47) ($5) Royalty income (8) (8) (7) Share of net earnings of equity affiliates (See Note 5) (25) (15) (8) Income from legal settlements — (22) — Other, net (17) (51) 56 Total (income)/charges, net ($60) ($143) $36 (1) In 2021, PPG recognized a $34 million gain on the sale of a production facility in connection with the Company’s manufacturing footprint consolidation plans and associated restructuring programs. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. ($ in millions) 2022 2021 2020 Total stock-based compensation $35 $57 $44 Income tax benefit recognized $8 $12 $10 Stock Options PPG has outstanding stock option awards that have been granted under the PPG Amended Omnibus Plan. Under the PPG Amended Omnibus Plan, certain employees of the Company have been granted options to purchase shares of common stock at prices equal to the fair market value of the shares on the date the options were granted. The options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Upon exercise of a stock option, shares of Company stock are issued from treasury stock. The fair value of stock options issued to employees is measured on the date of grant and is recognized as expense, net of estimated forfeitures, over the requisite service period. PPG estimates the fair value of stock options using the Black-Scholes option pricing model. The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected life of options is calculated using the average of the vesting term and the maximum term, as prescribed by accounting guidance on the use of the simplified method for determining the expected term of an employee share option. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options. PPG applies an estimated forfeiture rate that is calculated based on historical activity. The following weighted average assumptions were used to calculate the fair values of stock option grants in each year: 2022 2021 2020 Weighted average exercise price $151.87 $136.60 $119.52 Risk-free interest rate 2.0 % 1.0 % 1.6 % Expected life of option in years 6.5 6.5 6.5 Expected dividend yield 1.6 % 1.6 % 1.5 % Expected volatility 25.7 % 25.3 % 20.0 % The weighted average fair value of options granted was $36.52 per share, $29.27 per share and $21.93 per share for the years ended December 31, 2022, 2021, and 2020, respectively. Stock Options Outstanding and Exercisable Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Intrinsic Value (in millions) Outstanding, January 1, 2022 3,340,402 $110.98 6.1 Granted 487,277 $151.87 Exercised (158,837) $77.24 Forfeited/Expired (151,391) $134.34 Outstanding, December 31, 2022 3,517,451 $117.16 5.7 $47 Vested or expected to vest, December 31, 2022 3,444,650 $116.57 5.6 $47 Exercisable, December 31, 2022 2,039,716 $104.58 4.0 $43 At December 31, 2022, unrecognized compensation cost related to outstanding stock options that have not yet vested totaled $7 million. This cost is expected to be recognized as expense over a weighted average period of 1.4 years. The following table presents stock option activity for the years ended December 31, 2022, 2021 and 2020: ($ in millions) 2022 2021 2020 Total intrinsic value of stock options exercised $12 $32 $31 Cash received from stock option exercises $12 $47 $54 Income tax benefit from the exercise of stock options $3 $8 $7 Total fair value of stock options vested $16 $11 $11 Restricted Stock Units (“RSUs”) Long-term incentive value is delivered to selected key management employees by granting RSUs, which have either time or performance-based vesting features. The fair value of an RSU is equal to the market value of a share of PPG common stock on the date of grant. Time-based RSUs generally vest over the three three three three The amount paid upon vesting of performance-based RSUs may range from 0% to 200% of the original grant, based upon the level of earnings per share growth achieved and frequency with which the annual cash flow return on capital performance target is met over the three RSU Activity Number of Shares Weighted Average Grant Date Fair Value Outstanding, January 1, 2022 622,055 $125.92 Granted 232,050 $147.77 Vested (199,642) $147.36 Forfeited (65,075) $122.60 Outstanding, December 31, 2022 589,388 $136.99 Vested or expected to vest, December 31, 2022 563,900 $136.67 There was $20 million of total unrecognized compensation cost related to unvested RSUs outstanding as of December 31, 2022. This cost is expected to be recognized as expense over a weighted average period of 1.5 years. Contingent Share Grants The Company also provides grants of contingent shares to selected key executives that may be earned based on PPG’s total shareholder return (“TSR”) over the three three three three The performance period for the TSR shares granted in 2020 ended on December 31, 2022, and PPG’s total shareholder return was measured against that of the S&P 500 over the three As of December 31, 2022, there was $2 million of total unrecognized compensation cost related to outstanding TSR awards based on the current estimate of fair value. This cost is expected to be recognized as expense over a weighted average period of 2.0 years. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations. The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the years ended December 31, 2022, 2021 and 2020, service revenue constituted less than 5% of total revenue. Net sales by segment and region for the years ended December 31, 2022, 2021 and 2020 were as follows: ($ in millions) 2022 2021 2020 Performance Coatings United States and Canada $4,718 $4,366 $3,673 EMEA 3,550 3,582 2,861 Asia Pacific 1,118 1,254 1,015 Latin America 1,308 1,131 946 Total $10,694 $10,333 $8,495 Industrial Coatings United States and Canada $2,666 $2,310 $1,995 EMEA 1,908 1,854 1,467 Asia Pacific 1,705 1,723 1,416 Latin America 679 582 461 Total $6,958 $6,469 $5,339 Total Net Sales (1) United States and Canada (2) $7,384 $6,676 $5,668 EMEA 5,458 5,436 4,328 Asia Pacific 2,823 2,977 2,431 Latin America 1,987 1,713 1,407 Total PPG $17,652 $16,802 $13,834 (1) Net sales to external customers are attributed to geographic regions based upon the location of the operating unit shipping the product. (2) Net sales recognized in the United States represented 38%, 36%, and 37% of the Company’s total Net sales for the years ended December 31, 2022, 2021 and 2020, respectively. Allowance for Doubtful Accounts All trade receivables are reported on the consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks. PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions. The following table summarizes allowance for doubtful accounts activity for the years ended December 31, 2022 and 2021: Trade Receivables Allowance for Doubtful Accounts ($ in millions) 2022 2021 January 1 $31 $44 Bad debt expense 52 19 Recoveries of previously reserved trade receivables (55) (14) Other 3 (18) December 31 $31 $31 In the first quarter 2022, PPG recorded a bad debt reserve of $43 million associated with the adverse economic impacts of the Russian invasion of Ukraine. Subsequently, the Company released a portion of this previously established bad debt reserve due to the collection of certain trade receivables, resulting in a bad debt reserve related to PPG's operations in Russia of $11 million at December 31, 2022. Refer to Note 7, "Impairment and Other Related Charges, Net" for additional information. |
Reportable Business Segment Inf
Reportable Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Business Segment Information | Reportable Business Segment Information Segment Organization and Products 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 Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution. The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, architectural coatings – Americas and Asia Pacific, architectural coatings – EMEA, protective and marine coatings and traffic solutions operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings, sealants and finishes, along with paint strippers, stains and related chemicals, pavement marking products, transparencies and transparent armor. The Industrial Coatings reportable business segment is comprised of the automotive OEM coatings, industrial coatings, packaging coatings, and the specialty coatings and materials 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, precipitated silicas and other specialty materials. Production facilities and sales for Performance Coatings and Industrial Coatings are global. PPG’s reportable business segments continue 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 our 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. 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”). The Company allocates resources to operating segments and evaluates the performance of operating segments based upon segment income, which is income before interest expense – net, 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 reduction, selling price increases and sales volume growth. 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 the Corporate unallocated costs. Product movement between Performance Coatings and Industrial Coatings 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) 2022 2021 2020 Net sales to external customers Performance Coatings $10,694 $10,333 $8,495 Industrial Coatings 6,958 6,469 5,339 Total Net sales $17,652 $16,802 $13,834 Segment income Performance Coatings $1,399 $1,491 $1,359 Industrial Coatings 643 680 750 Total Segment income $2,042 $2,171 $2,109 Corporate / Non-Segment Items Corporate unallocated (218) (194) (233) Interest expense, net of interest income (113) (95) (115) Impairment and other related charges, net (1) (245) (21) (93) Business restructuring-related costs, net (2) (75) (27) (224) Transaction-related costs, net (3) (10) (86) (9) Pension settlement charge — (50) — Environmental remediation charges, net — (35) (26) Expense incurred due to natural disasters (4) — (17) (17) Change in allowance for doubtful accounts related to COVID-19 — 14 (30) Income from legal settlements — 22 — Asbestos-related claims reserve adjustment (5) — 133 — Total Income before income taxes $1,381 $1,815 $1,362 ($ in millions) 2022 2021 2020 Depreciation and amortization Performance Coatings $296 $308 $251 Industrial Coatings 207 212 200 Corporate / Non-Segment Items 51 41 58 Total $554 $561 $509 Share of net earnings of equity affiliates Performance Coatings $7 $5 $3 Corporate / Non-Segment Items 18 10 5 Total $25 $15 $8 Segment assets (6) Performance Coatings $13,088 $13,395 $11,551 Industrial Coatings 5,802 5,807 5,040 Corporate / Non-Segment Items 1,854 2,149 2,965 Total $20,744 $21,351 $19,556 Investment in equity affiliates Performance Coatings $42 $33 $31 Industrial Coatings 15 15 15 Corporate / Non-Segment Items 77 78 74 Total $134 $126 $120 Expenditures for property (including business acquisitions) Performance Coatings $254 $1,698 $1,293 Industrial Coatings 313 784 166 Corporate / Non-Segment Items 65 26 14 Total $632 $2,508 $1,473 ($ in millions) 2022 2021 2020 Geographic Information Segment income United States and Canada $819 $865 $855 EMEA 505 612 572 Asia Pacific 332 354 382 Latin America 386 340 300 Total $2,042 $2,171 $2,109 Property, plant and equipment — net United States and Canada $1,394 $1,377 $1,351 EMEA 943 1,069 857 Asia Pacific 685 702 623 Latin America 306 294 296 Total $3,328 $3,442 $3,127 (1) In the first quarter 2022, the Company recorded impairment and other related charges due to the wind down of the company’s operations in Russia. Subsequently, the Company released a portion of the previously established reserves for Receivables and Inventories due to the collection of certain trade receivables and the realization of certain inventories. Also in 2022, impairment and other related charges were recorded for the write-down of certain assets and liabilities related to the planned sale of a non-core business and for certain asset write downs. In 2021 and 2020, 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. Also in 2020, an impairment charge was recorded to reduce the carrying value of an indefinite-lived trademark. (2) Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs and 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) Transaction-related costs, net include advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the statement of income. Acquisition-related costs, net also include the impact for the step up to fair value of inventory acquired in certain acquisitions which are included in Cost of Sales, exclusive of depreciation and amortization in the consolidated statement of income. (4) In 2020, two hurricanes damaged a southern U.S. factory supporting the Company's specialty coatings and materials business. In early 2021, a winter storm further damaged that factory as well as other 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. (5) In 2021, the reserve for asbestos-related claims was reduced to reflect the Company’s current estimate of potential liability for these claims. (6) 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of PPG Industries, Inc. (“PPG” or the “Company”) and all subsidiaries, both U.S. and non-U.S., that it controls. PPG owns more than 50% of the voting stock of most of the subsidiaries that it controls. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which PPG owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, PPG’s share of income or losses from such equity affiliates is included in the consolidated statement of income and PPG’s share of these companies’ shareholders’ equity is included in Investments on the consolidated balance sheet. Transactions between PPG and its subsidiaries are eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial StatementsThe preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Such estimates also include the fair value of assets acquired and liabilities assumed resulting from the allocation of the purchase price related to business combinations consummated. Actual outcomes could differ from those estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized as performance obligations with the customer are satisfied, at an amount that is determined to be collectible. For the sale of products, this generally occurs at the point in time when control of the Company’s products transfers to the customer based on the agreed upon shipping terms. Shipping and Handling Costs Amounts billed to customers for shipping and handling are reported in Net sales in the consolidated statement of income. Shipping and handling costs incurred by the Company for the delivery of goods to customers are included in Cost of sales, exclusive of depreciation and amortization in the consolidated statement of income. The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations. The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the years ended December 31, 2022, 2021 and 2020, service revenue constituted less than 5% of total revenue. |
Selling, General and Administrative Costs | Selling, General and Administrative CostsAmounts presented in Selling, general and administrative in the consolidated statement of income are comprised of selling, customer service, distribution and advertising costs, as well as the costs of providing corporate-wide functional support in areas such as finance, law, human resources and planning. Distribution costs pertain to the movement and storage of finished goods inventory at company-owned and leased warehouses and other distribution facilities. |
Advertising Costs | Advertising CostsAdvertising costs are charged to expense as incurred and totaled $252 million, $243 million and $223 million in 2022, 2021 and 2020, respectively. |
Research and Development | Research and DevelopmentResearch and development costs, which consist primarily of employee-related costs, are charged to expense as incurred. |
Legal Costs | Legal Costs Legal costs, which primarily include costs associated with acquisition and divestiture transactions, general litigation, environmental regulation compliance, patent and trademark protection and other general corporate purposes, are charged to expense as incurred. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating losses and tax credit carryforwards as well as differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in Income tax expense in the consolidated statement of income in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets in situations where PPG determines it is more likely than not such assets will not ultimately be realized. PPG does not recognize a tax benefit unless it concludes that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, PPG recognizes a tax benefit measured at the largest amount of the tax benefit that, in PPG’s judgment, is greater than 50 percent likely to be realized. PPG records interest and penalties related to uncertain tax positions in Income tax expense in the consolidated statement of income. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of most significant non-U.S. operations is their local currency. Assets and liabilities of those operations are translated into U.S. dollars using year-end exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Unrealized foreign currency translation gains and losses are deferred in Accumulated other comprehensive loss on the consolidated balance sheet. |
Cash Equivalents | Cash Equivalents Cash equivalents are highly liquid investments (valued at cost, which approximates fair value) acquired with an original maturity of three months or less. |
Short-term Investments | Short-term Investments Short-term investments are highly liquid, high credit quality investments (valued at cost plus accrued interest) that have stated maturities of greater than three months to less than one year. The purchases and sales of these investments are classified as Investing activities in the consolidated statement of cash flows. |
Marketable Equity Securities | Marketable Equity Securities The Company’s investment in marketable equity securities is recorded at fair market value and reported as Other current assets and Investments on the consolidated balance sheet with changes in fair market value recorded in income. |
Inventories | InventoriesInventories are stated at the lower of cost or net realizable value. Most U.S. inventories are stated at cost, using the last-in, first-out (“LIFO”) method of accounting, which does not exceed net realizable value. All other inventories are stated at cost, using the first-in, first-out (“FIFO”) method of accounting, which does not exceed net realizable value. PPG determines cost using either average or standard factory costs, which approximate actual costs, excluding certain fixed costs such as depreciation and property taxes. Refer to Note 3, “Working Capital Detail” for further information concerning the Company’s inventories. |
Derivative Financial Instruments | Derivative Financial Instruments The Company recognizes all derivative financial instruments (a “derivative”) as either assets or liabilities at fair value on the consolidated balance sheet. The accounting for changes in the fair value of a derivative depends on the use of the instrument. For derivative instruments that are designated and qualify as cash flow hedges, the unrealized gains or losses on the derivatives are recorded in the consolidated statement of comprehensive income. Amounts in Accumulated other comprehensive loss on the consolidated balance sheet are reclassified into Income before income taxes in the consolidated statement of income in the same period or periods during which the hedged transactions are recorded in Income before income taxes in the consolidated statement of income. For derivative instruments that are designated and qualify as fair value hedges, the change in the fair value of the derivatives are reported in Income before income taxes in the consolidated statement of income, offsetting the gain or loss recognized for the change in fair value of the asset, liability, or firm commitment that is being hedged. For derivatives, debt or other financial instruments that are designated and qualify as net investment hedges, the gains or losses associated with the financial instruments are reported as translation gains or losses in Accumulated other comprehensive loss on the consolidated balance sheet. Gains and losses in Accumulated other comprehensive loss related to hedges of the Company’s net investments in foreign operations are reclassified out of Accumulated other comprehensive loss and recognized in Income before income taxes in the consolidated statement of income upon a substantial liquidation, sale or partial sale of such investments or upon impairment of all or a portion of such investments. The cash flow impact of these instruments is classified as Investing activities in the consolidated statement of cash flows. Changes in the fair value of derivative instruments not designated as hedges for hedge accounting purposes are recognized in Income before income taxes in the consolidated statement of income in the period of change. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation is computed on a straight-line method based on the estimated useful lives of related assets. Accelerated depreciation expense is recorded when facilities or equipment are subject to abnormal economic conditions, restructuring actions or obsolescence. |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets Goodwill represents the excess of the cost over the fair value of acquired identifiable tangible and intangible assets less liabilities assumed from acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon their fair value at the date of acquisition. 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. These operating segments are also the Company’s reporting units for purposes of testing goodwill for impairment, which is tested at least annually in connection with PPG’s strategic planning process or more frequently if an indication of impairment exists. The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a quantitative test. Quantitative goodwill impairment testing, if deemed necessary, is performed during the fourth quarter of each year by comparing the estimated fair value of an associated reporting unit as of September 30 to its carrying value. Fair value is estimated using a discounted cash flow model. Key assumptions and estimates used in the discounted cash flow model include projected future revenues, discount rates, operating cash flows, capital expenditures and tax rates. In 2022, the annual impairment testing review of goodwill did not result in impairment of the Company’s reporting units. The Company has determined that certain acquired trademarks have indefinite useful lives. The Company tests the carrying value of these trademarks for impairment at least annually, or as needed whenever events and circumstances indicate that their carrying amount may not be recoverable. In the first quarter 2022, due to the adverse economic impacts of Russian military forces invading Ukraine, the Company identified indicators that the carrying value of an indefinite-lived intangible asset and certain definite-lived intangible assets associated with the Company's operations in Russia may not be recoverable as of March 31, 2022, and the carrying value of those assets was assessed for impairment. As a result of this assessment, the Company recorded impairment charges of $124 million related to the indefinite-lived intangible asset and $23 million related to definite-lived intangible assets in the consolidated statement of income for the year ended December 31, 2022. Refer to Note 7, "Impairment and Other Related Charges, Net" for additional information. The annual assessment takes place in the fourth quarter of each year either by completing a qualitative assessment or quantitatively by comparing the estimated fair value of each trademark as of September 30 to its carrying value. Fair value is estimated by using the relief from royalty method (a discounted cash flow methodology). The qualitative assessment includes consideration of factors, including revenue relative to the asset being assessed, the operating results of the related business as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. In 2022, the annual impairment testing review of indefinite-lived intangibles performed as of September 30, 2022 resulted in the Company recognizing a pretax impairment charge of $4 million. Refer to Note 6, “Goodwill and Other Identifiable Intangible Assets” for further details. Identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives (1 to 30 years) and are reviewed for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable. |
Receivables and Allowances | Receivables and Allowances All trade receivables are reported on the consolidated balance sheet at the outstanding principal adjusted for any allowance for doubtful accounts and any charge offs. The Company provides an allowance for doubtful accounts to reduce receivables to their estimated net realizable value when it is probable that a loss will be incurred. Those estimates are based on historical collection experience, current regional economic and market conditions, the aging of accounts |
Leases | Leases The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying. |
Product Warranties | Product Warranties The Company accrues for product warranties at the time the associated products are sold based on historical claims experience. The reserve, pretax charges against income and cash outlays for product warranties were not significant to the consolidated financial statements of the Company for any year presented. |
Asset Retirement Obligations | Asset Retirement Obligations An asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. PPG recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. PPG’s asset retirement obligations are primarily associated with the retirement or closure of certain assets used in PPG’s manufacturing process. The accrued asset retirement obligation is recorded in Accounts payable and accrued liabilities and Other liabilities on the consolidated balance sheet and was $23 million and $22 million as of December 31, 2022 and 2021, respectively. PPG’s only conditional asset retirement obligation relates to the possible future abatement of asbestos contained in certain PPG production facilities. The asbestos in PPG’s production facilities arises from the application of normal and customary building practices in the past when the facilities were constructed. This asbestos is encapsulated in place and, as a result, there is no current legal requirement to abate it. Because there is no requirement to abate, the Company does not have any current plans or an intention to abate and therefore the timing, method and cost of future abatement, if any, are not known. The Company has not recorded an asset retirement obligation associated with asbestos abatement, given the uncertainty concerning the timing of future abatement, if any. |
Environmental Contingencies | Environmental ContingenciesIt is PPG’s policy to accrue expenses for environmental contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies assets and liabilities as held for sale (a “disposal group”) when management commits to a plan to sell the disposal group, the sale is probable within one year and the disposal group is available for immediate sale in its present condition. The Company considers various factors, particularly whether actions required to complete the plan indicate it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets held for sale are measured at the lower of carrying value or fair value less costs to sell. Any loss resulting from the measurement is recognized in the period the held-for-sale criteria are met. Conversely, gains are not recognized until the date of the sale. When the disposal group is classified as held for sale, depreciation and amortization ceases and the Company tests the assets for impairment. |
Reclassifications | Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. These reclassifications had no impact on our previously reported Net income, cash flows or shareholders’ equity. |
New Accounting Standards | Accounting Standards Adopted in 2022 Effective January 1, 2022, PPG adopted Accounting Standards Update ("ASU") No. 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)." This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Adoption of this standard did not materially impact PPG's consolidated financial position, results of operations or cash flows. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform." This ASU provided optional expedients and exceptions to U.S. GAAP for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU applied only to contracts, hedging relationships, and other transactions that referenced LIBOR or another reference rate expected to be discontinued. The amendments in this ASU were effective through December 31, 2022. PPG did not apply any of the optional expedients or exceptions allowed under this ASU. Accounting Standards to be Adopted in Future Years There were no accounting pronouncements promulgated prior to December 31, 2022 that are not effective until a future date which are expected to have a material impact on PPG’s consolidated financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Research and Development | ($ in millions) 2022 2021 2020 Research and development – total $470 $463 $401 Less: depreciation on research facilities 22 24 22 Research and development, net $448 $439 $379 |
Working Capital Detail (Tables)
Working Capital Detail (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Components Of Working Capital Detail [Abstract] | |
Components of Working Capital Detail | Working Capital Detail ($ in millions) 2022 2021 Receivables Trade - net $2,824 $2,687 Other - net 479 465 Total $3,303 $3,152 Inventories (1) Finished products $1,209 $1,175 Work in process 238 234 Raw materials 784 723 Supplies 41 39 Total $2,272 $2,171 Accounts payable and accrued liabilities Trade $2,538 $2,734 Accrued payroll 501 534 Customer rebates 377 368 Other postretirement and pension benefits 77 87 Income taxes 37 36 Other 557 633 Total $4,087 $4,392 (1) Inventories valued using the LIFO method of inventory valuation comprised 21% and 29% of total gross inventory values as of December 31, 2022 and 2021, respectively. If the FIFO method of inventory valuation had been used, inventories would have been $272 million and $174 million higher as of December 31, 2022 and 2021, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment ($ in millions) Useful Lives (years) 2022 2021 Land and land improvements 1-30 $548 $570 Buildings 20-40 1,774 1,769 Machinery and equipment 5-25 3,960 3,949 Other 3-20 1,203 1,177 Construction in progress 492 509 Total $7,977 $7,974 Less: accumulated depreciation 4,649 4,532 Net $3,328 $3,442 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | ($ in millions) 2022 2021 Investments in equity affiliates $134 $126 Marketable equity securities (See Note 11) 61 98 Other 49 50 Total $244 $274 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill Attributable to Each Reportable Segment | Goodwill ($ in millions) Performance Coatings Industrial Coatings Total January 1, 2021 $4,023 $1,079 $5,102 Acquisitions, including purchase accounting adjustments 1,188 177 1,365 Foreign currency impact (177) (42) (219) December 31, 2021 $5,034 $1,214 $6,248 Acquisitions, including purchase accounting adjustments 31 15 46 Divestitures (40) — (40) Foreign currency impact (144) (32) (176) December 31, 2022 $4,881 $1,197 $6,078 |
Identifiable Intangible Assets with Finite Lives | Identifiable Intangible Assets December 31, 2022 December 31, 2021 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,325 $— $1,325 $1,449 $— $1,449 Definite-Lived Identifiable Intangible Assets Acquired technology $827 ($636) $191 $862 ($616) $246 Customer-related 1,855 (1,112) 743 1,956 (1,064) 892 Trade names 311 (158) 153 336 (144) 192 Other 50 (48) 2 51 (47) 4 Total Definite Lived Intangible Assets $3,043 ($1,954) $1,089 $3,205 ($1,871) $1,334 Total Identifiable Intangible Assets $4,368 ($1,954) $2,414 $4,654 ($1,871) $2,783 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ($ in millions) 2023 2024 2025 2026 2027 Estimated future amortization expense $150 $127 $115 $93 $85 |
Business Restructuring (Tables)
Business Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Activity Related to Restructuring Reserves | The following table summarizes restructuring reserve activity for the years ended December 31, 2022 and 2021: Total Reserve ($ in millions) 2022 2021 January 1 $231 $293 Approved restructuring actions 84 54 Release of prior reserves and other adjustments (a) (51) (23) Cash payments (85) (77) Foreign currency impact (10) (16) December 31 $169 $231 (a) Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows: ($ in millions) Classification in the Consolidated Statement of Income 2022 2021 2020 Operating lease cost Cost of sales, exclusive of depreciation and amortization $43 $41 $34 Operating lease cost Selling, general and administrative 216 219 206 Total operating lease cost $259 $260 $240 Finance lease cost: Amortization of right-of-use assets Depreciation $2 $2 $2 Interest on lease liabilities Interest expense 1 1 1 Total finance lease cost $3 $3 $3 Total lease cost $262 $263 $243 Total operating lease cost for the years ended December 31, 2022, 2021 and 2020 is inclusive of the following: ($ in millions) 2022 2021 2020 Variable lease costs $18 $18 $17 Short-term lease costs $22 $16 $8 |
Schedule of Classification on the Condensed Consolidated Balance Sheet | ($ in millions) Classification on the Consolidated Balance Sheet 2022 2021 Assets: Operating Operating lease right-of-use assets $829 $891 Finance (1) Property, plant, and equipment, net 15 13 Total leased assets $844 $904 Liabilities: Current Operating Current portion of operating lease liabilities $183 $192 Finance Short-term debt and current portion of long-term debt 3 3 Noncurrent Operating Operating lease liabilities $636 $693 Finance Long-term debt 7 7 Total lease liabilities $829 $895 (1) Net of accumulated depreciation of $14 million and $13 million as of December 31, 2022 and 2021, respectively. |
Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations | ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $218 $224 $212 Operating cash flows paid for finance leases $1 $1 $1 Financing cash flows paid for finance leases $2 $3 $2 Right-of-use assets obtained in exchange for lease obligations: Operating leases $161 $253 $227 Finance leases $3 $— $4 Lease terms and discount rates as of December 31, 2022, 2021 and 2020 were as follows: |
Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate | 2022 2021 2020 Weighted-average remaining lease term (in years) Operating leases 6.7 7.1 7.4 Finance leases 9.0 6.4 6.1 Weighted-average discount rate Operating leases 2.6 % 2.1 % 2.4 % Finance leases 5.7 % 5.8 % 7.0 % |
Schedule of Maturities of Lease Liabilities, Operating Lease | As of December 31, 2022, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2023 $201 $3 2024 166 2 2025 129 2 2026 100 1 2027 78 1 Thereafter 219 3 Total lease payments $893 $12 Less: Interest 74 2 Total lease obligations $819 $10 |
Schedule of Maturities of Lease Liabilities, Finance Lease | As of December 31, 2022, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2023 $201 $3 2024 166 2 2025 129 2 2026 100 1 2027 78 1 Thereafter 219 3 Total lease payments $893 $12 Less: Interest 74 2 Total lease obligations $819 $10 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term Debt Obligations ($ in millions) Maturity Date 2022 2021 3.2% notes ($300) (1) 2023 $300 $299 Term Loan Credit Agreement, due 2024 ($1,400) 2024 1,099 1,399 2.4% notes ($300) 2024 299 298 0.875% notes (€600) 2025 639 677 1.875% notes (€300) 2025 319 — 1.200% notes ($700) 2026 694 692 1.4% notes (€600) 2027 638 677 3.75% notes ($800) (2) 2028 809 811 2.5% notes (€80) 2029 85 90 2.8% notes ($300) 2029 298 298 2.750% notes (€700) 2029 743 — 2.55% notes ($300) 2030 297 296 1.95% note (€50) 2037 52 — 7.70% notes ($176) 2038 174 174 5.5% notes ($250) 2040 247 247 3.0% notes (€120) 2044 122 130 Commercial paper Various — 440 Various other non-U.S. debt (3) Various 1 1 Finance lease obligations Various 10 10 Impact of derivatives on debt (4) N/A (20) 36 Total $6,806 $6,575 Less payments due within one year N/A 303 3 Long-term debt $6,503 $6,572 (1) In February 2018, PPG entered into interest rate swaps which converted $150 million of the notes from a fixed interest rate to a floating interest rate based on the three month London Interbank Offered Rate (LIBOR). The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 2.2% and 0.6% for the years ended December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (2) In February 2018, PPG entered into interest rate swaps which converted $375 million of the notes from a fixed interest rate to a floating interest rate based on the three month LIBOR. The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 2.6% and 1.0% for the years ended December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (3) Weighted average interest rate of 4.4% and 3.1% as of December 31, 2022 and 2021, respectively. (4) Fair value adjustment of the 3.2% $300 million notes and 3.75% $800 million notes as a result of fair value hedge accounting treatment related to the outstanding interest rate swaps as of December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. Long-Term Debt ($ in millions) December 31, 2022 (a) December 31, 2021 (b) Long-term debt - carrying value $6,796 $6,565 Long-term debt - fair value $6,375 $6,958 (a) Excluding finance lease obligations of $10 million and short term borrowings of $10 million as of December 31, 2022. (b) Excluding finance lease obligations of $10 million and short term borrowings of $6 million as of December 31, 2021. |
Schedule of Maturities of Long-term Debt | Long-term Debt Maturities ($ in millions) Maturity per year 2023 $303 2024 $1,396 2025 $959 2026 $698 2027 $642 Thereafter $2,808 |
Short-Term Debt Outstanding | Short-term Debt Obligations ($ in millions) 2022 2021 Various, weighted average 2.7% and 0.7% as of December 31, 2022 and 2021, respectively. $10 $6 |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, Cash Flow and Net Investment Hedges | the years ended December 31, 2022, 2021 and 2020. All dollar amounts are shown on a pretax basis. 2022 2021 2020 Caption in Consolidated Statement of Income ($ in millions) Gain Deferred in OCI Gain Recognized Gain Deferred in OCI Gain Recognized Loss Deferred in OCI Gain Recognized Fair Value Interest rate swaps $8 $15 $12 Interest expense Total Fair Value $8 $15 $12 Net Investment Cross currency swaps $38 $16 $53 $13 ($57) $16 Interest expense Foreign denominated debt 85 — 173 — (200) — Total Net Investment $123 $16 $226 $13 ($257) $16 Economic Foreign currency forward contracts $43 $23 $30 Other (income)/charges, net |
Schedule of Derivative Liabilities at Fair Value | Assets and liabilities reported at fair value on a recurring basis December 31, 2022 December 31, 2021 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $9 $— $— $6 $— $— Foreign currency forward contracts (a) — 27 — — 28 — Cross currency swaps (b) — 39 — — — — Investments: Marketable equity securities $61 $— $— $98 $— $— Other assets: Cross currency swaps (b) $— $49 $— $— $50 $— Interest rate swaps (c) — — — — 36 — Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (a) $— $3 $— $— $4 $— Interest rate swaps (c) — 1 — — — — Other liabilities: Interest rate swaps (c) $— $19 $— $— $— $— (a) Derivatives not designated as hedging instruments (b) Net investment hedges (c) Fair value hedges |
Schedule of Long-term Debt Instruments | Long-term Debt Obligations ($ in millions) Maturity Date 2022 2021 3.2% notes ($300) (1) 2023 $300 $299 Term Loan Credit Agreement, due 2024 ($1,400) 2024 1,099 1,399 2.4% notes ($300) 2024 299 298 0.875% notes (€600) 2025 639 677 1.875% notes (€300) 2025 319 — 1.200% notes ($700) 2026 694 692 1.4% notes (€600) 2027 638 677 3.75% notes ($800) (2) 2028 809 811 2.5% notes (€80) 2029 85 90 2.8% notes ($300) 2029 298 298 2.750% notes (€700) 2029 743 — 2.55% notes ($300) 2030 297 296 1.95% note (€50) 2037 52 — 7.70% notes ($176) 2038 174 174 5.5% notes ($250) 2040 247 247 3.0% notes (€120) 2044 122 130 Commercial paper Various — 440 Various other non-U.S. debt (3) Various 1 1 Finance lease obligations Various 10 10 Impact of derivatives on debt (4) N/A (20) 36 Total $6,806 $6,575 Less payments due within one year N/A 303 3 Long-term debt $6,503 $6,572 (1) In February 2018, PPG entered into interest rate swaps which converted $150 million of the notes from a fixed interest rate to a floating interest rate based on the three month London Interbank Offered Rate (LIBOR). The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 2.2% and 0.6% for the years ended December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (2) In February 2018, PPG entered into interest rate swaps which converted $375 million of the notes from a fixed interest rate to a floating interest rate based on the three month LIBOR. The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 2.6% and 1.0% for the years ended December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (3) Weighted average interest rate of 4.4% and 3.1% as of December 31, 2022 and 2021, respectively. (4) Fair value adjustment of the 3.2% $300 million notes and 3.75% $800 million notes as a result of fair value hedge accounting treatment related to the outstanding interest rate swaps as of December 31, 2022 and 2021, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. Long-Term Debt ($ in millions) December 31, 2022 (a) December 31, 2021 (b) Long-term debt - carrying value $6,796 $6,565 Long-term debt - fair value $6,375 $6,958 (a) Excluding finance lease obligations of $10 million and short term borrowings of $10 million as of December 31, 2022. (b) Excluding finance lease obligations of $10 million and short term borrowings of $6 million as of December 31, 2021. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share Calculations | ($ in millions, except per share amounts) 2022 2021 2020 Earnings per common share (attributable to PPG) Income from continuing operations, net of tax $1,028 $1,420 $1,056 (Loss)/income from discontinued operations, net of tax (2) 19 3 Net income (attributable to PPG) $1,026 $1,439 $1,059 Weighted average common shares outstanding 236.1 237.6 236.8 Effect of dilutive securities: Stock options 0.5 1.0 0.4 Other stock compensation plans 0.7 0.8 0.7 Potentially dilutive common shares 1.2 1.8 1.1 Adjusted weighted average common shares outstanding 237.3 239.4 237.9 Earnings per common share (attributable to PPG) Income from continuing operations, net of tax $4.35 $5.98 $4.46 (Loss)/income from discontinued operations, net of tax (0.01) 0.08 0.01 Net income (attributable to PPG) $4.34 $6.06 $4.47 Earnings per common share - assuming dilution (attributable to PPG) Income from continuing operations, net of tax $4.33 $5.93 $4.44 (Loss)/income from discontinued operations, net of tax (0.01) 0.08 0.01 Net income (attributable to PPG) $4.32 $6.01 $4.45 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The provision for income taxes by taxing jurisdiction and by significant components consisted of the following: ($ in millions) 2022 2021 2020 Current U.S. federal $137 $25 $12 U.S. state and local 20 13 6 Foreign 325 301 320 Total current income tax expense $482 $339 $338 Deferred U.S. federal ($79) $12 $1 U.S. state and local (7) 3 (3) Foreign (71) 20 (45) Total deferred income tax (benefit)/expense ($157) $35 ($47) Total income tax expense $325 $374 $291 |
Reconciliation of Statutory U.S. Corporate Federal Income Tax Rate to Effective Income Tax Rate | A reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective tax rate follows: 2022 2021 2020 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Changes in rate due to: Taxes on non-U.S. earnings 3.6 2.7 3.3 U.S. state and local taxes 0.7 0.8 0.3 U.S. tax (benefit)/cost on foreign operations (0.4) (1.6) 0.1 Tax benefits from equity awards (0.3) (0.3) (0.4) Change in valuation allowance reserves 0.6 — (1.4) U.S. tax incentives (1.0) (0.6) (0.9) Uncertain tax positions (0.4) (1.4) 0.9 Other (0.3) — (1.5) Effective income tax rate 23.5 % 20.6 % 21.4 % |
Net deferred income tax assets and liabilities | ($ in millions) 2022 2021 Deferred income tax assets related to Employee benefits $275 $386 Contingent and accrued liabilities 67 74 Operating loss and other carry-forwards 218 278 Operating lease liabilities 203 215 Research and development amortization 149 68 Other 168 121 Valuation allowance (182) (172) Total $898 $970 Deferred income tax liabilities related to Property $223 $278 Intangibles 720 814 Employee benefits 81 75 Operating lease right-of-use assets 206 216 Other 74 36 Total $1,304 $1,419 Deferred income tax liabilities – net ($406) ($449) |
Summary of Operating Loss Carryforwards | ($ in millions) 2022 2021 Expiration Available net operating loss carryforwards, tax effected: Indefinite expiration $84 $106 NA Definite expiration 66 77 2023-2042 Total $150 $183 Income tax credit carryforwards $89 $115 2023-2042 |
Unrecognized Tax Benefits | A reconciliation of the total amounts of unrecognized tax benefits (excluding interest and penalties) as of December 31 follows: ($ in millions) 2022 2021 2020 January 1 $158 $175 $167 Current year tax positions - additions 19 12 25 Prior year tax positions - additions 2 10 5 Prior year tax positions - reductions (2) (2) (2) Statute of limitations expirations (23) (19) (8) Settlements (3) (21) (11) Foreign currency translation (6) 3 (1) December 31 $145 $158 $175 Interest and penalties ($ in millions) 2022 2021 2020 Accrued interest and penalties related to unrecognized tax benefits $17 $17 $18 Loss/(income) recognized in income tax expense related to interest and penalties $1 ($2) $2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Changes in Projected Benefit Obligations, Plan Assets and Funded Status | The following table sets forth the changes in projected benefit obligations (“PBO”), plan assets, the funded status and the amounts recognized on the accompanying consolidated balance sheet for the Company’s defined benefit pension and other postretirement benefit plans: Defined Benefit Pension Plans United States International Total PPG ($ in millions) 2022 2021 2022 2021 2022 2021 Projected benefit obligation, January 1 $1,920 $2,042 $1,614 $1,933 $3,534 $3,975 Service cost — — 9 9 9 9 Interest cost 45 39 28 26 73 65 Actuarial gains (449) (72) (485) (91) (934) (163) Benefits paid (91) (89) (49) (60) (140) (149) Acquisitions — — — 48 — 48 Foreign currency translation adjustments — — (126) (51) (126) (51) Settlements and curtailments — — (22) (198) (22) (198) Other — — (8) (2) (8) (2) Projected benefit obligation, December 31 $1,425 $1,920 $961 $1,614 $2,386 $3,534 Market value of plan assets, January 1 $1,329 $1,335 $1,646 $1,881 $2,975 $3,216 Actual return on plan assets (228) 66 (506) 42 (734) 108 Company contributions — — 11 10 11 10 Benefits paid (73) (72) (41) (51) (114) (123) Acquisitions — — — 3 — 3 Plan settlements — — (22) (198) (22) (198) Foreign currency translation adjustments — — (140) (38) (140) (38) Other — — (2) (3) (2) (3) Market value of plan assets, December 31 $1,028 $1,329 $946 $1,646 $1,974 $2,975 Funded Status ($397) ($591) ($15) $32 ($412) ($559) Amounts recognized in the Consolidated Balance Sheet: Other assets (long-term) — — 183 310 183 310 Accounts payable and accrued liabilities (17) (23) (12) (12) (29) (35) Accrued pensions (380) (568) (186) (266) (566) (834) Net (liability)/asset recognized ($397) ($591) ($15) $32 ($412) ($559) Other Postretirement Benefit Plans United States International Total PPG ($ in millions) 2022 2021 2022 2021 2022 2021 Projected benefit obligation, January 1 $631 $682 $93 $104 $724 $786 Service cost 8 11 — 1 8 12 Interest cost 13 12 3 2 16 14 Actuarial gains (154) (33) (20) (10) (174) (43) Benefits paid (40) (41) (4) (4) (44) (45) Foreign currency translation adjustments — — (6) — (6) — Projected benefit obligation, December 31 $458 $631 $66 $93 $524 $724 Amounts recognized in the Consolidated Balance Sheet: Accounts payable and accrued liabilities (44) (47) (4) (5) (48) (52) Other postretirement benefits (414) (584) (62) (88) (476) (672) Net liability recognized ($458) ($631) ($66) ($93) ($524) ($724) The PBO is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation (“ABO”) is the actuarial present value of benefits attributable to employee service rendered to date, but does not include the effects of estimated future pay increases. The ABO for all defined benefit pension plans as of December 31, 2022 and 2021 was $2.3 billion and $3.5 billion, respectively. The following table details the pension plans where the benefit liability exceeds the fair value of the plan assets: Pensions ($ in millions) 2022 2021 Plans with PBO in Excess of Plan Assets: Projected benefit obligation $1,863 $2,232 Fair value of plan assets $1,270 $1,366 Plans with ABO in Excess of Plan Assets: Accumulated benefit obligation $1,833 $2,197 Fair value of plan assets $1,266 $1,362 |
Accumulated Other Comprehensive Loss Pretax Amounts Not Yet Reflected in Net Periodic Benefit Cost | Pensions Other Postretirement Benefits ($ in millions) 2022 2021 2022 2021 Accumulated net actuarial losses/(gains) $748 $857 ($16) $170 Accumulated prior service cost/(credit) — 5 (10) (21) Total $748 $862 ($26) $149 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The net decrease in Accumulated other comprehensive loss (pretax) in 2022 relating to defined benefit pension and other postretirement benefits is primarily attributable to pension and other postretirement plan discount rate increases, as follows: ($ in millions) Pensions Other Postretirement Benefits Net actuarial gain arising during the year ($60) ($174) New prior service cost (5) — Amortization of actuarial loss (34) (12) Amortization of prior service credit — 11 Foreign currency translation adjustments (9) — Impact of settlements (6) — Net decrease ($114) ($175) |
Net Periodic Benefit Cost | Pensions Other Postretirement Benefits ($ in millions) 2022 2021 2020 2022 2021 2020 Service cost $9 $9 $24 $8 $12 $10 Interest cost 73 65 87 16 14 20 Expected return on plan assets (140) (152) (144) — — — Amortization of prior service credit — — — (11) (54) (59) Amortization of actuarial losses 34 39 71 12 20 15 Settlements, curtailments, and special termination benefits 6 53 18 — — — Net periodic benefit (income)/cost ($18) $14 $56 $25 ($8) ($14) |
Schedule of Contributions to Defined benefit Plans | Contributions to defined benefit pension plans ($ in millions) 2022 2021 2020 Non-U.S. defined benefit pension plans $11 $10 $17 |
Schedule of Expected Benefit Payments | The estimated benefits expected to be paid under the Company’s defined benefit pension and other postretirement benefit plans are: ($ in millions) Pensions Other Postretirement Benefits 2023 $148 $48 2024 $166 $47 2025 $153 $46 2026 $157 $43 2027 $160 $42 2028 to 2032 $825 $192 |
Weighted Average Target Pension Plan Asset Allocations | The following summarizes the weighted average target pension plan asset allocation as of December 31, 2022 and 2021 for all PPG defined benefit plans: Asset Category 2022 2021 Equity securities 15-45% 15-45% Debt securities 30-65% 30-65% Real estate 0-10% 0-10% Other 20-40% 20-40% |
Fair Values of the Company's Pension Plan Assets by Asset Category | The fair values of the Company’s pension plan assets at December 31, 2022 and 2021, by asset category, are as follows: December 31, 2022 December 31, 2021 ($ in millions) Level 1 (1) Level 2 (1) Level 3 (1) Total Level 1 (1) Level 2 (1) Level 3 (1) Total Asset Category Equity securities: U.S. Large cap $66 $43 $— $109 $79 $78 $— $157 Small cap 25 — — 25 48 — — 48 Non-U.S. Developed and emerging markets (2) 99 43 — 142 130 76 — 206 Debt securities: Cash and cash equivalents 7 47 — 54 8 42 — 50 Corporate (3) U.S. (4) — 168 80 248 — 232 100 332 Developed and emerging markets (2) — 1 — 1 — 1 — 1 Diversified (5) — 13 — 13 — 57 — 57 Government U.S. (4) 49 10 — 59 68 13 — 81 Developed and emerging markets (2) — 6 — 6 — 10 — 10 Other (6) — — 235 235 — — 367 367 Real estate, hedge funds, and other — 275 362 637 — 562 487 1,049 Total assets in the fair value hierarchy $246 $606 $677 $1,529 $333 $1,071 $954 $2,358 Common-collective trusts (7) — — — 445 — — — 617 Total Investments $246 $606 $677 $1,974 $333 $1,071 $954 $2,975 (1) These levels refer to the accounting guidance on fair value measurement described in Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements.” (2) These amounts represent holdings in investment grade debt or equity securities of issuers in both developed markets and emerging economies. (3) This category represents investment grade debt securities from a diverse set of industry issuers. (4) These investments are primarily long duration fixed income securities. (5) This category represents commingled funds invested in diverse portfolios of debt securities. (6) This category includes mortgage-backed and asset backed debt securities, municipal bonds and other debt securities including derivatives. (7) Certain investments that are measured at net asset value per share (or its equivalent) are not required to be classified in the fair value hierarchy. |
Change in the Fair Value of the Company's Level 3 Pension Assets | The change in the fair value of the Company’s Level 3 pension assets for the years ended December 31, 2022 and 2021 was as follows: ($ in millions) Real Estate Other Debt Securities Hedge Funds and Other Assets Total January 1, 2021 $124 $421 $371 $916 Realized gains/(losses) 3 (11) 9 1 Unrealized gains 22 — 8 30 Transfers in/(out), net 8 (14) 44 38 Foreign currency losses — (29) (2) (31) December 31, 2021 $157 $367 $430 $954 Realized gains/(losses) 1 (99) (1) (99) Unrealized gains/(losses) 6 — (3) 3 Transfers out, net (10) (12) (100) (122) Foreign currency losses (5) (21) (33) (59) December 31, 2022 $149 $235 $293 $677 |
Benefit Obligations | |
Weighted Average Assumptions Used for the Defined Benefit Pension and Other Postretirement Plans | The following weighted average assumptions were used to determine the benefit obligation for the Company’s defined benefit pension and other postretirement plans as of December 31, 2022 and 2021: United States International Total PPG 2022 2021 2022 2021 2022 2021 Discount rate 5.4 % 2.8 % 4.9 % 2.0 % 5.2 % 2.5 % Rate of compensation increase 2.5 % 2.5 % 3.1 % 2.8 % 2.7 % 2.6 % |
Benefit Costs | |
Weighted Average Assumptions Used for the Defined Benefit Pension and Other Postretirement Plans | The following weighted average assumptions were used to determine the net periodic benefit cost for the Company’s defined benefit pension and other postretirement benefit plans for the three years in the period ended December 31, 2022: 2022 2021 2020 Discount rate 2.5 % 2.1 % 2.8 % Expected return on assets 5.0 % 4.8 % 5.0 % Rate of compensation increase 2.6 % 1.5 % 2.6 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | Environmental Reserves ($ in millions) 2022 2021 New Jersey Chrome $58 $89 Glass and chemical 60 83 Other 99 110 Total $217 $282 Current Portion $50 $97 |
Environmental Costs | The pretax charges and cash outlays related to such environmental remediation in 2022, 2021 and 2020, were as follows: ($ in millions) 2022 2021 2020 New Jersey Chrome $— $25 $15 Glass and chemical 3 12 15 Other 10 7 8 Total $13 $44 $38 Cash outlays for environmental spending $78 $56 $60 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Shares Outstanding | Common Stock Treasury Stock Shares Outstanding January 1, 2020 581,146,136 (345,465,666) 235,680,470 Issuances — 1,005,795 1,005,795 December 31, 2020 581,146,136 (344,459,871) 236,686,265 Purchases — (1,521,765) (1,521,765) Issuances — 742,526 742,526 December 31, 2021 581,146,136 (345,239,110) 235,907,026 Purchases — (1,269,830) (1,269,830) Issuances — 436,730 436,730 December 31, 2022 581,146,136 (346,072,210) 235,073,926 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ($ in millions) Foreign Currency Translation Adjustments (1) Pension and Other Postretirement Benefit Adjustments, net of tax (2) Unrealized Gain on Derivatives, net of tax Accumulated Other Comprehensive Loss January 1, 2020 ($1,627) ($724) $1 ($2,350) Current year deferrals to AOCL (36) (237) — (273) Reclassifications from AOCL to net income — 24 — 24 December 31, 2020 ($1,663) ($937) $1 ($2,599) Current year deferrals to AOCL (325) 132 — (193) Reclassifications from AOCL to net income — 42 — 42 December 31, 2021 ($1,988) ($763) $1 ($2,750) Current year deferrals to AOCL (301) 175 — (126) Reclassifications from AOCL to net income 35 31 — 66 December 31, 2022 ($2,254) ($557) $1 ($2,810) (1) The tax cost/(benefit) related to unrealized foreign currency translation adjustments on net investment hedges as of December 31, 2022, 2021 and 2020 was $73 million, $55 million and $(6) million, respectively. (2) The tax cost/(benefit) related to the adjustment for pension and other postretirement benefits as of December 31, 2022, 2021 and 2020 was $83 million, $48 million and $(70) million, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit costs (see Note 14, “Employee Benefit Plans"). |
Other (Income)_Charges, Net (Ta
Other (Income)/Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Components of Other Earnings | ($ in millions) 2022 2021 2020 Gain on sale of assets (1) ($10) ($47) ($5) Royalty income (8) (8) (7) Share of net earnings of equity affiliates (See Note 5) (25) (15) (8) Income from legal settlements — (22) — Other, net (17) (51) 56 Total (income)/charges, net ($60) ($143) $36 (1) In 2021, PPG recognized a $34 million gain on the sale of a production facility in connection with the Company’s manufacturing footprint consolidation plans and associated restructuring programs. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Stock Options, Activity | ($ in millions) 2022 2021 2020 Total stock-based compensation $35 $57 $44 Income tax benefit recognized $8 $12 $10 |
Weighted Average Assumptions Used in Calculating the Fair Value of Stock Option | The following weighted average assumptions were used to calculate the fair values of stock option grants in each year: 2022 2021 2020 Weighted average exercise price $151.87 $136.60 $119.52 Risk-free interest rate 2.0 % 1.0 % 1.6 % Expected life of option in years 6.5 6.5 6.5 Expected dividend yield 1.6 % 1.6 % 1.5 % Expected volatility 25.7 % 25.3 % 20.0 % |
Stock Options Outstanding, Exercisable and Activity | Stock Options Outstanding and Exercisable Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Intrinsic Value (in millions) Outstanding, January 1, 2022 3,340,402 $110.98 6.1 Granted 487,277 $151.87 Exercised (158,837) $77.24 Forfeited/Expired (151,391) $134.34 Outstanding, December 31, 2022 3,517,451 $117.16 5.7 $47 Vested or expected to vest, December 31, 2022 3,444,650 $116.57 5.6 $47 Exercisable, December 31, 2022 2,039,716 $104.58 4.0 $43 |
Stock Option Activity | The following table presents stock option activity for the years ended December 31, 2022, 2021 and 2020: ($ in millions) 2022 2021 2020 Total intrinsic value of stock options exercised $12 $32 $31 Cash received from stock option exercises $12 $47 $54 Income tax benefit from the exercise of stock options $3 $8 $7 Total fair value of stock options vested $16 $11 $11 |
RSU Activity | RSU Activity Number of Shares Weighted Average Grant Date Fair Value Outstanding, January 1, 2022 622,055 $125.92 Granted 232,050 $147.77 Vested (199,642) $147.36 Forfeited (65,075) $122.60 Outstanding, December 31, 2022 589,388 $136.99 Vested or expected to vest, December 31, 2022 563,900 $136.67 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | Net sales by segment and region for the years ended December 31, 2022, 2021 and 2020 were as follows: ($ in millions) 2022 2021 2020 Performance Coatings United States and Canada $4,718 $4,366 $3,673 EMEA 3,550 3,582 2,861 Asia Pacific 1,118 1,254 1,015 Latin America 1,308 1,131 946 Total $10,694 $10,333 $8,495 Industrial Coatings United States and Canada $2,666 $2,310 $1,995 EMEA 1,908 1,854 1,467 Asia Pacific 1,705 1,723 1,416 Latin America 679 582 461 Total $6,958 $6,469 $5,339 Total Net Sales (1) United States and Canada (2) $7,384 $6,676 $5,668 EMEA 5,458 5,436 4,328 Asia Pacific 2,823 2,977 2,431 Latin America 1,987 1,713 1,407 Total PPG $17,652 $16,802 $13,834 (1) Net sales to external customers are attributed to geographic regions based upon the location of the operating unit shipping the product. (2) Net sales recognized in the United States represented 38%, 36%, and 37% of the Company’s total Net sales for the years ended December 31, 2022, 2021 and 2020, respectively. |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes allowance for doubtful accounts activity for the years ended December 31, 2022 and 2021: Trade Receivables Allowance for Doubtful Accounts ($ in millions) 2022 2021 January 1 $31 $44 Bad debt expense 52 19 Recoveries of previously reserved trade receivables (55) (14) Other 3 (18) December 31 $31 $31 |
Reportable Business Segment I_2
Reportable Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Business Segment | ($ in millions) 2022 2021 2020 Net sales to external customers Performance Coatings $10,694 $10,333 $8,495 Industrial Coatings 6,958 6,469 5,339 Total Net sales $17,652 $16,802 $13,834 Segment income Performance Coatings $1,399 $1,491 $1,359 Industrial Coatings 643 680 750 Total Segment income $2,042 $2,171 $2,109 Corporate / Non-Segment Items Corporate unallocated (218) (194) (233) Interest expense, net of interest income (113) (95) (115) Impairment and other related charges, net (1) (245) (21) (93) Business restructuring-related costs, net (2) (75) (27) (224) Transaction-related costs, net (3) (10) (86) (9) Pension settlement charge — (50) — Environmental remediation charges, net — (35) (26) Expense incurred due to natural disasters (4) — (17) (17) Change in allowance for doubtful accounts related to COVID-19 — 14 (30) Income from legal settlements — 22 — Asbestos-related claims reserve adjustment (5) — 133 — Total Income before income taxes $1,381 $1,815 $1,362 ($ in millions) 2022 2021 2020 Depreciation and amortization Performance Coatings $296 $308 $251 Industrial Coatings 207 212 200 Corporate / Non-Segment Items 51 41 58 Total $554 $561 $509 Share of net earnings of equity affiliates Performance Coatings $7 $5 $3 Corporate / Non-Segment Items 18 10 5 Total $25 $15 $8 Segment assets (6) Performance Coatings $13,088 $13,395 $11,551 Industrial Coatings 5,802 5,807 5,040 Corporate / Non-Segment Items 1,854 2,149 2,965 Total $20,744 $21,351 $19,556 Investment in equity affiliates Performance Coatings $42 $33 $31 Industrial Coatings 15 15 15 Corporate / Non-Segment Items 77 78 74 Total $134 $126 $120 Expenditures for property (including business acquisitions) Performance Coatings $254 $1,698 $1,293 Industrial Coatings 313 784 166 Corporate / Non-Segment Items 65 26 14 Total $632 $2,508 $1,473 |
Geographic Information | ($ in millions) 2022 2021 2020 Geographic Information Segment income United States and Canada $819 $865 $855 EMEA 505 612 572 Asia Pacific 332 354 382 Latin America 386 340 300 Total $2,042 $2,171 $2,109 Property, plant and equipment — net United States and Canada $1,394 $1,377 $1,351 EMEA 943 1,069 857 Asia Pacific 685 702 623 Latin America 306 294 296 Total $3,328 $3,442 $3,127 (1) In the first quarter 2022, the Company recorded impairment and other related charges due to the wind down of the company’s operations in Russia. Subsequently, the Company released a portion of the previously established reserves for Receivables and Inventories due to the collection of certain trade receivables and the realization of certain inventories. Also in 2022, impairment and other related charges were recorded for the write-down of certain assets and liabilities related to the planned sale of a non-core business and for certain asset write downs. In 2021 and 2020, 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. Also in 2020, an impairment charge was recorded to reduce the carrying value of an indefinite-lived trademark. (2) Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs and 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) Transaction-related costs, net include advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the statement of income. Acquisition-related costs, net also include the impact for the step up to fair value of inventory acquired in certain acquisitions which are included in Cost of Sales, exclusive of depreciation and amortization in the consolidated statement of income. (4) In 2020, two hurricanes damaged a southern U.S. factory supporting the Company's specialty coatings and materials business. In early 2021, a winter storm further damaged that factory as well as other 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. (5) In 2021, the reserve for asbestos-related claims was reduced to reflect the Company’s current estimate of potential liability for these claims. (6) 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. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Additional Information) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Advertising costs expensed | $ 252 | $ 243 | $ 223 | |
Research and development – total | 470 | 463 | 401 | |
Less: depreciation on research facilities | 22 | 24 | 22 | |
Research and development, net | $ 448 | 439 | 379 | |
Number of operating segments | Segment | 10 | |||
Tangible asset impairment charges | $ 201 | |||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 4 | $ 38 | ||
Asset retirement obligation | $ 23 | $ 22 | ||
Indefinite-lived Intangible Assets | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Tangible asset impairment charges | 124 | |||
Finite-Lived Intangible Assets | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Tangible asset impairment charges | $ 23 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Identifiable intangible assets with finite lives estimated useful lives | 1 year | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Identifiable intangible assets with finite lives estimated useful lives | 30 years |
Acquisitions (Detail)
Acquisitions (Detail) | Dec. 31, 2021 | Jun. 10, 2021 | Jun. 09, 2021 |
Tikkurila | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 100% | 97.10% | 9.30% |
Working Capital Detail (Detail)
Working Capital Detail (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Components Of Working Capital Detail [Abstract] | ||
Trade - net | $ 2,824 | $ 2,687 |
Other - net | 479 | 465 |
Total | 3,303 | 3,152 |
Finished products | 1,209 | 1,175 |
Work in process | 238 | 234 |
Raw materials | 784 | 723 |
Supplies | 41 | 39 |
Total | 2,272 | 2,171 |
Trade | 2,538 | 2,734 |
Accrued payroll | 501 | 534 |
Customer rebates | 377 | 368 |
Other postretirement and pension benefits | 77 | 87 |
Income taxes | 37 | 36 |
Other | 557 | 633 |
Total | $ 4,087 | $ 4,392 |
Working Capital Detail (Additio
Working Capital Detail (Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Components Of Working Capital Detail [Abstract] | ||
Percentage of inventories valued using the LIFO method | 21% | 29% |
FIFO adjustment | $ 272 | $ 174 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 7,977 | $ 7,974 | |
Accumulated depreciation, depletion and amortization, property, plant, and equipment | 4,649 | 4,532 | |
Property, plant and equipment, net | 3,328 | 3,442 | $ 3,127 |
Land and land improvements | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 548 | 570 | |
Land and land improvements | Minimum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 1 year | ||
Land and land improvements | Maximum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 30 years | ||
Buildings | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 1,774 | 1,769 | |
Buildings | Minimum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 20 years | ||
Buildings | Maximum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 40 years | ||
Machinery and equipment | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 3,960 | 3,949 | |
Machinery and equipment | Minimum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 25 years | ||
Other | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 1,203 | 1,177 | |
Other | Minimum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 3 years | ||
Other | Maximum | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property useful lives | 20 years | ||
Construction in progress | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 492 | $ 509 |
Investments (Detail)
Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | $ 244 | $ 274 | |
Equity in undistributed earnings losses of subsidiaries | 25 | 15 | $ 8 |
Proceeds from dividends received | 17 | 9 | $ 18 |
Investments in equity affiliates | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | 134 | 126 | |
Marketable equity securities (See Note 11) | Trading Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | 61 | 98 | |
Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | $ 49 | $ 50 | |
Investments In Other Operating Joint Venture | Minimum | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Percentage of ownership interests | 20% | ||
Investments In Other Operating Joint Venture | Maximum | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Percentage of ownership interests | 50% |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets (Carrying Amount of Goodwill Attributable to Each Reportable Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 6,248 | $ 5,102 |
Goodwill from acquisitions | 46 | 1,365 |
Goodwill, Impairment Loss | (40) | |
Currency translation | (176) | (219) |
Ending Balance | 6,078 | 6,248 |
Performance Coatings Segment | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 5,034 | 4,023 |
Goodwill from acquisitions | 31 | 1,188 |
Goodwill, Impairment Loss | (40) | |
Currency translation | (144) | (177) |
Ending Balance | 4,881 | 5,034 |
Industrial Coatings Segment | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 1,214 | 1,079 |
Goodwill from acquisitions | 15 | 177 |
Goodwill, Impairment Loss | 0 | |
Currency translation | (32) | (42) |
Ending Balance | $ 1,197 | $ 1,214 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets with Finite Lives) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying amount of acquired trademarks with indefinite lives | $ 1,325 | $ 1,449 |
Gross carrying amount | 3,043 | 3,205 |
Intangible assets, gross (excluding goodwill) | 4,368 | 4,654 |
Accumulated amortization | (1,954) | (1,871) |
Intangible assets, accumulated amortization (excluding goodwill) | 1,871 | |
Net | 1,089 | 1,334 |
Total Identifiable Intangible Assets | 2,414 | 2,783 |
Acquired technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 827 | 862 |
Accumulated amortization | (636) | (616) |
Net | 191 | 246 |
Customer-related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,855 | 1,956 |
Accumulated amortization | (1,112) | (1,064) |
Net | 743 | 892 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 311 | 336 |
Accumulated amortization | (158) | (144) |
Net | 153 | 192 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 50 | 51 |
Accumulated amortization | (48) | (47) |
Net | $ 2 | $ 4 |
Goodwill and Other Identifiab_5
Goodwill and Other Identifiable Intangible Assets (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 147 | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 4 | $ 38 | |
Aggregate amortization expense of identifiable intangible assets | $ 166 | $ 172 | $ 138 |
Goodwill and Other Identifiab_6
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets, Future Amortization) (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 150 |
2024 | 127 |
2025 | 115 |
2026 | 93 |
2027 | $ 85 |
Impairment and Other Related _2
Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment and other related charges, net | $ (290) | $ (245) | $ (21) | $ (93) |
Tangible asset impairment charges | 201 | |||
Other asset impairment charges | 89 | 245 | 21 | 93 |
Release of asset impairment charges | 63 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment and other related charges, net | $ (14) | $ (21) | $ (52) | |
Revenue Benchmark | Geographic Concentration Risk | Russia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Service revenue, percentage of total revenue | 1% | 1% | ||
Revenue Benchmark | Business Concentration Risk | Smaller Non-Strategic Businesses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Service revenue, percentage of total revenue | 1% | 1% | 1% | |
Indefinite-lived Intangible Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Tangible asset impairment charges | 124 | |||
Property, Plant and Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Tangible asset impairment charges | 54 | |||
Finite-Lived Intangible Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Tangible asset impairment charges | $ 23 |
Business Restructuring (Additio
Business Restructuring (Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 231 | $ 293 | |
Approved restructuring actions | 33 | 31 | $ 174 |
Restructuring, cash payments | (85) | (77) | (126) |
Restructuring reserve, foreign currency impact, gain (loss) | (10) | (16) | |
Ending balance | 169 | 231 | $ 293 |
Restructuring Charges | |||
Restructuring Reserve [Roll Forward] | |||
Approved restructuring actions | 84 | 54 | |
Restructuring, release of prior reserves and other adjustments | $ 51 | $ 23 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 259 | $ 260 | $ 240 |
Finance lease cost: | |||
Amortization of right-of-use assets | 2 | 2 | 2 |
Interest on lease liabilities | 1 | 1 | 1 |
Total finance lease cost | 3 | 3 | 3 |
Total lease cost | 262 | 263 | 243 |
Variable lease costs | 18 | 18 | 17 |
Short-term lease costs | 22 | 16 | 8 |
Cost of sales, exclusive of depreciation and amortization | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | 43 | 41 | 34 |
Selling, general and administrative | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 216 | $ 219 | $ 206 |
Leases - Schedule of Classifica
Leases - Schedule of Classification on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Operating | $ 829 | $ 891 |
Finance | $ 15 | $ 13 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Total leased assets | $ 844 | $ 904 |
Current | ||
Operating | 183 | 192 |
Finance | $ 3 | $ 3 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Debt, Current | Debt, Current |
Noncurrent | ||
Operating | $ 636 | $ 693 |
Finance | $ 7 | $ 7 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Total lease liabilities | $ 829 | $ 895 |
Finance lease ROU asset, accumulated depreciation | $ 14 | $ 13 |
Leases - Schedule of Cash Paid
Leases - Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash flows paid for operating leases | $ 218 | $ 224 | $ 212 |
Operating cash flows paid for finance leases | 1 | 1 | 1 |
Financing cash flows paid for finance leases | 2 | 3 | 2 |
Operating leases | 161 | 253 | 227 |
Finance leases | $ 3 | $ 0 | $ 4 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Weighted-average remaining lease term, operating leases | 6 years 8 months 12 days | 7 years 1 month 6 days | 7 years 4 months 24 days |
Weighted-average remaining lease term, finance leases | 9 years | 6 years 4 months 24 days | 6 years 1 month 6 days |
Weighted-average discount rate, operating leases | 2.60% | 2.10% | 2.40% |
Weighted-average discount rate, finance leases | 5.70% | 5.80% | 7% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 201 | |
2024 | 166 | |
2025 | 129 | |
2026 | 100 | |
2027 | 78 | |
Thereafter | 219 | |
Total lease payments | 893 | |
Less: Interest | 74 | |
Total lease obligations, operating leases | 819 | |
Finance Leases | ||
2023 | 3 | |
2024 | 2 | |
2025 | 2 | |
2026 | 1 | |
2027 | 1 | |
Thereafter | 3 | |
Total lease payments | 12 | |
Less: Interest | 2 | |
Total lease obligations, finance leases | $ 10 | $ 10 |
Borrowings and Lines of Credi_2
Borrowings and Lines of Credit (Long-term Debt Obligations) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | Mar. 31, 2021 | May 30, 2020 | Dec. 31, 2022 | Dec. 31, 2020 | May 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | May 31, 2020 | Feb. 28, 2018 | |
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 6,796,000,000 | $ 6,565,000,000 | |||||||||
Line of credit, amount outstanding | 0 | 0 | |||||||||
Finance lease obligation | 10,000,000 | 10,000,000 | |||||||||
Long-Term Debt, Adjustments Due To Derivatives | (20,000,000) | 36,000,000 | |||||||||
Long-term debt and finance lease obligations | 6,806,000,000 | 6,575,000,000 | |||||||||
Less payments due within one year | 303,000,000 | 3,000,000 | |||||||||
Long-term debt | $ 6,503,000,000 | 6,572,000,000 | |||||||||
Effective interest rates | 4.40% | ||||||||||
3.2% Notes due 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 300,000,000 | $ 299,000,000 | |||||||||
Interest rate swaps | $ 150,000,000 | ||||||||||
Effective interest rates | 2.20% | 0.60% | |||||||||
Debt instrument, interest rate, stated percentage | 3.20% | ||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | ||||||||||
Term Loan Credit Agreement, due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | 1,099,000,000 | $ 1,399,000,000 | |||||||||
2.4% Notes due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 299,000,000 | 298,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 2.40% | ||||||||||
Notes 0.875% Due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 639,000,000 | 677,000,000 | |||||||||
1.875% Notes Due 2025 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | 319,000,000 | 0 | |||||||||
Debt instrument, interest rate, stated percentage | 1.875% | ||||||||||
1.200% Notes due 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | 694,000,000 | 692,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 1.20% | ||||||||||
Notional amount of non-derivative instruments | $ 700,000,000 | ||||||||||
Notes 1.4 Percent Due 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 638,000,000 | 677,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 1.40% | ||||||||||
3.75% Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 809,000,000 | $ 811,000,000 | |||||||||
Interest rate swaps | $ 375,000,000 | ||||||||||
Effective interest rates | 2.60% | 1% | |||||||||
Debt instrument, interest rate, stated percentage | 3.75% | 3.75% | |||||||||
Notional amount of non-derivative instruments | $ 100,000,000 | $ 800 | $ 700,000,000 | ||||||||
2.8% Notes due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 298,000,000 | $ 298,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 2.80% | ||||||||||
2.750% Notes Due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 743,000,000 | 0 | |||||||||
Debt instrument, interest rate, stated percentage | 2.75% | ||||||||||
Notes 2.5 Percent Due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 85,000,000 | 90,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 2.50% | ||||||||||
2.55% Notes Due 2030 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 297,000,000 | 296,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 2.55% | ||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | ||||||||||
1.95% Notes due 2037 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | 52,000,000 | 0 | |||||||||
Debt instrument, interest rate, stated percentage | 1.95% | ||||||||||
Notes 7.70 Percent Due 2038 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 174,000,000 | 174,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 7.70% | ||||||||||
Notes 5.5 Percent Due 2040 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 247,000,000 | 247,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 5.50% | ||||||||||
Notes 3.0 Percent Due 2044 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 122,000,000 | 130,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 3% | ||||||||||
Commercial paper | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, amount outstanding | $ 0 | 440,000,000 | |||||||||
Other Non-US Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 1,000,000 | $ 1,000,000 | $ 30,000,000 | ||||||||
Long-term debt, percentage bearing variable interest, percentage rate | 4.40% | 3.10% |
Borrowings and Lines of Credi_3
Borrowings and Lines of Credit (Additional Information) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Aug. 31, 2020 USD ($) | Aug. 30, 2019 USD ($) | May 31, 2022 USD ($) | Mar. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | Jun. 30, 2020 USD ($) | May 30, 2020 USD ($) | Apr. 30, 2020 USD ($) | Mar. 31, 2020 USD ($) | Aug. 31, 2019 USD ($) | Jun. 30, 2021 USD ($) instrument | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 31, 2022 EUR (€) | Feb. 28, 2021 USD ($) | May 31, 2020 | |
Debt Instrument [Line Items] | ||||||||||||||||||||
Proceeds from issuance of debt | $ 1,061,000,000 | $ 692,000,000 | $ 119,000,000 | $ 296,000,000 | ||||||||||||||||
Debt instrument, number of obligations matured | instrument | 2 | |||||||||||||||||||
Long-term debt | $ 6,565,000,000 | $ 6,796,000,000 | $ 6,565,000,000 | |||||||||||||||||
Repayments of debt | $ 170,000,000 | 0 | 847,000,000 | $ 500,000,000 | ||||||||||||||||
Proceeds from revolving credit facility | 0 | 0 | 800,000,000 | |||||||||||||||||
repayments of long-term lines of credit | 300,000,000 | 0 | 0 | |||||||||||||||||
Short-term borrowings | 6,000,000 | 10,000,000 | 6,000,000 | |||||||||||||||||
Repayments of medium-term notes | $ 0 | 400,000,000 | 1,100,000,000 | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,200,000,000 | |||||||||||||||||||
Line of credit facility, additional borrowings capacity available | $ 750,000,000 | |||||||||||||||||||
Effective interest rates | 4.40% | |||||||||||||||||||
Debt instrument, covenant, total indebtedness to total capitalization ratio, maximum, percentage | 0.60 | |||||||||||||||||||
Debt instrument, covenant, acquisition for consideration, minimum threshold | $ 1,000,000,000 | |||||||||||||||||||
Debt instrument, covenant, total indebtedness to total capitalization ratio, maximum when acquisition for consideration threshold is met, percentage | 0.65 | |||||||||||||||||||
Debt instrument, total indebtedness to total capitalization, percentage | 0.49 | |||||||||||||||||||
Line of credit, amount outstanding | 0 | $ 0 | 0 | |||||||||||||||||
Outstanding letters of credit and surety bonds | 173,000,000 | 231,000,000 | 173,000,000 | |||||||||||||||||
Repayments of Lines of Credit | 0 | 0 | 800,000,000 | |||||||||||||||||
$1.5 billion 364-Day Term Loan [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, term | 364 days | |||||||||||||||||||
Short-term borrowings | $ 1,500,000,000 | |||||||||||||||||||
Non-callable Debentures 9 Percent Due 2021 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 9% | 9% | ||||||||||||||||||
Long-term debt | $ 134,000,000 | $ 134,000,000 | ||||||||||||||||||
Unsecured Debt | Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, term | 5 years | |||||||||||||||||||
Long-term debt | 0 | 0 | 0 | |||||||||||||||||
Proceeds from revolving credit facility | $ 800,000,000 | |||||||||||||||||||
Repayments of Lines of Credit | $ 800,000,000 | |||||||||||||||||||
Term Loan Credit Agreement, due 2024 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | $ 2,000,000,000 | |||||||||||||||||||
Long-term debt | 1,399,000,000 | 1,099,000,000 | 1,399,000,000 | |||||||||||||||||
Proceeds from revolving credit facility | 700,000,000 | 700,000,000 | ||||||||||||||||||
repayments of long-term lines of credit | 300,000,000 | |||||||||||||||||||
1.875% Notes Due 2025 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | € | € 300,000,000 | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.875% | |||||||||||||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||||||||||||
Long-term debt | 0 | 319,000,000 | 0 | |||||||||||||||||
2.750% Notes Due 2029 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | € | € 700,000,000 | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 2.75% | |||||||||||||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||||||||||||
Long-term debt | 0 | 743,000,000 | 0 | |||||||||||||||||
1.95% Notes due 2037 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | € | € 50,000,000 | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.95% | |||||||||||||||||||
Debt instrument, term | 15 years | |||||||||||||||||||
Long-term debt | 0 | 52,000,000 | 0 | |||||||||||||||||
1.200% Notes due 2026 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.20% | |||||||||||||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||||||||||||
Long-term debt | 692,000,000 | $ 694,000,000 | 692,000,000 | |||||||||||||||||
Notional amount of nonderivative instruments | $ 700,000,000 | |||||||||||||||||||
Notes 0.875 Percent Due 2022 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 0.875% | |||||||||||||||||||
Other Non-US Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | $ 1,000,000 | $ 30,000,000 | $ 30,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||||||||||
3.75% Notes due 2028 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 3.75% | 3.75% | 3.75% | |||||||||||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||||||||||||
Long-term debt | $ 811,000,000 | $ 809,000,000 | $ 811,000,000 | |||||||||||||||||
Notional amount of nonderivative instruments | $ 100,000,000 | $ 800 | $ 700,000,000 | |||||||||||||||||
Effective interest rates | 1% | 2.60% | 1% | |||||||||||||||||
Notes 3.6 Percent Due 2020 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 3.60% | |||||||||||||||||||
Repayments of unsecured debt | $ 500,000,000 | |||||||||||||||||||
Gain (loss) on extinguishment of debt | 7,000,000 | |||||||||||||||||||
Debt instrument, redemption charge, make-whole cash premium | 6,000,000 | |||||||||||||||||||
Write off of deferred debt issuance costs | $ 1,000,000 | |||||||||||||||||||
2.55% Notes Due 2030 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 2.55% | |||||||||||||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||||||||||||
Long-term debt | $ 296,000,000 | $ 297,000,000 | $ 296,000,000 | |||||||||||||||||
Notional amount of nonderivative instruments | $ 300,000,000 | |||||||||||||||||||
Commercial paper | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term commercial paper, noncurrent | 440,000,000 | 0 | 440,000,000 | |||||||||||||||||
Line of credit, amount outstanding | $ 440,000,000 | 0 | $ 440,000,000 | |||||||||||||||||
Minimum | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, unused capacity, commitment fee, percentage | 0.06% | |||||||||||||||||||
Periodic payment amount | 50,000,000 | |||||||||||||||||||
Maximum | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, unused capacity, commitment fee, percentage | 0.125% | |||||||||||||||||||
International Operations | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Lines of credit, current borrowing capacity | 539,000,000 | |||||||||||||||||||
Line of credit, amount outstanding | $ 4,000,000 |
Borrowings and Lines of Credi_4
Borrowings and Lines of Credit (Long-term Debt Maturities) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 303 |
2024 | 1,396 |
2025 | 959 |
2026 | 698 |
2027 | 642 |
Thereafter | $ 2,808 |
Borrowings and Lines of Credi_5
Borrowings and Lines of Credit (Short-term Debt Outstanding) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Short-term borrowings | $ 10 | $ 6 |
Weighted average interest rate | 2.70% | 0.70% |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements (Additional Information) (Detail) € in Billions | 12 Months Ended | ||||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Feb. 28, 2018 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Fair value of debt instrument designated as hedge of net investment in foreign operations | $ 2,600,000,000 | $ 1,600,000,000 | |||||
Accumulated pretax unrealized translation gains | 6,709,000,000 | 6,411,000,000 | $ 5,815,000,000 | $ 5,403,000,000 | |||
Net Investment Hedging | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Notional amount of nonderivative instruments | € | € 2.5 | € 1.4 | |||||
Foreign Currency Contracts | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Notional amount of derivative instruments designated as net investment hedges | 1,800,000,000 | 1,900,000,000 | |||||
Foreign currency contracts, liability, fair value disclosure | 24,000,000 | 24,000,000 | |||||
Interest Rate Swap | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Notional amount of derivative instruments designated as net investment hedges | $ 525,000,000 | ||||||
Interest rate derivatives, at fair value, net | 20,000,000 | 36,000,000 | |||||
Cross Currency Swaps | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Derivative instruments in hedges, net investment in foreign operations, assets, fair value, net | 88,000,000 | 50,000,000 | |||||
Currency Swap | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Notional amount of derivative instruments designated as net investment hedges | 775,000,000 | ||||||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Accumulated pretax unrealized translation gains | $ 327,000,000 | $ 204,000,000 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements (Fair Value, Cash Flow and Net Investment Hedges) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) Recognized Amount | $ 8 | $ 15 | $ 12 |
Fair Value Hedging | Foreign Currency Contracts | Interest expense | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) Recognized Amount | 8 | 15 | 12 |
Net Investment Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments | 123 | 226 | (257) |
Gain (Loss) Recognized Amount | 16 | 13 | 16 |
Net Investment Hedging | Currency Swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments | 38 | 53 | (57) |
Gain (Loss) Recognized Amount | 16 | 13 | 16 |
Net Investment Hedging | Other Foreign Currency Denominated Debt | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments | 85 | 173 | (200) |
Economic Hedging | Foreign Currency Contracts | Other Expense | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) Recognized Amount | $ 43 | $ 23 | $ 30 |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements (Assets and Liabilities Reported at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Level 1 | Short-term Investments | Marketable Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets reported at fair value on a recurring basis | $ 9 | $ 6 |
Level 1 | Investments | Marketable Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets reported at fair value on a recurring basis | 61 | 98 |
Level 2 | Other Current Assets | Cross Currency Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets reported at fair value on a recurring basis | 39 | |
Level 2 | Other Assets | Cross Currency Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets reported at fair value on a recurring basis | 49 | 50 |
Liabilities reported at fair value on a recurring basis | 1 | |
Level 2 | Other Assets | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets reported at fair value on a recurring basis | 0 | 36 |
Level 2 | Accounts Payable and Accrued Liabilities | Foreign Currency Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities reported at fair value on a recurring basis | 3 | 4 |
Level 2 | Other Liabilities | Cross Currency Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities reported at fair value on a recurring basis | 19 | 0 |
Not Designated as Hedging Instrument [Member] | Level 2 | Other Current Assets | Foreign Currency Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets reported at fair value on a recurring basis | $ 27 | $ 28 |
Financial Instruments, Hedgin_6
Financial Instruments, Hedging Activities and Fair Value Measurements (Long-Term Debt) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Long-term debt | $ 6,796 | $ 6,565 |
Long-term debt (excluding capital lease obligations), fair values | 6,375 | 6,958 |
Total lease obligations, finance leases | 10 | 10 |
Short-term borrowings | $ 10 | $ 6 |
Earnings Per Common Share (Addi
Earnings Per Common Share (Additional Detail) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per common share (attributable to PPG) | |||
Income from continuing operations, net of tax | $ 1,028 | $ 1,420 | $ 1,056 |
(Loss)/income from discontinued operations, net of tax | (2) | 19 | 3 |
Net income (attributable to PPG) | $ 1,026 | $ 1,439 | $ 1,059 |
Weighted average common shares outstanding | 236.1 | 237.6 | 236.8 |
Effect of dilutive securities: | |||
Stock options | 0.5 | 1 | 0.4 |
Other stock compensation plans | 0.7 | 0.8 | 0.7 |
Potentially dilutive common shares | 1.2 | 1.8 | 1.1 |
Adjusted weighted average common shares outstanding | 237.3 | 239.4 | 237.9 |
Earnings per common share (attributable to PPG) | |||
Continuing operations (in dollars per share) | $ 4.35 | $ 5.98 | $ 4.46 |
Discontinued operations (in dollars per share) | (0.01) | 0.08 | 0.01 |
Net Income (attributable to PPG) (in dollars per share) | 4.34 | 6.06 | 4.47 |
Earnings per common share - assuming dilution (attributable to PPG) | |||
Continuing operations (in dollars per share) | 4.33 | 5.93 | 4.44 |
Discontinued operations (in dollars per share) | (0.01) | 0.08 | 0.01 |
Earnings per common share - assuming dilution (in dollars per share) | $ 4.32 | $ 6.01 | $ 4.45 |
Outstanding stock options excluded from the computation of diluted earnings per share due to their antidilutive effect | 0.9 | 0 | 1.4 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
U.S. federal | $ 137 | $ 25 | $ 12 |
U.S. state and local | 20 | 13 | 6 |
Foreign | 325 | 301 | 320 |
Total current income tax expense | 482 | 339 | 338 |
Deferred | |||
U.S. federal | (79) | 12 | 1 |
U.S. state and local | (7) | 3 | (3) |
Foreign | (71) | 20 | (45) |
Total deferred income tax (benefit)/expense | (157) | 35 | (47) |
Total income tax expense | $ 325 | $ 374 | $ 291 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory U.S. Corporate Federal Income Tax Rate to Effective Income Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 21% | 21% | 21% |
Changes in rate due to: | |||
Taxes on non-U.S. earnings | 3.60% | 2.70% | 3.30% |
U.S. state and local taxes | 0.70% | 0.80% | 0.30% |
U.S. tax (benefit)/cost on foreign operations | (0.40%) | (1.60%) | 0.10% |
Tax benefits from equity awards | (0.30%) | (0.30%) | (0.40%) |
Change in valuation allowance reserves | 0.60% | 0% | (1.40%) |
U.S. tax incentives | (1.00%) | (0.60%) | (0.90%) |
Uncertain tax positions | (0.40%) | (1.40%) | 0.90% |
Other | (0.30%) | (1.50%) | |
Effective income tax rate | 23.50% | 20.60% | 21.40% |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) jurisdiction subsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income Taxes [Line Items] | |||
Effective income tax rate reconciliation, percent | 23.50% | 20.60% | 21.40% |
Effective income tax rate reconciliation, repatriation of foreign earnings and other reconciling items, percent | 2.90% | ||
Income before income taxes of non-US operations | $ 1,381 | $ 1,815 | $ 1,362 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 182 | 172 | |
Undistributed earnings of foreign subsidiaries | $ 4,600 | ||
Number of PPG subsidiaries | subsidiary | 280 | ||
Number of taxable jurisdictions | jurisdiction | 80 | ||
Income tax, potential U.S. tax cost for repatriation of foreign earnings | $ 101 | ||
Unrecognized tax benefits that would affect the effective tax rate, if recognized | 120 | ||
U.S. | |||
Income Taxes [Line Items] | |||
Income before income taxes of non-US operations | 288 | 469 | 190 |
Non United States | |||
Income Taxes [Line Items] | |||
Income before income taxes of non-US operations | $ 1,093 | $ 1,346 | $ 1,172 |
Income Taxes (Net Deferred Inco
Income Taxes (Net Deferred Income Tax Assets and Liabilities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Examination [Line Items] | ||
Employee benefits | $ 275 | $ 386 |
Contingent and accrued liabilities | 67 | 74 |
Operating loss and other carry-forwards | 218 | 278 |
Operating lease liabilities | 203 | 215 |
Research and development amortization | 149 | 68 |
Other | 168 | 121 |
Valuation allowance | 182 | 172 |
Deferred tax assets, net of valuation allowance | 898 | 970 |
Property | 223 | 278 |
Intangibles | 720 | 814 |
Employee benefits | 81 | 75 |
Operating lease right-of-use assets | 206 | 216 |
Other | 74 | 36 |
Deferred tax liabilities, gross | 1,304 | 1,419 |
Deferred tax liabilities, net | 406 | 449 |
Net operating loss carryforwards | 150 | 183 |
Income tax credit carryforwards | 89 | 115 |
Income tax, potential U.S. tax cost for repatriation of foreign earnings | 101 | |
Deferred income tax assets related to | ||
Employee benefits | 275 | 386 |
Contingent and accrued liabilities | 67 | 74 |
Operating loss and other carry-forwards | 218 | 278 |
Operating lease liabilities | 203 | 215 |
Research and development amortization | 149 | 68 |
Other | 168 | 121 |
Valuation allowance | (182) | (172) |
Total | 898 | 970 |
Deferred income tax liabilities related to | ||
Property | 223 | 278 |
Intangibles | 720 | 814 |
Employee benefits | 81 | 75 |
Operating lease right-of-use assets | 206 | 216 |
Other | 74 | 36 |
Total | 1,304 | 1,419 |
Deferred income tax liabilities – net | $ (406) | (449) |
Minimum | ||
Income Tax Examination [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2023 | |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2023 | |
Maximum | ||
Income Tax Examination [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2042 | |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2042 | |
Net Operating Loss, Indefinite Life | ||
Income Tax Examination [Line Items] | ||
Net operating loss carryforwards | $ 84 | 106 |
Net Operating Loss, Expiring Within 20 Years | ||
Income Tax Examination [Line Items] | ||
Net operating loss carryforwards | $ 66 | $ 77 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 158 | $ 175 | $ 167 |
Current year tax positions - additions | 19 | 12 | 25 |
Prior year tax positions - additions | 2 | 10 | 5 |
Prior year tax positions - reductions | (2) | (2) | (2) |
Statute of limitations expirations | (23) | (19) | (8) |
Settlements | (3) | (21) | (11) |
Foreign currency translation | (6) | 3 | (1) |
Ending balance | 145 | 158 | 175 |
Accrued interest and penalties related to unrecognized tax benefits | 17 | 17 | 18 |
Loss/(income) recognized in income tax expense related to interest and penalties | $ 1 | $ (2) | $ 2 |
Employee Benefit Plans (Additio
Employee Benefit Plans (Additional Information) (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Pension settlement charge | $ 50 | |||||
Reduction in projected benefit obligation due to non-cash settlement charge | $ 175 | |||||
ABO for all defined benefit pension plans | 3,500 | $ 2,300 | $ 3,500 | |||
Return on plan assets assumption | 5% | 4.80% | 5% | |||
Impact on net periodic pension expense | $ 8 | |||||
Weighted-average healthcare cost trend rate assumed for next fiscal year | 5.40% | |||||
Assumed ultimate health care cost trend rate | 4% | |||||
Aggregate PBO for the pension plans with PBO in excess of plan assets | 2,232 | $ 1,863 | $ 2,232 | |||
Aggregate fair value of plan assets for the pension plans with PBO in excess of plan assets | 1,366 | 1,270 | 1,366 | |||
Aggregate ABO for the pension plans with ABO in excess of plan assets | 2,197 | 1,833 | 2,197 | |||
Fair value of plan assets for the pension plans with ABO in excess of plan assets | $ 1,362 | 1,266 | 1,362 | |||
Maximum | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Estimated future mandatory contributions, low end of range | 20 | |||||
Scenario, Forecast | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Impact on net periodic pension expense | $ 5 | |||||
Weighted-average healthcare cost trend rate assumed for next fiscal year | 5.80% | |||||
Assumed ultimate health care cost trend rate | 3.90% | |||||
Pension Plan | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Contributions to defined benefit pension plans | 11 | 10 | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 140 | 149 | ||||
Net actuarial gain arising during the year | (60) | |||||
Estimated future benefit payments in 2022 | 148 | |||||
Estimated future benefit payments in 2023 | 166 | |||||
Estimated future benefit payments in 2024 | 153 | |||||
Estimated future benefit payments in 2025 | 157 | |||||
Estimated future benefit payments in 2026 | 160 | |||||
Estimated aggregate future benefits payments for the five years thereafter | 825 | |||||
Other Postretirement Benefits | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 44 | 45 | ||||
Net actuarial gain arising during the year | (174) | |||||
Estimated future benefit payments in 2022 | 48 | |||||
Estimated future benefit payments in 2023 | 47 | |||||
Estimated future benefit payments in 2024 | 46 | |||||
Estimated future benefit payments in 2025 | 43 | |||||
Estimated future benefit payments in 2026 | 42 | |||||
Estimated aggregate future benefits payments for the five years thereafter | $ 192 | |||||
Other Postretirement Benefits | Scenario, Forecast | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Impact on net periodic pension expense | $ 1 | |||||
Postretirement Health Coverage | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Plan amendments | $ 306 | |||||
Amortization reduction period | 5 years 7 months 6 days | |||||
Welfare Benefits - U.S. | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Percentage of defined benefit pension plan assets market value | 87% | |||||
United States | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Return on plan assets assumption | 7.40% | |||||
Percentage of defined benefit pension plan assets market value | 95% | |||||
United States | Scenario, Forecast | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Return on plan assets assumption | 7.40% | |||||
United States | Pension Plan | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Contributions to defined benefit pension plans | $ 0 | 0 | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 91 | 89 | ||||
United States | Other Postretirement Benefits | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 40 | 41 | ||||
International | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Contributions to defined benefit pension plans | 11 | 10 | $ 17 | |||
International | Minimum | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Estimated future mandatory contributions, low end of range | 10 | |||||
International | Scenario, Forecast | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Return on plan assets assumption | 6.50% | |||||
International | Pension Plan | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Contributions to defined benefit pension plans | 11 | 10 | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 49 | 60 | ||||
International | Other Postretirement Benefits | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ 4 | $ 4 | ||||
Canada, Netherlands, And United Kingdom | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Percentage of defined benefit pension plan assets market value | 95% |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Projected Benefit Obligations, Plan Assets and Funded Status) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | $ 2,975 | ||
End balance | 1,974 | $ 2,975 | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (77) | (87) | |
Other postretirement benefits | (476) | (672) | |
Accrued pensions | (566) | (834) | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 3,534 | 3,975 | |
Service cost | 9 | 9 | $ 24 |
Interest cost | 73 | 65 | 87 |
Actuarial gains | (934) | (163) | |
Benefits paid | (140) | (149) | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 0 | 48 | |
Foreign currency translation adjustments | (126) | (51) | |
Settlements and curtailments | (22) | (198) | |
Other | (8) | (2) | |
Projected benefit obligation, End of year | 2,386 | 3,534 | 3,975 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 2,975 | 3,216 | |
Actual return on plan assets | (734) | 108 | |
Company contributions | 11 | 10 | |
Benefits paid | (114) | (123) | |
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 3 | |
Plan settlements | (22) | (198) | |
Foreign currency translation adjustments | (140) | (38) | |
Other | (2) | (3) | |
End balance | 1,974 | 2,975 | 3,216 |
Funded Status | (412) | (559) | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Other assets (long-term) | 183 | 310 | |
Accounts payable and accrued liabilities | (29) | (35) | |
Accrued pensions | (566) | (834) | |
Net (liability)/asset recognized | (412) | (559) | |
Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 724 | 786 | |
Service cost | 8 | 12 | 10 |
Interest cost | 16 | 14 | 20 |
Actuarial gains | (174) | (43) | |
Benefits paid | (44) | (45) | |
Foreign currency translation adjustments | (6) | 0 | |
Projected benefit obligation, End of year | 524 | 724 | 786 |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (48) | (52) | |
Other postretirement benefits | (476) | (672) | |
Net (liability)/asset recognized | (524) | (724) | |
United States | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 1,920 | 2,042 | |
Service cost | 0 | 0 | |
Interest cost | 45 | 39 | |
Actuarial gains | (449) | (72) | |
Benefits paid | (91) | (89) | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Settlements and curtailments | 0 | 0 | |
Other | 0 | 0 | |
Projected benefit obligation, End of year | 1,425 | 1,920 | 2,042 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,329 | 1,335 | |
Actual return on plan assets | (228) | 66 | |
Company contributions | 0 | 0 | |
Benefits paid | (73) | (72) | |
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 0 | |
Plan settlements | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Other | 0 | 0 | |
End balance | 1,028 | 1,329 | 1,335 |
Funded Status | (397) | (591) | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Other assets (long-term) | 0 | 0 | |
Accounts payable and accrued liabilities | (17) | (23) | |
Accrued pensions | (380) | (568) | |
Net (liability)/asset recognized | (397) | (591) | |
United States | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 631 | 682 | |
Service cost | 8 | 11 | |
Interest cost | 13 | 12 | |
Actuarial gains | (154) | (33) | |
Benefits paid | (40) | (41) | |
Foreign currency translation adjustments | 0 | 0 | |
Projected benefit obligation, End of year | 458 | 631 | 682 |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (44) | (47) | |
Other postretirement benefits | (414) | (584) | |
Net (liability)/asset recognized | (458) | (631) | |
International | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Company contributions | 11 | 10 | 17 |
International | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 1,614 | 1,933 | |
Service cost | 9 | 9 | |
Interest cost | 28 | 26 | |
Actuarial gains | (485) | (91) | |
Benefits paid | (49) | (60) | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 0 | 48 | |
Foreign currency translation adjustments | (126) | (51) | |
Settlements and curtailments | (22) | (198) | |
Other | (8) | (2) | |
Projected benefit obligation, End of year | 961 | 1,614 | 1,933 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,646 | 1,881 | |
Actual return on plan assets | (506) | 42 | |
Company contributions | 11 | 10 | |
Benefits paid | (41) | (51) | |
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 3 | |
Plan settlements | (22) | (198) | |
Foreign currency translation adjustments | (140) | (38) | |
Other | (2) | (3) | |
End balance | 946 | 1,646 | 1,881 |
Funded Status | (15) | 32 | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Other assets (long-term) | 183 | 310 | |
Accounts payable and accrued liabilities | (12) | (12) | |
Accrued pensions | (186) | (266) | |
Net (liability)/asset recognized | (15) | 32 | |
International | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 93 | 104 | |
Service cost | 0 | 1 | |
Interest cost | 3 | 2 | |
Actuarial gains | (20) | (10) | |
Benefits paid | (4) | (4) | |
Foreign currency translation adjustments | (6) | 0 | |
Projected benefit obligation, End of year | 66 | 93 | $ 104 |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (4) | (5) | |
Other postretirement benefits | (62) | (88) | |
Net (liability)/asset recognized | $ (66) | $ (93) |
Employee Benefit Plans (Accumul
Employee Benefit Plans (Accumulated Other Comprehensive Loss Pretax Amounts Not Yet Reflected in Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated net actuarial losses/(gains) | $ 748 | $ 857 |
Accumulated prior service cost/(credit) | 0 | 5 |
Total | 748 | 862 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated net actuarial losses/(gains) | (16) | 170 |
Accumulated prior service cost/(credit) | (10) | (21) |
Total | $ (26) | $ 149 |
Employee Benefit Plans (Change
Employee Benefit Plans (Change in Accumulated Other Comprehensive Loss (Pretax) Relating to Defined Benefit Pension and Other Postretirement Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain arising during the year | $ (174) | ||
New prior service cost | 0 | ||
Amortization of actuarial loss | 12 | $ 20 | $ 15 |
Amortization of prior service credit | 11 | 54 | 59 |
Foreign currency translation adjustments | 0 | ||
Impact of settlements | 0 | ||
Net decrease | (175) | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain arising during the year | (60) | ||
New prior service cost | (5) | ||
Amortization of actuarial loss | 34 | $ 39 | $ 71 |
Amortization of prior service credit | 0 | ||
Foreign currency translation adjustments | (9) | ||
Impact of settlements | (6) | ||
Net decrease | $ (114) |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8 | $ 12 | $ 10 |
Interest cost | 16 | 14 | 20 |
Amortization of prior service credit | (11) | (54) | (59) |
Amortization of actuarial losses | 12 | 20 | 15 |
Net periodic benefit (income)/cost | 25 | (8) | (14) |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 9 | 9 | 24 |
Interest cost | 73 | 65 | 87 |
Expected return on plan assets | 140 | 152 | 144 |
Amortization of prior service credit | 0 | ||
Amortization of actuarial losses | 34 | 39 | 71 |
Settlements, curtailments, and special termination benefits | 6 | 53 | 18 |
Net periodic benefit (income)/cost | $ (18) | $ 14 | $ 56 |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted Average Assumptions Used to Determine Benefit Obligation for Defined Benefit Pension and Other Postretirement Plans) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to calculate benefit obligation | 5.20% | 2.50% | |
Rate of compensation increase | 2.70% | 2.60% | |
Return on plan assets assumption | 5% | 4.80% | 5% |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to calculate benefit obligation | 5.40% | 2.80% | |
Rate of compensation increase | 2.50% | 2.50% | |
Return on plan assets assumption | 7.40% | ||
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to calculate benefit obligation | 4.90% | 2% | |
Rate of compensation increase | 3.10% | 2.80% |
Employee Benefit Plans (Weigh_2
Employee Benefit Plans (Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for Defined Benefit Pension and Other Postretirement Plans) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used to calculate benefit obligation | 5.20% | 2.50% | |
Discount rate | 2.50% | 2.10% | 2.80% |
Expected return on assets | 5% | 4.80% | 5% |
Rate of compensation increase | 2.60% | 1.50% | 2.60% |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used to calculate benefit obligation | 5.40% | 2.80% | |
Expected return on assets | 7.40% |
Employee Benefit Plans (Weigh_3
Employee Benefit Plans (Weighted Average Target Pension Plan Asset Allocations) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Minimum | Equity Securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 15% | 15% |
Minimum | Debt securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 30% | 30% |
Minimum | Real Estate | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 0% | 0% |
Minimum | Other | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 20% | 20% |
Maximum | Equity Securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 45% | 45% |
Maximum | Debt securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 65% | 65% |
Maximum | Real Estate | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 10% | 10% |
Maximum | Other | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 40% | 40% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Values of the Company's Pension Plan Assets by Asset Category) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | $ 1,974 | $ 2,975 | |
Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 1,529 | 2,358 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 246 | 333 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 606 | 1,071 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 677 | 954 | $ 916 |
Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 445 | 617 | |
Defined Benefit Plan, Equity Securities, US, Large Cap | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 109 | 157 | |
Defined Benefit Plan, Equity Securities, US, Large Cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 66 | 79 | |
Defined Benefit Plan, Equity Securities, US, Large Cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 43 | 78 | |
Defined Benefit Plan, Equity Securities, US, Large Cap | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Defined Benefit Plan, Equity Securities, US, Small Cap | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 25 | 48 | |
Defined Benefit Plan, Equity Securities, US, Small Cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 25 | 48 | |
Defined Benefit Plan, Equity Securities, US, Small Cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Defined Benefit Plan, Equity Securities, US, Small Cap | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Defined Benefit Plan, Equity Securities, Non-US | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 142 | 206 | |
Defined Benefit Plan, Equity Securities, Non-US | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 99 | 130 | |
Defined Benefit Plan, Equity Securities, Non-US | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 43 | 76 | |
Defined Benefit Plan, Equity Securities, Non-US | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Defined Benefit Plan, Cash and Cash Equivalents | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 54 | 50 | |
Defined Benefit Plan, Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 7 | 8 | |
Defined Benefit Plan, Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 47 | 42 | |
Defined Benefit Plan, Cash and Cash Equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Debt Security, Corporate, US | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 248 | 332 | |
Debt Security, Corporate, US | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Debt Security, Corporate, US | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 168 | 232 | |
Debt Security, Corporate, US | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 80 | 100 | |
Debt Security, Developed Markets And Emerging Economies | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 1 | 1 | |
Debt Security, Developed Markets And Emerging Economies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Debt Security, Developed Markets And Emerging Economies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 1 | 1 | |
Debt Security, Developed Markets And Emerging Economies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Debt Security, Diverse Portfolio | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 13 | 57 | |
Debt Security, Diverse Portfolio | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Debt Security, Diverse Portfolio | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 13 | 57 | |
Debt Security, Diverse Portfolio | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 59 | 81 | |
US Government Agencies Debt Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 49 | 68 | |
US Government Agencies Debt Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 10 | 13 | |
US Government Agencies Debt Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Developed Markets, Government Agencies Debt Securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 6 | 10 | |
Developed Markets, Government Agencies Debt Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Developed Markets, Government Agencies Debt Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 6 | 10 | |
Developed Markets, Government Agencies Debt Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Other | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 235 | 367 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 235 | 367 | |
Defined Benefit Plan, Real Estate, Hedge Funds, And Other [Member] | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 637 | 1,049 | |
Defined Benefit Plan, Real Estate, Hedge Funds, And Other [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Defined Benefit Plan, Real Estate, Hedge Funds, And Other [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 275 | 562 | |
Defined Benefit Plan, Real Estate, Hedge Funds, And Other [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | $ 362 | $ 487 |
Employee Benefit Plans (Chang_2
Employee Benefit Plans (Change in Fair Value of Company's Level 3 Pension Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | $ 2,975 | |
End balance | 1,974 | $ 2,975 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 954 | 916 |
Realized gains/(losses) | (99) | 1 |
Unrealized gains | 3 | 30 |
Transfers in/(out), net | (122) | 38 |
Foreign currency losses | (59) | (31) |
End balance | 677 | 954 |
Level 3 | Real Estate | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 157 | 124 |
Realized gains/(losses) | 1 | 3 |
Unrealized gains | 6 | 22 |
Transfers in/(out), net | (10) | 8 |
Foreign currency losses | (5) | 0 |
End balance | 149 | 157 |
Level 3 | Other Debt Securities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 367 | 421 |
Realized gains/(losses) | (99) | (11) |
Unrealized gains | 0 | 0 |
Transfers in/(out), net | (12) | (14) |
Foreign currency losses | (21) | (29) |
End balance | 235 | 367 |
Level 3 | Hedge Funds and Other Assets | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 430 | 371 |
Realized gains/(losses) | (1) | 9 |
Unrealized gains | (3) | 8 |
Transfers in/(out), net | (100) | 44 |
Foreign currency losses | (33) | (2) |
End balance | $ 293 | $ 430 |
Employee Benefit Plans (Other P
Employee Benefit Plans (Other Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined contribution plan contribution rates as percentage of employee earnings | 6% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | ||
Compensation expense related to the ESOP | $ 56 | $ 52 | $ 50 |
Deductible dividends on PPG shares held by the ESOP | 11 | 10 | 11 |
Recognized expense for defined contribution pension plans | 92 | 88 | 64 |
Expense (income) of the deferred compensation plan | 23 | 20 | 25 |
Increase (Decrease) in fair value of investments | 24 | 18 | $ 24 |
Obligations under the deferred compensation plan | 105 | 139 | |
Investments in marketable securities by the deferred compensation plan | $ 70 | $ 104 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Asbestos Matters) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asbestos-related claims reserve adjustment | $ 0 | $ (133) | $ 0 |
Asbestos Issue | |||
Asbestos-related claims reserve adjustment | 133 | ||
Loss contingency accrual | $ 51 | 54 | |
Asbestos Claim Products Reserve | |||
Asbestos-related claims reserve adjustment | $ 146 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Environmental Matters) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 48 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2024 | |
Environmental Matters [Abstract] | ||||||
Reserves for environmental contingencies | $ 217 | $ 217 | $ 282 | |||
Reserves for environmental contingencies classified as current liabilities | 50 | 50 | 97 | |||
Pretax charges for environmental remediation costs | 13 | 44 | $ 38 | |||
Cash outlays related to environmental remediation | 78 | 56 | 60 | |||
Historical low end of range of annual environmental remediation expense over the past 15 years | 5 | 5 | ||||
Historical high end of range of annual environmental remediation expense over the past 15 years | 35 | $ 35 | ||||
Remediation Period | 10 years | |||||
Glass Segment | ||||||
Environmental Matters [Abstract] | ||||||
Income from discontinued operations, before tax | 25 | |||||
Income from discontinued operations, net of tax | $ 19 | |||||
Scenario, Forecast | Maximum | ||||||
Environmental Matters [Abstract] | ||||||
Cash for environmental loss contingencies, low estimate | $ 60 | |||||
Cash for environmental loss contingencies, high estimate | $ 75 | |||||
Unreserved loss contingencies related to environmental matters, high estimate | 200 | |||||
Scenario, Forecast | Minimum | ||||||
Environmental Matters [Abstract] | ||||||
Cash for environmental loss contingencies, low estimate | 40 | $ 20 | ||||
Unreserved loss contingencies related to environmental matters, high estimate | $ 100 | |||||
Excavation of Soil | ||||||
Environmental Matters [Abstract] | ||||||
Percentage of the total remaining reserve | 65% | 65% | ||||
Groundwater Remediation | ||||||
Environmental Matters [Abstract] | ||||||
Percentage of the total remaining reserve | 15% | 15% | ||||
Jersey City Manufacturing Plant | ||||||
Environmental Matters [Abstract] | ||||||
Reserves for environmental contingencies | $ 58 | $ 58 | 89 | |||
Pretax charges for environmental remediation costs | 0 | 25 | 15 | |||
Glass and Chemical Sites | ||||||
Environmental Matters [Abstract] | ||||||
Reserves for environmental contingencies | 60 | 60 | 83 | |||
Pretax charges for environmental remediation costs | 3 | 12 | 15 | |||
Other Environmental Contingencies | ||||||
Environmental Matters [Abstract] | ||||||
Reserves for environmental contingencies | $ 99 | 99 | 110 | |||
Pretax charges for environmental remediation costs | $ 10 | $ 7 | $ 8 |
Shareholders' Equity (Summary o
Shareholders' Equity (Summary of Shares Outstanding) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholders' Equity Note [Line Items] | |||
Preferred stock without par value (in dollars per share) | $ 10,000,000 | ||
Shares of common stock authorized | 1,200,000,000 | ||
Per share cash dividends paid (in dollars per share) | $ 2.42 | $ 2.26 | $ 2.10 |
Common stock, par or stated value per share | $ 1.667 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 235,907,026 | 236,686,265 | 235,680,470 |
Purchases (in shares) | (1,269,830) | (1,521,765) | |
Issuances (in shares) | 436,730 | 742,526 | 1,005,795 |
Ending balance (in shares) | 235,073,926 | 235,907,026 | 236,686,265 |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 581,146,136 | 581,146,136 | 581,146,136 |
Ending balance (in shares) | 581,146,136 | 581,146,136 | 581,146,136 |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 345,239,110 | 344,459,871 | 345,465,666 |
Purchases (in shares) | (1,269,830) | (1,521,765) | |
Issuances (in shares) | 436,730 | 742,526 | 1,005,795 |
Ending balance (in shares) | 346,072,210 | 345,239,110 | 344,459,871 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 6,411 | $ 5,815 | $ 5,403 |
Ending balance | 6,709 | 6,411 | 5,815 |
Unrealized foreign currency translation adjustment, tax | 73 | 55 | (6) |
Adjustment for pension and other postretirement benefits, tax | 83 | 48 | (70) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,988) | (1,663) | (1,627) |
Current year deferrals to AOCL | (301) | (325) | (36) |
Reclassifications from AOCL to net income | 35 | 0 | 0 |
Ending balance | (2,254) | (1,988) | (1,663) |
Pension and Other Post retirement Benefit Adjustments, net of tax | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (763) | (937) | (724) |
Current year deferrals to AOCL | 175 | 132 | (237) |
Reclassifications from AOCL to net income | 31 | 42 | 24 |
Ending balance | (557) | (763) | (937) |
Unrealized Gain (Loss) on Derivatives, net of tax | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 1 | 1 | 1 |
Current year deferrals to AOCL | 0 | 0 | 0 |
Reclassifications from AOCL to net income | 0 | 0 | 0 |
Ending balance | 1 | 1 | 1 |
Accumulated Other Comprehensive Loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,750) | (2,599) | (2,350) |
Current year deferrals to AOCL | (126) | (193) | (273) |
Reclassifications from AOCL to net income | 66 | 42 | 24 |
Ending balance | $ (2,810) | $ (2,750) | $ (2,599) |
Other (Income)_Charges, Net (De
Other (Income)/Charges, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Gain on sale of assets | $ (10) | $ (47) | $ (5) |
Royalty income | (8) | (8) | (7) |
Share of net earnings of equity affiliates (See Note 5) | (25) | (15) | (8) |
Income from legal settlements | 0 | (22) | 0 |
Other income, net | (17) | (51) | |
Other expense, net | 56 | ||
Total (income)/charges, net | $ (60) | (143) | $ 36 |
Gain on sale of production facility | $ 34 |
Stock-Based Compensation (Activ
Stock-Based Compensation (Activity) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 35 | $ 57 | $ 44 |
Total income tax benefit recognized related to the stock-based compensation | $ 8 | $ 12 | $ 10 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of the outstanding stock options for the PPG Omnibus Plan and the PPG Stock Plan for certain employees | 10 years | ||
Weighted average fair value of options granted (in dollars per share) | $ 36.52 | $ 29.27 | $ 21.93 |
Share-based compensation arrangement by share-based payment award, plan modification, description and terms | The options are generally exercisable 36 months after being granted and have a maximum term of 10 years. | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 36 months | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost that have not yet vested | $ 7 | ||
Cost not yet recognized, period for recognition | 1 year 4 months 24 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Total unrecognized compensation cost that have not yet vested | $ 20 | ||
Cost not yet recognized, period for recognition | 1 year 6 months | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the target award that is paid based on performance | 200% | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the target award that is paid based on performance | 0% | ||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, 2020-2022 Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the target award that is assumed to vest for the purposes of expense recognition | 100% | ||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, 2021-2023 Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the target award that is assumed to vest for the purposes of expense recognition | 100% | ||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, 2022-2024 Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the target award that is assumed to vest for the purposes of expense recognition | 100% | ||
Contingent Share Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Total unrecognized compensation cost that have not yet vested | $ 2 | ||
Cost not yet recognized, period for recognition | 2 years | ||
Earned payout if the target performance is achieved | 100% | ||
Payout, percentage | 0% | ||
Contingent Share Grants | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the target award that is paid based on performance | 200% | ||
Contingent Share Grants | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the target award that is paid based on performance | 0% |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions Used in Calculating Fair Value of Stock Option) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average exercise price | $ 151.87 | $ 136.60 | $ 119.52 |
Risk-free interest rate | 2% | 1% | 1.60% |
Expected life of option in years | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected dividend yield | 1.60% | 1.60% | 1.50% |
Expected volatility | 25.70% | 25.30% | 20% |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Outstanding, Exercisable and Activity) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Beginning Balance | 3,340,402 | |
Granted | 487,277 | |
Exercised | (158,837) | |
Forfeited/Expired | (151,391) | |
Ending Balance | 3,517,451 | 3,340,402 |
Vested or expected to vest, at end of period | 3,444,650 | |
Exercisable, at end of period | 2,039,716 | |
Weighted Average Exercise Price | ||
Beginning Balance (in dollars per share) | $ 110.98 | |
Granted (in dollars per share) | 151.87 | |
Exercised (in dollars per share) | 77.24 | |
Forfeited/Expired (in dollars per share) | 134.34 | |
Ending Balance (in dollars per share) | 117.16 | $ 110.98 |
Vested or expected to vest, at end of period (in dollars per share) | 116.57 | |
Exercisable, at end of period (in dollars per share) | $ 104.58 | |
Weighted Average Remaining Contractual Life (in years) | ||
Outstanding | 5 years 8 months 12 days | 6 years 1 month 6 days |
Vested or expected to vest, at end of period | 5 years 7 months 6 days | |
Exercisable, at end of period | 4 years | |
Intrinsic Value (in millions) | ||
Outstanding | $ 47 | |
Vested or expected to vest, at end of period | 47 | |
Exercisable, at end of period | $ 43 |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Total intrinsic value of stock options exercised | $ 12 | $ 32 | $ 31 |
Cash received from stock option exercises | 12 | 47 | 54 |
Income tax benefit from the exercise of stock options | 3 | 8 | 7 |
Total fair value of stock options vested | $ 16 | $ 11 | $ 11 |
Stock-Based Compensation (RSU A
Stock-Based Compensation (RSU Activity) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance | shares | 622,055 |
Granted | shares | 232,050 |
Vested | shares | (199,642) |
Forfeited | shares | (65,075) |
Ending Balance | shares | 589,388 |
Vested or expected vest, at end of period | shares | 563,900 |
Weighted Average Grant Date Fair Value | |
Beginning Balance (in dollars per share) | $ / shares | $ 125.92 |
Granted (in dollars per share) | $ / shares | 147.77 |
Released from restrictions (in dollars per share) | $ / shares | 147.36 |
Forfeited (in dollars per share) | $ / shares | 122.60 |
Ending Balance (in dollars per share) | $ / shares | 136.99 |
Vested or expected to vest, at end of period (in dollars per share) | $ / shares | $ 136.67 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Bad debt expense | $ 43 | $ 52 | $ 19 | |
Allowance for doubtful accounts | 31 | $ 31 | $ 44 | |
Russia | ||||
Disaggregation of Revenue [Line Items] | ||||
Allowance for doubtful accounts | $ 11 | |||
Service | Revenue from Contract with Customer | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Service revenue, percentage of total revenue | 5% | 5% | 5% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule Of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 17,652 | $ 16,802 | $ 13,834 |
United States and Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 7,384 | 6,676 | 5,668 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,458 | 5,436 | 4,328 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,823 | 2,977 | 2,431 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,987 | $ 1,713 | $ 1,407 |
Revenue from Contract with Customer | Geographic Concentration Risk | United States | |||
Disaggregation of Revenue [Line Items] | |||
Service revenue, percentage of total revenue | 38% | 36% | 37% |
Performance Coatings Segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 10,694 | $ 10,333 | $ 8,495 |
Performance Coatings Segment | United States and Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,718 | 4,366 | 3,673 |
Performance Coatings Segment | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,550 | 3,582 | 2,861 |
Performance Coatings Segment | Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,118 | 1,254 | 1,015 |
Performance Coatings Segment | Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,308 | 1,131 | 946 |
Industrial Coatings Segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,958 | 6,469 | 5,339 |
Industrial Coatings Segment | United States and Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,666 | 2,310 | 1,995 |
Industrial Coatings Segment | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,908 | 1,854 | 1,467 |
Industrial Coatings Segment | Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,705 | 1,723 | 1,416 |
Industrial Coatings Segment | Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 679 | $ 582 | $ 461 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 31 | $ 31 | $ 44 |
Bad debt expense | $ 43 | 52 | 19 |
Recoveries of previously reserved trade receivables | (55) | (14) | |
Other | (3) | (18) | |
Ending balance | $ 31 | $ 31 |
Reportable Business Segment I_3
Reportable Business Segment Information (Reportable Segment Information) (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of PPG operating segments | 10 |
Number of PPG reportable business segments, based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution | 2 |
Reportable Business Segment I_4
Reportable Business Segment Information (Reportable Segment Tables) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 34 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total Net sales | $ 17,652 | 16,802 | $ 13,834 | |
Total Segment income | 2,042 | 2,171 | 2,109 | |
Corporate unallocated | (218) | (194) | (233) | |
Interest expense, net of interest income | (113) | (95) | (115) | |
Impairment and other related charges, net | $ (89) | (245) | (21) | (93) |
Business restructuring-related costs, net | (75) | (27) | (224) | |
Transaction-related costs, net | (10) | (86) | (9) | |
Pension settlement charge | 0 | (50) | 0 | |
Environmental remediation charges, net | 0 | (35) | (26) | |
Expense incurred due to natural disasters | 0 | (17) | (17) | |
Change in allowance for doubtful accounts related to COVID-19 | 0 | 14 | (30) | |
Income from legal settlements | 0 | 22 | 0 | |
Asbestos-related claims reserve adjustment | 0 | 133 | 0 | |
Total Income before income taxes | 1,381 | 1,815 | 1,362 | |
Depreciation and amortization | 554 | 561 | 509 | |
Share of net earnings of equity affiliates | 25 | 15 | 8 | |
Segment assets | 20,744 | 21,351 | 19,556 | |
Investment in equity affiliates | 134 | 126 | 120 | |
Expenditures for property (including business acquisitions) | 632 | 2,508 | 1,473 | |
Corporate, Non-Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Depreciation and amortization | 51 | 41 | 58 | |
Share of net earnings of equity affiliates | 18 | 10 | 5 | |
Segment assets | 1,854 | 2,149 | 2,965 | |
Investment in equity affiliates | 77 | 78 | 74 | |
Expenditures for property (including business acquisitions) | 65 | 26 | 14 | |
Performance Coatings Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total Net sales | 10,694 | 10,333 | 8,495 | |
Performance Coatings Segment | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total Net sales | 10,694 | 10,333 | 8,495 | |
Total Segment income | 1,399 | 1,491 | 1,359 | |
Depreciation and amortization | 296 | 308 | 251 | |
Share of net earnings of equity affiliates | 7 | 5 | 3 | |
Segment assets | 13,088 | 13,395 | 11,551 | |
Investment in equity affiliates | 42 | 33 | 31 | |
Expenditures for property (including business acquisitions) | 254 | 1,698 | 1,293 | |
Industrial Coatings Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total Net sales | 6,958 | 6,469 | 5,339 | |
Industrial Coatings Segment | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total Net sales | 6,958 | 6,469 | 5,339 | |
Total Segment income | 643 | 680 | 750 | |
Depreciation and amortization | 207 | 212 | 200 | |
Segment assets | 5,802 | 5,807 | 5,040 | |
Investment in equity affiliates | 15 | 15 | 15 | |
Expenditures for property (including business acquisitions) | $ 313 | $ 784 | $ 166 |
Reportable Business Segment I_5
Reportable Business Segment Information (Geographic Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | $ 2,042 | $ 2,171 | $ 2,109 |
Property, plant and equipment, net | 3,328 | 3,442 | 3,127 |
United States and Canada | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | 819 | 865 | 855 |
Property, plant and equipment, net | 1,394 | 1,377 | 1,351 |
EMEA | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | 505 | 612 | 572 |
Property, plant and equipment, net | 943 | 1,069 | 857 |
Asia Pacific | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | 332 | 354 | 382 |
Property, plant and equipment, net | 685 | 702 | 623 |
Latin America | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | 386 | 340 | 300 |
Property, plant and equipment, net | $ 306 | $ 294 | $ 296 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts Allowance for Doubtful Accounts for the Years Ended December 31, 2022, 2021, and 2020 ($ in millions) Balance at Beginning of Year Charged to Costs and Expenses(1) Deductions(1, 2) Balance at End of Year 2022 $31 $52 ($52) $31 2021 $44 $5 ($18) $31 2020 $22 $44 ($22) $44 (1) In the first quarter 2022, PPG recorded a bad debt reserve of $43 million associated with the adverse economic impacts of the Russian invasion of Ukraine. Subsequently, the Company released a portion of this previously established bad debt reserve due to the collection of certain trade receivables. In 2020, PPG recorded an allowance for doubtful accounts of $30 million related to the potential financial impacts of COVID-19. In 2021, PPG released a portion of the previously established reserve due to improvement in economic conditions in certain countries and a slower pattern of bankruptcies than expected. (2) Notes and accounts receivable written off as uncollectible, net of recoveries, amounts attributable to divestitures and changes attributable to foreign currency translation. | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 172 | ||
Balance at End of Year | 182 | $ 172 | |
Accounts Receivable, Credit Loss Expense (Reversal), CARES Act | 0 | (14) | $ 30 |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 31 | 44 | 22 |
Charged to Costs and Expenses | 52 | 5 | 44 |
Deductions | (52) | (18) | (22) |
Balance at End of Year | $ 31 | $ 31 | $ 44 |