PPG INDUSTRIES INCPPG
PPG INDUSTRIES INC Revenue Disclosure
Revenue Recognition
The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms.
The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.
The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the years ended December 31, 2025, 2024 and 2023, service revenue constituted less than 5% of total revenue.
Net sales by segment and region for the years ended December 31, 2025, 2024 and 2023 were as follows:
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Global Architectural Coatings | |||||||||||||||||
| EMEA | $2,320 | $2,357 | $2,408 | ||||||||||||||
| Asia Pacific | 204 | 232 | 237 | ||||||||||||||
| Latin America | 1,314 | 1,332 | 1,376 | ||||||||||||||
| Total | $3,838 | $3,921 | $4,021 | ||||||||||||||
| Performance Coatings | |||||||||||||||||
| United States and Canada | $3,162 | $2,981 | $2,902 | ||||||||||||||
| EMEA | 1,318 | 1,262 | 1,220 | ||||||||||||||
| Asia Pacific | 927 | 883 | 866 | ||||||||||||||
| Latin America | 106 | 111 | 144 | ||||||||||||||
| Total | $5,513 | $5,237 | $5,132 | ||||||||||||||
| Industrial Coatings | |||||||||||||||||
| United States and Canada | $2,210 | $2,371 | $2,583 | ||||||||||||||
| EMEA | 1,730 | 1,767 | 1,989 | ||||||||||||||
| Asia Pacific | 1,806 | 1,797 | 1,770 | ||||||||||||||
| Latin America | 778 | 752 | 747 | ||||||||||||||
| Total | $6,524 | $6,687 | $7,089 | ||||||||||||||
Total Net Sales(1) | |||||||||||||||||
United States and Canada(2) | $5,372 | $5,352 | $5,485 | ||||||||||||||
| EMEA | 5,368 | 5,386 | 5,617 | ||||||||||||||
Asia Pacific(3) | 2,937 | 2,912 | 2,873 | ||||||||||||||
Latin America(4) | 2,198 | 2,195 | 2,267 | ||||||||||||||
| Total PPG | $15,875 | $15,845 | $16,242 | ||||||||||||||
(1)Net sales to external customers are attributed to geographic regions based upon the location of the operating unit shipping the product.
(2)Net sales recognized in the United States represented 32% of the Company’s total Net sales for each of the years ended December 31, 2025, 2024 and 2023, respectively.
(3)Net sales recognized in China represented 10% of the Company’s total Net sales for each of the years ended December 31, 2025, 2024 and 2023, respectively.
(4)Net sales recognized in Mexico represented 11% of the Company’s total Net sales for each of the years ended December 31, 2025, 2024 and 2023, respectively.
Allowance for Doubtful Accounts
All trade receivables are reported on the consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks.
PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions.
The following table summarizes allowance for doubtful accounts activity for the years ended December 31, 2025, 2024 and 2023:
| Trade Receivables Allowance for Doubtful Accounts | ||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | |||||||||||
| January 1 | $23 | $23 | $29 | |||||||||||
| Bad debt expense | 15 | 17 | 15 | |||||||||||
| Write-offs and recoveries of previously reserved trade receivables | (18) | (15) | (19) | |||||||||||
| Other | 2 | (2) | (2) | |||||||||||
| December 31 | $22 | $23 | $23 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.