Cover
Cover | 3 Months Ended |
Mar. 31, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
Document Transition Report | false |
Entity File Number | 1-1687 |
Entity Registrant Name | PPG INDUSTRIES INC |
Entity Tax Identification Number | 25-0730780 |
Entity Incorporation, State or Country Code | PA |
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 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 Common Stock, Shares Outstanding | 235,416,045 |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0000079879 |
Current Fiscal Year End Date | --12-31 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $1.66 2/3 |
Trading Symbol | PPG |
Security Exchange Name | NYSE |
0.875% Notes Due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2025 |
Trading Symbol | PPG 25 |
Security Exchange Name | NYSE |
1.875% Notes Due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes due 2025 |
Trading Symbol | PPG 25A |
Security Exchange Name | NYSE |
1.400% Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.400% Notes due 2027 |
Trading Symbol | PPG 27 |
Security Exchange Name | NYSE |
2.750% Notes Due 2029 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.750% Notes due 2029 |
Trading Symbol | PPG 29A |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 4,380 | $ 4,308 |
Cost of sales, exclusive of depreciation and amortization | 2,596 | 2,698 |
Selling, general and administrative | 992 | 974 |
Depreciation | 92 | 102 |
Amortization | 41 | 43 |
Research and development, net | 104 | 115 |
Interest expense | 59 | 30 |
Interest income | (25) | (9) |
Impairment and other related charges | 0 | 290 |
Pension settlement charge | 190 | 0 |
Other income, net | (22) | (13) |
Income before income taxes | 353 | 78 |
Income tax expense | 80 | 55 |
Net income attributable to the controlling and noncontrolling interests | 273 | 23 |
Net income attributable to noncontrolling interests | 9 | 5 |
Net income (attributable to PPG) | $ 264 | $ 18 |
Earnings per common share (attributable to PPG) (in dollars per share) | $ 1.12 | $ 0.08 |
Earnings per common share (attributable to PPG) - assuming dilution (in dollars per share) | $ 1.11 | $ 0.08 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income/(Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to controlling and noncontrolling interests | $ 273 | $ 23 |
Other comprehensive income, net of tax: | ||
Defined benefit pension and other postretirement benefits | 139 | (4) |
Unrealized foreign currency translation adjustments | 264 | 37 |
Other comprehensive income, net of tax | 403 | 33 |
Total comprehensive income | 676 | 56 |
Less: amounts attributable to noncontrolling interests: | ||
Net income | (9) | (5) |
Unrealized foreign currency translation adjustments | (1) | 3 |
Comprehensive income attributable to PPG | $ 666 | $ 54 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,426 | $ 1,099 |
Short-term investments | 56 | 55 |
Receivables, net | 3,595 | 3,303 |
Inventories | 2,599 | 2,272 |
Other current assets | 517 | 444 |
Total current assets | 8,193 | 7,173 |
Property, plant and equipment (net of accumulated depreciation of $4,756 and $4,649) | 3,355 | 3,328 |
Goodwill | 6,163 | 6,078 |
Identifiable intangible assets, net | 2,442 | 2,414 |
Deferred income taxes | 259 | 95 |
Investments | 255 | 244 |
Operating lease right-of-use assets | 829 | 829 |
Other assets | 603 | 583 |
Total | 22,099 | 20,744 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 4,347 | 4,087 |
Restructuring reserves | 127 | 138 |
Short-term debt and current portion of long-term debt | 209 | 313 |
Current portion of operating lease liabilities | 185 | 183 |
Total current liabilities | 4,868 | 4,721 |
Long-term debt | 7,082 | 6,503 |
Operating lease liabilities | 632 | 636 |
Accrued pensions | 573 | 566 |
Other postretirement benefits | 475 | 476 |
Deferred income taxes | 571 | 501 |
Other liabilities | 645 | 632 |
Total liabilities | 14,846 | 14,035 |
Shareholders’ equity: | ||
Common stock | 969 | 969 |
Additional paid-in capital | 1,150 | 1,130 |
Retained earnings | 20,946 | 20,828 |
Treasury stock, at cost | (13,515) | (13,525) |
Accumulated other comprehensive loss | (2,408) | (2,810) |
Total PPG shareholders’ equity | 7,142 | 6,592 |
Noncontrolling interests | 111 | 117 |
Total shareholders’ equity | 7,253 | 6,709 |
Total | $ 22,099 | $ 20,744 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Property, accumulated depreciation | $ 4,756 | $ 4,649 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) Statement - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total PPG |
Beginning balance at Dec. 31, 2021 | $ 6,411 | $ 969 | $ 1,081 | $ 20,372 | $ (13,386) | $ (2,750) | $ 125 | $ 6,286 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 23 | 18 | 5 | 18 | ||||
Other comprehensive loss, net of tax | 33 | 36 | (3) | 36 | ||||
Cash dividends | (139) | (139) | (139) | |||||
Issuance of treasury stock | 29 | 24 | 5 | 29 | ||||
Stock-based compensation activity | (12) | (12) | (12) | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (1) | (1) | ||||||
Reductions in noncontrolling interests | (11) | (11) | ||||||
Ending balance at Mar. 31, 2022 | 6,333 | 969 | 1,093 | 20,251 | (13,381) | (2,714) | 115 | 6,218 |
Beginning balance at Dec. 31, 2022 | 6,709 | 969 | 1,130 | 20,828 | (13,525) | (2,810) | 117 | 6,592 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 273 | 264 | 9 | 264 | ||||
Other comprehensive loss, net of tax | 403 | 402 | 1 | 402 | ||||
Cash dividends | (146) | (146) | (146) | |||||
Issuance of treasury stock | 31 | 21 | 10 | 31 | ||||
Stock-based compensation activity | (1) | (1) | (1) | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (1) | 1 | ||||||
Reductions in noncontrolling interests | (15) | (15) | ||||||
Ending balance at Mar. 31, 2023 | $ 7,253 | $ 969 | $ 1,150 | $ 20,946 | $ (13,515) | $ (2,408) | $ 111 | $ 7,142 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Operating activities: | |||
Net income attributable to the controlling and noncontrolling interests | $ 273 | $ 23 | |
Adjustments to reconcile net income to cash from operations: | |||
Depreciation and amortization | 133 | 145 | |
Pension settlement charge | 190 | 0 | |
Impairment and other related charges | 0 | 290 | $ (63) |
Stock-based compensation expense | 17 | 6 | |
Deferred income taxes | (131) | (36) | |
Cash used for restructuring actions | (16) | (32) | |
Change in certain asset and liability accounts (net of acquisitions): | |||
Receivables | (277) | (530) | |
Inventories | (308) | (325) | |
Other current assets | (88) | (88) | |
Accounts payable and accrued liabilities | 175 | 326 | |
Taxes and interest payable | 111 | (54) | |
Noncurrent assets and liabilities, net | (39) | (30) | |
Other | 45 | 1 | |
Cash from/(used for) operating activities | 85 | (304) | |
Investing activities: | |||
Capital expenditures | (120) | (194) | |
Business acquisitions, net of cash balances acquired | 0 | (9) | |
Proceeds from the settlement of cross currency swap contracts | 50 | 17 | |
Other | 6 | 3 | |
Cash used for investing activities | (64) | (183) | |
Financing activities: | |||
Net proceeds from commercial paper and short-term debt | 638 | 586 | |
Net change in borrowing with maturities of three months or less | 190 | 2 | |
Repayment of Term Loan Credit Agreement | (100) | 0 | |
Proceeds from the issuance of debt, net of discounts and fees | 0 | 55 | |
Repayment of long-term debt | 300 | 0 | |
Purchase of treasury stock | 0 | (40) | |
Dividends paid on PPG common stock | (146) | (139) | |
Other | (5) | (21) | |
Cash from financing activities | 277 | 443 | |
Effect of currency exchange rate changes on cash and cash equivalents | 29 | (1) | |
Net increase/(decrease) in cash and cash equivalents | 327 | (45) | |
Cash and cash equivalents, beginning of period | 1,099 | 1,005 | 1,005 |
Cash and cash equivalents, end of period | 1,426 | 960 | $ 1,099 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Interest paid, net of amount capitalized | 73 | 52 | |
Taxes paid, net of refunds | 107 | 114 | |
Capital expenditures accrued within Accounts payable and accrued liabilities at period-end | $ 48 | $ 31 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the financial position and shareholders' equity of PPG as of March 31, 2023 and the results of its operations and cash flows for the three months ended March 31, 2023 and 2022. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2022 Annual Report on Form 10-K (the "2022 Form 10-K"). Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three months ended March 31, 2023 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on our previously reported Net income, total assets, cash flows or shareholders’ equity. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Adopted in 2023 Effective January 1, 2023, PPG adopted Accounting Standards Update ("ASU") No. 2022-04, “Liabilities - Supplier Finance Programs." This ASU is intended to enhance the transparency surrounding the use of supplier finance programs. The guidance does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. PPG has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. PPG’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms PPG negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. The total amount due to financial intermediaries to settle supplier invoices under supply chain finance programs was $199 million and $390 million as of March 31, 2023 and December 31, 2022, respectively. These amounts are included within Accounts payable and accrued liabilities on the accompanying consolidated balance sheets. Recently Issued Accounting Standards There were no accounting pronouncements promulgated prior to March 31, 2023 that are not effective until a future date which are expected to have a material impact on PPG's consolidated financial position, results of operations or cash flows. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories ($ in millions) March 31, 2023 December 31, 2022 Finished products $1,441 $1,209 Work in process 282 238 Raw materials 833 784 Supplies 43 41 Total Inventories $2,599 $2,272 Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 16% and 21% |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The Company tests indefinite-lived intangible assets and goodwill for impairment by performing either a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount. The Company did not identify an indication of goodwill impairment for any of its reporting units or an indication of impairment of any of its indefinite-lived intangible assets during the quarter ended March 31, 2023. The change in the carrying amount of goodwill attributable to each reportable segment for the three months ended March 31, 2023 was as follows: ($ in millions) Performance Industrial Total January 1, 2023 $4,881 $1,197 $6,078 Acquisitions, including purchase accounting adjustments — 10 10 Foreign currency impact 68 7 75 March 31, 2023 $4,949 $1,214 $6,163 A summary of the carrying value of the Company's identifiable intangible assets is as follows: March 31, 2023 December 31, 2022 ($ in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,387 $— $1,387 $1,325 $— $1,325 Definite-Lived Identifiable Intangible Assets Acquired technology $829 ($647) $182 $827 ($636) $191 Customer-related 1,874 (1,153) 721 1,855 (1,112) 743 Trade names 315 (165) 150 311 (158) 153 Other 50 (48) 2 50 (48) 2 Total Definite-Lived Intangible Assets $3,068 ($2,013) $1,055 $3,043 ($1,954) $1,089 Total Identifiable Intangible Assets $4,455 ($2,013) $2,442 $4,368 ($1,954) $2,414 The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives. As of March 31, 2023, estimated future amortization expense of identifiable intangible assets is as follows: ($ in millions) Future Amortization Expense Remaining nine months of 2023 $109 2024 $127 2025 $115 2026 $93 2027 $85 2028 $73 Thereafter $453 |
Business Restructuring
Business Restructuring | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Business Restructuring | Business Restructuring In the third quarter 2022, the Company approved a business restructuring plan which included actions to reduce its global cost structure in response to current economic conditions, including softening demand in Europe and slower than expected demand recovery in China. The Company performed a comprehensive evaluation to identify opportunities to reduce costs and improve the profitability of the overall business portfolio. The program includes actions to right-size employee headcount, reductions in functional and administrative costs and other cost savings actions. The majority of these restructuring actions are expected to be completed by the end of 2023. In the fourth quarter 2021, the Company approved business restructuring actions related to recent acquisitions targeting further consolidation of its manufacturing footprint and headcount reductions. The majority of these restructuring actions are expected to be completed by the end of 2023. The following table summarizes restructuring reserve activity for the three months ended March 31, 2023 and 2022: Total Reserve ($ in millions) 2023 2022 January 1 $169 $231 Release of prior reserves and other adjustments (a) (3) — Cash payments (16) (32) Foreign currency impact 2 (5) March 31 $152 $194 (a) Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings In March 2023, PPG's $300 million 3.2% notes matured, and the Company repaid this obligation using cash on hand. In May 2022, PPG completed a public offering of €300 million 1.875% Notes due 2025 and €700 million 2.750% Notes due 2029. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2022 Indenture"). The 2022 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the 2022 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $1,061 million. The notes are denominated in euro and have been designated as hedges of net investments in the Company’s European operations. For more information, refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements.” In March 2022, PPG privately placed a 15-year €50 million 1.95% fixed interest note. This note contains covenants materially consistent with the 1.875% notes discussed above. This debt arrangement is denominated in euros and has been designated as a net investment hedge of the Company's European operations. Refer to Note 12 "Financial Instruments, Hedging Activities and Fair Value Measurements" for additional information. In February 2021, PPG entered into a $2.0 billion Term Loan Credit Agreement (the "Term Loan Credit Agreement") to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. The Term Loan Credit Agreement provided the Company with the ability to borrow up to an aggregate principal amount of $2.0 billion on an unsecured basis. In addition to the amounts borrowed to finance the acquisition of Tikkurila, the Term Loan Credit Agreement allowed the Company to make up to eleven additional borrowings prior to December 31, 2021, to be used for working capital and general corporate purposes. The Term Loan Credit Agreement 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. The Term Loan Credit Agreement matures and all outstanding borrowings are due and payable on the third anniversary of the date of the initial borrowing under the Agreement. In March 2023, PPG amended the Term Loan Credit Agreement to replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term Secured Overnight Financing Rate ("SOFR"). The other terms of the Term Loan Credit Agreement remain unchanged. In June 2021, PPG borrowed $700 million under the Term Loan Credit Agreement to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. In December 2021, PPG borrowed an additional $700 million under the Term Loan Credit Agreement. In 2022, PPG repaid $300 million of the Term Loan Credit Agreement using cash on hand. In the first quarter 2023, PPG repaid $100 million of the Term Loan Credit Agreement using cash on hand. Borrowings of $1.0 billion and $1.1 billion were outstanding under the Term Loan Credit Agreement as of March 31, 2023 and December 31, 2022, respectively. In March 2023, PPG amended its five-year credit agreement (the “Credit Agreement”) dated as of August 30, 2019. The amendments to the Credit Agreement replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term SOFR. The other terms of the Credit Agreement remain unchanged. The Credit Agreement provides for a $2.2 billion unsecured revolving credit facility. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. The Credit Agreement will terminate on August 30, 2024. The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of March 31, 2023 and December 31, 2022. The Term Loan Credit Agreement and Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan Credit Agreement and 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 March 31, 2023, Total Indebtedness to Total Capitalization as defined under the Credit Agreement and Term Loan Credit Agreement was 49%. The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. There were $638 million commercial paper borrowings outstanding as of March 31, 2023. There no commercial paper borrowings outstanding as of December 31, 2022. As of March 31, 2023, PPG was in full compliance with the restrictive covenants under its various credit agreements, loan agreements and indentures. Letters of Credit and Surety Bonds The Company had outstanding letters of credit and surety bonds of $223 million as of March 31, 2023. Subsequent Event On April 12, 2023, PPG entered into a €500 million Term Loan Credit Agreement (the "Term Loan"). The Term Loan provides the Company with the ability to increase the size of the loan by an amount not to exceed €250 million. The Term Loan contains covenants that are consistent with those in the Credit Agreement 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. The Term Loan also requires the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as each term is defined in the Term Loan, 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. In April 2023, PPG borrowed €500 million under the Term Loan. The Term Loan terminates and all amounts outstanding are payable on April 10, 2026. |
Impairment and Other Related Ch
Impairment and Other Related Charges | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Other Related Charges | Impairment and Other Related Charges In the first quarter 2022, Russian military forces invaded Ukraine. This military action had significant and immediate adverse economic impacts on businesses operating in Russia and Ukraine. Based on deteriorating business conditions and regulatory restrictions, including the impact of economic sanctions imposed on Russia by the United States, the European Union and other governments, PPG immediately ceased sales to Russian state-owned entities, announced that the Company would cease all new investments in Russia and commenced actions to wind down most of the Company’s operations in Russia. Based on this change in facts and circumstances, the long-term cash flow forecast for the Company’s operations in Russia was significantly reduced. This reduction in the long-term cash flow forecast indicated that the carrying amounts of long-lived assets and certain indefinite-lived intangible assets associated with the Company’s operations in Russia may not be recoverable, and the carrying value of these assets was tested for impairment. Additionally, the Company evaluated trade receivables for estimated future credit losses, inventories for declines in net realizable value and other current assets for impairment in light of the deteriorating economic conditions in Russia and Ukraine. As a result, during the three months ended March 31, 2022, the Company recognized $290 million of Impairment and other related charges in the condensed consolidated statement of income, comprised of $201 million of long-lived asset impairment charges and $89 million of other related charges. The $201 million of long-lived asset impairment charges recorded during first quarter 2022 was comprised of $124 million related to indefinite-lived intangible assets, $54 million related to property, plant and equipment, net and $23 million related to definite-lived intangible assets. The $89 million of other related charges represented reserves established for receivables and other current assets and the write-down of inventories impacted by the adverse economic consequences of the Russian invasion of Ukraine. Subsequently, during 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories, resulting in recognition of income of $63 million within Impairment and other related charges, net. The Company continues to explore various options to exit Russia, including a possible sale of its Russian business or controlled withdrawal from the Russia market. During both the three months ended March 31, 2023 and the twelve months ended December 31, 2022, net sales in Russia represented approximately 1% of PPG net sales. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended (number of shares in millions) 2023 2022 Weighted average common shares outstanding 235.8 236.6 Effect of dilutive securities: Stock options 0.5 0.9 Other stock compensation plans 0.6 0.7 Potentially dilutive common shares 1.1 1.6 Adjusted weighted average common shares outstanding 236.9 238.2 Dividends per common share $0.62 $0.59 Excluded from the computation of earnings per diluted share due to their antidilutive effect were 1.2 million and 0.5 million outstanding stock options for the three months ended March 31, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Three Months Ended 2023 2022 Effective tax rate on pretax income 22.7 % 70.5 % The effective tax rate of 70.5% for the three months ended March 31, 2022 reflected a tax benefit of $27 million on the $290 million Impairment and other related charges associated with PPG's operations in Russia. Income tax expense for the three months ended March 31, 2023 and 2022 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss. During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which PPG operates based on changes in factors such as prices, shipments, product mix, raw material inflation and manufacturing operations. To the extent that actual 2023 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2023 could be different from the forecasted amount used to estimate Income tax expense for the three months ended March 31, 2023. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits U.S. Pension Annuity Contracts In March 2023, the Company purchased group annuity contracts that transferred to third-party insurance companies pension benefit obligations for certain of the Company’s retirees in the U.S. who were receiving their monthly retirement benefit payments from the U.S. pension plan. The amount of each affected retiree’s annuity payment is equal to the amount of such individual’s pension benefit. The purchase of group annuity contracts was funded directly by the assets of the U.S. plans. By transferring the obligations and assets to the insurance companies, the Company reduced its overall pension projected benefit obligation by $309 million and recognized a non-cash Pension settlement charge of $190 million. The service cost component of net periodic pension and other postretirement benefit cost/(income) is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statement of income. Except for the Pension settlement charge in the quarter ended March 31, 2023, all other components of net periodic benefit cost are recorded in Other income, net in the accompanying condensed consolidated statement of income. Net periodic pension benefit cost/(income) and other postretirement benefit cost for the three months ended March 31, 2023 and 2022 was as follows: Pension Other Postretirement Benefits Three Months Ended Three Months Ended ($ in millions) 2023 2022 2023 2022 Service cost $2 $2 $1 $3 Interest cost 31 19 7 4 Expected return on plan assets (31) (36) — — Amortization of actuarial losses 7 8 — 4 Amortization of prior service credit — — (2) (3) Settlement 190 — — — Net periodic benefit cost/(income) $199 ($7) $6 $8 Net periodic pension cost was higher for the three months ended March 31, 2023 compared to 2022, primarily due the Pension settlement charge recognized in the first quarter 2023 and higher interest cost driven by an increase in discount rates. In addition, declines in the market value of pension investments during 2022 resulted in a lower asset base to generate returns on plan assets in 2023. PPG expects 2023 full year net periodic pension expense, excluding the impact of pension settlement charges, of approximately $30 million and net periodic other postretirement expense of approximately $25 million. Contributions to Defined Benefit Pension Plans Three Months Ended ($ in millions) 2023 2022 Non-U.S. defined benefit pension mandatory contributions $1 $1 PPG expects to make contributions to its defined benefit pension plans in the range of $5 million to $10 million during the remaining nine months of 2023. PPG may make voluntary contributions to its defined benefit pension plans in 2023 and beyond. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (AOCL) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss (AOCL) ($ in millions) Foreign Currency Translation Adjustments (a) Pension and Other Postretirement Benefit Adjustments, net of tax (b) Unrealized Gain on Derivatives, net of tax Accumulated Other Comprehensive Loss January 1, 2022 ($1,988) ($763) $1 ($2,750) Current year deferrals to AOCL 30 (11) — 19 Reclassifications from AOCL to net income 10 7 — 17 March 31, 2022 ($1,948) ($767) $1 ($2,714) January 1, 2023 ($2,254) ($557) $1 ($2,810) Current year deferrals to AOCL 262 (9) — 253 Reclassifications from AOCL to net income 1 148 — 149 March 31, 2023 ($1,991) ($418) $1 ($2,408) (a) The tax cost related to unrealized foreign currency translation adjustments on net investment hedges was $64 million and $11 million as of March 31, 2023 and 2022, respectively. (b) The tax (benefit)/cost related to the adjustment for pension and other postretirement benefits was $(46) million and $2 million for the three months ended March 31, 2023 and 2022, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit cost (See Note 10, "Pensions and Other Postretirement Benefits"). |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022, 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 may 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 months ended March 31, 2023 and 2022. All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement. There were no derivative instruments de-designated or discontinued as hedging instruments during the three months ended March 31, 2023 and 2022, and there were no gains or losses deferred in Accumulated other comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated statement of income in the three months ended March 31, 2023 and 2022 related to hedges of anticipated transactions that were no longer expected to occur. Fair Value Hedges The Company uses interest rate swaps from time to time to manage its exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value. PPG has interest rate swaps which converte d $375 million and $525 million o f fixed rate debt to variable rate debt as of March 31, 2023 and December 31, 2022, respectively. These 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 condensed consolidated statement of income. The fair value of these interest rate swaps was a liability of $13 million and $20 million at March 31, 2023 and December 31, 2022, respectively. Cash Flow Hedges At times, PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. There were no outstanding cash flow hedges at March 31, 2023 and December 31, 2022. 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: PPG had U.S. dollar to euro cross currency swap contracts with total notional amounts of $475 million and $775 million as of March 31, 2023 and December 31, 2022, respectively, 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. As of March 31, 2023 and December 31, 2022, the fair value of the U.S. dollar to euro cross currency swap contracts were net asse ts of $46 million and $88 million, respectively. As of both March 31, 2023 and December 31, 2022, PPG had designate d €2.5 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 were $2.7 billion and $2.6 billion as of March 31, 2023 and December 31, 2022, respectively. Other Financial Instruments PPG uses foreign currency forward contracts to manage certain net transaction exposures that either have not been elected, or do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other income, net in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $2.0 billion and $1.8 billion at March 31, 2023 and December 31, 2022, respectively. The fair values of these contracts was a net asset of $51 million and $24 million as of March 31, 2023 and December 31, 2022, respectively. Gains/Losses Deferred in Accumulated Other Comprehensive Loss The following table summarizes the amount of gains deferred in Other comprehensive income ("OCI") and the amount and location of gains recognized within the condensed consolidated statement of income related to derivative and debt financial instruments for the three months ended March 31, 2023 and 2022. All amounts are shown on a pretax basis. March 31, 2023 March 31, 2022 Caption In Condensed Consolidated Statement of Income ($ in millions) Loss Deferred in OCI Gain/(Loss) Recognized Gain Deferred in OCI Gain Recognized Economic Foreign currency forward contracts $— $13 $— $12 Other income, net Fair Value Interest rate swaps — (2) — 3 Interest expense Total forward contracts and interest rate swaps $— $11 $— $15 Net Investment Cross currency swaps ($3) $5 $5 $3 Interest expense Foreign denominated debt (33) — 43 — Total Net Investment ($36) $5 $48 $3 Fair Value Measurements The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of March 31, 2023 and December 31, 2022, 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" under Item 8 in the 2022 Form 10-K 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 did not have any recurring financial assets or liabilities recorded in its condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 that were measured using Level 3 inputs. Assets and liabilities reported at fair value on a recurring basis March 31, 2023 December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $9 $— $— $9 $— $— Foreign currency forward contracts (a) — 53 — — 27 — Cross currency swaps (b) — — — — 39 — Investments: Marketable equity securities $65 $— $— $61 $— $— Other assets: Cross currency swaps (b) $— $46 $— $— $49 $— Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (a) $— $2 $— $— $3 $— Interest rate swaps (c) — — — — 1 — Other liabilities: Interest rate swaps (c) $— $13 $— $— $19 $— (a) Derivatives not designated as hedging instruments (b) Net investment hedges (c) Fair value hedges Long-Term Debt ($ in millions) March 31, 2023 (a) December 31, 2022 (b) Long-term debt - carrying value $7,075 $6,796 Long-term debt - fair value $6,738 $6,375 (a) Excludes finance lease obligations of $10 million and short-term borrowings of $206 million as of March 31, 2023. (b) Excludes finance lease obligations of $10 million and short-term borrowings of $10 million as of December 31, 2022. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return ("TSR"). All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. Stock-based compensation expense and the associated income tax benefit recognized during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Stock-based compensation expense $17 $6 Income tax benefit recognized $4 $1 Grants of stock-based compensation during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Shares Fair Value Shares Fair Value Stock options 410,001 $38.55 487,277 $36.52 Restricted stock units 248,949 $124.44 189,411 $143.92 Contingent shares (a) 52,389 $129.03 57,134 $151.87 (a) The number of contingent shares represents the target value of the award. Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock options granted during the three months ended March 31, 2023 was calculated with the following weighted average assumptions: Weighted average exercise price $130.08 Risk-free interest rate 3.9 % Expected life of option in years 6.5 Expected dividend yield 1.7 % Expected volatility 27.8 % 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. Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period. Performance-based RSUs vest based on achieving specific annual performance targets for adjusted earnings per share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets. The amount paid upon vesting of performance-based RSUs may range from 0% to 200% of the original grant, based upon the level of adjusted earnings per share growth achieved and frequency with which the annual cash flow return on capital performance target is met over the three calendar year periods comprising the vesting period. Performance against the earnings per share growth and the cash flow return on capital target is calculated annually, and the annual payout for each goal is weighted equally over the three-year period. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, antitrust, employment and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury, property damage and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers may contest coverage with respect to some of the claims in the future. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters. The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Asbestos Matters As of March 31, 2023, the Company was aware of certain asbestos-related claims pending against the Company and certain of its subsidiaries. The Company is defending these asbestos-related claims vigorously. The asbestos-related claims consist of claims against the Company alleging: • exposure to asbestos or asbestos-containing products manufactured, sold or distributed by the Company or its subsidiaries (“Products Claims”); • personal injury caused by asbestos on premises presently or formerly owned, leased or occupied by the Company (“Premises Claims”); and • asbestos-related claims against a subsidiary the Company acquired in 2013 (“Subsidiary Claims”). The Company monitors and reviews the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. Additionally, as a supplement to its periodic monitoring and review, the Company conducts discussions with counsel and engages valuation consultants to analyze its claims history and estimate the amount of the Company’s potential liability for asbestos-related claims. As of both March 31, 2023 and December 31, 2022, the Company's asbestos-related reserves totaled $51 million. The Company believes that, based on presently available information, the total reserves of $51 million for asbestos-related claims will be sufficient to encompass all of the Company’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying consolidated balance sheets, involve significant management judgment and represent the Company’s current best estimate of its liability for these claims. The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) whether closed, dismissed or dormant claims are reinstituted, reinstated or revived; (iii) the amounts required to resolve both currently known and future unknown 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 2023 and 2022, certain charges have been recorded based on updated estimates to increase existing reserves for these sites. Certain other charges related to environmental remediation actions are expensed as incurred. As of March 31, 2023 and December 31, 2022, 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 condensed consolidated balance sheet. Environmental Reserves ($ in millions) March 31, 2023 December 31, 2022 New Jersey Chrome $53 $58 Glass and chemical 58 60 Other 100 99 Total $211 $217 Current portion $50 $50 Pretax charges against income for environmental remediation costs are included in Other income, net in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Environmental remediation pretax charges $3 $6 Cash outlays for environmental remediation activities $9 $23 Remediation: New Jersey Chrome In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and a number of additional surrounding sites. Remediation of the New Jersey Chrome sites requires PPG to remediate soil and groundwater contaminated by hexavalent chromium, as well as perform certain other environmental remediation activities. The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites relate to the extent and concentration of chromium in the soil. PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non- hazardous soils, daily soil excavation rates, and engineering, administrative and other associated costs. Based on these assessments, the reserve is adjusted accordingly. As of March 31, 2023 and December 31, 2022, PPG's reserve for remediation of all New Jersey Chrome sites was $53 million and $58 million, respectively. The major cost components of this liability are related to excavation of impacted soil, as well as groundwater remediation. These components each account for approximately 65% and 10% of the amount accrued at March 31, 2023 , 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue Disclosure [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 three months ended March 31, 2023 and 2022, service revenue constituted less than 5% of total revenue. Net sales by segment and region for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Performance Coatings United States and Canada $1,123 $1,063 Europe, Middle East and Africa ("EMEA") 900 949 Asia Pacific 256 274 Latin America 349 284 Total $2,628 $2,570 Industrial Coatings United States and Canada $653 $652 EMEA 528 504 Asia Pacific 391 423 Latin America 180 159 Total $1,752 $1,738 Total Net Sales United States and Canada $1,776 $1,715 EMEA 1,428 1,453 Asia Pacific 647 697 Latin America 529 443 Total PPG $4,380 $4,308 Allowance for Doubtful Accounts All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks. PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions. The following table summarizes the activity for the allowance for doubtful accounts for the three months ended March 31, 2023 and 2022: Trade Receivables Allowance for Doubtful Accounts ($ in millions) 2023 2022 January 1 $31 $31 Bad debt expense 3 43 Recoveries of previously reserved trade receivables (3) (6) Other (1) — March 31 $30 $68 In the first quarter 2022, PPG recorded a bad debt reserve of $43 million associated with the adverse economic impacts of the Russian invasion of Ukraine. Refer to Note 7, "Impairment and Other Related Charges" for additional information. |
Reportable Business Segment Inf
Reportable Business Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Business Segment Information | Reportable Business Segment Information PPG is a multinational manufacturer with 10 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution. The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, architectural coatings – Americas and Asia Pacific, architectural coatings – EMEA, protective and marine coatings and traffic solutions operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings, sealants and finishes, along with paint strippers, stains and related chemicals, pavement marking products, transparencies and transparent armor. The Industrial Coatings reportable business segment is comprised of the automotive original equipment manufacturer ("OEM") coatings, industrial coatings, packaging coatings and 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. Reportable business segment net sales and segment income for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Net sales: Performance Coatings $2,628 $2,570 Industrial Coatings 1,752 1,738 Total $4,380 $4,308 Segment income: Performance Coatings $395 $319 Industrial Coatings 240 140 Total $635 $459 Corporate (67) (52) Interest expense, net of interest income (34) (21) Pension settlement charge (a) (190) — Insurance recovery of expenses incurred due to a natural disaster (b) 9 — Impairment and other related charges (c) — (290) Business restructuring-related costs, net (d) — (14) Acquisition-related costs (e) — (4) Income before income taxes $353 $78 (a) In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the company’s retirees in the U.S. to third-party insurance companies, resulting in a non-cash pension settlement charge. (b) The company incurred expenses due to damages at a southern U.S. factory resulting from a hurricane in 2020. In the first quarter 2023, the company received reimbursement under its insurance policies related to the damages incurred at this factory due to this hurricane. (c) In the first quarter 2022, the Company recorded impairment and other related charges due to the wind down of the company’s operations in Russia. (d) 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. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Standards | Accounting Standards Adopted in 2023 Effective January 1, 2023, PPG adopted Accounting Standards Update ("ASU") No. 2022-04, “Liabilities - Supplier Finance Programs." This ASU is intended to enhance the transparency surrounding the use of supplier finance programs. The guidance does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. PPG has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. PPG’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms PPG negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. The total amount due to financial intermediaries to settle supplier invoices under supply chain finance programs was $199 million and $390 million as of March 31, 2023 and December 31, 2022, respectively. These amounts are included within Accounts payable and accrued liabilities on the accompanying consolidated balance sheets. Recently Issued Accounting Standards There were no accounting pronouncements promulgated prior to March 31, 2023 that are not effective until a future date which are expected to have a material impact on PPG's consolidated financial position, results of operations or cash flows. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | ($ in millions) March 31, 2023 December 31, 2022 Finished products $1,441 $1,209 Work in process 282 238 Raw materials 833 784 Supplies 43 41 Total Inventories $2,599 $2,272 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill Attributable to Each Reportable Segment | The change in the carrying amount of goodwill attributable to each reportable segment for the three months ended March 31, 2023 was as follows: ($ in millions) Performance Industrial Total January 1, 2023 $4,881 $1,197 $6,078 Acquisitions, including purchase accounting adjustments — 10 10 Foreign currency impact 68 7 75 March 31, 2023 $4,949 $1,214 $6,163 |
Identifiable Intangible Assets with Finite Lives | A summary of the carrying value of the Company's identifiable intangible assets is as follows: March 31, 2023 December 31, 2022 ($ in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,387 $— $1,387 $1,325 $— $1,325 Definite-Lived Identifiable Intangible Assets Acquired technology $829 ($647) $182 $827 ($636) $191 Customer-related 1,874 (1,153) 721 1,855 (1,112) 743 Trade names 315 (165) 150 311 (158) 153 Other 50 (48) 2 50 (48) 2 Total Definite-Lived Intangible Assets $3,068 ($2,013) $1,055 $3,043 ($1,954) $1,089 Total Identifiable Intangible Assets $4,455 ($2,013) $2,442 $4,368 ($1,954) $2,414 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2023, estimated future amortization expense of identifiable intangible assets is as follows: ($ in millions) Future Amortization Expense Remaining nine months of 2023 $109 2024 $127 2025 $115 2026 $93 2027 $85 2028 $73 Thereafter $453 |
Business Restructuring (Tables)
Business Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes restructuring reserve activity for the three months ended March 31, 2023 and 2022: Total Reserve ($ in millions) 2023 2022 January 1 $169 $231 Release of prior reserves and other adjustments (a) (3) — Cash payments (16) (32) Foreign currency impact 2 (5) March 31 $152 $194 (a) Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended (number of shares in millions) 2023 2022 Weighted average common shares outstanding 235.8 236.6 Effect of dilutive securities: Stock options 0.5 0.9 Other stock compensation plans 0.6 0.7 Potentially dilutive common shares 1.1 1.6 Adjusted weighted average common shares outstanding 236.9 238.2 Dividends per common share $0.62 $0.59 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended 2023 2022 Effective tax rate on pretax income 22.7 % 70.5 % |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | Net periodic pension benefit cost/(income) and other postretirement benefit cost for the three months ended March 31, 2023 and 2022 was as follows: Pension Other Postretirement Benefits Three Months Ended Three Months Ended ($ in millions) 2023 2022 2023 2022 Service cost $2 $2 $1 $3 Interest cost 31 19 7 4 Expected return on plan assets (31) (36) — — Amortization of actuarial losses 7 8 — 4 Amortization of prior service credit — — (2) (3) Settlement 190 — — — Net periodic benefit cost/(income) $199 ($7) $6 $8 |
Defined Contribution Plan Disclosures | Contributions to Defined Benefit Pension Plans Three Months Ended ($ in millions) 2023 2022 Non-U.S. defined benefit pension mandatory contributions $1 $1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ($ in millions) Foreign Currency Translation Adjustments (a) Pension and Other Postretirement Benefit Adjustments, net of tax (b) Unrealized Gain on Derivatives, net of tax Accumulated Other Comprehensive Loss January 1, 2022 ($1,988) ($763) $1 ($2,750) Current year deferrals to AOCL 30 (11) — 19 Reclassifications from AOCL to net income 10 7 — 17 March 31, 2022 ($1,948) ($767) $1 ($2,714) January 1, 2023 ($2,254) ($557) $1 ($2,810) Current year deferrals to AOCL 262 (9) — 253 Reclassifications from AOCL to net income 1 148 — 149 March 31, 2023 ($1,991) ($418) $1 ($2,408) (a) The tax cost related to unrealized foreign currency translation adjustments on net investment hedges was $64 million and $11 million as of March 31, 2023 and 2022, respectively. (b) The tax (benefit)/cost related to the adjustment for pension and other postretirement benefits was $(46) million and $2 million for the three months ended March 31, 2023 and 2022, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit cost (See Note 10, "Pensions and Other Postretirement Benefits"). |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, Cash Flow and Net Investment Hedges | The following table summarizes the amount of gains deferred in Other comprehensive income ("OCI") and the amount and location of gains recognized within the condensed consolidated statement of income related to derivative and debt financial instruments for the three months ended March 31, 2023 and 2022. All amounts are shown on a pretax basis. March 31, 2023 March 31, 2022 Caption In Condensed Consolidated Statement of Income ($ in millions) Loss Deferred in OCI Gain/(Loss) Recognized Gain Deferred in OCI Gain Recognized Economic Foreign currency forward contracts $— $13 $— $12 Other income, net Fair Value Interest rate swaps — (2) — 3 Interest expense Total forward contracts and interest rate swaps $— $11 $— $15 Net Investment Cross currency swaps ($3) $5 $5 $3 Interest expense Foreign denominated debt (33) — 43 — Total Net Investment ($36) $5 $48 $3 |
Assets and Liabilities Reported at Fair Value on a Recurring Basis | Assets and liabilities reported at fair value on a recurring basis March 31, 2023 December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $9 $— $— $9 $— $— Foreign currency forward contracts (a) — 53 — — 27 — Cross currency swaps (b) — — — — 39 — Investments: Marketable equity securities $65 $— $— $61 $— $— Other assets: Cross currency swaps (b) $— $46 $— $— $49 $— Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (a) $— $2 $— $— $3 $— Interest rate swaps (c) — — — — 1 — Other liabilities: Interest rate swaps (c) $— $13 $— $— $19 $— (a) Derivatives not designated as hedging instruments (b) Net investment hedges (c) Fair value hedges |
Schedule of Long-term Debt Instruments | ($ in millions) March 31, 2023 (a) December 31, 2022 (b) Long-term debt - carrying value $7,075 $6,796 Long-term debt - fair value $6,738 $6,375 (a) Excludes finance lease obligations of $10 million and short-term borrowings of $206 million as of March 31, 2023. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation, Activity [Table Text Block] | Stock-based compensation expense and the associated income tax benefit recognized during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Stock-based compensation expense $17 $6 Income tax benefit recognized $4 $1 |
Details of Grants of Stock-based Compensation | Grants of stock-based compensation during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Shares Fair Value Shares Fair Value Stock options 410,001 $38.55 487,277 $36.52 Restricted stock units 248,949 $124.44 189,411 $143.92 Contingent shares (a) 52,389 $129.03 57,134 $151.87 (a) The number of contingent shares represents the target value of the award. |
Weighted Average Assumptions Used in Calculating the Fair Value of Stock Option | The fair value of the stock options granted during the three months ended March 31, 2023 was calculated with the following weighted average assumptions: Weighted average exercise price $130.08 Risk-free interest rate 3.9 % Expected life of option in years 6.5 Expected dividend yield 1.7 % Expected volatility 27.8 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Liabilities [Table Text Block] | Environmental Reserves ($ in millions) March 31, 2023 December 31, 2022 New Jersey Chrome $53 $58 Glass and chemical 58 60 Other 100 99 Total $211 $217 Current portion $50 $50 |
Environmental Costs [Table Text Block] | Pretax charges against income for environmental remediation costs are included in Other income, net in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Environmental remediation pretax charges $3 $6 Cash outlays for environmental remediation activities $9 $23 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue Disclosure [Abstract] | |
Revenue from External Customers by Geographic Areas | Net sales by segment and region for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Performance Coatings United States and Canada $1,123 $1,063 Europe, Middle East and Africa ("EMEA") 900 949 Asia Pacific 256 274 Latin America 349 284 Total $2,628 $2,570 Industrial Coatings United States and Canada $653 $652 EMEA 528 504 Asia Pacific 391 423 Latin America 180 159 Total $1,752 $1,738 Total Net Sales United States and Canada $1,776 $1,715 EMEA 1,428 1,453 Asia Pacific 647 697 Latin America 529 443 Total PPG $4,380 $4,308 |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the allowance for doubtful accounts for the three months ended March 31, 2023 and 2022: Trade Receivables Allowance for Doubtful Accounts ($ in millions) 2023 2022 January 1 $31 $31 Bad debt expense 3 43 Recoveries of previously reserved trade receivables (3) (6) Other (1) — March 31 $30 $68 |
Reportable Business Segment I_2
Reportable Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Business Segment Net Sales and Segment Income | Reportable business segment net sales and segment income for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended ($ in millions) 2023 2022 Net sales: Performance Coatings $2,628 $2,570 Industrial Coatings 1,752 1,738 Total $4,380 $4,308 Segment income: Performance Coatings $395 $319 Industrial Coatings 240 140 Total $635 $459 Corporate (67) (52) Interest expense, net of interest income (34) (21) Pension settlement charge (a) (190) — Insurance recovery of expenses incurred due to a natural disaster (b) 9 — Impairment and other related charges (c) — (290) Business restructuring-related costs, net (d) — (14) Acquisition-related costs (e) — (4) Income before income taxes $353 $78 (a) In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the company’s retirees in the U.S. to third-party insurance companies, resulting in a non-cash pension settlement charge. (b) The company incurred expenses due to damages at a southern U.S. factory resulting from a hurricane in 2020. In the first quarter 2023, the company received reimbursement under its insurance policies related to the damages incurred at this factory due to this hurricane. (c) In the first quarter 2022, the Company recorded impairment and other related charges due to the wind down of the company’s operations in Russia. (d) Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs. |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Supplier finance program, obligation | $ 199 | $ 390 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,441 | $ 1,209 |
Work in process | 282 | 238 |
Raw materials | 833 | 784 |
Supplies | 43 | 41 |
Total | $ 2,599 | $ 2,272 |
Inventories (Additional Informa
Inventories (Additional Information) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Line Items] | ||
First-in, first-out method of inventory valuation, amount of increase in inventory value | $ 281 | $ 272 |
UNITED STATES | ||
Inventory Disclosure [Line Items] | ||
U.S. inventories as a percentage of total inventories | 16% | 21% |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets (Carrying Amount of Goodwill) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 6,078 |
Acquisitions, including purchase accounting adjustments | 10 |
Foreign currency impact | 75 |
Ending Balance | 6,163 |
Performance Coatings | |
Goodwill [Roll Forward] | |
Beginning Balance | 4,881 |
Acquisitions, including purchase accounting adjustments | 0 |
Foreign currency impact | 68 |
Ending Balance | 4,949 |
Industrial Coatings | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,197 |
Acquisitions, including purchase accounting adjustments | 10 |
Foreign currency impact | 7 |
Ending Balance | $ 1,214 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets with Finite Lives) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Trademarks | $ 1,387 | $ 1,325 |
Gross Carrying Amount | 3,068 | 3,043 |
Accumulated Amortization | (2,013) | (1,954) |
Net | 1,055 | 1,089 |
Intangible assets, gross (excluding goodwill) | 4,455 | 4,368 |
Total Identifiable Intangible Assets | 2,442 | 2,414 |
Remaining nine months of 2023 | 109 | |
2024 | 127 | |
2025 | 115 | |
2026 | 93 | |
2027 | 85 | |
2028 | 73 | |
Thereafter | 453 | |
Acquired technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 829 | 827 |
Accumulated Amortization | (647) | (636) |
Net | 182 | 191 |
Customer-related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,874 | 1,855 |
Accumulated Amortization | (1,153) | (1,112) |
Net | 721 | 743 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 315 | 311 |
Accumulated Amortization | (165) | (158) |
Net | 150 | 153 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50 | 50 |
Accumulated Amortization | (48) | (48) |
Net | $ 2 | $ 2 |
Business Restructuring (Schedul
Business Restructuring (Schedule of Restructuring Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
January 1 | $ 169 | $ 231 |
Release of prior reserves and other adjustments | (3) | 0 |
Cash payments | 16 | 32 |
Foreign currency impact | 2 | (5) |
March 31 | $ 152 | $ 194 |
Borrowings (Details)
Borrowings (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 12, 2023 USD ($) | Aug. 30, 2019 USD ($) | Apr. 30, 2023 USD ($) | May 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Aug. 31, 2019 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 EUR (€) | Feb. 28, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Repayment of long-term debt | $ 300,000,000 | $ 0 | |||||||||||
Redemption price, percentage | 101% | ||||||||||||
Proceeds from issuance of notes | $ 1,061,000,000 | ||||||||||||
Long-term debt | $ 7,075,000,000 | $ 6,796,000,000 | |||||||||||
Debt covenant, acquisition for consideration, minimum threshold | $ 1,000,000,000 | ||||||||||||
Debt covenant, total indebtedness to total capitalization ratio, maximum when acquisition for consideration threshold is met, percentage | 0.65 | ||||||||||||
Debt instrument, total indebtedness to total capitalization, percentage | 0.49 | ||||||||||||
Long-term commercial paper | $ 638,000,000 | $ 0 | |||||||||||
Outstanding letters of credit | 223,000,000 | ||||||||||||
Debt covenant, total indebtedness to total capitalization ratio, maximum | 0.60 | ||||||||||||
Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt covenant, acquisition for consideration, minimum threshold | $ 1,000,000,000 | ||||||||||||
Debt covenant, total indebtedness to total capitalization ratio, maximum when acquisition for consideration threshold is met, percentage | 0.65 | ||||||||||||
Debt covenant, total indebtedness to total capitalization ratio, maximum | 0.60 | ||||||||||||
3.2% Notes Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of long-term debt | $ 300,000,000 | ||||||||||||
Stated interest percentage | 3.20% | ||||||||||||
2.750% Notes Due 2029 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest percentage | 2.75% | ||||||||||||
Aggregate principal amount | $ 700,000,000 | ||||||||||||
1.875% Notes Due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest percentage | 1.875% | ||||||||||||
Aggregate principal amount | $ 300,000,000 | ||||||||||||
Fixed Interest Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest percentage | 1.95% | ||||||||||||
Aggregate principal amount | € | € 50,000,000 | ||||||||||||
Debt instrument term | 15 years | ||||||||||||
Term Loan Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of long-term debt | 100,000,000 | $ 300,000,000 | |||||||||||
Aggregate principal amount | $ 2,000,000,000 | ||||||||||||
Proceeds from issuance of notes | $ 700,000,000 | $ 700,000,000 | |||||||||||
Long-term debt | 1,000,000,000 | 1,100,000,000 | |||||||||||
Term Loan | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||||
Proceeds from issuance of notes | $ 500,000,000 | ||||||||||||
Term loan, increase limit | $ 250,000,000 | ||||||||||||
Revolving Credit Facility | Unsecured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument term | 5 years | ||||||||||||
Long-term debt | $ 0 | $ 0 | |||||||||||
Revolving credit facility outstanding | $ 2,200,000,000 | ||||||||||||
Line of credit facility, additional borrowing capacity available to lender conditions | $ 750,000,000 |
Impairment and Other Related _2
Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Impairment and Other Related Charges [Line Items] | |||
Impairment and other related charges | $ 0 | $ (290) | $ 63 |
Tangible asset impairment charges | 201 | ||
Other asset impairment charges | 89 | ||
Russia | |||
Impairment and Other Related Charges [Line Items] | |||
Impairment and other related charges | (290) | ||
Revenue Benchmark | Geographic Concentration Risk | Russia | |||
Impairment and Other Related Charges [Line Items] | |||
Revenue, percentage of total revenue | 1% | 1% | |
Indefinite-lived Intangible Assets | |||
Impairment and Other Related Charges [Line Items] | |||
Tangible asset impairment charges | 124 | ||
Property, Plant and Equipment | |||
Impairment and Other Related Charges [Line Items] | |||
Tangible asset impairment charges | 54 | ||
Finite-Lived Intangible Assets | |||
Impairment and Other Related Charges [Line Items] | |||
Tangible asset impairment charges | $ 23 |
Earnings Per Common Share (Calc
Earnings Per Common Share (Calculations) (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, Diluted [Abstract] | ||
Weighted average common shares outstanding | 235.8 | 236.6 |
Effect of dilutive securities: | ||
Stock options | 0.5 | 0.9 |
Other stock compensation plans | 0.6 | 0.7 |
Potentially dilutive common shares | 1.1 | 1.6 |
Adjusted weighted average common shares outstanding | 236.9 | 238.2 |
Dividends per common share (in dollars per share) | $ 0.62 | $ 0.59 |
Outstanding stock options excluded from the computation of diluted earnings per share due to their antidilutive effect | 1.2 | 0.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 22.70% | 70.50% | |
Net tax charge | $ 27 | ||
Impairment and other related charges | $ 0 | 290 | $ (63) |
Russia | |||
Income Tax Contingency [Line Items] | |||
Impairment and other related charges | $ 290 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension settlement charge | $ 190 | $ 0 |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 2 |
Interest cost | 31 | 19 |
Expected return on plan assets | (31) | (36) |
Amortization of actuarial losses | 7 | 8 |
Amortization of prior service credit | 0 | 0 |
Pension settlement charge | 190 | 0 |
Net periodic benefit cost/(income) | 199 | (7) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 3 |
Interest cost | 7 | 4 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial losses | 0 | 4 |
Amortization of prior service credit | (2) | (3) |
Pension settlement charge | 0 | 0 |
Net periodic benefit cost/(income) | $ 6 | $ 8 |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefits (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit pension plan, decrease for remeasurement due to Settlement | $ 309 | ||
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected employer mandatory contributions | 5 | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected employer mandatory contributions | 10 | ||
Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost/(income) | 199 | $ (7) | |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost/(income) | 6 | 8 | |
Mandatory Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions to defined benefit pension plans | $ 1 | $ 1 | |
Scenario, Forecast | Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost/(income) | $ 30 | ||
Scenario, Forecast | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost/(income) | $ 25 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | $ (2,408) | $ (2,810) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 253 | $ 19 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 149 | 17 | ||
Tax cost related to unrealized currency translation adjustments other than translation of foreign denominated balance sheets | 64 | 11 | ||
Pension and other postretirement benefit adjustments, tax cost | (46) | 2 | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | (1,991) | (1,948) | (2,254) | $ (1,988) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 262 | 30 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 10 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | (418) | (767) | (557) | (763) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (9) | (11) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 148 | 7 | ||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | 1 | 1 | 1 | 1 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | $ (2,408) | $ (2,714) | $ (2,810) | $ (2,750) |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements (Additional Information) (Details) $ in Millions, € in Billions | 3 Months Ended | |||
Mar. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | $ 46 | $ 88 | ||
Fair Value of Debt Instrument Designated as a Hedge of Net Investment in Foreign Operations | 2,700 | 2,600 | ||
Long-term debt | 7,075 | 6,796 | ||
Long-term debt, fair value | 6,738 | 6,375 | ||
Finance Lease, Liability | 10 | 10 | ||
Short-term debt | 206 | 10 | ||
Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative, Notional Amount | 375 | 525 | ||
Interest Rate Derivatives, at Fair Value, Net | 13 | 20 | ||
Interest rate swaps | Accounts payable and accrued liabilities | Level 1 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative liabilities | 0 | 0 | ||
Interest rate swaps | Accounts payable and accrued liabilities | Level 2 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative liabilities | 0 | 1 | ||
Interest rate swaps | Accounts payable and accrued liabilities | Level 3 | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative liabilities | 0 | 0 | ||
Cross currency swaps | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative, Notional Amount | 475 | 775 | ||
Foreign currency forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative, Notional Amount | 2,000 | 1,800 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 51 | 24 | ||
Foreign currency forward contracts | Level 1 | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative liabilities | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Foreign currency forward contracts | Level 2 | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative liabilities | 2 | 3 | ||
Derivative assets | 53 | 27 | ||
Foreign currency forward contracts | Level 3 | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative liabilities | 0 | 0 | ||
Derivative assets | $ 0 | $ 0 | ||
Net Investment Hedging | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Long-term Debt | € | € 2.5 | € 2.5 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements (Cash Flow and Net Investment Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Hedging | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gain/(Loss) Recognized | $ (2) | $ 3 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense |
Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Loss Deferred in OCI | $ 0 | $ 0 |
Gain/(Loss) Recognized | 11 | 15 |
Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Loss Deferred in OCI | (36) | 48 |
Gain/(Loss) Recognized | 5 | 3 |
Net Investment Hedging | Cross currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Loss Deferred in OCI | (3) | 5 |
Gain/(Loss) Recognized | 5 | 3 |
Net Investment Hedging | Foreign denominated debt | ||
Derivatives, Fair Value [Line Items] | ||
Loss Deferred in OCI | (33) | 43 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Gain/(Loss) Recognized | $ 13 | $ 12 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Income | Other Income |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements (Assets and liabilities reported at fair value on a recurring basis) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Other current assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | $ 9 | $ 9 |
Other current assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 0 | 0 |
Other current assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 0 | 0 |
Investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 65 | 61 |
Investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 0 | 0 |
Investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 27 |
Derivative liabilities | 2 | 3 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Cross currency swaps | Other current assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Cross currency swaps | Other current assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 39 |
Cross currency swaps | Other current assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Cross currency swaps | Other assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Cross currency swaps | Other assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 46 | 49 |
Cross currency swaps | Other assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate swaps | Accounts payable and accrued liabilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Interest rate swaps | Accounts payable and accrued liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 1 |
Interest rate swaps | Accounts payable and accrued liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Interest rate swaps | Other Liabilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Interest rate swaps | Other Liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 13 | 19 |
Interest rate swaps | Other Liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 17 | $ 6 |
Total income tax benefit recognized related to the stock-based compensation | $ 4 | $ 1 |
Stock options granted from the PPG Omnibus Plan | 410,001 | 487,277 |
Stock options granted from the PPG Omnibus Plan, weighted average fair value per share (in usd per share) | $ 38.55 | $ 36.52 |
Maximum term of the outstanding stock options for the PPG Omnibus Plan and the PPG Stock Plan for certain employees | 10 years | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs granted | 248,949 | 189,411 |
RSUs granted, weighted average fair value per share (in usd per share) | $ 124.44 | $ 143.92 |
Award vesting period (in years) | 3 years | |
Stock Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs granted | 52,389 | 57,134 |
RSUs granted, weighted average fair value per share (in usd per share) | $ 129.03 | $ 151.87 |
Minimum | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Target Award | 0% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options exercisable period | 36 months | |
Maximum | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Target Award | 200% |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions Used in Calculating Fair Value of Stock Option) (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Weighted average exercise price (in usd per share) | $ 130.08 |
Risk free interest rate | 3.90% |
Expected life of option in years | 6 years 6 months |
Expected dividend yield | 1.70% |
Expected volatility | 27.80% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities Asbestos Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Asbestos Issue | ||
Loss contingency accrual | $ 51 | $ 51 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Reserves for environmental contingencies | $ 211 | $ 217 | |
Reserves for environmental contingencies classified as current liabilities | 50 | 50 | |
Environmental remediation charge | 3 | $ 6 | |
Payments for Environmental Liabilities | 9 | $ 23 | |
Outstanding letters of credit | 223 | ||
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Unreserved loss contingencies related to environmental matters | 100 | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Unreserved loss contingencies related to environmental matters | 200 | ||
New Jersey Chrome | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reserves for environmental contingencies | 53 | 58 | |
Glass and chemical | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reserves for environmental contingencies | 58 | 60 | |
Other | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reserves for environmental contingencies | $ 100 | $ 99 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule Of Revenue By Revenue Source (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,380 | $ 4,308 |
United States and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,776 | 1,715 |
Europe, Middle East and Africa ("EMEA") | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,428 | 1,453 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 647 | 697 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 529 | 443 |
Performance Coatings | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,628 | 2,570 |
Performance Coatings | United States and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,123 | 1,063 |
Performance Coatings | Europe, Middle East and Africa ("EMEA") | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 900 | 949 |
Performance Coatings | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 256 | 274 |
Performance Coatings | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 349 | 284 |
Industrial Coatings | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,752 | 1,738 |
Industrial Coatings | United States and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 653 | 652 |
Industrial Coatings | Europe, Middle East and Africa ("EMEA") | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 528 | 504 |
Industrial Coatings | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 391 | 423 |
Industrial Coatings | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 180 | $ 159 |
Revenue from Contract with Customer | Service | Revenue from Rights Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, percentage of total revenue | 5% | 5% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
January 1 | $ 31 | $ 31 |
Bad debt expense | 3 | 43 |
Recoveries of previously reserved trade receivables | (3) | (6) |
Other | (1) | 0 |
September 30 | $ 30 | $ 68 |
Reportable Business Segment I_3
Reportable Business Segment Information (Additional Information) (Details) | 3 Months Ended |
Mar. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 10 |
Number of Reportable Segments | 2 |
Reportable Business Segment I_4
Reportable Business Segment Information (Segment Net Sales and Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 4,380 | $ 4,308 | |
Segment income (loss) | 635 | 459 | |
Corporate | (67) | (52) | |
Interest expense, net of interest income | (34) | (21) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (190) | 0 | |
Insurance recovery of expenses incurred due to a natural disaster | 9 | 0 | |
Impairment and other related charges | 0 | (290) | $ 63 |
Business restructuring-related costs, net | 0 | (14) | |
Acquisition-related costs | 0 | (4) | |
Income before income taxes | 353 | 78 | |
Performance Coatings | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 2,628 | 2,570 | |
Segment income (loss) | 395 | 319 | |
Industrial Coatings | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,752 | 1,738 | |
Segment income (loss) | $ 240 | $ 140 |