Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
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 | No | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 25,002 | ||
Entity Common Stock, Shares Outstanding | 236,788,855 | ||
Documents Incorporated by Reference | R | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
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 $1.66 2/3 | ||
Trading Symbol | PPG | ||
Security Exchange Name | NYSE | ||
0.875% Notes due 2022 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.875% Notes due 2022 | ||
Trading Symbol | PPG 22 | ||
Security Exchange Name | NYSE | ||
0.875% Notes due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.875% Notes due 2025 | ||
Trading Symbol | PPG 25 | ||
Security Exchange Name | NYSE | ||
1.400% Notes due 2027 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.400% Notes due 2027 | ||
Trading Symbol | PPG 27 | ||
Security Exchange Name | NYSE |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 13,834 | $ 15,146 | $ 15,374 |
Cost of sales, exclusive of depreciation and amortization | 7,777 | 8,653 | 9,001 |
Selling, general and administrative | 3,389 | 3,604 | 3,573 |
Depreciation | 371 | 375 | 354 |
Amortization | 138 | 136 | 143 |
Research and development, net | 379 | 432 | 441 |
Interest expense | 138 | 132 | 118 |
Interest income | (23) | (32) | (23) |
Impairment charges | 93 | 0 | 0 |
Business restructuring | 174 | 176 | 66 |
Other charges | 104 | 98 | 122 |
Other income | (68) | (89) | (114) |
Income before income taxes | 1,362 | 1,661 | 1,693 |
Income tax expense | 291 | 392 | 353 |
Income from continuing operations | 1,071 | 1,269 | 1,340 |
Income from discontinued operations, net of tax | 3 | 0 | 18 |
Net income attributable to the controlling and noncontrolling interests | 1,074 | 1,269 | 1,358 |
Less: Net income attributable to noncontrolling interests | 15 | 26 | 17 |
Net income (attributable to PPG) | 1,059 | 1,243 | 1,341 |
Income from continuing operations, net of tax | 1,056 | 1,243 | 1,323 |
Income from discontinued operations, net of tax | $ 3 | $ 0 | $ 18 |
Earnings per common share | |||
Continuing operations (in dollars per share) | $ 4.46 | $ 5.25 | $ 5.43 |
Discontinued operations (in dollars per share) | 0.01 | 0 | 0.07 |
Net Income (attributable to PPG) (in dollars per share) | 4.47 | 5.25 | 5.50 |
Earnings per common share - assuming dilution | |||
Continuing operations (in dollars per share) | 4.44 | 5.22 | 5.40 |
Discontinued operations (in dollars per share) | 0.01 | 0 | 0.07 |
Net Income (attributable to PPG) (in dollars per share) | $ 4.45 | $ 5.22 | $ 5.47 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to the controlling and noncontrolling interests | $ 1,074 | $ 1,269 | $ 1,358 |
Defined benefit pension and other postretirement benefit adjustments | (213) | (156) | 9 |
Unrealized foreign currency translation adjustments | (36) | 106 | (155) |
Derivative financial instruments | (1) | (1) | |
Other comprehensive loss, net of tax | (249) | (51) | (147) |
Total comprehensive income | 825 | 1,218 | 1,211 |
Less: amounts attributable to noncontrolling interests: | |||
Net income | (15) | (26) | (17) |
Unrealized foreign currency translation adjustments | 1 | 11 | |
Comprehensive income attributable to PPG | $ 810 | $ 1,193 | $ 1,205 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 1,826 | $ 1,216 |
Short-term investments | 96 | 57 |
Receivables | 2,726 | 2,756 |
Inventories | 1,735 | 1,710 |
Other | 415 | 431 |
Total current assets | 6,798 | 6,170 |
Property, plant and equipment, net | 3,127 | 2,983 |
Goodwill | 5,102 | 4,470 |
Identifiable intangible assets, net | 2,351 | 2,131 |
Deferred income taxes | 379 | 220 |
Investments | 267 | 258 |
Operating lease, right-of-use asset | 847 | 782 |
Other assets | 685 | 694 |
Total | 19,556 | 17,708 |
Current liabilities | ||
Accounts payable and accrued liabilities | 3,792 | 3,496 |
Restructuring reserves | 281 | 196 |
Short-term debt and current portion of long-term debt | 578 | 513 |
Current portion of operating lease liabilities | 180 | 170 |
Total current liabilities | 4,831 | 4,375 |
Long-term debt | 5,171 | 4,539 |
Operating lease liabilities | 677 | 622 |
Accrued pensions | 945 | 745 |
Other postretirement benefits | 733 | 661 |
Deferred income taxes | 435 | 452 |
Other liabilities | 949 | 911 |
Total liabilities | 13,741 | 12,305 |
Commitments and contingent liabilities (See Note 14) | ||
Shareholders’ equity | ||
Common stock | 969 | 969 |
Additional paid-in capital | 1,008 | 950 |
Retained earnings | 19,469 | 18,906 |
Treasury stock, at cost | (13,158) | (13,191) |
Accumulated other comprehensive loss | (2,599) | (2,350) |
Total PPG shareholders’ equity | 5,689 | 5,284 |
Noncontrolling interests | 126 | 119 |
Total shareholders’ equity | 5,815 | 5,403 |
Total | $ 19,556 | $ 17,708 |
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 | Non-controlling Interests |
Beginning balance at Dec. 31, 2017 | $ 5,672 | $ 969 | $ 756 | $ 17,140 | $ (11,251) | $ (2,057) | $ 5,557 | $ 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 1,358 | 1,341 | 1,341 | 17 | ||||
Other comprehensive loss, net of tax | (147) | (136) | (136) | (11) | ||||
Cash dividends | (453) | (453) | (453) | |||||
Purchase of treasury stock | (1,721) | (1,721) | (1,721) | |||||
Issuance of treasury stock | 42 | 28 | 14 | 42 | ||||
Stock-based compensation activity | 4 | 4 | 4 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (7) | (7) | ||||||
Reductions in noncontrolling interests | (12) | (12) | ||||||
Reclassifications of Temporary to Permanent Equity | (107) | 107 | ||||||
Stockholders' Equity, Other | 4 | 4 | 4 | |||||
Ending balance at Dec. 31, 2018 | 4,732 | 969 | 788 | 18,131 | (12,958) | (2,300) | 4,630 | 102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 1,269 | 1,243 | 1,243 | 26 | ||||
Other comprehensive loss, net of tax | (51) | (50) | (50) | (1) | ||||
Cash dividends | (468) | (468) | (468) | |||||
Purchase of treasury stock | (325) | (325) | (325) | |||||
Issuance of treasury stock | 243 | 151 | 92 | 243 | ||||
Stock-based compensation activity | 10 | 10 | 10 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (8) | (8) | ||||||
Stockholders' Equity, Other | 1 | 1 | 1 | |||||
Ending 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 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income attributable to the controlling and noncontrolling interests | $ 1,074 | $ 1,269 | $ 1,358 |
Income from discontinued operations, net of tax | 3 | 0 | 18 |
Income from continuing operations | 1,071 | 1,269 | 1,340 |
Adjustments to reconcile net income to cash from operations: | |||
Depreciation and amortization | 509 | 511 | 497 |
Pension expense | 43 | 54 | 43 |
Pension curtailment charges | 13 | 0 | 0 |
Gain (Loss) on Extinguishment of Debt | 7 | 0 | 0 |
Business restructuring | 174 | 176 | 66 |
Impairment charges | 93 | 0 | 0 |
Environmental remediation charges and other costs, net | 26 | 61 | 77 |
Stock-based compensation expense | 44 | 39 | 37 |
Gain on sale of land | 0 | 0 | (26) |
Equity affiliate loss/(income), net of dividends | 10 | 4 | (1) |
Deferred income taxes | (47) | (5) | 45 |
Cash contributions to pension plans | (17) | (13) | (99) |
Cash used for restructuring actions | (126) | (58) | (66) |
Change in certain asset and liability accounts (net of acquisitions): | |||
Receivables | 187 | 121 | (69) |
Inventories | 111 | 145 | (109) |
Other current assets | 49 | (95) | 5 |
Accounts payable and accrued liabilities | 127 | (63) | (76) |
Noncurrent assets and liabilities, net | (25) | (13) | (207) |
Taxes and interest payable | (108) | (32) | 50 |
Other | (12) | (17) | (20) |
Cash from operating activities - continuing operations | 2,129 | 2,084 | 1,487 |
Cash from/(used for) operating activities - discontinued operations | 1 | (4) | (20) |
Cash from operating activities | 2,130 | 2,080 | 1,467 |
Investing activities | |||
Capital expenditures | (304) | (413) | (411) |
Business acquisitions, net of cash balances acquired | (1,169) | (643) | (378) |
Proceeds from sale of land | 0 | 0 | 27 |
Payments for the settlement of cross currency swap contracts | (5) | (8) | (28) |
Proceeds from the settlement of cross currency swap contracts | 22 | 28 | 23 |
Other | 9 | 27 | 3 |
Cash used for investing activities | (1,447) | (1,009) | (764) |
Financing activities | |||
Net change in borrowings with maturities of three months or less | (6) | 6 | (1) |
Proceeds on commercial paper and short-term debt, net of payments | 1,647 | 100 | (2) |
Repayment of Term Loan | (1,100) | 0 | 0 |
Proceeds from revolving credit facility | 800 | 0 | 0 |
Repayment of revolving credit facility | (800) | 0 | 0 |
Proceeds from the issuance of debt, net of discounts and fees | 415 | 595 | 992 |
Repayment of long-term debt | (504) | (637) | (6) |
Repayment of acquired debt | (13) | (23) | 0 |
Payments related to tax withholding on stock-based compensation awards | (17) | (20) | (15) |
Purchase of treasury stock | 0 | (325) | (1,721) |
Issuance of treasury stock | 54 | 61 | 15 |
Dividends paid on PPG common stock | (496) | (468) | (453) |
Purchase of noncontrolling interest | 0 | (39) | 0 |
Other | (39) | (8) | (14) |
Cash used for financing activities | (59) | (758) | (1,205) |
Effect of currency exchange rate changes on cash and cash equivalents | 6 | 1 | (32) |
Cash reclassified to assets held for sale | (20) | 0 | 0 |
Net increase/(decrease) in cash and cash equivalents | 610 | 314 | (534) |
Cash and cash equivalents, beginning of year | 1,216 | 902 | 1,436 |
Cash and cash equivalents, end of year | 1,826 | 1,216 | 902 |
Supplemental disclosures of cash flow information: | |||
Interest paid, net of amount capitalized | 153 | 127 | 108 |
Taxes paid, net of refunds | $ 367 | $ 348 | $ 380 |
Reissuance of common stock for business acquisition | 0 | 164 | 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 such areas 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 $223 million, $283 million and $280 million in 2020, 2019 and 2018, respectively. Research and Development Research and development costs, which consist primarily of employee related costs, are charged to expense as incurred. ($ in millions) 2020 2019 2018 Research and development – total $401 $456 $464 Less depreciation on research facilities 22 24 23 Research and development, net $379 $432 $441 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 will be provided against deferred tax assets if 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. See Note 4, “Working Capital Detail” for further information concerning the Company’s inventory. 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 are 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. Additional 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 are 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. See Note 5, “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 values 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 2020, 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. 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 2020, the annual impairment testing review of indefinite-lived intangibles performed as of September 30, 2020 resulted in the Company recognizing a pretax impairment charge of $38 million. See Note 7, “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 credit losses and any charge offs. The Company provides an allowance for credit losses 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. See Note 2, “Allowance for Credit Losses” 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 twelve 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 $21 million as of December 31, 2020 and 2019. 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. Accounting Standards Adopted in 2020 Effective January 1, 2020, PPG adopted Accounting Standards Update (“ASU”) No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable information. Organizations will now use forward-looking information to better estimate their credit losses. PPG adopted this ASU using a modified retrospective approach. Under this method of adoption, PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. Adoption of this standard did not impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 2, Allowance for Credit Losses“” for further details. Effective January 1, 2020, PPG adopted ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). PPG adopted this ASU prospectively. Under this method of adoption, PPG determined there was not a material impact to the condensed consolidated balance sheet, Income before income taxes or the condensed consolidated statement of cash flows. Accounting Standards to be Adopted in Future Years In August 2020, the Financial Accounting Standards Board (“FASB”) issued 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 convertible debt instruments by removing certain accounting separation models as well as the accounting for debt instruments with embedded conversion features that are not required to be accounted for as derivative instruments. The ASU also updates and improves the consistency of earnings per share calculations for convertible instruments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform." This ASU provides optional guidance 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 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in this ASU are effective through December 31, 2022. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." This ASU is intended to simplify various aspects related to accounting for income taxes by eliminating certain exceptions within Accounting Standards Codification Topic 740, "Income Taxes" and clarifies certain aspects of the current accounting guidance. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows. |
Accounting Standard to be Adopted in Future Years | Accounting Standards to be Adopted in Future Years |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Credit Loss, Financial Instrument | Allowance for Credit Losses All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for credit losses and any charge offs. PPG provides an allowance for credit losses 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 reserves for credit losses on a quarterly basis to ensure its reserves for credit losses reflect regional risk trends as well as current and future global operating conditions. The following table summarizes the activity for the allowance for credit losses for the year ended December 31, 2020: ($ in millions) Trade Receivables Allowance for Credit Losses January 1, 2020 $22 Current-period provision for credit losses 44 Trade receivables written off as uncollectible, net of recoveries (22) December 31, 2020 $44 In March 2020, PPG recorded estimated future credit losses for trade receivables of $30 million related to the potential financial impacts of the COVID-19 global pandemic. These amounts were estimated based on regional business information, including certain forward-looking information and other considerations. During the third and fourth quarter of 2020, certain customers filed for bankruptcy as a result of the global pandemic and the trade receivables associated with those customers were written off against the previously established reserve. As of December 31, 2020, $22 million remains in the reserve for future global pandemic related matters. PPG will continue to monitor the adequacy of this reserve as new information becomes available. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Divestitures Acquisitions Announced Acquisitions On January 11, 2021, PPG announced that it reached a definitive agreement to acquire Wörwag, a global manufacturer of coatings for industrial and automotive applications. The company specializes in developing sustainable liquid, powder and film coatings. The transaction is expected to close in the first half of 2021, subject to customary closing conditions. On January 5, 2021, PPG announced that it reached a definitive agreement to acquire VersaFlex, a manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and waste water infrastructure, flooring, transportation infrastructure, and industrial applications. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions. On December 18, 2020, PPG announced that it entered into a definitive agreement to acquire Tikkurila in an all-cash transaction. On February 4, 2021, PPG and Tikkurila entered into an amendment to the previously announced definitive combination agreement. Tikkurila is a leading Nordic producer and distributor of decorative paint and coatings. Under the terms of the amended agreement, PPG has commenced a tender offer to acquire all of the issued and outstanding stock of Tikkurila. The transaction is expected to close in the first half of 2021, subject to customary closing conditions. Completed Acquisitions 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, raised pavement markers and intelligent transportation systems. PPG funded this transaction using cash on hand. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the new traffic solutions business within the Performance Coatings reportable business segment. Alpha Coating Technologies, LLC On March 2, 2020, PPG completed the acquisition of Alpha Coating Technologies, LLC, a manufacturer of powder coatings for light industrial applications and heat sensitive substrates. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable business segment. Industria Chimica Reggiana On January 31, 2020, PPG completed the acquisition of Industria Chimica Reggiana S.p.A, an Italian manufacturer of automotive refinish products. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the automotive refinish coatings business within the Performance Coatings reportable business segment. Texstars, LLC On October 25, 2019, PPG completed the acquisition of Texstars, LLC, a manufacturer of high-performance transparencies, wingtip lenses and plastic components for aerospace and defense vehicles and a leader in advanced transparent coatings. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the aerospace coatings business within the Performance Coatings reportable business segment. Dexmet Corporation On August 14, 2019, PPG completed the acquisition of Dexmet Corporation, a specialty materials manufacturer. Dexmet Corporation specializes in customized, highly-engineered, expanded and perforated metal foils and polymers used for structural applications. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the aerospace coatings business within the Performance Coatings reportable business segment. Hemmelrath On April 16, 2019, PPG completed the acquisition of Hemmelrath, an automotive coatings manufacturer. Hemmelrath is a global manufacturer of coatings for automotive original equipment manufacturers ("OEMs"). The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the automotive OEM coatings business within the Industrial Coatings reportable business segment. Whitford Worldwide Company On March 1, 2019, PPG completed the acquisition of Whitford Worldwide Company ("Whitford"), a global manufacturer that specializes in low-friction and nonstick coatings for industrial applications and consumer products. Whitford operates 10 manufacturing facilities globally. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable business segment. SEM Products, Inc. In the fourth quarter of 2018, PPG completed the acquisition of SEM Products, Inc., a U.S.-based manufacturer of specialized automotive refinish products (“SEM”). SEM is a leading manufacturer of repair and refinish products used primarily for automotive and other transportation applications. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the automotive refinish coatings business within the Performance Coatings reportable business segment. ProCoatings In January 2018, PPG acquired ProCoatings, a leading architectural paint and coatings wholesaler located in The Netherlands. ProCoatings, established in 2001, distributes a large portfolio of well-known professional paint brands through its network of 27 multi-brand stores. The results of this business since the date of acquisition have been reported within the architectural coatings - Europe Middle East and Africa (“EMEA”) business within the Performance Coatings reportable business segment. Other Acquisitions In 2020, 2019, and 2018, the Company completed several smaller business acquisitions. The total consideration paid for these acquisitions, net of cash acquired, debt assumed and other post closing adjustments, was $1 million, $9 million and $108 million, respectively. Divestitures In December 2020, PPG committed to a plan to sell certain entities in smaller, non-strategic countries. The planned sale is expected to occur in 2021. As a result, the assets and liabilities of these entities were required to be reclassified as held for sale and an impairment charge of $52 million was recorded in the consolidated statement of income within Impairment charges for the year ended December 31, 2020, representing the recognition in earnings of the cumulative effect of foreign currency exchange losses previously recorded in equity since acquisition and the excess net book value of the net assets over the anticipated sales proceeds less costs to sell these entities. The assets and liabilities of these entities are reported as held for sale in Other current assets and Accounts payable and accrued liabilities, respectively, on the accompanying consolidated balance sheet as of December 31, 2020. The results of these entities are reported within the Performance Coatings reportable business segment. The major classes of assets and liabilities of these entities included in the PPG consolidated balance sheet at December 31, 2020 were as follows: ($ in millions) December 31, 2020 Cash and cash equivalents $20 Receivables 5 Inventories 5 Assets held for sale $30 Accounts payable and accrued liabilities $14 Operating lease liabilities 6 Deferred income taxes 3 Other liabilities 1 Liabilities held for sale $24 Glass Segment In 2017, PPG completed a multi-year strategic shift in the Company's business portfolio, resulting in the exit of all glass operations which consisted of the global fiber glass business, PPG's ownership interest in two Asian fiber glass joint ventures and the flat glass business. The income from discontinued operations related to the former Glass segment for the three years ended December 31, 2020, 2019, and 2018 were as follows: ($ in millions) 2020 2019 2018 Income from operations $2 $3 $21 Income tax (benefit) expense (1) 1 5 Income from discontinued operations, net of tax $3 $2 $16 During 2018, PPG released $13 million of previously recorded accruals and contingencies established in conjunction with the divestitures of businesses within the former Glass segment as a result of completed actions, new information and updated estimates. Also during 2018, PPG made a final payment of $20 million to Vitro S.A.B. de C.V related to the transfer of certain pension obligations upon the sale of the former flat glass business. |
Working Capital Detail
Working Capital Detail | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Components Of Working Capital Detail [Abstract] | |
Working Capital Detail | Working Capital Detail ($ in millions) 2020 2019 Receivables Trade - net $2,412 $2,479 Equity affiliates 2 3 Other - net 312 274 Total $2,726 $2,756 Inventories (1) Finished products $1,021 $1,047 Work in process 187 197 Raw materials 490 431 Supplies 37 35 Total $1,735 $1,710 Accounts payable and accrued liabilities Trade $2,259 $2,098 Accrued payroll 505 455 Customer rebates 320 280 Other postretirement and pension benefits 85 85 Income taxes 46 46 Other 577 532 Total $3,792 $3,496 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment ($ in millions) Useful Lives (years) 2020 2019 Land and land improvements 1-30 $541 $511 Buildings 20-40 1,673 1,573 Machinery and equipment 5-25 3,794 3,575 Other 3-20 1,123 1,092 Construction in progress 345 314 Total (1) $7,476 $7,065 Less: accumulated depreciation 4,349 4,082 Net $3,127 $2,983 (1) Interest capitalized in 2020, 2019 and 2018 was $6 million, $6 million and $4 million, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments ($ in millions) 2020 2019 Investments in equity affiliates $120 $129 Marketable equity securities (See Note 11) 97 80 Other 50 49 Total $267 $258 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 $8 million and $11 million as of December 31, 2020 and 2019, respectively. Dividends received from equity affiliates were $18 million, $15 million and $15 million in 2020, 2019 and 2018, respectively. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets Goodwill ($ in millions) Performance Coatings Industrial Coatings Total January 1, 2019 $3,266 $804 $4,070 Acquisitions, including purchase accounting adjustments 166 230 396 Foreign currency impact 10 (6) 4 December 31, 2019 $3,442 $1,028 $4,470 Acquisitions, including purchase accounting adjustments 519 15 534 Disposals (5) — (5) Foreign currency impact 67 36 103 December 31, 2020 $4,023 $1,079 $5,102 Identifiable Intangible Assets December 31, 2020 December 31, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,101 $— $1,101 $1,167 $— $1,167 Definite-Lived Identifiable Intangible Assets Acquired technology $813 ($585) $228 $710 ($549) $161 Customer-related 1,849 (994) 855 1,578 (885) 693 Trade names 277 (129) 148 210 (111) 99 Other 64 (45) 19 51 (40) 11 Total Definite Lived Intangible Assets $3,003 ($1,753) $1,250 $2,549 ($1,585) $964 Total Identifiable Intangible Assets $4,104 ($1,753) $2,351 $3,716 ($1,585) $2,131 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 the 2020 assessment, the long-term forecast of net sales for a trademark in the Performance Coatings segment was reduced as a result of recent performance. As a result, the Company recognized a pretax impairment charge of $38 million in Impairment charges in the accompanying consolidated statements of income. The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives. Aggregate amortization expense was $138 million, $136 million and $143 million in 2020, 2019 and 2018, respectively. ($ in millions) 2021 2022 2023 2024 2025 Estimated future amortization expense $175 $175 $165 $150 $140 |
Business Restructuring
Business Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
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 22, “Reportable Business Segment Information” for additional information. 2020 Restructuring Program In June 2020, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program addresses weakened global economic conditions stemming from the COVID-19 pandemic and related pace of recovery in a few end-use markets along with further opportunities to optimize supply chain and functional costs. The plan includes a voluntary separation program that was offered in the U.S. and Canada. A pretax restructuring charge of $176 million was recorded in PPG's second quarter 2020 financial results. This charge represents employee severance and other cash costs. In addition, as a result of the approved actions within this restructuring plan, the Company recorded a pension curtailment charge of $13 million in December 2020. Refer to Note 14, “Employee Benefit Plans” for additional information. The majority of these restructuring actions are expected to be completed by the end of 2021. 2019 and 2018 Restructuring Programs As a result of the COVID-19 pandemic, the Company expects delays in the timing of certain previously recorded restructuring actions. Program completion dates may differ from the originally targeted timeline, as noted below. In June 2019, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program is the result of a comprehensive internal operational assessment to identify further opportunities to improve the profitability of the overall business portfolio. This program includes further manufacturing optimization; targeted pruning of low-profit business in certain regions; exiting certain smaller product lines that are not meeting profitability objectives; reorganization of certain business unit cost structures based on the current economic climate; and certain redundancy actions related to recent acquisitions. The majority of these restructuring actions are expected to be completed by the end of the first quarter 2021 with the remainder of the actions expected to be completed by 2022. In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee headcount and production capacity in certain businesses based on product demand, as well as reductions in various global functional and administrative costs. These restructuring actions are expected to be completed by the end of the second quarter 2021. The reserve activity for the years ended December 31, 2020 and 2019, was as follows: Restructuring Reserve Activity ($ in millions) Total Reserve December 31, 2018 $110 2019 restructuring charges 194 Release of prior reserves and other adjustments (18) Cash payments (58) Foreign currency impact (4) December 31, 2019 $224 Approved restructuring actions (a) 203 Release of prior reserves and other adjustments (29) Cash payments (126) Foreign currency impact 21 December 31, 2020 $293 (a) In 2020, additional programs were approved by management and charges of $27 million were recorded in PPG's financial results. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment. Effective January 1, 2019, PPG adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases." As permitted in the modified retrospective adoption method, PPG will continue to report periods prior to January 1, 2019 in its financial statements under prior guidance as outlined in Accounting Standards Codification Topic 840, "Leases." The components of lease expense for the year ended December 31, 2020 and 2019 were as follows: ($ in millions) Classification in the Consolidated Statement of Income 2020 2019 Operating lease cost Cost of sales, exclusive of depreciation and amortization $34 $34 Operating lease cost Selling, general and administrative 206 198 Total operating lease cost $240 $232 Finance lease cost: Amortization of right-of-use assets Depreciation $2 $2 Interest on lease liabilities Interest expense 1 1 Total finance lease cost $3 $3 Total lease cost $243 $235 Lease expense for operating leases was $289 million in 2018. Total operating lease cost for the years ended December 31, 2020 and 2019 is inclusive of the following: ($ in millions) 2020 2019 Variable lease costs $17 $15 Short-term lease costs $8 $5 ($ in millions) Classification on the Consolidated Balance Sheet 2020 2019 Assets: Operating Operating lease right-of-use assets $847 $782 Finance (a) Property, plant, and equipment, net 17 17 Total leased assets $864 $799 Liabilities: Current Operating Current portion of operating lease liabilities $180 $170 Finance Short-term debt and current portion of long-term debt 3 3 Noncurrent Operating Operating lease liabilities $677 $622 Finance Long-term debt 9 8 Total lease liabilities $869 $803 (a) Net of accumulated depreciation of $13 and $11 million as of December 31, 2020 and 2019, respectively. ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $212 $210 Operating cash flows paid for finance leases $1 $1 Financing cash flows paid for finance leases $2 $4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $227 $219 Finance leases $4 $1 2020 2019 Weighted-average remaining lease term (in years) Operating leases 7.4 7.4 Finance leases 6.1 6.2 Weighted-average discount rate Operating leases 2.4 % 3.0 % Finance leases 7.0 % 9.4 % As of December 31, 2020, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2021 $199 $4 2022 160 3 2023 124 3 2024 98 1 2025 79 1 Thereafter 282 2 Total lease payments $942 $14 Less: Interest 85 2 Total lease obligations $857 $12 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | Borrowings and Lines of Credit Long-term Debt Obligations ($ in millions) Maturity Date 2020 2019 3.6% notes ($500) 2020 — 499 9% non-callable debentures ($134) (1) 2021 134 134 0.875% notes (€600) 2022 732 671 3.2% notes ($300) (2) 2023 299 298 2.4% notes ($300) 2024 298 297 0.875% note (€600) 2025 727 665 1.4% notes (€600) 2027 726 665 3.75% notes ($800) (3) 2028 813 695 2.5% note (€80) 2029 94 88 2.8% notes ($300) 2029 299 297 2.55% notes ($300) 2030 296 — 7.70% notes ($176) 2038 174 174 5.5% notes ($250) 2040 247 247 3% note (€120) 2044 139 127 Commercial paper Various 250 100 Various other non-U.S. debt (4) Various 38 38 Finance lease obligations Various 12 11 Impact of derivatives on debt (1)(5) N/A 68 36 Total $5,346 $5,042 Less payments due within one year N/A 175 503 Long-term debt $5,171 $4,539 (1) PPG entered into several interest rate swaps, which were subsequently settled in prior periods. The impact of these settlements are being amortized over the remaining life of the debentures as a reduction to interest expense. The weighted average interest rate for these borrowings was 8.4% for the years ended December 31, 2020 and 2019. (2) 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 1.2% and 2.9% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (3) 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 1.6% and 3.3% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (4) Weighted average interest rate of 3.8% and 3.7% as of December 31, 2020 and 2019, respectively. (5) Fair value adjustment of the 3.2% $300 million notes and 3.75% $700 million notes as a result of fair value hedge accounting treatment related to the outstanding interest rate swaps as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. 2020 Activities 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 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 contains 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. The remaining Term Loan terminates and all amounts outstanding are payable on April 13, 2021. 2019 Activities In August 2019, PPG completed a public offering of $300 million aggregate principal amount of 2.4% notes due 2024 and $300 million aggregate principal amount of 2.8% 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 "2019 Indenture"). The 2019 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 2019 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 2019 Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $595 million. In November 2019, PPG’s €300 million 0.00% notes and $300 million 2.3% notes matured, upon which the Company paid $634 million to settle these obligations. 2018 Activities In February 2018, PPG completed a public offering of $300 million aggregate principal amount of 3.2% notes due 2023 and $700 million aggregate principal amount of 3.75% notes due 2028. These notes were issued pursuant to the 2018 Indenture. The 2018 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, net of discounts and fees, was $992 million. A portion of the notes were converted from a fixed interest rate to a floating interest rate using interest rate swap contracts. For more information, refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements.” 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. Commercial paper borrowings of $250 million and $100 million were outstanding as of December 31, 2020 and December 31, 2019, respectively, under the credit agreement. 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, 2020, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 46%. 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, 2020, 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. The Company’s 9% non-callable debentures also contain a customary cross default provision triggered by the Company’s default on a debt service payment of $10 million or more. None of the Company’s primary debt obligations are secured or guaranteed by the Company’s affiliates. Long-term Debt Maturities ($ in millions) Maturity per year 2021 $175 2022 $733 2023 $307 2024 $298 2025 $982 Thereafter $2,851 Short-term Debt Obligations ($ in millions) 2020 2019 Various, weighted average 1.7% and 3.6% as of December 31, 2020 and 2019, respectively. $403 $10 Lines of Credit, Letters of Credit, Surety Bonds and Guarantees PPG’s non-U.S. operations have uncommitted lines of credit totaling $577 million of which $35 million was used as of December 31, 2020. 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 $134 million and $152 million as of December 31, 2020 and 2019, 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. As of December 31, 2020 and 2019, guarantees outstanding were $9 million. The guarantees relate primarily to debt of certain entities in which PPG has an ownership interest and selected customers of certain PPG businesses. A portion of such debt is secured by the assets of the related entities. The carrying value of these guarantees were zero at December 31, 2020 and 2019, and the fair values of these guarantees were zero and December 31, 2020 and 2019. The fair value of each guarantee was estimated by comparing the net present value of two hypothetical cash flow streams, one based on PPG’s incremental borrowing rate and the other based on the borrower’s incremental borrowing rate, as of the effective date of the guarantee. Both streams were discounted at a risk free rate of return. The Company does not believe any loss related to these letters of credit, surety bonds or guarantees is likely. |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, 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, 2020. 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 2020 and 2019, 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, 2020 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 $67 million and $35 million at December 31, 2020 and 2019, respectively. Cash Flow Hedges 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, 2020. Underlying notional amounts related to these foreign currency forward contracts were $43 million at December 31, 2019. As of December 31, 2019, the fair value of all foreign currency forward contracts designated as cash flow hedges was a liability of $1 million. 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: In August 2019, PPG entered into U.S. dollar to euro cross currency swap contracts with a total notional amount of $300 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 payments in U.S. dollars and make payments in euros to the counterparties. In February 2018, PPG entered into U.S. dollar to euro cross currency swap contracts with a total notional amount of $575 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 payments in U.S. dollars and make payments in euros to the counterparties. Also in February 2018, the Company settled outstanding U.S. dollar to euro cross currency swap contracts with a total notional amount of $560 million. As of December 31, 2020 and 2019, the fair value of the U.S. dollar to euro cross currency swap contracts was a net liability and a net asset of $8 million and $48 million, respectively. At December 31, 2020 and 2019, PPG had designated €2.0 billion 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, 2020 and 2019 was $2.4 billion and $2.2 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, 2020 , 2019 and 2018. 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 charges in the consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $1.4 billion and $2.8 billion at December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the fair values of these contracts were a net asset and a net liability of $2 million and a net asset of $6 million, respectively. Gains/Losses Deferred in Accumulated Other Comprehensive losses As of December 31, 2020 and 2019, the Company had accumulated pretax unrealized translation losses and 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 $22 million and $235 million, respectively. The following table summarizes the location within the consolidated financial statements and amount of gains/(losses) related to derivative and debt financial instruments for the years ended December 31, 2020, 2019 and 2018. All dollar amounts are shown on a pretax basis. 2020 2019 2018 Caption in Consolidated Statement of Income ($ in millions) Loss Deferred in AOCL Gain Recognized Gain Deferred in AOCL Gain/(Loss) Recognized (Loss)/Gain Deferred in AOCL Gain/(Loss) Recognized Fair Value Interest rate Swaps $12 $3 $3 Interest expense Total Fair Value $12 $3 $3 Cash Flow Foreign currency forward contracts $— $— $2 ($3) ($9) ($8) Other charges and Cost of sales Total Cash Flow $— $— $2 ($3) ($9) ($8) Net Investment Cross currency swaps ($57) $16 $13 $18 $21 $13 Interest expense Foreign denominated debt (200) — 61 — 124 — Total Net Investment ($257) $16 $74 $18 $145 $13 Economic Foreign currency forward contracts $30 $55 $55 Other charges Fair Value Measurements The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of December 31, 2020 and 2019, respectively, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 14, “Employee Benefit Plans” for further details). The Company’s financial assets and liabilities are measured using inputs from the following three levels: Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges. Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments’ contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves. Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company does not have any recurring financial assets or liabilities that are recorded in its consolidated balance sheets as of December 31, 2020 and 2019 that are classified as Level 3 inputs. Assets and liabilities reported at fair value on a recurring basis December 31, 2020 December 31, 2019 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $6 $— $— $5 $— $— Foreign currency forward contracts (a) — 8 — — 14 — Other assets: Cross currency swaps (b) $— $13 $— $— $52 $— Interest rate swaps (c) — 67 — — 35 — Investments: Marketable equity securities $97 $— $— $80 $— $— Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (a) $— $6 $— $— $20 $— Cross currency swaps (b) — 8 — — — — Foreign currency forward contracts (d) — — — — 1 — Other liabilities: Cross currency swap (b) $— $13 $— $— $4 $— (a) Derivatives not designated as hedging instruments (b) Net investment hedges (c) Fair value hedges (d) Cash flow hedges Long-Term Debt ($ in millions) December 31, 2020 (a) December 31, 2019 (b) Long-term debt - carrying value $5,296 $5,031 Long-term debt - fair value $5,875 $5,363 (a) Excluding finance lease obligations of $12 million and short term borrowings of $403 million as of December 31, 2020. (b) Excluding finance lease obligations of $11 million and short term borrowings of $10 million as of December 31, 2019. The fair values of the debt instruments were based on discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities and were measured using level 2 inputs. Call and put option on noncontrolling interest |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share ($ in millions, except per share amounts) 2020 2019 2018 Earnings per common share (attributable to PPG) Income from continuing operations, net of tax $1,056 $1,243 $1,323 Income from discontinued operations, net of tax 3 — 18 Net income (attributable to PPG) $1,059 $1,243 $1,341 Weighted average common shares outstanding 236.8 236.9 243.9 Effect of dilutive securities: Stock options 0.4 0.6 0.8 Other stock compensation plans 0.7 0.7 0.7 Potentially dilutive common shares 1.1 1.3 1.5 Adjusted weighted average common shares outstanding 237.9 238.2 245.4 Earnings per common share (attributable to PPG): Income from continuing operations, net of tax $4.46 $5.25 $5.43 Income from discontinued operations, net of tax 0.01 — 0.07 Net income (attributable to PPG) $4.47 $5.25 $5.50 Earnings per common share - assuming dilution (attributable to PPG) Income from continuing operations, net of tax $4.44 $5.22 $5.40 Income from discontinued operations, net of tax 0.01 — 0.07 Net income (attributable to PPG) $4.45 $5.22 $5.47 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes by taxing jurisdiction and by significant components consisted of the following: ($ in millions) 2020 2019 2018 Current U.S. federal $12 $86 $7 U.S. state and local 6 15 4 Foreign 320 296 297 Total current income tax expense $338 $397 $308 Deferred U.S. federal $1 ($1) $44 U.S. state and local (3) 13 7 Foreign (45) (17) (6) Total deferred income tax (benefit)/expense ($47) ($5) $45 Total income tax expense $291 $392 $353 A reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective tax rate follows: 2020 2019 2018 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Changes in rate due to: Taxes on non-U.S. earnings 3.3 2.9 3.3 U.S. state and local taxes 0.3 1.3 0.5 U.S. tax cost/(benefit) on foreign dividends 0.1 (0.9) (0.4) Tax benefits from equity awards (0.4) — — Change in valuation allowance reserves (1.4) — — U.S. tax incentives (0.9) (0.7) (1.0) U.S. tax cost/(benefit) - Tax Cuts & Jobs Act — 0.3 (2.5) Other (0.6) (0.3) — Effective income tax rate 21.4 % 23.6 % 20.9 % The effective income tax rate for 2020 and 2019 was 21.4% and 23.6%, respectively. In 2020, the lower effective income tax rate included higher net benefits for changes in valuation allowance reserves and for U.S. research and development credits. The total net benefit for these provisional items, as well as other credits in 2020, was $30 million. Provisions for income taxes in 2019 included a net benefit of global intangible low taxed income expense, foreign derived intangible income deductions and foreign tax credits. The total net benefit for these U.S. provision items as well as research and development credits in 2019 was $22 million. In 2018, PPG implemented updated regulations for certain aspects of the Tax Cuts and Jobs Act and PPG completed its accounting for the provisional amounts recognized in its consolidated financial statements in 2017. The finalization of the provisional accounting during 2018 resulted in a net tax benefit of $42 million, which consisted of a benefit of $20 million related to unrepatriated foreign earnings, a benefit of $22 million for adjustments to certain deferred taxes, a benefit of $14 million for foreign derived intangible income, partially offset by an expense of $14 million for global intangible low taxed income. Income before income taxes of the Company’s U.S. operations for 2020, 2019 and 2018 was $190 million, $596 million and $571 million, respectively. Income before income taxes of the Company’s foreign operations for 2020, 2019 and 2018 was $1,172 million, $1,065 million and $1,122 million, respectively. Deferred income taxes Deferred income taxes are provided for the effect of temporary differences that arise because there are certain items treated differently for financial accounting than for income tax reporting purposes. The deferred tax assets and liabilities are determined by applying the enacted tax rate in the year in which the temporary difference is expected to reverse. ($ in millions) 2020 2019 Deferred income tax assets related to Employee benefits $439 $382 Contingent and accrued liabilities 118 148 Operating loss and other carry-forwards 293 225 Inventories 1 4 Operating lease liabilities 209 194 Other 196 85 Valuation allowance (167) (158) Total $1,089 $880 Deferred income tax liabilities related to Property $240 $277 Intangibles 663 594 Employee benefits 37 65 Operating lease right-of-use assets 206 192 Other 16 2 Total $1,162 $1,130 Deferred income tax liabilities – net ($73) ($250) Net operating loss and credit carryforwards ($ in millions) 2020 2019 Expiration Available net operating loss carryforwards, tax effected: Indefinite expiration $113 $157 NA Definite expiration 80 25 2021 - 2040 Total $193 $182 NA Income tax credit carryforwards $119 $59 2021 - 2040 A valuation allowance of $167 million and $158 million has been established for carry-forwards and certain other items at December 31, 2020 and 2019, respectively, when the ability to utilize them is not likely. Undistributed foreign earnings The Company had $4.1 billion and $3.6 billion of undistributed earnings of non-U.S. subsidiaries as of December 31, 2020 and 2019, respectively. These amounts relate to approximately 290 subsidiaries in approximately 75 taxable jurisdictions. The Company estimates repatriation of undistributed earnings of non-U.S. subsidiaries as of December 31, 2020 and 2019 would have resulted in a tax cost of $40 million and $32 million, respectively. As of December 31, 2020, the Company has not changed its intention to reinvest foreign earnings indefinitely or repatriate when it is tax effective to do so, and as such, has not established a liability for foreign withholding taxes or other costs that would be incurred if the earnings were repatriated. Unrecognized tax benefits The Company files federal, state and local income tax returns in numerous domestic and foreign jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. The Company is no longer subject to examinations by tax authorities in any major tax jurisdiction for years before 2008. Additionally, the Company is no longer subject to examination by the Internal Revenue Service for U.S. federal income tax returns filed for years through 2014. The examinations of the Company’s U.S. federal income tax returns for 2015 through 2018 are currently underway. A reconciliation of the total amounts of unrecognized tax benefits (excluding interest and penalties) as of December 31 follows: ($ in millions) 2020 2019 2018 January 1 $167 $166 $148 Current year tax positions - additions 25 25 36 Prior year tax positions - additions 5 4 17 Prior year tax positions - reductions (2) (9) (6) Statute of limitations expirations (8) (6) (9) Settlements (11) (12) (15) Foreign currency translation (1) (1) (5) December 31 $175 $167 $166 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 $153 million as of December 31, 2020. Interest and penalties ($ in millions) 2020 2019 2018 Accrued interest and penalties related to unrecognized tax benefits $18 $17 $16 Loss recognized in income tax expense related to interest and penalties $2 $1 $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, 2020 | |
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, the Netherlands and the U.K. These plans in the aggregate represent approximately 93% of PPG’s total projected benefit obligation at December 31, 2020, 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, the Company approved amendments related to certain U.S. defined benefit plans so that depending upon the affected employee’s combined age and years of service to PPG, certain employees stopped accruing benefits either as of December 31, 2011 or December 31, 2020. In 2012, the Company approved amendments related to the Canadian defined benefit plans so that depending upon the affected employee’s combined age and years of service to PPG, certain employees stopped accruing benefits either as of December 31, 2013 or December 31, 2020. As of December 31, 2020, the Company’s U.S. and Canadian defined benefit plans were frozen for all participants. After the dates the affected employees benefits under their defined benefit plans were frozen, they began participating in the Company’s defined contribution retirement plans. The Company has amended other defined benefit plans in other countries in a similar way and plans to continue reviewing and potentially amending other PPG defined benefit plans in the future. 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, 2020. 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 $306 million reduction in the Company's postretirement benefit obligation. PPG accounted for the plan design change prospectively, and the impact will be amortized to periodic postretirement benefit cost over a 5.6 year period through 2022. The following table sets forth the changes in projected benefit obligations (“PBO”) (as calculated as of December 31), plan assets, the funded status and the amounts recognized on the accompanying consolidated balance sheet for the Company’s defined benefit pension and other postretirement benefit plans: Defined Benefit Pension Plans United States International Total PPG ($ in millions) 2020 2019 2020 2019 2020 2019 Projected benefit obligation, January 1 $1,842 $1,582 $1,719 $1,518 $3,561 $3,100 Service cost 13 13 11 10 24 23 Interest cost 54 64 33 41 87 105 Actuarial losses - net 251 263 165 186 416 449 Benefits paid (133) (80) (60) (64) (193) (144) Foreign currency translation adjustments — — 87 34 87 34 Settlements and curtailments 13 — (19) (4) (6) (4) Other 2 — (3) (2) (1) (2) Projected benefit obligation, December 31 $2,042 $1,842 $1,933 $1,719 $3,975 $3,561 Market value of plan assets, January 1 $1,304 $1,140 $1,661 $1,478 $2,965 $2,618 Actual return on plan assets 144 219 198 190 342 409 Company contributions — — 17 13 17 13 Benefits paid (113) (55) (51) (56) (164) (111) Plan settlements — — (19) (4) (19) (4) Foreign currency translation adjustments — — 78 42 78 42 Other — — (3) (2) (3) (2) Market value of plan assets, December 31 $1,335 $1,304 $1,881 $1,661 $3,216 $2,965 Funded Status ($707) ($538) ($52) ($58) ($759) ($596) Amounts recognized in the Consolidated Balance Sheet: Other assets (long-term) — — 218 183 218 183 Accounts payable and accrued liabilities (23) (26) (9) (8) (32) (34) Accrued pensions (684) (512) (261) (233) (945) (745) Net liability recognized ($707) ($538) ($52) ($58) ($759) ($596) Other Postretirement Benefit Plans United States International Total PPG ($ in millions) 2020 2019 2020 2019 2020 2019 Projected benefit obligation, January 1 $616 $587 $96 $94 $712 $681 Service cost 9 8 1 — 10 8 Interest cost 17 23 3 3 20 26 Plan amendments 4 (17) — — 4 (17) Actuarial losses - net 75 59 7 1 82 60 Benefits paid (39) (44) (5) (5) (44) (49) Foreign currency translation adjustments — — 2 4 2 4 Other — — — (1) — (1) Projected benefit obligation, December 31 $682 $616 $104 $96 $786 $712 Amounts recognized in the Consolidated Balance Sheet: Accounts payable and accrued liabilities (48) (46) (5) (5) (53) (51) Other postretirement benefits (634) (570) (99) (91) (733) (661) Net liability recognized ($682) ($616) ($104) ($96) ($786) ($712) 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, 2020 and 2019 was $3.8 billion and $3.4 billion, respectively. The following table details the pension plans where the benefit liability exceeds the fair value of the plan assets: Pensions ($ in millions) 2020 2019 Plans with PBO in Excess of Plan Assets: Projected benefit obligation $2,478 $2,223 Fair value of plan assets $1,504 $1,449 Plans with ABO in Excess of Plan Assets: Accumulated benefit obligation $2,320 $2,176 Fair value of plan assets $1,383 $1,449 Net actuarial losses and prior service cost/(credit) deferred in accumulated other comprehensive loss Pensions Other Postretirement Benefits ($ in millions) 2020 2019 2020 2019 Accumulated net actuarial losses $1,071 $920 $233 $166 Accumulated prior service cost (credit) 4 2 (75) (138) Total $1,075 $922 $158 $28 The accumulated net actuarial losses for pensions and other postretirement benefits relate primarily to historical declines in the discount rates. The accumulated net actuarial losses exceeded 10% of the higher of the market value of plan assets or the PBO at the beginning of each of the last three years; therefore, amortization of such excess has been included in net periodic benefit costs for pension and other postretirement benefits in these periods. The amortization period is the average remaining service period of active employees expected to receive benefits unless a plan is mostly inactive in which case the amortization period is the average remaining life expectancy of the plan participants. Accumulated prior service cost (credit) is amortized over the future service periods of those employees who are active at the dates of the plan amendments and who are expected to receive benefits. The net increase in Accumulated other comprehensive loss (pretax) in 2020 relating to defined benefit pension and other postretirement benefits is primarily attributable to pension and other postretirement plan discount rate declines, as follows: ($ in millions) Pensions Other Postretirement Benefits Net actuarial loss arising during the year $218 $82 New prior service credit 2 4 Amortization of actuarial loss (71) (15) Amortization of prior service credit — 59 Foreign currency translation adjustments 9 — Impact of settlements and curtailments (5) — Net change $153 $130 The 2020 net actuarial loss related to the Company’s pension and other postretirement benefit plans was primarily due to a decrease in the weighted average discount rate used to determine the benefit obligation at December 31, 2020, partially offset by asset performance gains on plan assets for the year. Net periodic benefit cost Pensions Other Postretirement Benefits ($ in millions) 2020 2019 2018 2020 2019 2018 Service cost $24 $23 $28 $10 $8 $10 Interest cost 87 105 97 20 26 24 Expected return on plan assets (144) (139) (150) — — — Amortization of prior service credit — — — (59) (57) (60) Amortization of actuarial losses 71 62 63 15 8 19 Settlements, curtailments, and special termination benefits 18 3 5 — — — Net periodic benefit cost/(income) $56 $54 $43 ($14) ($15) ($7) 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. All other components of net periodic benefit cost are recorded in Other charges 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, 2020 and 2019: United States International Total PPG 2020 2019 2020 2019 2020 2019 Discount rate 2.4 % 3.3 % 1.6 % 2.2 % 2.1 % 2.8 % Rate of compensation increase 2.5 % 2.5 % 1.1 % 2.8 % 1.5 % 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, 2020: 2020 2019 2018 Discount rate 2.8 % 3.7 % 3.2 % Expected return on assets 5.0 % 5.4 % 5.4 % Rate of compensation increase 2.6 % 1.8 % 1.2 % 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 2020, 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 100 basis points, with other assumptions held constant, would impact 2020 net periodic pension expense by $13 million. The global expected return on plan assets assumption to be used in determining 2021 net periodic pension expense will be 4.8% (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 100 basis points, with all other assumptions held constant, would impact 2021 net periodic benefit expense for our defined benefit pension and other postretirement benefit plans by $3 million and $6 million, respectively. In 2019, the Company updated mortality tables used to calculate its U.S. defined benefit pension and other postretirement benefit liabilities. The Company considered the available mortality tables released by the Society of Actuaries’ Retirement Plans Experience Committee and performed a review of its own mortality history, as well the industry in which the Company operates to assess future improvements in mortality rates based on its U.S. population. The Company chose to value its U.S. defined benefit pension and other postretirement benefit liabilities using a slightly modified assumption of future mortality which better approximates our plan participant population. The weighted-average health care cost trend rate (inflation) used for 2020 was 4.8% declining to a projected 4.3% in the year 2039. For 2021, the assumed weighted-average health care cost trend rate used will be 5.1% declining to a projected 4.2% between 2021 and 2039 for medical and prescription drug costs, respectively. These assumptions are reviewed on an annual basis. In selecting rates for current and long-term health care cost assumptions, the Company takes into consideration a number of factors, including the Company’s actual health care cost increases, the design of the Company’s benefit programs, the demographics of the Company’s active and retiree populations and external expectations of future medical cost inflation rates. Contributions to defined benefit pension plans ($ in millions) 2020 2019 2018 U.S. defined benefit pension plans $— $— $75 Non-U.S. defined benefit pension plans $17 $13 $24 PPG made voluntary contributions of $75 million to its U.S. defined benefit pension plans in 2018. Contributions made to PPG’s non-U.S. defined benefit pension plans in 2020 and 2019 were required by local funding requirements. PPG expects to make contributions to its defined benefit pension plans in the range of $10 million to $20 million in 2021. PPG may make voluntary contributions to its defined benefit pension plans in 2021 and beyond. Benefit payments The estimated benefits expected to be paid under the Company’s defined benefit pension and other postretirement benefit plans are: ($ in millions) Pensions Other Postretirement Benefits 2021 $171 $54 2022 $159 $53 2023 $166 $51 2024 $170 $50 2025 $173 $49 2026 to 2030 $890 $210 U.S. Qualified Pension Occasionally, the Company offers a lump sum payout option that gives certain terminated vested participants in certain U.S. defined benefit pension plans the opportunity to take a one-time lump sum cash payment in lieu of receiving a future monthly annuity. During 2020, PPG paid $52 million in lump sum benefits to terminated vested participants who elected to participate in the program. Plan assets Each PPG sponsored defined benefit pension plan is managed in accordance with the requirements of local laws and regulations governing defined benefit pension plans for the exclusive purpose of providing pension benefits to participants and their beneficiaries. Investment committees comprised of PPG managers have fiduciary responsibility to oversee the management of pension plan assets by third party asset managers. Pension plan assets are held in trust by financial institutions and managed on a day-to-day basis by the asset managers. The asset managers receive a mandate from each investment committee that is aligned with the asset allocation targets established by each investment committee to achieve the plan’s investment strategies. The performance of the asset managers is monitored and evaluated by the investment committees throughout the year. Pension plan assets are invested to generate investment earnings over an extended time horizon to help fund the cost of benefits promised under the plans while mitigating investment risk. The asset allocation targets established for each pension plan are intended to diversify the investments among a variety of asset categories and among a variety of individual securities within each asset category to mitigate investment risk and provide each plan with sufficient liquidity to fund the payment of pension benefits to retirees. The following summarizes the weighted average target pension plan asset allocation as of December 31, 2020 and 2019 for all PPG defined benefit plans: Asset Category 2020 2019 Equity securities 15-45% 15-45% Debt securities 30-65% 30-65% Real estate 0-10% 0-10% Other 20-40% 20-40% The fair values of the Company’s pension plan assets at December 31, 2020 and 2019, by asset category, are as follows: December 31, 2020 December 31, 2019 ($ 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 $65 $94 $— $159 $58 $80 $— $138 Small cap 42 — — 42 41 — — 41 Non-U.S. Developed and emerging markets (2) 144 80 — 224 143 84 — 227 Debt securities: Cash and cash equivalents 5 10 — 15 10 16 — 26 Corporate (3) U.S. (4) — 386 78 464 — 337 77 414 Developed and emerging markets (2) — 2 — 2 — 2 — 2 Diversified (5) — 126 — 126 — 237 — 237 Government U.S. (4) 82 20 — 102 72 9 — 81 Developed markets — 19 — 19 — 7 — 7 Other (6) — — 421 421 — 18 377 395 Real estate, hedge funds, and other — 515 417 932 — 303 381 684 Total assets in the fair value hierarchy $338 $1,252 $916 $2,506 $324 $1,093 $835 $2,252 Common-collective trusts (7) — — — 710 — — — 713 Total Investments $338 $1,252 $916 $3,216 $324 $1,093 $835 $2,965 (1) These levels refer to the accounting guidance on fair value measurement described in Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements.” (2) These amounts represent holdings in investment grade debt or equity securities of issuers in both developed markets and emerging economies. (3) This category represents investment grade debt securities from a diverse set of industry issuers. (4) These investments are primarily long duration fixed income securities. (5) This category represents commingled funds invested in diverse portfolios of debt securities. (6) This category includes mortgage-backed and asset backed debt securities, municipal bonds and other debt securities including derivatives. (7) Certain investments that are measured at net asset value per share (or its equivalent) are not required to be classified in the fair value hierarchy. The change in the fair value of the Company’s Level 3 pension assets for the years ended December 31, 2020 and 2019 was as follows: ($ in millions) Real Estate Other Debt Securities Hedge Funds and Other Assets Total January 1, 2019 $137 $359 $299 $795 Realized gains/(losses) 18 38 (3) 53 Unrealized (losses)/gains (7) — 15 8 Transfers (out)/in, net (27) (12) 17 (22) Foreign currency gains/(losses) 2 (8) 7 1 December 31, 2019 $123 $377 $335 $835 Realized gains 4 24 2 30 Unrealized losses (5) — (2) (7) Transfers in/(out), net 1 (14) 28 15 Foreign currency gains 1 34 8 43 December 31, 2020 $124 $421 $371 $916 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 externally valued 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 not covered by a collective bargaining agreement, Company-matching contributions are established each year at the discretion of the Company and are applied to participant savings up to a maximum of 6% of eligible participant compensation. For those participants whose employment is covered by a collective bargaining agreement, the level of Company-matching contribution, if any, is determined by the relevant collective bargaining agreement. The Company-matching contribution remained at 100% for 2020. Compensation expense and cash contributions related to the Company match of participant contributions to the Savings Plans for 2020, 2019, and 2018 totaled $50 million, $49 million and $47 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, $11 million, and $13 million for 2020, 2019, and 2018, 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 in 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, 2020, 2019, and 2018, the Company recognized expense for its defined contribution retirement plans of $64 million, $70 million and $63 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 (benefit) 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 $25 million, $21 million and $(1) million in 2020, 2019 and 2018, 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 (expense) of $24 million, $20 million, and $(2) million in 2020, 2019 and 2018, 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 $138 million and $123 million as of December 31, 2020 and 2019, respectively, and the investments in marketable securities, which are included in Investments and Other current assets on the accompanying consolidated balance sheet, were $103 million and $85 million as of December 31, 2020 and 2019, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, as they had prior to the asbestos settlement described below, may contest coverage with respect to some of the asbestos claims. 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. Shareholder Class Action On May 20, 2018, a putative securities class action lawsuit was filed in the U.S. District Court for the Central District of California against the Company and three of its current and former officers. On September 21, 2018, an Amended Class Action Complaint was filed in the lawsuit. The Amended Complaint, captioned Trevor Mild v. PPG Industries, Inc., Michael H. McGarry, Vincent J. Morales, and Mark C. Kelly, asserted securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of persons who purchased or otherwise acquired stock of the Company between January 19, 2017 and May 10, 2018. The allegations related to, among other things, allegedly false and misleading statements and/or failures to disclose information about the Company’s business, operations and prospects. The parties reached a settlement in principal on May 1, 2019. On June 2, 2019, the plaintiff filed with the Court a Petition for Preliminary Approval of the proposed settlement, including the proposed settlement amount of $25 million. On November 22, 2019, the Court entered final judgment approving the settlement. PPG’s insurance carriers fully funded the settlement escrow account and the court-approved settlement payments to class members are expected to be distributed by the claims administrator in 2021. As of December 31, 2020, and 2019 an accrued liability of $17 million and $25 million for the proposed settlement amount and a corresponding asset for the insurance coverage of $17 million and $25 million is included in Accounts payable and accrued liabilities and Other current assets, respectively. Asbestos Matters Prior to 2000, the Company had been named as a defendant in numerous claims alleging bodily injury from (i) exposure to asbestos-containing products allegedly manufactured, sold or distributed by the Company, its subsidiaries, or for which they are otherwise alleged to be liable; (ii) exposure to asbestos allegedly present at a facility owned or leased by the Company; or (iii) exposure to asbestos-containing products of Pittsburgh Corning Corporation (“PC”) for which the Company was alleged to be liable under a variety of legal theories (the Company and Corning Incorporated were each 50% shareholders in PC prior to April 27, 2016). Pittsburgh Corning Corporation asbestos bankruptcy In 2000, PC filed for Chapter 11 in the U.S. Bankruptcy Court for the Western District of Pennsylvania in an effort to permanently and comprehensively resolve all of its pending and future asbestos-related liability claims. The Bankruptcy Court subsequently entered a series of orders preliminarily enjoining the prosecution of asbestos litigation against PPG until after the effective date of a confirmed PC plan of reorganization. During the pendency of this preliminary injunction staying asbestos litigation against PPG, PPG and certain of its historical liability insurers negotiated a settlement with representatives of present and future asbestos claimants. That settlement was incorporated into a PC plan of reorganization that was confirmed by the Bankruptcy Court on May 24, 2013 and ultimately became effective on April 27, 2016. With the effectiveness of the plan, the preliminary injunction staying the prosecution of asbestos litigation against PPG expired by its own terms on May 27, 2016. In accordance with the settlement, the Bankruptcy Court issued a permanent channeling injunction under Section 524(g) of the Bankruptcy Code that prohibits present and future claimants from asserting claims against PPG that arise, in whole or in part, out of exposure to asbestos or asbestos-containing products manufactured, sold and/or distributed by PC or asbestos on or emanating from any PC premises. The channeling injunction, by its terms, also prohibits codefendants in cases that are subject to the channeling injunction from asserting claims against PPG for contribution, indemnification or other recovery. The channeling injunction also precludes the prosecution of claims against PPG arising from alleged exposure to asbestos or asbestos-containing products to the extent that a claimant is alleging or seeking to impose liability, directly or indirectly, for the conduct of, claims against, or demands on PC by reason of PPG’s prior: (i) ownership of a financial interest in PC; (ii) involvement in the management of PC, or service as an officer, director or employee of PC or a related party; (iii) provision of insurance to PC or a related party; or (iv) involvement in a financial transaction affecting the financial condition of PC or a related party. The foregoing PC related claims are referred to as “PC Relationship Claims.” The Bankruptcy Court’s channeling injunction channels the Company’s liability for PC Relationship Claims to a trust funded in part by PPG and its participating insurers for the benefit of current and future PC asbestos claimants (the “Trust”). The Trust is the sole recourse for holders of PC Relationship Claims. PPG and its affiliates have no further liability or responsibility for, and are permanently protected from, pending and future PC Relationship Claims. The channeling injunction does not extend to present and future claims against PPG that arise out of alleged exposure to asbestos or asbestos-containing products historically manufactured, sold and/or distributed by PPG or its subsidiaries or for which they are alleged to be liable that are not PC Relationship Claims, and does not extend to claims against PPG alleging personal injury allegedly caused by asbestos on premises presently or formerly owned, leased or occupied by PPG. These claims are referred to as “non-PC Relationship Claims.” Non-PC relationship claims With respect to the asbestos-related claims pending against the Company at the time PC filed for bankruptcy, the Company considers such claims to fall within one or more of the following categories: (1) claims that have been closed or dismissed as a result of processes undertaken during the bankruptcy; (2) claims that may have been previously filed on the dockets of state and federal courts in various jurisdictions, but are inactive as to the Company; and (3) claims that are subject, in whole or in part, to the channeling injunction and thus will be resolved, in whole or in part, in accordance with the Trust procedures established under the PC bankruptcy reorganization plan. As a result of the foregoing, the Company does not consider these three categories of claims to be open or active litigation against it, although the Company cannot now determine whether, or the extent to which, any of these claims may in the future be reinstituted, reinstated, or revived such that they may become open and active non-PC Relationship Claims against it. Current open and active claims post-Pittsburgh Corning bankruptcy As of December 31, 2020, the Company was aware of approximately 840 open and active asbestos-related claims pending against the Company and certain of its subsidiaries. These claims consist of non-PC Relationship Claims against PPG and claims against a PPG subsidiary the Company acquired on April 1, 2013. The Company is defending these open and active claims vigorously. PPG has established reserves totaling approximately $190 million for asbestos-related claims that would not be channeled to the Trust which, based on presently available information, we believe will be sufficient to encompass all of PPG’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying consolidated balance sheets, represent PPG’s best estimate of its liability for these claims. These reserves include a $162 million reserve established in 2009 in connection with an amendment to the PC plan of reorganization for non-PC Relationship Claims other than claims arising from premises-related exposures. PPG does not have sufficient current claim information or settlement history on which to base a better estimate of this liability in light of the fact that the Bankruptcy Court’s injunction staying most asbestos claims against the Company was in effect from April 2000 through May 2016. In 2019, as certain claims data became available, PPG began performing an annual analysis, including discussions with counsel and consultants, of its claims history and the value of the Company’s potential liability for premises-related non-PC Relationship Claims against it and claims against a PPG subsidiary acquired on April 1, 2013 that are presently pending and that are projected to be asserted through December 31, 2029. In 2019, PPG increased the reserve related to these matters and recognized a charge of approximately $10 million included in Other charges in the consolidated statement of income. As a result of this annual analysis, there were no adjustments required to be recorded for these reserves in 2020. PPG monitors the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims, its insurance assets then available, and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. 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) the amounts required to resolve both currently known and future unknown claims; (iii) the amount of insurance, if any, available to cover such claims; (iv) the unpredictable aspects of the litigation process, including a changing trial docket and the jurisdictions in which trials are scheduled; (v) the outcome of any trials, including potential judgments or jury verdicts; (vi) the lack of specific information in many cases concerning exposure for which PPG is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (vii) 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. As a potential offset to any future asbestos financial exposure, under the PC plan of reorganization PPG retained, for its own account, the right to pursue insurance coverage from certain of its historical insurers that did not participate in the PC plan of reorganization. While the ultimate outcome of PPG’s asbestos 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 2020, 2019 and 2018, 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 also expensed as incurred. As of December 31, 2020 and 2019, 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) 2020 2019 New Jersey Chrome $102 $134 Glass and chemical 106 96 Other 92 74 Total $300 $304 Current Portion $99 $62 Pretax charges against income for environmental remediation costs are included in Other charges in the accompanying consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation in 2020, 2019 and 2018, were as follows: ($ in millions) 2020 2019 2018 New Jersey Chrome $15 $43 $62 Glass and chemical 15 12 8 Other 8 22 8 Total $38 $77 $78 Cash outlays for environmental spending $60 $77 $64 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 $80 million to $100 million in 2021 and $20 million to $50 million annually from 2022 through 2025. It is possible that technological, regulatory and enforcement developments, the results of environmental studies and other factors could alter the Company’s expectations with respect to future charges against income and future cash outlays. 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 19 additional sites. The principal contaminant of concern is hexavalent chromium. The JCO also provided for the appointment of a court-approved Site Administrator who is responsible for establishing a master schedule for the remediation of the 20 PPG sites which existed at that time. One site was subsequently removed from the JCO process during 2014 and will be remediated separately at a future date. A total of 14 sites remain subject to the JCO process. The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites are those related to the extent and concentration of chromium impacts in the soil, as these determine the quantity of soil that must be treated in place, the quantity that will have to be excavated and transported for offsite disposal, and the nature of disposal required.Remediation of chromium contaminated soils at the location of the former manufacturing site has been completed pursuant to approved remedial action work plans. Remediation of chromium contaminated soils at certain other smaller sites is ongoing and is expected to continue until 2022. 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. Principal factors affecting costs include refinements in the estimate of the mix of hazardous to non-hazardous soils to be excavated, an overall increase in soil volumes to be excavated, enhanced water management requirements, decreased daily soil excavation rates due to site conditions, initial estimates for remedial actions related to groundwater, and oversight and management costs. Groundwater remediation at the former Garfield Avenue chromium-manufacturing site and five adjacent sites is expected to occur over several years after NJDEP’s approval of the work plan. Ongoing groundwater monitoring will be utilized to develop a final groundwater remedial action work plan which is currently expected to be submitted to NJDEP in the first quarter of 2021. PPG’s financial reserve for remediation of all New Jersey Chrome sites was $102 million at December 31, 2020. The major cost components of this liability continue to be related to excavation, transportation and disposal of impacted soil, as well as construction services. These components each account for approximately 21%, 16% and 35% of the accrued amount, 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, 2020 | |
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, 2018 581,146,136 (329,971,737) 251,174,399 Purchases — (15,877,364) (15,877,364) Issuances — 564,399 564,399 December 31, 2018 581,146,136 (345,284,702) 235,861,434 Purchases — (2,722,800) (2,722,800) Issuances — 2,541,836 2,541,836 December 31, 2019 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 Per share cash dividends paid were $2.10, $1.98 and $1.86 in 2020, 2019 and 2018, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss ($ in millions) Unrealized Foreign Currency Translation Adjustments Pension and Other Postretirement Benefit Adjustments, net of tax (c) Unrealized Gain/(Loss) on Derivatives, net of tax (d) Accumulated Other Comprehensive Loss January 1, 2018 ($1,567) ($493) $3 ($2,057) Current year deferrals to AOCI (a) (292) — — (292) Current year deferrals to AOCI, net of tax (b) 148 (12) (7) 129 Reclassifications from AOCI to net income — 21 6 27 Period change ($144) $9 ($1) ($136) Reclassification from AOCI to Retained earnings - Adoption of ASU 2018-02 ($23) ($84) $— ($107) December 31, 2018 ($1,734) ($568) $2 ($2,300) Current year deferrals to AOCI (a) 71 — — 71 Current year deferrals to AOCI, net of tax (b) 36 (167) 1 (130) Reclassifications from AOCI to net income — 11 (2) 9 Period change $107 ($156) ($1) ($50) December 31, 2019 ($1,627) ($724) $1 ($2,350) Current year deferrals to AOCI (a) (249) — — (249) Current year deferrals to AOCI, net of tax (b) 213 (237) — (24) Reclassifications from AOCI to net income 24 — 24 Period change ($36) ($213) $— ($249) December 31, 2020 ($1,663) ($937) $1 ($2,599) (a) Except for income taxes of $5 million, $7 million, and $9 million as of December 31, 2020, 2019, and 2018 respectively, related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time. (b) The tax benefit/(cost) related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges as of December 31, 2020, 2019 and 2018 was $6 million, $(19) million and $4 million, respectively. (c) The tax benefit/(cost) related to the adjustment for pension and other postretirement benefits as of December 31, 2020, 2019 and 2018 was $70 million, $57 million and $(34) million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 14, “Employee Benefit Plans”). The cumulative tax benefit related to the adjustment for pension and other postretirement benefits as of December 31, 2020 and 2019 was $336 million and $266 million, respectively. (d) The tax cost related to the change in the unrealized loss on derivatives as of December 31, 2020 was not significant. The tax cost related to the change in the unrealized loss on derivatives as of December 31, 2019 and 2018 was $1 million, and $2 million, respectively. Reclassifications from AOCI are included in the gain or loss recognized on cash flow hedges (See Note 11 “Financial Instruments, Hedging Activities and Fair Value Measurements”). |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Earnings | Other Income ($ in millions) 2020 2019 2018 Gain on sale of assets (1) $5 $7 $33 Royalty income 7 8 10 Share of net earnings of equity affiliates (See Note 6) 8 11 16 Other 48 63 55 Total $68 $89 $114 (1) In 2018, PPG had a $26 million gain on the sale of land near a facility of the Company’s former commodity chemicals business. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. Shares available for future grants under the PPG Amended Omnibus Plan were 6.9 million as of December 31, 2020. ($ in millions) 2020 2019 2018 Total stock-based compensation $44 $39 $37 Income tax benefit recognized $10 $9 $8 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: 2020 2019 2018 Weighted average exercise price $119.52 $109.74 $115.98 Risk free interest rate 1.6 % 2.6 % 2.9 % Expected life of option in years 6.5 6.5 6.5 Expected dividend yield 1.5 % 1.6 % 1.7 % Expected volatility 20.0 % 20.0 % 21.0 % The weighted average fair value of options granted was $21.93 per share, $22.50 per share and $25.27 per share for the years ended December 31, 2020, 2019, and 2018, 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, 2020 3,409,753 $96.93 6.1 $125 Granted 665,485 $119.52 Exercised (658,636) $82.12 Forfeited/Expired (45,320) $104.08 Outstanding, December 31, 2020 3,371,282 $104.18 6.2 $135 Vested or expected to vest, December 31, 2020 3,264,920 $103.83 6.2 $132 Exercisable, December 31, 2020 1,723,872 $93.56 4.3 $87 At December 31, 2020, unrecognized compensation cost related to outstanding stock options that have not yet vested totaled $8 million. This cost is expected to be recognized as expense over a weighted average period of 1.5 years. The following table presents stock option activity for the years ended December 31, 2020, 2019 and 2018: ($ in millions) 2020 2019 2018 Total intrinsic value of stock options exercised $31 $38 $19 Cash received from stock option exercises $54 $61 $15 Income tax benefit from the exercise of stock options $7 $9 $4 Total fair value of stock options vested $11 $12 $10 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 stock on the date of grant. Time-based RSUs vest over the three three three three three RSU Activity Number of Shares Weighted Average Fair Value Intrinsic Value (in millions) Outstanding, January 1, 2020 611,542 $109.30 $67 Granted 211,639 $117.26 Released from restrictions (212,825) $119.06 Forfeited (18,427) $120.51 Outstanding, December 31, 2020 591,929 $113.74 $67 Vested or expected to vest, December 31, 2020 557,734 $113.71 $62 There was $15 million of total unrecognized compensation cost related to unvested RSUs outstanding as of December 31, 2020. This cost is expected to be recognized as expense over a weighted average period of 1.5 years. Contingent Share Grants The Company also provides grants of contingent shares to selected key executives that may be earned based on PPG total shareholder return (“TSR”) over the three three three three three |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | 2020 Quarter Ended Full Year 2020 (1) ($ in millions, except per share amounts) March 31 June 30 September 30 December 31 Net sales $3,377 $3,015 $3,685 $3,757 $13,834 Cost of sales (2) 1,908 1,703 2,026 2,140 7,777 Net income (attributable to PPG) Income from continuing operations, net of tax $243 $99 $442 $272 $1,056 Income from discontinued operations, net of tax — 3 — — 3 Net income (attributable to PPG) $243 $102 $442 $272 $1,059 Earnings per common share Income from continuing operations, net of tax $1.03 $0.42 $1.87 $1.15 $4.46 Income from discontinued operations, net of tax — 0.01 — — 0.01 Earnings per common share $1.03 $0.43 $1.87 $1.15 $4.47 Earnings per common share - assuming dilution Income from continuing operations, net of tax $1.02 $0.42 $1.86 $1.14 $4.44 Income from discontinued operations, net of tax — 0.01 — — 0.01 Earnings per common share – assuming dilution $1.02 $0.43 $1.86 $1.14 $4.45 2019 Quarter Ended Full Year 2019 (1) ($ in millions except per share amounts) March 31 June 30 September 30 December 31 Net sales $3,624 $4,024 $3,826 $3,672 $15,146 Cost of sales (2) 2,073 2,288 2,181 2,111 8,653 Net income (attributable to PPG) Income from continuing operations, net of tax $312 $270 $366 $295 $1,243 Income/(Loss) from discontinued operations, net of tax — 2 1 (3) — Net income (attributable to PPG) $312 $272 $367 $292 $1,243 Earnings per common share Income from continuing operations, net of tax $1.32 $1.14 $1.55 $1.24 $5.25 Income/(Loss) from discontinued operations, net of tax — 0.01 — (0.01) — Earnings per common share $1.32 $1.15 $1.55 $1.23 $5.25 Earnings per common share - assuming dilution Income from continuing operations, net of tax $1.31 $1.13 $1.54 $1.23 $5.22 Income/(Loss) from discontinued operations, net of tax — 0.01 — (0.01) — Earnings per common share – assuming dilution $1.31 $1.14 $1.54 $1.22 $5.22 (1) Full year earnings-per-share was calculated using the full year weighted average shares outstanding. As such, the sum of the quarters may not equal the total earnings-per-share for the year. (2) Exclusive of depreciation and amortization. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018, service revenue constituted approximately 5% of total revenue. Net sales by segment and region for the years ended December 31, 2020, 2019 and 2018 were as follows: ($ in millions) 2020 2019 2018 Performance Coatings United States and Canada $3,673 $4,057 $4,062 EMEA 2,861 2,869 2,936 Asia Pacific 1,015 1,095 1,071 Latin America 946 1,013 1,018 Total $8,495 $9,034 $9,087 Industrial Coatings United States and Canada $1,995 $2,418 $2,423 EMEA 1,467 1,680 1,742 Asia Pacific 1,416 1,447 1,547 Latin America 461 567 575 Total $5,339 $6,112 $6,287 Total Net Sales United States and Canada $5,668 $6,475 $6,485 EMEA 4,328 4,549 4,678 Asia Pacific 2,431 2,542 2,618 Latin America 1,407 1,580 1,593 Total PPG $13,834 $15,146 $15,374 |
Reportable Business Segment Inf
Reportable Business Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
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 as well as 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, including efforts in Asia, Eastern Europe and Latin America. 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 Net sales and Income before income taxes in the consolidated statement of income 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, margin growth, and sales volume growth. Corporate unallocated costs include the costs of corporate staff functions not directly associated with the operating segments, certain legal cases, net of related insurance recoveries and the cost of certain insurance and stock-based compensation programs. The service cost component of net periodic pension expense 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. ($ in millions) 2020 2019 2018 Net sales to external customers Performance Coatings $8,495 $9,034 $9,087 Industrial Coatings 5,339 6,112 6,287 Total Net sales $13,834 $15,146 $15,374 Segment income Performance Coatings $1,359 $1,409 $1,300 Industrial Coatings 750 862 818 Total Segment income $2,109 $2,271 $2,118 Corporate / Non-Segment Items Corporate unallocated (226) (198) (141) Interest expense, net of interest income (115) (100) (95) Business restructuring-related costs, net (1) (224) (222) (75) Impairment charges (2) (93) — (15) Increase in allowance for doubtful accounts related to COVID-19 (30) — — Environmental remediation charges and other costs, net (26) (61) (77) Expense incurred due to natural disasters (3) (17) — — Acquisition-related costs (4) (9) (17) (6) Debt extinguishment fees (7) — — Litigation matters, net — (12) (24) Costs related to customer assortment changes — — (18) Gain from the sale of non-operating assets — — 26 Total Income before income taxes $1,362 $1,661 $1,693 ($ in millions) 2020 2019 2018 Depreciation and amortization Performance Coatings $251 $255 $274 Industrial Coatings 200 194 181 Corporate / Non-Segment Items 58 62 42 Total $509 $511 $497 Share of net earnings of equity affiliates Performance Coatings $3 $1 $1 Corporate / Non-Segment Items 5 10 15 Total $8 $11 $16 Segment assets (5) Performance Coatings $11,551 $10,636 $9,846 Industrial Coatings 5,040 4,912 4,441 Corporate / Non-Segment Items 2,965 2,160 1,728 Total $19,556 $17,708 $16,015 Investment in equity affiliates Performance Coatings $31 $33 $33 Industrial Coatings 15 14 13 Corporate / Non-Segment Items 74 82 86 Total $120 $129 $132 Expenditures for property (including business acquisitions) Performance Coatings $1,293 $483 $545 Industrial Coatings 166 510 157 Corporate / Non-Segment Items 14 63 87 Total $1,473 $1,056 $789 ($ in millions) 2020 2019 2018 Geographic Information Net sales (6) United States and Canada $5,668 $6,475 $6,485 Europe, Middle East and Africa (“EMEA”) 4,328 4,549 4,678 Asia Pacific 2,431 2,542 2,618 Latin America 1,407 1,580 1,593 Total $13,834 $15,146 $15,374 Segment income United States and Canada $855 $1,073 $1,022 EMEA 572 569 549 Asia Pacific 382 342 306 Latin America 300 287 241 Total $2,109 $2,271 $2,118 Property—net United States and Canada $1,351 $1,300 $1,254 EMEA 857 836 777 Asia Pacific 623 538 482 Latin America 296 309 292 Total $3,127 $2,983 $2,805 (1) 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. (2) Impairment charges were recorded in the fourth quarter 2020 related to the planned sale of certain smaller entities in non-strategic regions and for certain asset write-downs. (3) In the second half of 2020, Hurricanes Laura and Delta damaged a southern U.S. factory that supports the Company’s specialty coatings and materials business. (4) Acquisition-related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the consolidated statement of income. Acquisition-related costs 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. (5) Segment assets are the total assets used in the operation of each segment. Corporate assets are principally cash and cash equivalents, cash held in escrow, short term investments and deferred tax assets. (6) Net sales to external customers are attributed to geographic regions based upon the location of the operating unit shipping the product. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Allowance For Doubtful Accounts Policy | Receivables and Allowances |
Lessee, Leases [Policy Text Block] | 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 twelve 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. |
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 |
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 such areas 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, Policy | Advertising CostsAdvertising costs are charged to expense as incurred and totaled $223 million, $283 million and $280 million in 2020, 2019 and 2018, respectively. |
Research and Development Expense, Policy | 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 will be provided against deferred tax assets if 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. See Note 4, “Working Capital Detail” for further information concerning the Company’s inventory. |
Derivatives, Policy | 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 are 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 | 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. Additional 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 values 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 2020, 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. 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 2020, the annual impairment testing review of indefinite-lived intangibles performed as of September 30, 2020 resulted in the Company recognizing a pretax impairment charge of $38 million. See Note 7, “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. |
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 $21 million as of December 31, 2020 and 2019. 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. |
Accounting Standard to be Adopted in Future Years | Accounting Standards to be Adopted in Future Years |
Environmental Costs, Capitalization Policy | 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. |
Impairment or Disposal of Long-Lived Assets, Policy | 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. |
New Accounting Pronouncements, Policy | Accounting Standards Adopted in 2020 Effective January 1, 2020, PPG adopted Accounting Standards Update (“ASU”) No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable information. Organizations will now use forward-looking information to better estimate their credit losses. PPG adopted this ASU using a modified retrospective approach. Under this method of adoption, PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. Adoption of this standard did not impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 2, Allowance for Credit Losses“” for further details. Effective January 1, 2020, PPG adopted ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). PPG adopted this ASU prospectively. Under this method of adoption, PPG determined there was not a material impact to the condensed consolidated balance sheet, Income before income taxes or the condensed consolidated statement of cash flows. Accounting Standards to be Adopted in Future Years In August 2020, the Financial Accounting Standards Board (“FASB”) issued 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 convertible debt instruments by removing certain accounting separation models as well as the accounting for debt instruments with embedded conversion features that are not required to be accounted for as derivative instruments. The ASU also updates and improves the consistency of earnings per share calculations for convertible instruments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform." This ASU provides optional guidance 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 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in this ASU are effective through December 31, 2022. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." This ASU is intended to simplify various aspects related to accounting for income taxes by eliminating certain exceptions within Accounting Standards Codification Topic 740, "Income Taxes" and clarifies certain aspects of the current accounting guidance. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its 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, 2020 | |
Accounting Policies [Abstract] | |
Research and Development | ($ in millions) 2020 2019 2018 Research and development – total $401 $456 $464 Less depreciation on research facilities 22 24 23 Research and development, net $379 $432 $441 |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the allowance for credit losses for the year ended December 31, 2020: ($ in millions) Trade Receivables Allowance for Credit Losses January 1, 2020 $22 Current-period provision for credit losses 44 Trade receivables written off as uncollectible, net of recoveries (22) December 31, 2020 $44 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
Disposal Groups, Including Discontinued Operations | The major classes of assets and liabilities of these entities included in the PPG consolidated balance sheet at December 31, 2020 were as follows: ($ in millions) December 31, 2020 Cash and cash equivalents $20 Receivables 5 Inventories 5 Assets held for sale $30 Accounts payable and accrued liabilities $14 Operating lease liabilities 6 Deferred income taxes 3 Other liabilities 1 Liabilities held for sale $24 |
Glass Segment | |
Business Acquisition [Line Items] | |
Disposal Groups, Including Discontinued Operations | Glass Segment In 2017, PPG completed a multi-year strategic shift in the Company's business portfolio, resulting in the exit of all glass operations which consisted of the global fiber glass business, PPG's ownership interest in two Asian fiber glass joint ventures and the flat glass business. The income from discontinued operations related to the former Glass segment for the three years ended December 31, 2020, 2019, and 2018 were as follows: ($ in millions) 2020 2019 2018 Income from operations $2 $3 $21 Income tax (benefit) expense (1) 1 5 Income from discontinued operations, net of tax $3 $2 $16 During 2018, PPG released $13 million of previously recorded accruals and contingencies established in conjunction with the divestitures of businesses within the former Glass segment as a result of completed actions, new information and updated estimates. Also during 2018, PPG made a final payment of $20 million to Vitro S.A.B. de C.V related to the transfer of certain pension obligations upon the sale of the former flat glass business. |
Working Capital Detail (Tables)
Working Capital Detail (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Components Of Working Capital Detail [Abstract] | |
Components of Working Capital Detail | Working Capital Detail ($ in millions) 2020 2019 Receivables Trade - net $2,412 $2,479 Equity affiliates 2 3 Other - net 312 274 Total $2,726 $2,756 Inventories (1) Finished products $1,021 $1,047 Work in process 187 197 Raw materials 490 431 Supplies 37 35 Total $1,735 $1,710 Accounts payable and accrued liabilities Trade $2,259 $2,098 Accrued payroll 505 455 Customer rebates 320 280 Other postretirement and pension benefits 85 85 Income taxes 46 46 Other 577 532 Total $3,792 $3,496 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment ($ in millions) Useful Lives (years) 2020 2019 Land and land improvements 1-30 $541 $511 Buildings 20-40 1,673 1,573 Machinery and equipment 5-25 3,794 3,575 Other 3-20 1,123 1,092 Construction in progress 345 314 Total (1) $7,476 $7,065 Less: accumulated depreciation 4,349 4,082 Net $3,127 $2,983 (1) Interest capitalized in 2020, 2019 and 2018 was $6 million, $6 million and $4 million, respectively. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | ($ in millions) 2020 2019 Investments in equity affiliates $120 $129 Marketable equity securities (See Note 11) 97 80 Other 50 49 Total $267 $258 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill Attributable to Each Reportable Segment | Goodwill ($ in millions) Performance Coatings Industrial Coatings Total January 1, 2019 $3,266 $804 $4,070 Acquisitions, including purchase accounting adjustments 166 230 396 Foreign currency impact 10 (6) 4 December 31, 2019 $3,442 $1,028 $4,470 Acquisitions, including purchase accounting adjustments 519 15 534 Disposals (5) — (5) Foreign currency impact 67 36 103 December 31, 2020 $4,023 $1,079 $5,102 |
Identifiable Intangible Assets with Finite Lives | Identifiable Intangible Assets December 31, 2020 December 31, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,101 $— $1,101 $1,167 $— $1,167 Definite-Lived Identifiable Intangible Assets Acquired technology $813 ($585) $228 $710 ($549) $161 Customer-related 1,849 (994) 855 1,578 (885) 693 Trade names 277 (129) 148 210 (111) 99 Other 64 (45) 19 51 (40) 11 Total Definite Lived Intangible Assets $3,003 ($1,753) $1,250 $2,549 ($1,585) $964 Total Identifiable Intangible Assets $4,104 ($1,753) $2,351 $3,716 ($1,585) $2,131 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 the 2020 assessment, the long-term forecast of net sales for a trademark in the Performance Coatings segment was reduced as a result of recent performance. As a result, the Company recognized a pretax impairment charge of $38 million in Impairment charges in the accompanying consolidated statements of income. The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives. Aggregate amortization expense was $138 million, $136 million and $143 million in 2020, 2019 and 2018, respectively. ($ in millions) 2021 2022 2023 2024 2025 Estimated future amortization expense $175 $175 $165 $150 $140 |
Business Restructuring (Tables)
Business Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Activity Related to Restructuring Reserves | The reserve activity for the years ended December 31, 2020 and 2019, was as follows: Restructuring Reserve Activity ($ in millions) Total Reserve December 31, 2018 $110 2019 restructuring charges 194 Release of prior reserves and other adjustments (18) Cash payments (58) Foreign currency impact (4) December 31, 2019 $224 Approved restructuring actions (a) 203 Release of prior reserves and other adjustments (29) Cash payments (126) Foreign currency impact 21 December 31, 2020 $293 (a) In 2020, additional programs were approved by management and charges of $27 million were recorded in PPG's financial results. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment. Effective January 1, 2019, PPG adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases." As permitted in the modified retrospective adoption method, PPG will continue to report periods prior to January 1, 2019 in its financial statements under prior guidance as outlined in Accounting Standards Codification Topic 840, "Leases." The components of lease expense for the year ended December 31, 2020 and 2019 were as follows: ($ in millions) Classification in the Consolidated Statement of Income 2020 2019 Operating lease cost Cost of sales, exclusive of depreciation and amortization $34 $34 Operating lease cost Selling, general and administrative 206 198 Total operating lease cost $240 $232 Finance lease cost: Amortization of right-of-use assets Depreciation $2 $2 Interest on lease liabilities Interest expense 1 1 Total finance lease cost $3 $3 Total lease cost $243 $235 Lease expense for operating leases was $289 million in 2018. Total operating lease cost for the years ended December 31, 2020 and 2019 is inclusive of the following: ($ in millions) 2020 2019 Variable lease costs $17 $15 Short-term lease costs $8 $5 ($ in millions) Classification on the Consolidated Balance Sheet 2020 2019 Assets: Operating Operating lease right-of-use assets $847 $782 Finance (a) Property, plant, and equipment, net 17 17 Total leased assets $864 $799 Liabilities: Current Operating Current portion of operating lease liabilities $180 $170 Finance Short-term debt and current portion of long-term debt 3 3 Noncurrent Operating Operating lease liabilities $677 $622 Finance Long-term debt 9 8 Total lease liabilities $869 $803 (a) Net of accumulated depreciation of $13 and $11 million as of December 31, 2020 and 2019, respectively. ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $212 $210 Operating cash flows paid for finance leases $1 $1 Financing cash flows paid for finance leases $2 $4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $227 $219 Finance leases $4 $1 2020 2019 Weighted-average remaining lease term (in years) Operating leases 7.4 7.4 Finance leases 6.1 6.2 Weighted-average discount rate Operating leases 2.4 % 3.0 % Finance leases 7.0 % 9.4 % As of December 31, 2020, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2021 $199 $4 2022 160 3 2023 124 3 2024 98 1 2025 79 1 Thereafter 282 2 Total lease payments $942 $14 Less: Interest 85 2 Total lease obligations $857 $12 |
Schedule of Components of Lease Expense | The components of lease expense for the year ended December 31, 2020 and 2019 were as follows: ($ in millions) Classification in the Consolidated Statement of Income 2020 2019 Operating lease cost Cost of sales, exclusive of depreciation and amortization $34 $34 Operating lease cost Selling, general and administrative 206 198 Total operating lease cost $240 $232 Finance lease cost: Amortization of right-of-use assets Depreciation $2 $2 Interest on lease liabilities Interest expense 1 1 Total finance lease cost $3 $3 Total lease cost $243 $235 Total operating lease cost for the years ended December 31, 2020 and 2019 is inclusive of the following: ($ in millions) 2020 2019 Variable lease costs $17 $15 Short-term lease costs $8 $5 |
Schedule of Classification on the Condensed Consolidated Balance Sheet | ($ in millions) Classification on the Consolidated Balance Sheet 2020 2019 Assets: Operating Operating lease right-of-use assets $847 $782 Finance (a) Property, plant, and equipment, net 17 17 Total leased assets $864 $799 Liabilities: Current Operating Current portion of operating lease liabilities $180 $170 Finance Short-term debt and current portion of long-term debt 3 3 Noncurrent Operating Operating lease liabilities $677 $622 Finance Long-term debt 9 8 Total lease liabilities $869 $803 (a) Net of accumulated depreciation of $13 and $11 million as of December 31, 2020 and 2019, respectively. |
Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations | ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $212 $210 Operating cash flows paid for finance leases $1 $1 Financing cash flows paid for finance leases $2 $4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $227 $219 Finance leases $4 $1 |
Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate | 2020 2019 Weighted-average remaining lease term (in years) Operating leases 7.4 7.4 Finance leases 6.1 6.2 Weighted-average discount rate Operating leases 2.4 % 3.0 % Finance leases 7.0 % 9.4 % |
Schedule of Maturities of Lease Liabilities, Operating Lease | As of December 31, 2020, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2021 $199 $4 2022 160 3 2023 124 3 2024 98 1 2025 79 1 Thereafter 282 2 Total lease payments $942 $14 Less: Interest 85 2 Total lease obligations $857 $12 |
Schedule of Maturities of Lease Liabilities, Finance Lease | As of December 31, 2020, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2021 $199 $4 2022 160 3 2023 124 3 2024 98 1 2025 79 1 Thereafter 282 2 Total lease payments $942 $14 Less: Interest 85 2 Total lease obligations $857 $12 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term Debt Obligations ($ in millions) Maturity Date 2020 2019 3.6% notes ($500) 2020 — 499 9% non-callable debentures ($134) (1) 2021 134 134 0.875% notes (€600) 2022 732 671 3.2% notes ($300) (2) 2023 299 298 2.4% notes ($300) 2024 298 297 0.875% note (€600) 2025 727 665 1.4% notes (€600) 2027 726 665 3.75% notes ($800) (3) 2028 813 695 2.5% note (€80) 2029 94 88 2.8% notes ($300) 2029 299 297 2.55% notes ($300) 2030 296 — 7.70% notes ($176) 2038 174 174 5.5% notes ($250) 2040 247 247 3% note (€120) 2044 139 127 Commercial paper Various 250 100 Various other non-U.S. debt (4) Various 38 38 Finance lease obligations Various 12 11 Impact of derivatives on debt (1)(5) N/A 68 36 Total $5,346 $5,042 Less payments due within one year N/A 175 503 Long-term debt $5,171 $4,539 (1) PPG entered into several interest rate swaps, which were subsequently settled in prior periods. The impact of these settlements are being amortized over the remaining life of the debentures as a reduction to interest expense. The weighted average interest rate for these borrowings was 8.4% for the years ended December 31, 2020 and 2019. (2) 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 1.2% and 2.9% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (3) 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 1.6% and 3.3% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (4) Weighted average interest rate of 3.8% and 3.7% as of December 31, 2020 and 2019, respectively. (5) Fair value adjustment of the 3.2% $300 million notes and 3.75% $700 million notes as a result of fair value hedge accounting treatment related to the outstanding interest rate swaps as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. Long-Term Debt ($ in millions) December 31, 2020 (a) December 31, 2019 (b) Long-term debt - carrying value $5,296 $5,031 Long-term debt - fair value $5,875 $5,363 (a) Excluding finance lease obligations of $12 million and short term borrowings of $403 million as of December 31, 2020. |
Schedule of Maturities of Long-term Debt | Long-term Debt Maturities ($ in millions) Maturity per year 2021 $175 2022 $733 2023 $307 2024 $298 2025 $982 Thereafter $2,851 |
Short-Term Debt Outstanding | Short-term Debt Obligations ($ in millions) 2020 2019 Various, weighted average 1.7% and 3.6% as of December 31, 2020 and 2019, respectively. $403 $10 |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, Cash Flow and Net Investment Hedges | The following table summarizes the location within the consolidated financial statements and amount of gains/(losses) related to derivative and debt financial instruments for the years ended December 31, 2020, 2019 and 2018. All dollar amounts are shown on a pretax basis. 2020 2019 2018 Caption in Consolidated Statement of Income ($ in millions) Loss Deferred in AOCL Gain Recognized Gain Deferred in AOCL Gain/(Loss) Recognized (Loss)/Gain Deferred in AOCL Gain/(Loss) Recognized Fair Value Interest rate Swaps $12 $3 $3 Interest expense Total Fair Value $12 $3 $3 Cash Flow Foreign currency forward contracts $— $— $2 ($3) ($9) ($8) Other charges and Cost of sales Total Cash Flow $— $— $2 ($3) ($9) ($8) Net Investment Cross currency swaps ($57) $16 $13 $18 $21 $13 Interest expense Foreign denominated debt (200) — 61 — 124 — Total Net Investment ($257) $16 $74 $18 $145 $13 Economic Foreign currency forward contracts $30 $55 $55 Other charges |
Schedule of Derivative Liabilities at Fair Value | Assets and liabilities reported at fair value on a recurring basis December 31, 2020 December 31, 2019 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $6 $— $— $5 $— $— Foreign currency forward contracts (a) — 8 — — 14 — Other assets: Cross currency swaps (b) $— $13 $— $— $52 $— Interest rate swaps (c) — 67 — — 35 — Investments: Marketable equity securities $97 $— $— $80 $— $— Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (a) $— $6 $— $— $20 $— Cross currency swaps (b) — 8 — — — — Foreign currency forward contracts (d) — — — — 1 — Other liabilities: Cross currency swap (b) $— $13 $— $— $4 $— |
Schedule of Long-term Debt Instruments | Long-term Debt Obligations ($ in millions) Maturity Date 2020 2019 3.6% notes ($500) 2020 — 499 9% non-callable debentures ($134) (1) 2021 134 134 0.875% notes (€600) 2022 732 671 3.2% notes ($300) (2) 2023 299 298 2.4% notes ($300) 2024 298 297 0.875% note (€600) 2025 727 665 1.4% notes (€600) 2027 726 665 3.75% notes ($800) (3) 2028 813 695 2.5% note (€80) 2029 94 88 2.8% notes ($300) 2029 299 297 2.55% notes ($300) 2030 296 — 7.70% notes ($176) 2038 174 174 5.5% notes ($250) 2040 247 247 3% note (€120) 2044 139 127 Commercial paper Various 250 100 Various other non-U.S. debt (4) Various 38 38 Finance lease obligations Various 12 11 Impact of derivatives on debt (1)(5) N/A 68 36 Total $5,346 $5,042 Less payments due within one year N/A 175 503 Long-term debt $5,171 $4,539 (1) PPG entered into several interest rate swaps, which were subsequently settled in prior periods. The impact of these settlements are being amortized over the remaining life of the debentures as a reduction to interest expense. The weighted average interest rate for these borrowings was 8.4% for the years ended December 31, 2020 and 2019. (2) 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 1.2% and 2.9% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (3) 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 1.6% and 3.3% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. (4) Weighted average interest rate of 3.8% and 3.7% as of December 31, 2020 and 2019, respectively. (5) Fair value adjustment of the 3.2% $300 million notes and 3.75% $700 million notes as a result of fair value hedge accounting treatment related to the outstanding interest rate swaps as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. Long-Term Debt ($ in millions) December 31, 2020 (a) December 31, 2019 (b) Long-term debt - carrying value $5,296 $5,031 Long-term debt - fair value $5,875 $5,363 (a) Excluding finance lease obligations of $12 million and short term borrowings of $403 million as of December 31, 2020. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share Calculations | ($ in millions, except per share amounts) 2020 2019 2018 Earnings per common share (attributable to PPG) Income from continuing operations, net of tax $1,056 $1,243 $1,323 Income from discontinued operations, net of tax 3 — 18 Net income (attributable to PPG) $1,059 $1,243 $1,341 Weighted average common shares outstanding 236.8 236.9 243.9 Effect of dilutive securities: Stock options 0.4 0.6 0.8 Other stock compensation plans 0.7 0.7 0.7 Potentially dilutive common shares 1.1 1.3 1.5 Adjusted weighted average common shares outstanding 237.9 238.2 245.4 Earnings per common share (attributable to PPG): Income from continuing operations, net of tax $4.46 $5.25 $5.43 Income from discontinued operations, net of tax 0.01 — 0.07 Net income (attributable to PPG) $4.47 $5.25 $5.50 Earnings per common share - assuming dilution (attributable to PPG) Income from continuing operations, net of tax $4.44 $5.22 $5.40 Income from discontinued operations, net of tax 0.01 — 0.07 Net income (attributable to PPG) $4.45 $5.22 $5.47 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The provision for income taxes by taxing jurisdiction and by significant components consisted of the following: ($ in millions) 2020 2019 2018 Current U.S. federal $12 $86 $7 U.S. state and local 6 15 4 Foreign 320 296 297 Total current income tax expense $338 $397 $308 Deferred U.S. federal $1 ($1) $44 U.S. state and local (3) 13 7 Foreign (45) (17) (6) Total deferred income tax (benefit)/expense ($47) ($5) $45 Total income tax expense $291 $392 $353 |
Reconciliation of Statutory U.S. Corporate Federal Income Tax Rate to Effective Income Tax Rate | A reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective tax rate follows: 2020 2019 2018 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Changes in rate due to: Taxes on non-U.S. earnings 3.3 2.9 3.3 U.S. state and local taxes 0.3 1.3 0.5 U.S. tax cost/(benefit) on foreign dividends 0.1 (0.9) (0.4) Tax benefits from equity awards (0.4) — — Change in valuation allowance reserves (1.4) — — U.S. tax incentives (0.9) (0.7) (1.0) U.S. tax cost/(benefit) - Tax Cuts & Jobs Act — 0.3 (2.5) Other (0.6) (0.3) — Effective income tax rate 21.4 % 23.6 % 20.9 % |
Net deferred income tax assets and liabilities | ($ in millions) 2020 2019 Deferred income tax assets related to Employee benefits $439 $382 Contingent and accrued liabilities 118 148 Operating loss and other carry-forwards 293 225 Inventories 1 4 Operating lease liabilities 209 194 Other 196 85 Valuation allowance (167) (158) Total $1,089 $880 Deferred income tax liabilities related to Property $240 $277 Intangibles 663 594 Employee benefits 37 65 Operating lease right-of-use assets 206 192 Other 16 2 Total $1,162 $1,130 Deferred income tax liabilities – net ($73) ($250) |
Summary of Operating Loss Carryforwards | ($ in millions) 2020 2019 Expiration Available net operating loss carryforwards, tax effected: Indefinite expiration $113 $157 NA Definite expiration 80 25 2021 - 2040 Total $193 $182 NA Income tax credit carryforwards $119 $59 2021 - 2040 |
Unrecognized Tax Benefits | A reconciliation of the total amounts of unrecognized tax benefits (excluding interest and penalties) as of December 31 follows: ($ in millions) 2020 2019 2018 January 1 $167 $166 $148 Current year tax positions - additions 25 25 36 Prior year tax positions - additions 5 4 17 Prior year tax positions - reductions (2) (9) (6) Statute of limitations expirations (8) (6) (9) Settlements (11) (12) (15) Foreign currency translation (1) (1) (5) December 31 $175 $167 $166 Interest and penalties ($ in millions) 2020 2019 2018 Accrued interest and penalties related to unrecognized tax benefits $18 $17 $16 Loss recognized in income tax expense related to interest and penalties $2 $1 $2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Changes in Projected Benefit Obligations, Plan Assets and Funded Status | The following table sets forth the changes in projected benefit obligations (“PBO”) (as calculated as of December 31), plan assets, the funded status and the amounts recognized on the accompanying consolidated balance sheet for the Company’s defined benefit pension and other postretirement benefit plans: Defined Benefit Pension Plans United States International Total PPG ($ in millions) 2020 2019 2020 2019 2020 2019 Projected benefit obligation, January 1 $1,842 $1,582 $1,719 $1,518 $3,561 $3,100 Service cost 13 13 11 10 24 23 Interest cost 54 64 33 41 87 105 Actuarial losses - net 251 263 165 186 416 449 Benefits paid (133) (80) (60) (64) (193) (144) Foreign currency translation adjustments — — 87 34 87 34 Settlements and curtailments 13 — (19) (4) (6) (4) Other 2 — (3) (2) (1) (2) Projected benefit obligation, December 31 $2,042 $1,842 $1,933 $1,719 $3,975 $3,561 Market value of plan assets, January 1 $1,304 $1,140 $1,661 $1,478 $2,965 $2,618 Actual return on plan assets 144 219 198 190 342 409 Company contributions — — 17 13 17 13 Benefits paid (113) (55) (51) (56) (164) (111) Plan settlements — — (19) (4) (19) (4) Foreign currency translation adjustments — — 78 42 78 42 Other — — (3) (2) (3) (2) Market value of plan assets, December 31 $1,335 $1,304 $1,881 $1,661 $3,216 $2,965 Funded Status ($707) ($538) ($52) ($58) ($759) ($596) Amounts recognized in the Consolidated Balance Sheet: Other assets (long-term) — — 218 183 218 183 Accounts payable and accrued liabilities (23) (26) (9) (8) (32) (34) Accrued pensions (684) (512) (261) (233) (945) (745) Net liability recognized ($707) ($538) ($52) ($58) ($759) ($596) Other Postretirement Benefit Plans United States International Total PPG ($ in millions) 2020 2019 2020 2019 2020 2019 Projected benefit obligation, January 1 $616 $587 $96 $94 $712 $681 Service cost 9 8 1 — 10 8 Interest cost 17 23 3 3 20 26 Plan amendments 4 (17) — — 4 (17) Actuarial losses - net 75 59 7 1 82 60 Benefits paid (39) (44) (5) (5) (44) (49) Foreign currency translation adjustments — — 2 4 2 4 Other — — — (1) — (1) Projected benefit obligation, December 31 $682 $616 $104 $96 $786 $712 Amounts recognized in the Consolidated Balance Sheet: Accounts payable and accrued liabilities (48) (46) (5) (5) (53) (51) Other postretirement benefits (634) (570) (99) (91) (733) (661) Net liability recognized ($682) ($616) ($104) ($96) ($786) ($712) 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, 2020 and 2019 was $3.8 billion and $3.4 billion, respectively. The following table details the pension plans where the benefit liability exceeds the fair value of the plan assets: Pensions ($ in millions) 2020 2019 Plans with PBO in Excess of Plan Assets: Projected benefit obligation $2,478 $2,223 Fair value of plan assets $1,504 $1,449 Plans with ABO in Excess of Plan Assets: Accumulated benefit obligation $2,320 $2,176 Fair value of plan assets $1,383 $1,449 |
Accumulated Other Comprehensive Loss Pretax Amounts Not Yet Reflected in Net Periodic Benefit Cost | Pensions Other Postretirement Benefits ($ in millions) 2020 2019 2020 2019 Accumulated net actuarial losses $1,071 $920 $233 $166 Accumulated prior service cost (credit) 4 2 (75) (138) Total $1,075 $922 $158 $28 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The net increase in Accumulated other comprehensive loss (pretax) in 2020 relating to defined benefit pension and other postretirement benefits is primarily attributable to pension and other postretirement plan discount rate declines, as follows: ($ in millions) Pensions Other Postretirement Benefits Net actuarial loss arising during the year $218 $82 New prior service credit 2 4 Amortization of actuarial loss (71) (15) Amortization of prior service credit — 59 Foreign currency translation adjustments 9 — Impact of settlements and curtailments (5) — Net change $153 $130 |
Net Periodic Benefit Cost | Pensions Other Postretirement Benefits ($ in millions) 2020 2019 2018 2020 2019 2018 Service cost $24 $23 $28 $10 $8 $10 Interest cost 87 105 97 20 26 24 Expected return on plan assets (144) (139) (150) — — — Amortization of prior service credit — — — (59) (57) (60) Amortization of actuarial losses 71 62 63 15 8 19 Settlements, curtailments, and special termination benefits 18 3 5 — — — Net periodic benefit cost/(income) $56 $54 $43 ($14) ($15) ($7) |
Schedule of Contributions to Defined benefit Plans | Contributions to defined benefit pension plans ($ in millions) 2020 2019 2018 U.S. defined benefit pension plans $— $— $75 Non-U.S. defined benefit pension plans $17 $13 $24 |
Schedule of Expected Benefit Payments | The estimated benefits expected to be paid under the Company’s defined benefit pension and other postretirement benefit plans are: ($ in millions) Pensions Other Postretirement Benefits 2021 $171 $54 2022 $159 $53 2023 $166 $51 2024 $170 $50 2025 $173 $49 2026 to 2030 $890 $210 |
Weighted Average Target Pension Plan Asset Allocations | The following summarizes the weighted average target pension plan asset allocation as of December 31, 2020 and 2019 for all PPG defined benefit plans: Asset Category 2020 2019 Equity securities 15-45% 15-45% Debt securities 30-65% 30-65% Real estate 0-10% 0-10% Other 20-40% 20-40% |
Fair Values of the Company's Pension Plan Assets by Asset Category | The fair values of the Company’s pension plan assets at December 31, 2020 and 2019, by asset category, are as follows: December 31, 2020 December 31, 2019 ($ 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 $65 $94 $— $159 $58 $80 $— $138 Small cap 42 — — 42 41 — — 41 Non-U.S. Developed and emerging markets (2) 144 80 — 224 143 84 — 227 Debt securities: Cash and cash equivalents 5 10 — 15 10 16 — 26 Corporate (3) U.S. (4) — 386 78 464 — 337 77 414 Developed and emerging markets (2) — 2 — 2 — 2 — 2 Diversified (5) — 126 — 126 — 237 — 237 Government U.S. (4) 82 20 — 102 72 9 — 81 Developed markets — 19 — 19 — 7 — 7 Other (6) — — 421 421 — 18 377 395 Real estate, hedge funds, and other — 515 417 932 — 303 381 684 Total assets in the fair value hierarchy $338 $1,252 $916 $2,506 $324 $1,093 $835 $2,252 Common-collective trusts (7) — — — 710 — — — 713 Total Investments $338 $1,252 $916 $3,216 $324 $1,093 $835 $2,965 (1) These levels refer to the accounting guidance on fair value measurement described in Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements.” (2) These amounts represent holdings in investment grade debt or equity securities of issuers in both developed markets and emerging economies. (3) This category represents investment grade debt securities from a diverse set of industry issuers. (4) These investments are primarily long duration fixed income securities. (5) This category represents commingled funds invested in diverse portfolios of debt securities. (6) This category includes mortgage-backed and asset backed debt securities, municipal bonds and other debt securities including derivatives. (7) Certain investments that are measured at net asset value per share (or its equivalent) are not required to be classified in the fair value hierarchy. |
Change in the Fair Value of the Company's Level 3 Pension Assets | The change in the fair value of the Company’s Level 3 pension assets for the years ended December 31, 2020 and 2019 was as follows: ($ in millions) Real Estate Other Debt Securities Hedge Funds and Other Assets Total January 1, 2019 $137 $359 $299 $795 Realized gains/(losses) 18 38 (3) 53 Unrealized (losses)/gains (7) — 15 8 Transfers (out)/in, net (27) (12) 17 (22) Foreign currency gains/(losses) 2 (8) 7 1 December 31, 2019 $123 $377 $335 $835 Realized gains 4 24 2 30 Unrealized losses (5) — (2) (7) Transfers in/(out), net 1 (14) 28 15 Foreign currency gains 1 34 8 43 December 31, 2020 $124 $421 $371 $916 |
Benefit Obligations | |
Weighted Average Assumptions Used for the Defined Benefit Pension and Other Postretirement Plans | The following weighted average assumptions were used to determine the benefit obligation for the Company’s defined benefit pension and other postretirement plans as of December 31, 2020 and 2019: United States International Total PPG 2020 2019 2020 2019 2020 2019 Discount rate 2.4 % 3.3 % 1.6 % 2.2 % 2.1 % 2.8 % Rate of compensation increase 2.5 % 2.5 % 1.1 % 2.8 % 1.5 % 2.6 % |
Benefit Costs | |
Weighted Average Assumptions Used for the Defined Benefit Pension and Other Postretirement Plans | The following weighted average assumptions were used to determine the net periodic benefit cost for the Company’s defined benefit pension and other postretirement benefit plans for the three years in the period ended December 31, 2020: 2020 2019 2018 Discount rate 2.8 % 3.7 % 3.2 % Expected return on assets 5.0 % 5.4 % 5.4 % Rate of compensation increase 2.6 % 1.8 % 1.2 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | Environmental Reserves ($ in millions) 2020 2019 New Jersey Chrome $102 $134 Glass and chemical 106 96 Other 92 74 Total $300 $304 Current Portion $99 $62 |
Environmental Costs | The pretax charges and cash outlays related to such environmental remediation in 2020, 2019 and 2018, were as follows: ($ in millions) 2020 2019 2018 New Jersey Chrome $15 $43 $62 Glass and chemical 15 12 8 Other 8 22 8 Total $38 $77 $78 Cash outlays for environmental spending $60 $77 $64 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Shares Outstanding | Common Stock Treasury Stock Shares Outstanding January 1, 2018 581,146,136 (329,971,737) 251,174,399 Purchases — (15,877,364) (15,877,364) Issuances — 564,399 564,399 December 31, 2018 581,146,136 (345,284,702) 235,861,434 Purchases — (2,722,800) (2,722,800) Issuances — 2,541,836 2,541,836 December 31, 2019 581,146,136 (345,465,666) 235,680,470 Issuances — 1,005,795 1,005,795 December 31, 2020 581,146,136 (344,459,871) 236,686,265 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ($ in millions) Unrealized Foreign Currency Translation Adjustments Pension and Other Postretirement Benefit Adjustments, net of tax (c) Unrealized Gain/(Loss) on Derivatives, net of tax (d) Accumulated Other Comprehensive Loss January 1, 2018 ($1,567) ($493) $3 ($2,057) Current year deferrals to AOCI (a) (292) — — (292) Current year deferrals to AOCI, net of tax (b) 148 (12) (7) 129 Reclassifications from AOCI to net income — 21 6 27 Period change ($144) $9 ($1) ($136) Reclassification from AOCI to Retained earnings - Adoption of ASU 2018-02 ($23) ($84) $— ($107) December 31, 2018 ($1,734) ($568) $2 ($2,300) Current year deferrals to AOCI (a) 71 — — 71 Current year deferrals to AOCI, net of tax (b) 36 (167) 1 (130) Reclassifications from AOCI to net income — 11 (2) 9 Period change $107 ($156) ($1) ($50) December 31, 2019 ($1,627) ($724) $1 ($2,350) Current year deferrals to AOCI (a) (249) — — (249) Current year deferrals to AOCI, net of tax (b) 213 (237) — (24) Reclassifications from AOCI to net income 24 — 24 Period change ($36) ($213) $— ($249) December 31, 2020 ($1,663) ($937) $1 ($2,599) (a) Except for income taxes of $5 million, $7 million, and $9 million as of December 31, 2020, 2019, and 2018 respectively, related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time. (b) The tax benefit/(cost) related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges as of December 31, 2020, 2019 and 2018 was $6 million, $(19) million and $4 million, respectively. (c) The tax benefit/(cost) related to the adjustment for pension and other postretirement benefits as of December 31, 2020, 2019 and 2018 was $70 million, $57 million and $(34) million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 14, “Employee Benefit Plans”). The cumulative tax benefit related to the adjustment for pension and other postretirement benefits as of December 31, 2020 and 2019 was $336 million and $266 million, respectively. (d) The tax cost related to the change in the unrealized loss on derivatives as of December 31, 2020 was not significant. The tax cost related to the change in the unrealized loss on derivatives as of December 31, 2019 and 2018 was $1 million, and $2 million, respectively. Reclassifications from AOCI are included in the gain or loss recognized on cash flow hedges (See Note 11 “Financial Instruments, Hedging Activities and Fair Value Measurements”). |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Components of Other Earnings | ($ in millions) 2020 2019 2018 Gain on sale of assets (1) $5 $7 $33 Royalty income 7 8 10 Share of net earnings of equity affiliates (See Note 6) 8 11 16 Other 48 63 55 Total $68 $89 $114 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Stock Options, Activity | ($ in millions) 2020 2019 2018 Total stock-based compensation $44 $39 $37 Income tax benefit recognized $10 $9 $8 |
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: 2020 2019 2018 Weighted average exercise price $119.52 $109.74 $115.98 Risk free interest rate 1.6 % 2.6 % 2.9 % Expected life of option in years 6.5 6.5 6.5 Expected dividend yield 1.5 % 1.6 % 1.7 % Expected volatility 20.0 % 20.0 % 21.0 % |
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, 2020 3,409,753 $96.93 6.1 $125 Granted 665,485 $119.52 Exercised (658,636) $82.12 Forfeited/Expired (45,320) $104.08 Outstanding, December 31, 2020 3,371,282 $104.18 6.2 $135 Vested or expected to vest, December 31, 2020 3,264,920 $103.83 6.2 $132 Exercisable, December 31, 2020 1,723,872 $93.56 4.3 $87 |
Stock Option Activity | The following table presents stock option activity for the years ended December 31, 2020, 2019 and 2018: ($ in millions) 2020 2019 2018 Total intrinsic value of stock options exercised $31 $38 $19 Cash received from stock option exercises $54 $61 $15 Income tax benefit from the exercise of stock options $7 $9 $4 Total fair value of stock options vested $11 $12 $10 |
RSU Activity | RSU Activity Number of Shares Weighted Average Fair Value Intrinsic Value (in millions) Outstanding, January 1, 2020 611,542 $109.30 $67 Granted 211,639 $117.26 Released from restrictions (212,825) $119.06 Forfeited (18,427) $120.51 Outstanding, December 31, 2020 591,929 $113.74 $67 Vested or expected to vest, December 31, 2020 557,734 $113.71 $62 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | 2020 Quarter Ended Full Year 2020 (1) ($ in millions, except per share amounts) March 31 June 30 September 30 December 31 Net sales $3,377 $3,015 $3,685 $3,757 $13,834 Cost of sales (2) 1,908 1,703 2,026 2,140 7,777 Net income (attributable to PPG) Income from continuing operations, net of tax $243 $99 $442 $272 $1,056 Income from discontinued operations, net of tax — 3 — — 3 Net income (attributable to PPG) $243 $102 $442 $272 $1,059 Earnings per common share Income from continuing operations, net of tax $1.03 $0.42 $1.87 $1.15 $4.46 Income from discontinued operations, net of tax — 0.01 — — 0.01 Earnings per common share $1.03 $0.43 $1.87 $1.15 $4.47 Earnings per common share - assuming dilution Income from continuing operations, net of tax $1.02 $0.42 $1.86 $1.14 $4.44 Income from discontinued operations, net of tax — 0.01 — — 0.01 Earnings per common share – assuming dilution $1.02 $0.43 $1.86 $1.14 $4.45 2019 Quarter Ended Full Year 2019 (1) ($ in millions except per share amounts) March 31 June 30 September 30 December 31 Net sales $3,624 $4,024 $3,826 $3,672 $15,146 Cost of sales (2) 2,073 2,288 2,181 2,111 8,653 Net income (attributable to PPG) Income from continuing operations, net of tax $312 $270 $366 $295 $1,243 Income/(Loss) from discontinued operations, net of tax — 2 1 (3) — Net income (attributable to PPG) $312 $272 $367 $292 $1,243 Earnings per common share Income from continuing operations, net of tax $1.32 $1.14 $1.55 $1.24 $5.25 Income/(Loss) from discontinued operations, net of tax — 0.01 — (0.01) — Earnings per common share $1.32 $1.15 $1.55 $1.23 $5.25 Earnings per common share - assuming dilution Income from continuing operations, net of tax $1.31 $1.13 $1.54 $1.23 $5.22 Income/(Loss) from discontinued operations, net of tax — 0.01 — (0.01) — Earnings per common share – assuming dilution $1.31 $1.14 $1.54 $1.22 $5.22 (1) Full year earnings-per-share was calculated using the full year weighted average shares outstanding. As such, the sum of the quarters may not equal the total earnings-per-share for the year. (2) Exclusive of depreciation and amortization. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | Net sales by segment and region for the years ended December 31, 2020, 2019 and 2018 were as follows: ($ in millions) 2020 2019 2018 Performance Coatings United States and Canada $3,673 $4,057 $4,062 EMEA 2,861 2,869 2,936 Asia Pacific 1,015 1,095 1,071 Latin America 946 1,013 1,018 Total $8,495 $9,034 $9,087 Industrial Coatings United States and Canada $1,995 $2,418 $2,423 EMEA 1,467 1,680 1,742 Asia Pacific 1,416 1,447 1,547 Latin America 461 567 575 Total $5,339 $6,112 $6,287 Total Net Sales United States and Canada $5,668 $6,475 $6,485 EMEA 4,328 4,549 4,678 Asia Pacific 2,431 2,542 2,618 Latin America 1,407 1,580 1,593 Total PPG $13,834 $15,146 $15,374 |
Reportable Business Segment I_2
Reportable Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable Business Segment | ($ in millions) 2020 2019 2018 Net sales to external customers Performance Coatings $8,495 $9,034 $9,087 Industrial Coatings 5,339 6,112 6,287 Total Net sales $13,834 $15,146 $15,374 Segment income Performance Coatings $1,359 $1,409 $1,300 Industrial Coatings 750 862 818 Total Segment income $2,109 $2,271 $2,118 Corporate / Non-Segment Items Corporate unallocated (226) (198) (141) Interest expense, net of interest income (115) (100) (95) Business restructuring-related costs, net (1) (224) (222) (75) Impairment charges (2) (93) — (15) Increase in allowance for doubtful accounts related to COVID-19 (30) — — Environmental remediation charges and other costs, net (26) (61) (77) Expense incurred due to natural disasters (3) (17) — — Acquisition-related costs (4) (9) (17) (6) Debt extinguishment fees (7) — — Litigation matters, net — (12) (24) Costs related to customer assortment changes — — (18) Gain from the sale of non-operating assets — — 26 Total Income before income taxes $1,362 $1,661 $1,693 ($ in millions) 2020 2019 2018 Depreciation and amortization Performance Coatings $251 $255 $274 Industrial Coatings 200 194 181 Corporate / Non-Segment Items 58 62 42 Total $509 $511 $497 Share of net earnings of equity affiliates Performance Coatings $3 $1 $1 Corporate / Non-Segment Items 5 10 15 Total $8 $11 $16 Segment assets (5) Performance Coatings $11,551 $10,636 $9,846 Industrial Coatings 5,040 4,912 4,441 Corporate / Non-Segment Items 2,965 2,160 1,728 Total $19,556 $17,708 $16,015 Investment in equity affiliates Performance Coatings $31 $33 $33 Industrial Coatings 15 14 13 Corporate / Non-Segment Items 74 82 86 Total $120 $129 $132 Expenditures for property (including business acquisitions) Performance Coatings $1,293 $483 $545 Industrial Coatings 166 510 157 Corporate / Non-Segment Items 14 63 87 Total $1,473 $1,056 $789 |
Geographic Information | ($ in millions) 2020 2019 2018 Geographic Information Net sales (6) United States and Canada $5,668 $6,475 $6,485 Europe, Middle East and Africa (“EMEA”) 4,328 4,549 4,678 Asia Pacific 2,431 2,542 2,618 Latin America 1,407 1,580 1,593 Total $13,834 $15,146 $15,374 Segment income United States and Canada $855 $1,073 $1,022 EMEA 572 569 549 Asia Pacific 382 342 306 Latin America 300 287 241 Total $2,109 $2,271 $2,118 Property—net United States and Canada $1,351 $1,300 $1,254 EMEA 857 836 777 Asia Pacific 623 538 482 Latin America 296 309 292 Total $3,127 $2,983 $2,805 (1) 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. (2) Impairment charges were recorded in the fourth quarter 2020 related to the planned sale of certain smaller entities in non-strategic regions and for certain asset write-downs. (3) In the second half of 2020, Hurricanes Laura and Delta damaged a southern U.S. factory that supports the Company’s specialty coatings and materials business. (4) Acquisition-related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the consolidated statement of income. Acquisition-related costs 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. (5) Segment assets are the total assets used in the operation of each segment. Corporate assets are principally cash and cash equivalents, cash held in escrow, short term investments and deferred tax assets. (6) Net sales to external customers are attributed to geographic regions based upon the location of the operating unit shipping the product. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Additional Information) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Advertising costs expensed | $ 223 | $ 283 | $ 280 |
Research and development – total | 401 | 456 | 464 |
Less depreciation on research facilities | 22 | 24 | 23 |
Research and development, net | $ 379 | $ 432 | $ 441 |
Number of operating segments | Segment | 10 | ||
Asset retirement obligation | $ 21 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 38 | ||
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 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit Loss [Abstract] | ||||
Allowance for doubtful accounts | $ 44 | $ 22 | ||
Accounts Receivable, Credit Loss Expense (Reversal) | 44 | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (22) | |||
Accounts Receivable, Credit Loss Expense (Reversal), CARES Act | $ 30 | 30 | $ 0 | $ 0 |
Accounts Receivable, Allowance For Credit Loss, CARES Act | $ 22 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Acquistions) (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 31, 2018store | |
Business Acquisition [Line Items] | ||||
Consideration paid for acquired entities, net of cash acquired, debt assumed, and other adjustments | $ | $ 1 | $ 9 | $ 108 | |
ProCoatings [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of stores | store | 27 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Divestitures, Major Classes of Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment charges | $ 93 | $ 0 | $ 0 |
Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment charges | 52 | ||
Cash and cash equivalents | 20 | ||
Cash and cash equivalents | 5 | ||
Inventories | 5 | ||
Assets held for sale | 30 | ||
Assets held for sale | 14 | ||
Operating lease liabilities | 6 | ||
Deferred income taxes | 3 | ||
Other liabilities | 1 | ||
Liabilities held for sale | $ 24 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions (Divestitures, Glass Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Income tax (benefit) expense | $ 291 | $ 392 | $ 353 | ||||||||
Net income (loss) attributable to parent | $ 272 | $ 442 | $ 102 | $ 243 | $ 292 | $ 367 | $ 272 | $ 312 | 1,059 | 1,243 | 1,341 |
Cash from/(used for) operating activities - discontinued operations | 1 | (4) | (20) | ||||||||
Glass Segment | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Income from operations | 2 | 3 | 21 | ||||||||
Income tax (benefit) expense | (1) | 1 | 5 | ||||||||
Net income (loss) attributable to parent | $ 3 | $ 2 | 16 | ||||||||
Previously recorded accruals and contingencies | 13 | ||||||||||
Cash from/(used for) operating activities - discontinued operations | $ 20 |
Working Capital Detail (Detail)
Working Capital Detail (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Components Of Working Capital Detail [Abstract] | ||
Trade - net | $ 2,412 | $ 2,479 |
Equity affiliates | 2 | 3 |
Other - net | 312 | 274 |
Total | 2,726 | 2,756 |
Finished products | 1,021 | 1,047 |
Work in process | 187 | 197 |
Raw materials | 490 | 431 |
Supplies | 37 | 35 |
Total | 1,735 | 1,710 |
Trade | 2,259 | 2,098 |
Accrued payroll | 505 | 455 |
Customer rebates | 320 | 280 |
Other postretirement and pension benefits | 85 | 85 |
Income taxes | 46 | 46 |
Other | 577 | 532 |
Total | $ 3,792 | $ 3,496 |
Working Capital Detail (Additio
Working Capital Detail (Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Components Of Working Capital Detail [Abstract] | ||
Allowance for doubtful accounts | $ 44 | $ 22 |
Percentage of inventories valued using the LIFO method | 33.00% | 34.00% |
FIFO adjustment | $ 110 | $ 124 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 7,476 | $ 7,065 | |
Accumulated depreciation, depletion and amortization, property, plant, and equipment | 4,349 | 4,082 | |
Property, plant and equipment, net | 3,127 | 2,983 | $ 2,805 |
Capitalized interest | 6 | 6 | $ 4 |
Land and land improvements | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Property | $ 541 | 511 | |
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 | $ 1,673 | 1,573 | |
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 | $ 3,794 | 3,575 | |
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 | $ 1,123 | 1,092 | |
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 | $ 345 | $ 314 |
Investments (Detail)
Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | $ 267 | $ 258 | |
Equity in undistributed earnings losses of subsidiaries | 8 | 11 | |
Proceeds from dividends received | 18 | 15 | $ 15 |
Investments in equity affiliates | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | 120 | 129 | |
Marketable equity securities (See Note 11) | Trading Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | 97 | 80 | |
Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Investments | $ 50 | $ 49 | |
Investments In Other Operating Joint Venture | Minimum | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Percentage of ownership interests | 20.00% | ||
Investments In Other Operating Joint Venture | Maximum | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Percentage of ownership interests | 50.00% |
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, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 4,470 | $ 4,070 |
Goodwill from acquisitions | 534 | 396 |
Goodwill, Impairment Loss | (5) | |
Currency translation | 103 | 4 |
Ending Balance | 5,102 | 4,470 |
Performance Coatings Segment [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 3,442 | 3,266 |
Goodwill from acquisitions | 519 | 166 |
Goodwill, Impairment Loss | (5) | |
Currency translation | 67 | 10 |
Ending Balance | 4,023 | 3,442 |
Industrial Coatings Segment | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 1,028 | 804 |
Goodwill from acquisitions | 15 | 230 |
Goodwill, Impairment Loss | 0 | |
Currency translation | 36 | (6) |
Ending Balance | $ 1,079 | $ 1,028 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets with Finite Lives) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying amount of acquired trademarks with indefinite lives | $ 1,101 | $ 1,167 | |
Gross carrying amount | 3,003 | 2,549 | |
Accumulated amortization | (1,753) | (1,585) | |
Net | 1,250 | 964 | |
Intangible assets, gross (excluding goodwill) | 4,104 | 3,716 | |
Intangible assets, accumulated amortization (excluding goodwill) | 1,585 | ||
Total Identifiable Intangible Assets | $ 2,351 | 2,131 | |
Impaired Intangible Asset, Description | In conjunction with the 2020 assessment, the long-term forecast of net sales for a trademark in the Performance Coatings segment was reduced as a result of recent performance. | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 38 | ||
Aggregate amortization expense of identifiable intangible assets | 138 | 136 | $ 143 |
Estimated future amortization of identifiable intangible assets in 2020 | 175 | ||
Estimated future amortization of identifiable intangible assets in 2021 | 175 | ||
Estimated future amortization of identifiable intangible assets in 2022 | 165 | ||
Estimated future amortization of identifiable intangible assets in 2023 | 150 | ||
Estimated future amortization of identifiable intangible assets in 2024 | 140 | ||
Acquired technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 813 | 710 | |
Accumulated amortization | (585) | (549) | |
Net | 228 | 161 | |
Customer-related | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,849 | 1,578 | |
Accumulated amortization | (994) | (885) | |
Net | 855 | 693 | |
Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 277 | 210 | |
Accumulated amortization | (129) | (111) | |
Net | 148 | 99 | |
Other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 64 | 51 | |
Accumulated amortization | (45) | (40) | |
Net | $ 19 | $ 11 |
Business Restructuring (Additio
Business Restructuring (Additional Information) (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 224 | $ 110 | ||
Business restructuring | 174 | 176 | $ 66 | |
Payments for restructuring | 126 | 58 | 66 | |
Restructuring reserve, foreign currency translation gain (loss) | 21 | 4 | ||
Ending balance | 293 | 224 | $ 110 | |
Pension Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension curtailment charge | (6) | (4) | ||
United States | Pension Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension curtailment charge | 13 | 0 | ||
2019 Restructuring Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Business restructuring | $ 176 | 27 | ||
Restructuring Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Business restructuring | 203 | 194 | ||
Restructuring reserve, release of previously approved programs | $ (29) | $ (18) |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | $ 240 | $ 232 |
Finance lease cost: | ||
Interest on lease liabilities | 1 | 1 |
Amortization of right-of-use assets | 2 | 2 |
Total finance lease cost | 3 | 3 |
Total lease cost | 243 | 235 |
Variable lease costs | 17 | 15 |
Short-term lease costs | 8 | 5 |
Cost of sales, exclusive of depreciation and amortization | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | 34 | 34 |
Selling, general and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | $ 206 | $ 198 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Leases [Abstract] | |
Lease expense for operating leases | $ 289 |
Leases - Schedule of Classifica
Leases - Schedule of Classification on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating | $ 847 | $ 782 |
Finance | 17 | 17 |
Total leased assets | 864 | 799 |
Current | ||
Operating | 180 | 170 |
Finance | 3 | 3 |
Noncurrent | ||
Operating | 677 | 622 |
Finance | 9 | 8 |
Total lease liabilities | $ 869 | $ 803 |
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, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 212 | $ 210 |
Operating cash flows from finance leases | 1 | 1 |
Financing cash flows from finance leases | 2 | 4 |
Operating leases | 227 | 219 |
Finance leases | $ 4 | $ 1 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term, operating leases | 7 years 4 months 24 days | 7 years 4 months 24 days |
Weighted-average remaining lease term, finance leases | 6 years 1 month 6 days | 6 years 2 months 12 days |
Weighted-average discount rate, operating leases | 2.40% | 3.00% |
Weighted-average discount rate, finance leases | 7.00% | 9.40% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Operating Leases | |
Remaining three months of 2019 | $ 199 |
2020 | 160 |
2021 | 124 |
2022 | 98 |
2023 | 79 |
Thereafter | 282 |
Total lease payments | 942 |
Less: Interest | 85 |
Total lease obligations | 857 |
Finance Leases | |
Remaining three months of 2019 | 4 |
2020 | 3 |
2021 | 3 |
2022 | 1 |
2023 | 1 |
Total lease payments | 14 |
Less: Interest | 2 |
Thereafter | 2 |
Finance lease liability | $ 12 |
Borrowings and Lines of Credi_2
Borrowings and Lines of Credit (Long-term Debt Obligations) (Details) € in Millions | Aug. 31, 2020USD ($) | Aug. 30, 2019USD ($) | Aug. 15, 2019USD ($) | Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($) | May 30, 2020USD ($) | Aug. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 31, 2020 | Feb. 28, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 5,031,000,000 | $ 5,296,000,000 | $ 5,031,000,000 | |||||||||||||
Line of credit, amount outstanding | 0 | 0 | 0 | |||||||||||||
Finance lease obligation | 12,000,000 | |||||||||||||||
Capital lease obligations | 11,000,000 | 11,000,000 | ||||||||||||||
Long-term debt and finance lease obligations | 5,042,000,000 | 5,346,000,000 | 5,042,000,000 | |||||||||||||
Less payments due within one year | 503,000,000 | 175,000,000 | 503,000,000 | |||||||||||||
Long-term debt | 4,539,000,000 | $ 5,171,000,000 | 4,539,000,000 | |||||||||||||
Effective interest rates | 1.10% | |||||||||||||||
Repayments of debt | $ 634,000,000 | $ 504,000,000 | 637,000,000 | $ 6,000,000 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,200,000,000 | |||||||||||||||
Line of credit facility, additional borrowing capacity available | $ 750,000,000 | |||||||||||||||
Proceeds from Issuance of Debt | $ 119,000,000 | $ 296,000,000 | $ 595,000,000 | $ 992,000,000 | ||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 7,000,000 | 0 | 0 | |||||||||||||
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 | 0.46 | 0.46 | ||||||||||||||
Notes 0.00% Due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 0.00% | 0.00% | ||||||||||||||
Notes 2.3 Percent Due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 2.30% | 2.30% | ||||||||||||||
Debt Redemption Price Percent Of Principal Amount | 101.00% | |||||||||||||||
Notes 3.6 Percent Due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 499,000,000 | $ 0 | $ 499,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 3.60% | |||||||||||||||
Debt Instrument, Redemption Charge, Make-Whole Cash Premium | $ 6,000,000 | |||||||||||||||
Gain (Loss) on Extinguishment of Debt | 7,000,000 | |||||||||||||||
Write off of Deferred Debt Issuance Cost | 1,000,000 | |||||||||||||||
Repayments of Unsecured Debt | $ 500,000,000 | |||||||||||||||
Non-callable Debentures 9 Percent Due 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 134,000,000 | $ 134,000,000 | 134,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 9.00% | |||||||||||||||
Long-term debt, contingent payment of principal or interest | $ 10,000,000 | |||||||||||||||
Notes 0.875 Percent Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 671,000,000 | $ 732,000,000 | 671,000,000 | |||||||||||||
Notional amount of non-derivative instruments | € | € 600 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 0.875% | |||||||||||||||
3.2% Notes due 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 298,000,000 | $ 299,000,000 | $ 298,000,000 | |||||||||||||
Effective interest rates | 2.90% | 1.20% | 2.90% | |||||||||||||
Interest rate swaps | $ 150,000,000 | |||||||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 3.20% | |||||||||||||||
2.4% Notes due 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 297,000,000 | $ 298,000,000 | $ 297,000,000 | |||||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 2.40% | |||||||||||||||
Notes 0.875% Due 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 665,000,000 | 727,000,000 | 665,000,000 | |||||||||||||
Notes 1.4 Percent Due 2027 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 665,000,000 | $ 726,000,000 | 665,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.40% | |||||||||||||||
3.75% Notes due 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 695,000,000 | $ 813,000,000 | $ 695,000,000 | |||||||||||||
Effective interest rates | 3.30% | 1.60% | 3.30% | |||||||||||||
Interest rate swaps | $ 375,000,000 | |||||||||||||||
Notional amount of non-derivative instruments | $ 100,000,000 | $ 700,000,000 | ||||||||||||||
Debt instrument, interest rate, stated percentage | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||
Debt Redemption Price Percent Of Principal Amount | 101.00% | 101.00% | ||||||||||||||
2.8% Notes due 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 297,000,000 | $ 299,000,000 | $ 297,000,000 | |||||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 2.80% | |||||||||||||||
2.55% Notes Due 2030 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 0 | 296,000,000 | 0 | |||||||||||||
Notional amount of non-derivative instruments | $ 300,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 2.55% | |||||||||||||||
Debt Redemption Price Percent Of Principal Amount | 101.00% | |||||||||||||||
Notes 2.5 Percent Due 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 88,000,000 | $ 94,000,000 | 88,000,000 | |||||||||||||
Notional amount of non-derivative instruments | € | 80 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 2.50% | |||||||||||||||
Notes 7.70 Percent Due 2038 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 174,000,000 | $ 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 | 247,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | |||||||||||||||
Notes 3.0 Percent Due 2044 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 127,000,000 | $ 139,000,000 | 127,000,000 | |||||||||||||
Notional amount of non-derivative instruments | € | € 120 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 3.00% | |||||||||||||||
Commercial paper | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit, amount outstanding | 100,000,000 | $ 250,000,000 | 100,000,000 | |||||||||||||
Long-term Commercial Paper, Noncurrent | 100,000,000 | 250,000,000 | 100,000,000 | |||||||||||||
Other Non-US Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 38,000,000 | $ 38,000,000 | $ 38,000,000 | |||||||||||||
Long-term debt, percentage bearing variable interest, percentage rate | 3.70% | 3.80% | 3.70% | |||||||||||||
Impact Of Derivatives On Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 36,000,000 | $ 68,000,000 | $ 36,000,000 | |||||||||||||
Effective interest rates | 8.40% | 8.40% | 8.40% | |||||||||||||
Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.06% | |||||||||||||||
Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% |
Borrowings and Lines of Credi_3
Borrowings and Lines of Credit (Long-term Debt Maturities) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Aggregate maturities of long-term debt, in 2020 | $ 175 |
Aggregate maturities of long-term debt, in 2021 | 733 |
Aggregate maturities of long-term debt, in 2022 | 307 |
Aggregate maturities of long-term debt, in 2023 | 298 |
Aggregate maturities of long-term debt, in 2024 | 982 |
Aggregate maturities of long-term debt, Thereafter | $ 2,851 |
Borrowings and Lines of Credi_4
Borrowings and Lines of Credit (Short-term Debt Outstanding) (Detail) - USD ($) $ in Millions | 1 Months Ended | ||
Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 403 | $ 10 | |
Weighted average interest rate | 1.70% | 3.60% | |
$1.5 billion 364-Day Term Loan [Member] | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 1,500 | ||
Debt Instrument, Term | 364 days |
Borrowings and Lines of Credi_5
Borrowings and Lines of Credit (Additional Information) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2020 | Mar. 31, 2020 | Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||||
Line of credit, amount outstanding | $ 0 | $ 0 | ||||
Outstanding letters of credit and surety bonds | 134,000,000 | 152,000,000 | ||||
Guarantees outstanding | 9,000,000 | |||||
Proceeds from revolving credit facility | 800,000,000 | 0 | $ 0 | |||
Repayments of Lines of Credit | 800,000,000 | 0 | $ 0 | |||
Long-term debt | $ 5,296,000,000 | 5,031,000,000 | ||||
Non-callable Debentures 9 Percent Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 9.00% | |||||
Long-term debt, contingent payment of principal or interest | $ 10,000,000 | |||||
Long-term debt | 134,000,000 | 134,000,000 | ||||
Unsecured Debt [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from revolving credit facility | $ 800,000,000 | |||||
Repayments of Lines of Credit | $ 800,000,000 | |||||
Debt Instrument, Term | 5 years | |||||
Long-term debt | 0 | 0 | ||||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment amount | 50,000,000 | |||||
Guarantee of Indebtedness of Others | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value of guarantees | 0 | 0 | ||||
Fair value of guarantees | 0 | $ 0 | ||||
International Operations | ||||||
Debt Instrument [Line Items] | ||||||
Lines of credit, current borrowing capacity | 577,000,000 | |||||
Line of credit, amount outstanding | $ 35,000,000 |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements (Additional Information) (Detail) € in Billions | 12 Months Ended | ||||||
Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Finance lease liability | $ 12,000,000 | ||||||
Notional Amount of Derivative Instruments Designated as Net Investment Hedges | $ 560,000,000 | ||||||
Fair Value of Debt Instrument Designated as a Hedge of Net Investment in Foreign Operations | 2,400,000,000 | $ 2,200,000,000 | |||||
Accumulated pretax unrealized translation gains | 5,815,000,000 | 5,403,000,000 | $ 4,732,000,000 | $ 5,672,000,000 | |||
Cash Flow Hedging | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1,000,000 | 1,000,000 | |||||
Notional Amount of Derivative Instruments Designated as Net Investment Hedges | 43,000,000 | ||||||
Net Investment Hedging | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Notional Amount of Derivative Instruments Designated as Net Investment Hedges | 575,000,000 | ||||||
Notional Amount of Nonderivative Instruments | € | € 2 | ||||||
Foreign Currency Contracts | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 2,000,000 | ||||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 6,000,000 | 6,000,000 | |||||
Notional Amount of Derivative Instruments Designated as Net Investment Hedges | 1,400,000,000 | 2,800,000,000 | |||||
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 | 67,000,000 | 35,000,000 | |||||
Cross Currency Swaps | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | 8,000,000 | 48,000,000 | |||||
Currency Swap | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Notional Amount of Derivative Instruments Designated as Net Investment Hedges | $ 300,000,000 | ||||||
Designated as Hedging Instrument | Foreign Currency Contracts | Cash Flow Hedging | Settlement Date 15 March 2018 | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Notional Amount of Derivative Instruments Designated as Net Investment Hedges | 560,000,000 | ||||||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||
Accumulated pretax unrealized translation gains | $ 22,000,000 | $ 235,000,000 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements (Fair Value, Cash Flow and Net Investment Hedges) (Detail) $ in Millions, € in Billions | 12 Months Ended | |||
Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Recognized Amount | $ 12 | $ 3 | $ 3 | |
Fair Value Hedging | Foreign Currency Contracts | Interest expense | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Recognized Amount | 12 | 3 | 3 | |
Cash Flow Hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Deferred in OCI | 0 | 2 | (9) | |
Gain (Loss) Recognized Amount | 0 | (3) | (8) | |
Cash Flow Hedging | Foreign Currency Contracts | Other Expense | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Deferred in OCI | 0 | 2 | (9) | |
Gain (Loss) Recognized Amount | 0 | (3) | (8) | |
Net Investment Hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount of Nonderivative Instruments | € | € 2 | |||
Gain (Loss) Deferred in OCI | (257) | 74 | 145 | |
Gain (Loss) Recognized Amount | 16 | 18 | 13 | |
Net Investment Hedging | Currency Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Deferred in OCI | (57) | 13 | 21 | |
Gain (Loss) Recognized Amount | 16 | 18 | 13 | |
Net Investment Hedging | Other Foreign Currency Denominated Debt | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Deferred in OCI | (200) | 61 | 124 | |
Economic Hedging | Foreign Currency Contracts | Other Expense | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Recognized Amount | $ 30 | $ 55 | $ 55 |
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, 2020 | Dec. 31, 2019 |
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 | $ 6 | $ 5 |
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 | 97 | 80 |
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 | 13 | 52 |
Liabilities reported at fair value on a recurring basis | 8 | |
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 | 67 | 35 |
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 | 6 | 20 |
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 | 13 | 4 |
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 | 8 | 14 |
Not Designated as Hedging Instrument [Member] | 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 | $ 0 | $ 1 |
Financial Instruments, Hedgin_6
Financial Instruments, Hedging Activities and Fair Value Measurements (Fair Value Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Long-term debt | $ 5,296 | $ 5,031 |
Long-term debt (excluding capital lease obligations), fair values | 5,875 | 5,363 |
Finance lease liability | 12 | |
Capital lease obligations | 11 | |
Short-term borrowings | $ 403 | $ 10 |
Earnings Per Common Share (Addi
Earnings Per Common Share (Additional Detail) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per common share (attributable to PPG) | |||||||||||
Income from continuing operations, net of tax | $ 272 | $ 442 | $ 99 | $ 243 | $ 295 | $ 366 | $ 270 | $ 312 | $ 1,056 | $ 1,243 | $ 1,323 |
Income from discontinued operations, net of tax | 0 | 0 | 3 | 0 | (3) | 1 | 2 | 0 | 3 | 0 | 18 |
Net income (attributable to PPG) | $ 272 | $ 442 | $ 102 | $ 243 | $ 292 | $ 367 | $ 272 | $ 312 | $ 1,059 | $ 1,243 | $ 1,341 |
Weighted average common shares outstanding | 236.8 | 236.9 | 243.9 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options | 0.4 | 0.6 | 0.8 | ||||||||
Other stock compensation plans | 0.7 | 0.7 | 0.7 | ||||||||
Potentially dilutive common shares | 1.1 | 1.3 | 1.5 | ||||||||
Adjusted weighted average common shares outstanding | 237.9 | 238.2 | 245.4 | ||||||||
Earnings per common share (attributable to PPG): | |||||||||||
Continuing operations (in dollars per share) | $ 1.15 | $ 1.87 | $ 0.42 | $ 1.03 | $ 1.24 | $ 1.55 | $ 1.14 | $ 1.32 | $ 4.46 | $ 5.25 | $ 5.43 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0.07 |
Net Income (attributable to PPG) (in dollars per share) | 1.15 | 1.87 | 0.43 | 1.03 | 1.23 | 1.55 | 1.15 | 1.32 | 4.47 | 5.25 | 5.50 |
Earnings per common share - assuming dilution (attributable to PPG) | |||||||||||
Continuing operations (in dollars per share) | 1.14 | 1.86 | 0.42 | 1.02 | 1.23 | 1.54 | 1.13 | 1.31 | 4.44 | 5.22 | 5.40 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0.07 |
Earnings per common share - assuming dilution (in dollars per share) | $ 1.14 | $ 1.86 | $ 0.43 | $ 1.02 | $ 1.22 | $ 1.54 | $ 1.14 | $ 1.31 | $ 4.45 | $ 5.22 | $ 5.47 |
Outstanding stock options excluded from the computation of diluted earnings per share due to their antidilutive effect | 1.4 | 0.9 | 1 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)subsidiaryjurisdiction | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Income Taxes [Line Items] | |||
Benefit from reversal of existing deferred tax liability on repatriated foreign earnings | $ 22 | ||
Expense for global intangible low taxed income | 14 | ||
Benefit from foreign derived intangible income | $ 14 | ||
U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Deferred income taxes | $ (47) | $ (5) | $ 45 |
Pension curtailment charges | 13 | 0 | 0 |
Income before income taxes of non-US operations | 1,362 | 1,661 | 1,693 |
Net operating loss carryforwards | 193 | 182 | |
Deferred Tax Assets, Tax Credit Carryforwards, Other | 119 | 59 | |
Unrecognized tax benefits that would affect the effective tax rate, if recognized | 153 | ||
Accrued estimated interest and penalties on unrecognized tax benefits | 18 | 17 | 16 |
Recognized (income) expense for estimated interest and penalties | 2 | 1 | 2 |
Undistributed Earnings of Foreign Subsidiaries | $ 4,100 | 3,600 | |
Number of taxable jurisdictions | jurisdiction | 75 | ||
Net tax charge for Tax Cuts and Jobs Act | 42 | ||
One-time tax on unrepatriated foreign earnings | 20 | ||
Number of PPG Subsidiaries | subsidiary | 290 | ||
Income Tax, Potential U.S. Tax Cost for Repatriation of Foreign Earnings | $ 40 | 32 | |
U.S. | |||
Income Taxes [Line Items] | |||
Deferred income taxes | 30 | 22 | |
Income before income taxes of non-US operations | 190 | 596 | 571 |
Non United States | |||
Income Taxes [Line Items] | |||
Income before income taxes of non-US operations | 1,172 | 1,065 | $ 1,122 |
Net Operating Loss, Indefinite Life | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 113 | 157 | |
Net Operating Loss, Expiring Within 20 Years | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 80 | $ 25 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense | |||
U.S. federal | $ 12 | $ 86 | $ 7 |
U.S. State and local | 6 | 15 | 4 |
Non-U.S. | 320 | 296 | 297 |
Total current income tax | 338 | 397 | 308 |
Deferred income tax expense | |||
U.S. federal | 1 | (1) | 44 |
U.S. State and local | (3) | 13 | 7 |
Non-U.S. | (45) | (17) | (6) |
Deferred Income Tax Expense (Benefit) | (47) | (5) | 45 |
Total | $ 291 | $ 392 | $ 353 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Changes in rate due to: | |||
U.S. tax cost/(benefit) - Tax Cuts & Jobs Act | 0.00% | 0.30% | (2.50%) |
Taxes on non-U.S. earnings | 3.30% | 2.90% | 3.30% |
Change in valuation allowance reserves | (1.40%) | 0.00% | 0.00% |
U.S. state and local taxes | (0.90%) | (0.70%) | (1.00%) |
U.S. tax cost/(benefit) on foreign dividends | 0.10% | (0.90%) | (0.40%) |
U.S. state and local taxes | 0.30% | 1.30% | 0.50% |
Tax benefits from equity awards | (0.40%) | ||
Other | (0.60%) | (0.30%) | |
Effective income tax rate | 21.40% | 23.60% | 20.90% |
Income Taxes (Net Deferred Inco
Income Taxes (Net Deferred Income Tax Assets and Liabilities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 167 | $ 158 |
Employee benefits | 439 | 382 |
Contingent and accrued liabilities | 118 | 148 |
Operating loss and other carry-forwards | 293 | 225 |
Inventories | 1 | 4 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other | 209 | 194 |
Other | 196 | 85 |
Deferred Tax Assets, Valuation Allowance | 167 | 158 |
Deferred Tax Assets, Net of Valuation Allowance | 1,089 | 880 |
Property | 240 | 277 |
Intangibles | 663 | 594 |
Employee benefits | 37 | 65 |
Operating lease right-of-use assets | 206 | 192 |
Other | 16 | 2 |
Deferred Tax Liabilities, Gross | 1,162 | 1,130 |
Deferred Tax Liabilities, Net | 73 | 250 |
Income Tax, Potential U.S. Tax Cost for Repatriation of Foreign Earnings | 40 | 32 |
Deferred income tax assets related to | ||
Employee benefits | 439 | 382 |
Contingent and accrued liabilities | 118 | 148 |
Operating loss and other carry-forwards | 293 | 225 |
Inventories | 1 | 4 |
Other | 196 | 85 |
Valuation allowance | (167) | (158) |
Total | 1,089 | 880 |
Deferred income tax liabilities related to | ||
Property | 240 | 277 |
Intangibles | 663 | 594 |
Employee benefits | 37 | 65 |
Other | 16 | 2 |
Total | 1,162 | 1,130 |
Deferred income tax liabilities – net | (73) | (250) |
Operating lease right-of-use assets | 206 | 192 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other | $ 209 | $ 194 |
Minimum | ||
Income Tax Examination [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2021 | |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2021 | |
Maximum | ||
Income Tax Examination [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 | |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2040 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Undistributed Earnings of Foreign Subsidiaries | $ 4,100 | $ 3,600 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 167 | 166 | $ 148 |
Current year tax positions - additions | 25 | 25 | 36 |
Prior year tax positions - additions | 5 | 4 | 17 |
Prior year tax positions - reductions | (2) | (9) | (6) |
Statute of limitations expirations | (8) | (6) | (9) |
Settlements | (11) | (12) | (15) |
Foreign currency translation | (1) | (1) | (5) |
Ending balance | $ 175 | $ 167 | $ 166 |
Employee Benefit Plans (Additio
Employee Benefit Plans (Additional Information) (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Contributions to defined benefit pension plans | $ 75 | ||||
Pension settlement charge | $ 13 | 0 | $ 0 | ||
ABO for all defined benefit pension plans | $ 3,800 | $ 3,400 | |||
Return on plan assets assumption | 5.00% | 5.40% | 5.40% | ||
Impact on net periodic pension expense | $ 13 | ||||
Weighted-average healthcare cost trend rate assumed for next fiscal year | 4.80% | ||||
Assumed ultimate health care cost trend rate | 4.30% | ||||
Aggregate PBO for the pension plans with PBO in excess of plan assets | $ 2,478 | $ 2,223 | |||
Aggregate fair value of plan assets for the pension plans with PBO in excess of plan assets | 1,504 | 1,449 | |||
Aggregate ABO for the pension plans with ABO in excess of plan assets | 2,320 | 2,176 | |||
Fair value of plan assets for the pension plans with ABO in excess of plan assets | 1,383 | 1,449 | |||
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 | $ 3 | ||||
Weighted-average healthcare cost trend rate assumed for next fiscal year | 5.10% | ||||
Assumed ultimate health care cost trend rate | 4.20% | ||||
Pension Plan | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Contributions to defined benefit pension plans | 17 | 13 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 193 | 144 | |||
Net actuarial loss arising during the year | 218 | ||||
Estimated future benefit payments in 2020 | 171 | ||||
Estimated future benefit payments in 2021 | 159 | ||||
Estimated future benefit payments in 2022 | 166 | ||||
Estimated future benefit payments in 2023 | 170 | ||||
Estimated future benefit payments in 2024 | 173 | ||||
Estimated aggregate future benefits payments for the five years thereafter | 890 | ||||
Other Postretirement Benefits | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Plan amendments | 4 | (17) | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 44 | 49 | |||
Net actuarial loss arising during the year | 82 | ||||
Estimated future benefit payments in 2020 | 54 | ||||
Estimated future benefit payments in 2021 | 53 | ||||
Estimated future benefit payments in 2022 | 51 | ||||
Estimated future benefit payments in 2023 | 50 | ||||
Estimated future benefit payments in 2024 | 49 | ||||
Estimated aggregate future benefits payments for the five years thereafter | $ 210 | ||||
Other Postretirement Benefits | Scenario, Forecast | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Impact on net periodic pension expense | $ 6 | ||||
Postretirement Health Coverage | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Plan amendments | $ 306 | ||||
Amortization reduction period | 5 years 7 months 6 days | ||||
U.S. Qualified Pension Plan | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ 52 | ||||
Welfare Benefits - U.S. | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Percentage of defined benefit pension plan assets market value | 87.00% | ||||
United States | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Contributions to defined benefit pension plans | $ 0 | 0 | 75 | ||
Return on plan assets assumption | 7.40% | ||||
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 | 133 | 80 | |||
United States | Other Postretirement Benefits | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Plan amendments | 4 | (17) | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 39 | 44 | |||
International | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Contributions to defined benefit pension plans | 17 | 13 | $ 24 | ||
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 | 4.80% | ||||
International | Pension Plan | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Contributions to defined benefit pension plans | 17 | 13 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 60 | 64 | |||
International | Other Postretirement Benefits | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Plan amendments | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ 5 | $ 5 | |||
United States, Canada, Netherlands and United Kingdom | |||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||
Percentage of defined benefit pension plan assets market value | 93.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | $ 2,965 | ||
Company contributions | $ 75 | ||
End balance | 3,216 | 2,965 | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (85) | (85) | |
Other postretirement benefits | (733) | (661) | |
Accrued pensions | (945) | (745) | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 3,561 | 3,100 | |
Service cost | 24 | 23 | $ 28 |
Interest cost | 87 | 105 | 97 |
Actuarial losses - net | 416 | 449 | |
Benefits paid | (193) | (144) | |
Foreign currency translation adjustments | 87 | 34 | |
Settlements and curtailments | (6) | (4) | |
Other | (1) | (2) | |
Projected benefit obligation, End of year | 3,975 | 3,561 | 3,100 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 2,965 | 2,618 | |
Actual return on plan assets | 342 | 409 | |
Company contributions | 17 | 13 | |
Benefits paid | (164) | (111) | |
Plan settlements | (19) | (4) | |
Foreign currency translation adjustments | 78 | 42 | |
Other | (3) | (2) | |
End balance | 3,216 | 2,965 | 2,618 |
Funded Status | (759) | (596) | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Other assets (long-term) | 218 | 183 | |
Accounts payable and accrued liabilities | (32) | (34) | |
Accrued pensions | (945) | (745) | |
Net liability recognized | (759) | (596) | |
Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 712 | 681 | |
Service cost | 10 | 8 | 10 |
Interest cost | 20 | 26 | 24 |
Plan amendments | 4 | (17) | |
Actuarial losses - net | 82 | 60 | |
Benefits paid | (44) | (49) | |
Foreign currency translation adjustments | 2 | 4 | |
Other | 0 | (1) | |
Projected benefit obligation, End of year | 786 | 712 | 681 |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (53) | (51) | |
Other postretirement benefits | (733) | (661) | |
Net liability recognized | (786) | (712) | |
United States | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Company contributions | 0 | 0 | 75 |
United States | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 1,842 | 1,582 | |
Service cost | 13 | 13 | |
Interest cost | 54 | 64 | |
Actuarial losses - net | 251 | 263 | |
Benefits paid | (133) | (80) | |
Foreign currency translation adjustments | 0 | 0 | |
Settlements and curtailments | 13 | 0 | |
Other | 2 | 0 | |
Projected benefit obligation, End of year | 2,042 | 1,842 | 1,582 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,304 | 1,140 | |
Actual return on plan assets | 144 | 219 | |
Company contributions | 0 | 0 | |
Benefits paid | (113) | (55) | |
Plan settlements | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Other | 0 | 0 | |
End balance | 1,335 | 1,304 | 1,140 |
Funded Status | (707) | (538) | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Other assets (long-term) | 0 | 0 | |
Accounts payable and accrued liabilities | (23) | (26) | |
Accrued pensions | (684) | (512) | |
Net liability recognized | (707) | (538) | |
United States | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 616 | 587 | |
Service cost | 9 | 8 | |
Interest cost | 17 | 23 | |
Plan amendments | 4 | (17) | |
Actuarial losses - net | 75 | 59 | |
Benefits paid | (39) | (44) | |
Foreign currency translation adjustments | 0 | 0 | |
Other | 0 | 0 | |
Projected benefit obligation, End of year | 682 | 616 | 587 |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (48) | (46) | |
Other postretirement benefits | (634) | (570) | |
Net liability recognized | (682) | (616) | |
International | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Company contributions | 17 | 13 | 24 |
International | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 1,719 | 1,518 | |
Service cost | 11 | 10 | |
Interest cost | 33 | 41 | |
Actuarial losses - net | 165 | 186 | |
Benefits paid | (60) | (64) | |
Foreign currency translation adjustments | 87 | 34 | |
Settlements and curtailments | (19) | (4) | |
Other | (3) | (2) | |
Projected benefit obligation, End of year | 1,933 | 1,719 | 1,518 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,661 | 1,478 | |
Actual return on plan assets | 198 | 190 | |
Company contributions | 17 | 13 | |
Benefits paid | (51) | (56) | |
Plan settlements | (19) | (4) | |
Foreign currency translation adjustments | 78 | 42 | |
Other | (3) | (2) | |
End balance | 1,881 | 1,661 | 1,478 |
Funded Status | (52) | (58) | |
Amounts recognized in the Consolidated Balance Sheet: | |||
Other assets (long-term) | 218 | 183 | |
Accounts payable and accrued liabilities | (9) | (8) | |
Accrued pensions | (261) | (233) | |
Net liability recognized | (52) | (58) | |
International | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, Beginning of year | 96 | 94 | |
Service cost | 1 | 0 | |
Interest cost | 3 | 3 | |
Plan amendments | 0 | 0 | |
Actuarial losses - net | 7 | 1 | |
Benefits paid | (5) | (5) | |
Foreign currency translation adjustments | 2 | 4 | |
Other | 0 | (1) | |
Projected benefit obligation, End of year | 104 | 96 | $ 94 |
Amounts recognized in the Consolidated Balance Sheet: | |||
Accounts payable and accrued liabilities | (5) | (5) | |
Other postretirement benefits | (99) | (91) | |
Net liability recognized | $ (104) | $ (96) |
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, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated net actuarial losses | $ 1,071 | $ 920 |
Accumulated prior service cost (credit) | 4 | 2 |
Total | 1,075 | 922 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated net actuarial losses | 233 | 166 |
Accumulated prior service cost (credit) | (75) | (138) |
Total | $ 158 | $ 28 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss arising during the year | $ 82 | ||
New prior service credit | 4 | ||
Amortization of actuarial loss | 15 | $ 8 | $ 19 |
Amortization of prior service credit | 59 | 57 | 60 |
Foreign currency translation adjustments | 0 | ||
Impact of settlements and curtailments | 0 | ||
Net change | 130 | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss arising during the year | 218 | ||
New prior service credit | 2 | ||
Amortization of actuarial loss | 71 | $ 62 | $ 63 |
Amortization of prior service credit | 0 | ||
Foreign currency translation adjustments | 9 | ||
Impact of settlements and curtailments | (5) | ||
Net change | $ 153 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 10 | $ 8 | $ 10 |
Interest cost | 20 | 26 | 24 |
Amortization of prior service credit | (59) | (57) | (60) |
Amortization of actuarial losses | 15 | 8 | 19 |
Net periodic benefit cost/(income) | (14) | (15) | (7) |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 24 | 23 | 28 |
Interest cost | 87 | 105 | 97 |
Expected return on plan assets | 144 | 139 | 150 |
Amortization of prior service credit | 0 | ||
Amortization of actuarial losses | 71 | 62 | 63 |
Settlements, curtailments, and special termination benefits | 18 | 3 | 5 |
Net periodic benefit cost/(income) | $ 56 | $ 54 | $ 43 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to calculate benefit obligation | 2.10% | 2.80% | |
Rate of compensation increase | 1.50% | 2.60% | |
Return on plan assets assumption | 5.00% | 5.40% | 5.40% |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to calculate benefit obligation | 2.40% | 3.30% | |
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 | 1.60% | 2.20% | |
Rate of compensation increase | 1.10% | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used to calculate benefit obligation | 2.10% | 2.80% | |
Discount rate | 2.80% | 3.70% | 3.20% |
Expected return on assets | 5.00% | 5.40% | 5.40% |
Rate of compensation increase | 2.60% | 1.80% | 1.20% |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used to calculate benefit obligation | 2.40% | 3.30% | |
Expected return on assets | 7.40% |
Employee Benefit Plans (Weigh_3
Employee Benefit Plans (Weighted Average Target Pension Plan Asset Allocations) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Minimum | Equity Securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 15.00% | 15.00% |
Minimum | Debt securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 30.00% | 30.00% |
Minimum | Real Estate | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 0.00% | 0.00% |
Minimum | Other | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 20.00% | 20.00% |
Maximum | Equity Securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 45.00% | 45.00% |
Maximum | Debt securities | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 65.00% | 65.00% |
Maximum | Real Estate | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 10.00% | 10.00% |
Maximum | Other | ||
Asset Category | ||
Weighted average target pension plan asset allocation, minimum | 40.00% | 40.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | $ 3,216 | $ 2,965 | |
Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 2,506 | 2,252 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 338 | 324 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 1,252 | 1,093 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 916 | 835 | $ 795 |
Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 710 | 713 | |
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 | 159 | 138 | |
Defined Benefit Plan, Equity Securities, US, Large Cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 65 | 58 | |
Defined Benefit Plan, Equity Securities, US, Large Cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 94 | 80 | |
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 | 42 | 41 | |
Defined Benefit Plan, Equity Securities, US, Small Cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 42 | 41 | |
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 | 224 | 227 | |
Defined Benefit Plan, Equity Securities, Non-US | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 144 | 143 | |
Defined Benefit Plan, Equity Securities, Non-US | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 80 | 84 | |
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 | 15 | 26 | |
Defined Benefit Plan, Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 5 | 10 | |
Defined Benefit Plan, Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 10 | 16 | |
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 | 464 | 414 | |
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 | 386 | 337 | |
Debt Security, Corporate, US | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 78 | 77 | |
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 | 2 | 2 | |
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 | 2 | 2 | |
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 | 126 | 237 | |
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 | 126 | 237 | |
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 | 102 | 81 | |
US Government Agencies Debt Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 82 | 72 | |
US Government Agencies Debt Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 20 | 9 | |
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 | 19 | 7 | |
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 | 19 | 7 | |
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 | 421 | 395 | |
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 | 18 | |
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | 421 | 377 | |
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 | 932 | 684 | |
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 | 515 | 303 | |
Defined Benefit Plan, Real Estate, Hedge Funds, And Other [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of pension plan assets | $ 417 | $ 381 |
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, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | $ 2,965 | |
End balance | 3,216 | $ 2,965 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 835 | 795 |
Realized gains/(losses) | 30 | 53 |
Unrealized (losses)/gains | (7) | 8 |
Transfers (out)/in, net | 15 | (22) |
Foreign currency gains/(losses) | 43 | 1 |
End balance | 916 | 835 |
Level 3 | Real Estate | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 123 | 137 |
Realized gains/(losses) | 4 | 18 |
Unrealized (losses)/gains | (5) | (7) |
Transfers (out)/in, net | 1 | (27) |
Foreign currency gains/(losses) | 1 | 2 |
End balance | 124 | 123 |
Level 3 | Other Debt Securities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 377 | 359 |
Realized gains/(losses) | 24 | 38 |
Unrealized (losses)/gains | 0 | 0 |
Transfers (out)/in, net | (14) | (12) |
Foreign currency gains/(losses) | 34 | (8) |
End balance | 421 | 377 |
Level 3 | Hedge Funds and Other Assets | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 335 | 299 |
Realized gains/(losses) | 2 | (3) |
Unrealized (losses)/gains | (2) | 15 |
Transfers (out)/in, net | 28 | 17 |
Foreign currency gains/(losses) | 8 | 7 |
End balance | $ 371 | $ 335 |
Employee Benefit Plans (Other P
Employee Benefit Plans (Other Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined contribution plan contribution rates as percentage of employee earnings | 6.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||
Compensation expense related to the ESOP | $ 50 | $ 49 | $ 47 |
Deductible dividends on PPG shares held by the ESOP | 11 | 11 | 13 |
Recognized expense for defined contribution pension plans | 64 | 70 | 63 |
Expense (income) of the deferred compensation plan | 25 | 21 | (1) |
Increase (Decrease) in fair value of investments | 24 | 20 | $ (2) |
Obligations under the deferred compensation plan | 138 | 123 | |
Investments in marketable securities by the deferred compensation plan | $ 103 | $ 85 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Shareholder Class Action) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Litigation Settlement, Amount Awarded to Other Party | $ 17 | $ 25 |
Insurance Settlements Receivable, Current | $ 17 | $ 25 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Litigation Settlements - Asbestos Matters and Other Disclosure) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Other Reserves | $ 190 | |
Asbestos Issue | ||
Loss Contingency, Pending Claims, Number | 840 | |
Other Reserves | $ 162 | |
Increase to asbestos reserve | $ 10 | |
Pittsburgh Corning Corporation | ||
Ownership interest | 50.00% |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Additional Information - Environmental Matters) (Detail) $ in Millions | 12 Months Ended | 48 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)Location | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2024USD ($) | Jun. 30, 2010Location | Dec. 31, 2009Location | |
Environmental Matters [Abstract] | |||||||
Reserves for environmental contingencies | $ 300 | $ 304 | |||||
Reserves for environmental contingencies classified as current liabilities | 99 | 62 | |||||
Pretax charges for environmental remediation costs | 38 | 77 | $ 78 | ||||
Cash outlays related to environmental remediation | 60 | 77 | 64 | ||||
Historical low end of range of annual environmental remediation expense over the past 15 years | 5 | ||||||
Historical high end of range of annual environmental remediation expense over the past 15 years | $ 35 | ||||||
Remediation Period | 10 years | ||||||
Scenario, Forecast | Maximum | |||||||
Environmental Matters [Abstract] | |||||||
Cash For Environmental Loss Contingencies High Estimate | $ 100 | $ 50 | |||||
Unreserved loss contingencies related to environmental matters, high estimate | 200 | ||||||
Scenario, Forecast | Minimum | |||||||
Environmental Matters [Abstract] | |||||||
Cash For Environmental Loss Contingencies Low Estimate | 80 | $ 20 | |||||
Unreserved loss contingencies related to environmental matters, high estimate | $ 100 | ||||||
Excavation of Soil | |||||||
Environmental Matters [Abstract] | |||||||
Percentage of the total remaining reserve | 21.00% | ||||||
Soil Treatment Transportation And Disposal Of Excavated Soil | |||||||
Environmental Matters [Abstract] | |||||||
Percentage of the total remaining reserve | 16.00% | ||||||
Construction Services | |||||||
Environmental Matters [Abstract] | |||||||
Percentage of the total remaining reserve | 35.00% | ||||||
Jersey City Manufacturing Plant | |||||||
Environmental Matters [Abstract] | |||||||
Reserves for environmental contingencies | $ 102 | 134 | |||||
Pretax charges for environmental remediation costs | 15 | 43 | 62 | ||||
Glass and Chemical Sites | |||||||
Environmental Matters [Abstract] | |||||||
Reserves for environmental contingencies | 106 | 96 | |||||
Pretax charges for environmental remediation costs | 15 | 12 | 8 | ||||
Other Environmental Contingencies | |||||||
Environmental Matters [Abstract] | |||||||
Reserves for environmental contingencies | 92 | 74 | |||||
Pretax charges for environmental remediation costs | $ 8 | $ 22 | $ 8 | ||||
Judicial Consent Order | |||||||
Environmental Matters [Abstract] | |||||||
Number Of Sites Involved For Environmental Remediation | Location | 14 | 20 | 19 |
Shareholders' Equity (Summary o
Shareholders' Equity (Summary of Shares Outstanding) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shareholders' Equity Note [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ 1.667 | ||
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) | $ 2.10 | $ 1.98 | $ 1.86 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 235,680,470 | 235,861,434 | 251,174,399 |
Purchases (in shares) | (2,722,800) | (15,877,364) | |
Issuances (in shares) | 1,005,795 | 2,541,836 | 564,399 |
Ending balance (in shares) | 236,686,265 | 235,680,470 | 235,861,434 |
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) | 345,465,666 | 345,284,702 | 329,971,737 |
Purchases (in shares) | (2,722,800) | (15,877,364) | |
Issuances (in shares) | 1,005,795 | 2,541,836 | 564,399 |
Ending balance (in shares) | 344,459,871 | 345,465,666 | 345,284,702 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 1 | $ 2 | |
Beginning Balance | $ (2,350) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (249) | 71 | (292) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (24) | (130) | 129 |
Net change | (249) | (51) | (147) |
Ending Balance | (2,599) | (2,350) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,627) | (1,734) | (1,567) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (249) | 71 | (292) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 213 | 36 | 148 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | |||
Net change | 107 | (144) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (36) | ||
Ending Balance | (1,663) | (1,627) | (1,734) |
Pension and Other Post retirement Benefit Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (724) | (568) | (493) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (237) | (167) | (12) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 24 | 11 | 21 |
Net change | (213) | (156) | 9 |
Ending Balance | (937) | (724) | (568) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassifications of Temporary to Permanent Equity | (107) | ||
Net change | (249) | (50) | (136) |
Unrealized Gain (Loss) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 1 | 2 | 3 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 1 | (7) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | (2) | 6 |
Net change | 0 | (1) | (1) |
Ending Balance | 1 | 1 | 2 |
Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (2,350) | (2,300) | (2,057) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 24 | 9 | 27 |
Net change | (249) | (50) | (136) |
Ending Balance | $ (2,599) | $ (2,350) | $ (2,300) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 5 | $ 7 | $ 9 |
Tax benefit (cost) related to unrealized currency translation adjustments other than translation of foreign denominated balance sheets | 6 | (19) | 4 |
Tax benefit (cost) related to the adjustment for pension and other postretirement benefits | 70 | 57 | (34) |
Cumulative tax benefit related to the adjustment for pension and other postretirement benefits | $ 336 | 266 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 1 | $ 2 |
Other Income (Detail)
Other Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Gain on sale of assets | $ 5 | $ 7 | $ 33 |
Royalty income | 7 | 8 | 10 |
Share of net earnings of equity affiliates (See Note 6) | 8 | 11 | 16 |
Other | 48 | 63 | 55 |
Total | 68 | 89 | 114 |
Gain on sale of land | $ 0 | $ 0 | $ (26) |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Detail) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)target$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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. | ||
Shares available for future grants under the PPG Omnibus Plan | shares | 6.9 | ||
Stock-based compensation expense | $ | $ 44 | $ 39 | $ 37 |
Total income tax benefit recognized related to the stock-based compensation | $ | $ 10 | $ 9 | $ 8 |
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) | $ / shares | $ 21.93 | $ 22.50 | $ 25.27 |
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 | $ | $ 8 | ||
Cost not yet recognized, period for recognition | 1 year 6 months | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost that have not yet vested | $ | $ 15 | ||
Cost not yet recognized, period for recognition | 1 year 6 months | ||
Award vesting period | 3 years | ||
Percentage of the target award that is assumed to vest for the purposes of expense recognition | 100.00% | ||
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 | 0.00% | 0.00% | 0.00% |
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 | 200.00% | 180.00% | 180.00% |
Restricted Stock Units (RSUs) | Performance Period 2017 to 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance targets met | 3 | ||
Number of performance targets | 6 | ||
Restricted Stock Units (RSUs) | Performance Period 2018 to 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance targets met | 2 | ||
Number of performance targets | 4 | ||
Restricted Stock Units (RSUs) | Performance Period 2019 to 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance targets met | 1 | ||
Number of performance targets | 2 | ||
Contingent Share Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost that have not yet vested | $ | $ 8 | ||
Cost not yet recognized, period for recognition | 1 year 8 months 12 days | 3 years | |
Award vesting period | 3 years | 3 years | |
Earned payout if the target performance is achieved | 100.00% | ||
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 | 0.00% | 0.00% | 0.00% |
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 | 200.00% | 220.00% | 220.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average exercise price | $ 119.52 | $ 109.74 | $ 115.98 |
Risk free interest rate | 1.60% | 2.60% | 2.90% |
Expected life of option in years | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected dividend yield | 1.50% | 1.60% | 1.70% |
Expected volatility | 20.00% | 20.00% | 21.00% |
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, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Beginning Balance | 3,409,753 | |
Granted | 665,485 | |
Exercised | (658,636) | |
Forfeited/Expired | (45,320) | |
Ending Balance | 3,371,282 | 3,409,753 |
Vested or expected to vest, at end of period | 3,264,920 | |
Exercisable, at end of period | 1,723,872 | |
Weighted Average Exercise Price | ||
Beginning Balance (in dollars per share) | $ 96.93 | |
Granted (in dollars per share) | 119.52 | |
Exercised (in dollars per share) | 82.12 | |
Forfeited/Expired (in dollars per share) | 104.08 | |
Ending Balance (in dollars per share) | 104.18 | $ 96.93 |
Vested or expected to vest, at end of period (in dollars per share) | 103.83 | |
Exercisable, at end of period (in dollars per share) | $ 93.56 | |
Weighted Average Remaining Contractual Life (in years) | ||
Outstanding | 6 years 2 months 12 days | 6 years 1 month 6 days |
Vested or expected to vest, at end of period | 6 years 2 months 12 days | |
Exercisable, at end of period | 4 years 3 months 18 days | |
Intrinsic Value (in millions) | ||
Outstanding | $ 135 | $ 125 |
Vested or expected to vest, at end of period | 132 | |
Exercisable, at end of period | $ 87 |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Total intrinsic value of stock options exercised | $ 31 | $ 38 | $ 19 |
Cash received from stock option exercises | 54 | 61 | 15 |
Income tax benefit from the exercise of stock options | 7 | 9 | 4 |
Total fair value of stock options vested | $ 11 | $ 12 | $ 10 |
Stock-Based Compensation (RSU A
Stock-Based Compensation (RSU Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning Balance | 611,542 | |
Granted | 211,639 | |
Released from restrictions | (212,825) | |
Forfeited | (18,427) | |
Ending Balance | 591,929 | |
Vested or expected vest, at end of period | 557,734 | |
Weighted Average Fair Value | ||
Beginning Balance (in dollars per share) | $ 109.30 | |
Granted (in dollars per share) | 117.26 | |
Released from restrictions (in dollars per share) | 119.06 | |
Forfeited (in dollars per share) | 120.51 | |
Ending Balance (in dollars per share) | 113.74 | |
Vested or expected to vest, at end of period (in dollars per share) | $ 113.71 | |
Intrinsic Value (in millions) | ||
Outstanding | $ 67 | $ 67 |
Vested or expected to vest, at end of period | $ 62 |
Quarterly Financial Informati_3
Quarterly Financial Information Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 3,757 | $ 3,685 | $ 3,015 | $ 3,377 | $ 3,672 | $ 3,826 | $ 4,024 | $ 3,624 | $ 13,834 | $ 15,146 | $ 15,374 |
Cost of sales, exclusive of depreciation and amortization | 2,140 | 2,026 | 1,703 | 1,908 | 2,111 | 2,181 | 2,288 | 2,073 | 7,777 | 8,653 | 9,001 |
Income from continuing operations, net of tax | 272 | 442 | 99 | 243 | 295 | 366 | 270 | 312 | 1,056 | 1,243 | 1,323 |
Income from discontinued operations, net of tax | 0 | 0 | 3 | 0 | (3) | 1 | 2 | 0 | 3 | 0 | 18 |
Net income (loss) attributable to parent | $ 272 | $ 442 | $ 102 | $ 243 | $ 292 | $ 367 | $ 272 | $ 312 | $ 1,059 | $ 1,243 | $ 1,341 |
Continuing operations (in dollars per share) | $ 1.15 | $ 1.87 | $ 0.42 | $ 1.03 | $ 1.24 | $ 1.55 | $ 1.14 | $ 1.32 | $ 4.46 | $ 5.25 | $ 5.43 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0.07 |
Net Income (attributable to PPG) (in dollars per share) | 1.15 | 1.87 | 0.43 | 1.03 | 1.23 | 1.55 | 1.15 | 1.32 | 4.47 | 5.25 | 5.50 |
Continuing operations (in dollars per share) | 1.14 | 1.86 | 0.42 | 1.02 | 1.23 | 1.54 | 1.13 | 1.31 | 4.44 | 5.22 | 5.40 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0.07 |
Earnings per common share - assuming dilution (in dollars per share) | $ 1.14 | $ 1.86 | $ 0.43 | $ 1.02 | $ 1.22 | $ 1.54 | $ 1.14 | $ 1.31 | $ 4.45 | $ 5.22 | $ 5.47 |
Revenue Recognition Schedule Of
Revenue Recognition Schedule Of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 3,757 | $ 3,685 | $ 3,015 | $ 3,377 | $ 3,672 | $ 3,826 | $ 4,024 | $ 3,624 | $ 13,834 | $ 15,146 | $ 15,374 |
United States and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 5,668 | 6,475 | 6,485 | ||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 4,328 | 4,549 | 4,678 | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,431 | 2,542 | 2,618 | ||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,407 | 1,580 | 1,593 | ||||||||
Performance Coatings Segment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 8,495 | 9,034 | 9,087 | ||||||||
Performance Coatings Segment [Member] | United States and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,673 | 4,057 | 4,062 | ||||||||
Performance Coatings Segment [Member] | EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,861 | 2,869 | 2,936 | ||||||||
Performance Coatings Segment [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,015 | 1,095 | 1,071 | ||||||||
Performance Coatings Segment [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 946 | 1,013 | 1,018 | ||||||||
Industrial Coatings Segment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 5,339 | 6,112 | 6,287 | ||||||||
Industrial Coatings Segment [Member] | United States and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,995 | 2,418 | 2,423 | ||||||||
Industrial Coatings Segment [Member] | EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,467 | 1,680 | 1,742 | ||||||||
Industrial Coatings Segment [Member] | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,416 | 1,447 | 1,547 | ||||||||
Industrial Coatings Segment [Member] | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 461 | $ 567 | $ 575 | ||||||||
Revenue from Contract with Customer | Service [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenue, percentage of total revenue | 5.00% | 5.00% | 5.00% |
Reportable Business Segment I_3
Reportable Business Segment Information (Reportable Segment Information) (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
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 | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total Net sales | $ 3,757 | $ 3,685 | $ 3,015 | $ 3,377 | $ 3,672 | $ 3,826 | $ 4,024 | $ 3,624 | $ 13,834 | $ 15,146 | $ 15,374 |
Total Segment income | 2,109 | 2,271 | 2,118 | ||||||||
Corporate unallocated | (226) | (198) | (141) | ||||||||
Interest Income (Expense), Net | (115) | (100) | (95) | ||||||||
Restructuring Costs | 224 | 222 | 75 | ||||||||
Environmental remediation charges and other costs, net | (26) | (61) | (77) | ||||||||
Transaction-related costs | (9) | (17) | (6) | ||||||||
Impairment charges | 93 | 0 | 15 | ||||||||
Costs related to customer assortment changes | 0 | 0 | (18) | ||||||||
Gain from the sale of non-operating assets | 0 | 0 | 26 | ||||||||
Total Income before income taxes | 1,362 | 1,661 | 1,693 | ||||||||
Depreciation and amortization | 509 | 511 | 497 | ||||||||
Share of net earnings of equity affiliates | 8 | 11 | 16 | ||||||||
Segment assets | 19,556 | 17,708 | 19,556 | 17,708 | 16,015 | ||||||
Investment in equity affiliates | 120 | 129 | 120 | 129 | 132 | ||||||
Expenditures for property (including business acquisitions) | 1,473 | 1,056 | 789 | ||||||||
Accounts Receivable, Credit Loss Expense (Reversal), CARES Act | $ (30) | (30) | 0 | 0 | |||||||
Unusual or Infrequent Item, or Both, Loss, Gross | (17) | 0 | 0 | ||||||||
Gain (Loss) on Extinguishment of Debt | (7) | 0 | 0 | ||||||||
Litigation Settlement, Expense | 0 | (12) | (24) | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Depreciation and amortization | 58 | 62 | 42 | ||||||||
Share of net earnings of equity affiliates | 5 | 10 | 15 | ||||||||
Segment assets | 2,965 | 2,160 | 2,965 | 2,160 | 1,728 | ||||||
Investment in equity affiliates | 74 | 82 | 74 | 82 | 86 | ||||||
Expenditures for property (including business acquisitions) | 14 | 63 | 87 | ||||||||
Performance Coatings Segment | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total Net sales | 8,495 | 9,034 | 9,087 | ||||||||
Performance Coatings Segment | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total Net sales | 8,495 | 9,034 | 9,087 | ||||||||
Total Segment income | 1,359 | 1,409 | 1,300 | ||||||||
Depreciation and amortization | 251 | 255 | 274 | ||||||||
Share of net earnings of equity affiliates | 3 | 1 | 1 | ||||||||
Segment assets | 11,551 | 10,636 | 11,551 | 10,636 | 9,846 | ||||||
Investment in equity affiliates | 31 | 33 | 31 | 33 | 33 | ||||||
Expenditures for property (including business acquisitions) | 1,293 | 483 | 545 | ||||||||
Industrial Coatings Segment | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total Net sales | 5,339 | 6,112 | 6,287 | ||||||||
Industrial Coatings Segment | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total Net sales | 5,339 | 6,112 | 6,287 | ||||||||
Total Segment income | 750 | 862 | 818 | ||||||||
Depreciation and amortization | 200 | 194 | 181 | ||||||||
Segment assets | 5,040 | 4,912 | 5,040 | 4,912 | 4,441 | ||||||
Investment in equity affiliates | $ 15 | $ 14 | 15 | 14 | 13 | ||||||
Expenditures for property (including business acquisitions) | $ 166 | $ 510 | $ 157 |
Reportable Business Segment I_5
Reportable Business Segment Information (Geographic Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | $ 3,757 | $ 3,685 | $ 3,015 | $ 3,377 | $ 3,672 | $ 3,826 | $ 4,024 | $ 3,624 | $ 13,834 | $ 15,146 | $ 15,374 |
Segment income | 2,109 | 2,271 | 2,118 | ||||||||
Property, plant and equipment, net | 3,127 | 2,983 | 3,127 | 2,983 | 2,805 | ||||||
United States and Canada | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 5,668 | 6,475 | 6,485 | ||||||||
Segment income | 855 | 1,073 | 1,022 | ||||||||
Property, plant and equipment, net | 1,351 | 1,300 | 1,351 | 1,300 | 1,254 | ||||||
Europe, Middle East and Africa (“EMEA”) | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 4,328 | 4,549 | 4,678 | ||||||||
Segment income | 572 | 569 | 549 | ||||||||
Property, plant and equipment, net | 857 | 836 | 857 | 836 | 777 | ||||||
Asia Pacific | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 2,431 | 2,542 | 2,618 | ||||||||
Segment income | 382 | 342 | 306 | ||||||||
Property, plant and equipment, net | 623 | 538 | 623 | 538 | 482 | ||||||
Latin America | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 1,407 | 1,580 | 1,593 | ||||||||
Segment income | 300 | 287 | 241 | ||||||||
Property, plant and equipment, net | $ 296 | $ 309 | $ 296 | $ 309 | $ 292 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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, 2020, 2019, and 2018 ($ in millions) Balance at Beginning of Year Charged to Costs and Expenses(1) Deductions(2) Balance at End of Year 2020 $22 $44 ($22) $44 2019 $24 $24 ($26) $22 2018 $25 $18 ($19) $24 (1) In March 2020, PPG recorded estimated future credit losses for trade receivables of $30 million related to the potential financial impacts of the COVID-19 pandemic. (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 | $ 158 | ||
Balance at End of Year | 167 | $ 158 | |
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 | 22 | 24 | $ 25 |
Charged to Costs and Expenses | 44 | 24 | 18 |
Deductions | (22) | (26) | (19) |
Balance at End of Year | $ 44 | $ 22 | $ 24 |