PPG INDUSTRIES INCPPG
PPG INDUSTRIES INC Segments Disclosure
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 operating segments are aggregated into reportable business segments based on their similar economic characteristics, including similar nature of products, production processes, end-use markets and methods of distribution.
The Global Architectural Coatings reportable business segment is comprised of the architectural coatings EMEA and architectural coatings Latin America and Asia Pacific operating segments. This reportable business segment primarily supplies paints, wood stains, adhesives, sealants and purchased sundries.
The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, protective and marine coatings and traffic solutions operating segments. This reportable business segment primarily supplies a variety of coatings, solvents, adhesives, sealants and finishes, along with pavement marking products, transparencies and paint films.
The Industrial Coatings reportable business segment is comprised of the automotive OEM coatings, industrial coatings, packaging coatings, and the specialty products 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, low-friction coatings, paint films and other specialty products.
Production facilities and sales for PPG’s reportable business segments are global and each segment continues to pursue opportunities to further develop their global reach. Each of the reportable business segments in which PPG is engaged is highly competitive. The diversification of product lines and the worldwide sales tend to minimize the impact on PPG’s business of changes in demand in a particular industry or in a particular geographic area.
PPG’s chief operating decision maker is its Executive Committee, which is comprised of the Chief Executive Officer, the Chief Financial Officer and General Counsel. The Executive Committee regularly reviews the discrete financial information of the 10 operating segments to assess performance and make decisions about the allocation of resources by comparing actual results versus forecasted and historical financial information and discussing observations with the leadership team responsible for managing the operations of each operating segment. The primary measure of profit or loss considered by the Executive Committee when evaluating operating segment performance is segment income, which is income before interest expense, interest income, income taxes and noncontrolling interests and excludes certain charges which are considered to be unusual or non-recurring. The Company also evaluates performance of operating segments based on working capital management and selling price and sales volume performance.
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (see Note 1, “Summary of Significant Accounting Policies”). Corporate unallocated costs include the costs of corporate staff functions not directly associated with the operating segments, certain legal matters, net of related insurance recoveries, the cost of certain insurance and stock-based compensation programs and certain other unusual or non-recurring items. The service cost component of net periodic benefit cost related to current employees of each reportable business segment is allocated to that reportable business segment and the remaining portion of net periodic pension expense is included in Corporate unallocated costs.
Product movement between PPG’s reportable business segments is limited, is accounted for as an inventory transfer, and is recorded at cost plus a mark-up, the impact of which is not significant to the net sales or segment income of the reportable business segments.
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Global Architectural Coatings | |||||||||||||||||
| Net sales to external customers | $3,838 | $3,921 | $4,021 | ||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | 1,891 | 1,904 | 2,022 | ||||||||||||||
| Selling, general and administrative | 1,175 | 1,186 | 1,170 | ||||||||||||||
| Depreciation and amortization | 109 | 104 | 101 | ||||||||||||||
Other(1) | 64 | 49 | 55 | ||||||||||||||
| Global Architectural Coatings segment income | $599 | $678 | $673 | ||||||||||||||
| Performance Coatings | |||||||||||||||||
| Net sales to external customers | $5,513 | $5,237 | $5,132 | ||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | 3,055 | 2,851 | 2,893 | ||||||||||||||
| Selling, general and administrative | 1,069 | 1,017 | 966 | ||||||||||||||
| Depreciation and amortization | 134 | 132 | 139 | ||||||||||||||
Other(1) | 107 | 95 | 115 | ||||||||||||||
| Performance Coatings segment income | $1,148 | $1,142 | $1,019 | ||||||||||||||
| Industrial Coatings | |||||||||||||||||
| Net sales to external customers | $6,524 | $6,687 | $7,089 | ||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | 4,369 | 4,498 | 4,759 | ||||||||||||||
| Selling, general and administrative | 822 | 838 | 870 | ||||||||||||||
| Depreciation and amortization | 192 | 206 | 213 | ||||||||||||||
Other(1) | 266 | 252 | 279 | ||||||||||||||
| Industrial Coatings segment income | $875 | $893 | $968 | ||||||||||||||
| Total Net Sales | $15,875 | $15,845 | $16,242 | ||||||||||||||
| Total Segment income | $2,622 | $2,713 | $2,660 | ||||||||||||||
| Corporate / Non-Segment Items | |||||||||||||||||
| Corporate / non-segment unallocated, exclusive of depreciation and amortization | (308) | (291) | (330) | ||||||||||||||
| Corporate / non-segment depreciation and amortization | (63) | (50) | (61) | ||||||||||||||
| Interest expense, net of interest income | (88) | (64) | (107) | ||||||||||||||
Business restructuring-related costs, net(2) | (54) | (377) | (41) | ||||||||||||||
Portfolio optimization(3) | (1) | (59) | (53) | ||||||||||||||
Legacy environmental remediation charges, net(4) | (16) | (24) | (24) | ||||||||||||||
Insurance recoveries(5) | 6 | 4 | 16 | ||||||||||||||
Impairment and other related charges, net(6) | (24) | — | (160) | ||||||||||||||
Income from legal settlement(7) | 12 | — | — | ||||||||||||||
Resolution of tax matter(8) | (41) | — | — | ||||||||||||||
Argentina currency devaluation losses(9) | — | — | (20) | ||||||||||||||
Pension settlement charge(10) | — | — | (190) | ||||||||||||||
| Total Income from continuing operations before income taxes | $2,045 | $1,852 | $1,690 | ||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
Segment assets(11) | |||||||||||||||||
| Global Architectural Coatings | $6,676 | $5,887 | $6,595 | ||||||||||||||
| Performance Coatings | 5,535 | 5,601 | 5,586 | ||||||||||||||
| Industrial Coatings | 6,183 | 5,230 | 5,643 | ||||||||||||||
| Corporate / Non-Segment Items | 3,704 | 2,715 | 3,823 | ||||||||||||||
| Total | $22,098 | $19,433 | $21,647 | ||||||||||||||
| Expenditures for property (including business acquisitions) | |||||||||||||||||
| Global Architectural Coatings | $126 | $160 | $93 | ||||||||||||||
| Performance Coatings | 249 | 166 | 217 | ||||||||||||||
| Industrial Coatings | 245 | 247 | 184 | ||||||||||||||
| Corporate / Non-Segment Items | 159 | 179 | 131 | ||||||||||||||
| Total | $779 | $752 | $625 | ||||||||||||||
| Investment in equity affiliates | |||||||||||||||||
| Global Architectural Coatings | $24 | $20 | $25 | ||||||||||||||
| Performance Coatings | 29 | 26 | 23 | ||||||||||||||
| Industrial Coatings | 22 | 20 | 18 | ||||||||||||||
| Corporate / Non-Segment Items | 76 | 75 | 75 | ||||||||||||||
| Total | $151 | $141 | $141 | ||||||||||||||
| Share of net earnings of equity affiliates | |||||||||||||||||
| Global Architectural Coatings | $1 | $3 | $1 | ||||||||||||||
| Performance Coatings | 6 | 5 | 6 | ||||||||||||||
| Industrial Coatings | 1 | 2 | 1 | ||||||||||||||
| Corporate / Non-Segment Items | 11 | 10 | 13 | ||||||||||||||
| Total | $19 | $20 | $21 | ||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Geographic Information | |||||||||||||||||
| Segment income | |||||||||||||||||
| United States and Canada | $1,101 | $1,039 | $1,033 | ||||||||||||||
| EMEA | 581 | 617 | 679 | ||||||||||||||
| Asia Pacific | 418 | 476 | 430 | ||||||||||||||
| Latin America | 522 | 581 | 518 | ||||||||||||||
| Total | $2,622 | $2,713 | $2,660 | ||||||||||||||
| Property, plant and equipment — net | |||||||||||||||||
| United States and Canada | $1,811 | $1,502 | $1,365 | ||||||||||||||
| EMEA | 1,136 | 945 | 1,010 | ||||||||||||||
| Asia Pacific | 698 | 693 | 718 | ||||||||||||||
| Latin America | 360 | 324 | 357 | ||||||||||||||
| Total | $4,005 | $3,464 | $3,450 | ||||||||||||||
(1)Other segment items for each reportable business segment includes research and development, net and other segment (income)/expense, net.
(2)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/charges, net in the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 recognition of the accumulated foreign currency translation losses.
(3)Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of $129 million on the sale of the company's silicas products business in the fourth quarter 2024, and the losses on the sales of the company's traffic solutions business in Argentina in the second quarter 2024. Portfolio optimization includes advisory, legal, accounting, valuation, other professional or consulting fees and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the consolidated statement of income. Portfolio optimization also includes an impairment charge of $146 million recognized during the fourth quarter 2024 when the company's remaining operations in Russia were classified as held for sale, which is included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 impairment charge.
(4)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the consolidated statement of income.
(5)In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021. In the fourth quarter 2024, the company received reimbursement for previously approved insurance claims under policies
covering legacy asbestos-related matters. In the first quarter 2023, the company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2020. In the fourth quarter 2023, the company received reimbursement for a previously approved insurance claim under a policy covering legacy asbestos-related matters. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.
(6)In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Other charges/(income), net on the consolidated statement of income. In the fourth quarter 2023, the Company recorded impairment and other related charges due to a non-cash goodwill impairment recognized for the Traffic Solutions reporting unit as a result of its annual goodwill impairment test. The fair value of the Traffic Solutions reporting unit decreased primarily due to increases in the cost of capital (discount rate assumption) and declines in the reporting unit’s long-term forecast driven by challenges at its operations in Argentina due to the highly inflationary environment and changes to the reporting unit’s global footprint, including the fourth quarter 2023 divestiture of its European and Australian businesses.
(7)In the fourth quarter 2025, the Company settled a legal matter related to a legacy business that it no longer operates. The related gain is included in Other charges/(income), net on the consolidated statement of income.
(8)In the fourth quarter 2025, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter. The Company expects to pay incremental income taxes and non-income taxes in the impacted taxing jurisdiction related to the matter. The portion of the charge related to non-income taxes is included in Other charges/(income), net on the consolidated statement of income. In connection with this matter, the Company reduced its provision for uncertain tax positions, the impact of which is included in income tax expense on the consolidated statement of income.
(9)In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar. Argentina currency devaluation losses represent foreign currency translation losses recognized during December 2023 related to the devaluation of the Argentine peso, which is included in Other charges/(income), net on the consolidated statement of income.
(10)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.
(11)Segment assets are the total assets used in the operation of each segment. Corporate assets principally include amounts recorded in Cash and cash equivalents, Deferred income taxes, and Property, plant and equipment, net on the consolidated balance sheet.
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 | |
| 2017 | Feb 15, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.