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美国
证券交易委员会
华盛顿特区20549
  –––––––––––––––––––––––––––––––––––––––––––––––––
表格 10-Q
  –––––––––––––––––––––––––––––––––––––––––––––––––
☑    根据1934年证券交易法第13或15(d)节的季度报告
截止季度结束日期：2024年9月30日
或者
☐    根据1934年证券交易法第13或15(d)节的转型报告书
在 _______ 至 _______ 的过渡期间
佣金文件号 1-1687
ppga01.gif
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
PPG工业公司.
(根据其章程规定的注册人准确名称)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
25-0730780
（纳税人识别号码）
宾夕法尼亚州
（注册地或其他组织机构的州或其他辖区）
One PPG Place, 匹兹堡, 宾夕法尼亚州
(主要领导机构的地址)
15272
(邮政编码)
(412) 434-3131
(注册人电话号码，包括区号)
 
（如果公司名称、地址或财年自上次报告以来有变更，请标明之前的名称、地址和财年）
在法案第12(b)条的规定下注册的证券：
每一类的名称
交易标志
在其上注册的交易所的名称
普通股，面值为$1.66 2/3
PPG请使用moomoo账号登录查看New York Stock Exchange
0.875％票据到期于2025年PPG 25请使用moomoo账号登录查看New York Stock Exchange
到期日为2025年的1.875％票据PPG 25A请使用moomoo账号登录查看New York Stock Exchange
到期日为2027年的1.400％票据PPG 27请使用moomoo账号登录查看New York Stock Exchange
到期日为2029年的2.750％票据PPG 29A请使用moomoo账号登录查看New York Stock Exchange
请勾选适用的选项： (1) 在过去的12个月内（或注册人要求提交这些报告的较短期间内），已按照证券交易法第13或第15(d)条的规定提交了所有要求提交的报告；并 (2) 在过去90天内一直履行了这些提交要求。是 ☑     不 ☐
请按复选标记指示是否在过去的12个月内（或注册人需要提交此类文件的较短期间）每次提交自Rule 405条款和Regulation S-t（本章第232.405条）规定的互动数据文件。是 ☑    不 ☐
勾选以下选框，指示申报人是大型加速评估提交人、加速评估提交人、非加速评估提交人、小型报告公司或新兴成长型公司。关于“大型加速评估提交人”、“加速评估提交人”、“小型报告公司”和“新兴成长型公司”的定义，请参见《交易所法规》第12亿.2条。
大型加速存取器☑快速提交者☐
非加速申报人
☐ 
较小的报告公司☐
新兴成长公司☐
如果属于新兴成长型企业，请在复选框中标记，以表示公司已选择不使用根据交易所法第13(a)条规定为遵守任何新的或修订的财务会计准则所提供的延长过渡期。☐
请用复选标记指示注册人是否是壳公司（如法案规则120亿.2中定义）。 是 ☐    不 ☑
截至2024年9月30日， 232.0 公司注册股本每股面值为1.66 2/3美元，共有百万股已发行。


PPG INDUSTRIES，INC.及其子公司
指数
 
  页码
项目1。
项目2。
项目3。
项目4。
项目1。
项目1A。
项目2。
项目5。
项目6。
1
目录
第一部分 财务信息
项目1：基本报表
PPG INDUSTRIES，INC.及其子公司
未经审计的压缩综合收入报表
 三个月已结束
9 月 30 日		九个月已结束
9 月 30 日
（百万美元，每股金额除外）2024202320242023
净销售额$4,575 $4,644 $13,680 $13,896 
销售成本，不包括折旧和摊销2,663 2,752 7,842 8,214 
销售、一般和管理1,062 1,047 3,203 3,108 
折旧97 102 298 287 
摊销32 40 106 121 
研究和开发，网络105 108 325 322 
利息支出67 64 184 190 
利息收入(48)(39)(135)(96)
养老金结算费— — — 190 
其他（收入）/费用，净额(14)13 15 4 
所得税前收入$611 $557 $1,842 $1,556 
所得税支出137 121 422 350 
归属于控股权和非控股权益的净收益$474 $436 $1,420 $1,206 
归属于非控股权益的净收益(6)(10)(24)(26)
净收益（归因于 PPG）$468 $426 $1,396 $1,180 
普通股每股收益（归属于PPG）$2.01 $1.80 $5.96 $5.00 
每股普通股收益（归属于PPG）——假设摊薄$2.00 $1.79 $5.93 $4.97 
附注是这份简明综合财务报表的组成部分。
2
目录
PPG INDUSTRIES，INC.及其子公司
综合收益简明综合报告（未经审计）
 截至三个月结束
9月30日		截至九个月的结束日期
9月30日
（单位：百万美元）2024202320242023
归属控股和非控股利益的净利润$474 $436 $1,420 $1,206 
其他全面损益(损失)/收益，税后净额：
确定福利金和其他离退休福利(3)(1)17 138 
未实现的外币翻译调整(113)(174)(561)199 
其他综合损益（税后），净额($116)($175)($544)$337 
总综合收益$358 $261 $876 $1,543 
减：归属于非控股权益的金额：
净收入(6)(10)(24)(26)
未实现的外币翻译调整(1)2 3 1 
归属于PPG的综合收益$351 $253 $855 $1,518 
附注是这份简明合并基本报表的重要组成部分。
3
目录
PPG INDUSTRIES，INC.及其子公司
资产负债简明综合报告（未经审计）
（单位：百万美元）2024年9月30日2023年12月31日
资产
流动资产：
现金及现金等价物$1,251 $1,514 
短期投资71 75 
应收款项，净额3,653 3,279 
存货2,263 2,127 
待售资产237 — 
其他资产438 436 
总流动资产$7,913 $7,431 
Property, plant and equipment (net of accumulated depreciation of $4,854 和 $4,963)
3,611 3,644 
商誉6,080 6,200 
可识别无形资产净值2,203 2,424 
延迟所得税366 273 
投资300 259 
经营租赁权使用资产805 832 
其他580 584 
总费用$21,858 $21,647 
负债和股东权益
流动负债:
应付账款及应计费用$4,342 $4,467 
重组准备金46 87 
短期借款和长期债务的流动部分339 306 
经营租赁负债流动部分196 194 
待售负债73 — 
流动负债合计$4,996 $5,054 
长期债务6,138 5,748 
经营租赁负债596 622 
应计养老金584 588 
其他离退休福利438 450 
延迟所得税496 508 
其他负债638 654 
负债合计$13,886 $13,624 
承诺和或可能负债（附注14）
股东权益：
$969 $969 
额外实收资本1,258 1,202 
保留盈余22,432 21,500 
Treasury stock, at cost(14,091)(13,600)
累计其他综合损失(2,780)(2,239)
PPG股东权益总额$7,788 $7,832 
非控制权益184 191 
股东权益合计$7,972 $8,023 
总费用$21,858 $21,647 
附注是这份简明合并基本报表的重要组成部分。
4
目录
PPG INDUSTRIES，INC.及其子公司
未经审计的压缩合并股东权益报表
（单位：百万美元）普通股资本公积金未分配利润库存股累计其他综合损失Total PPG非控股权益总费用
2024年1月1日，到期日期。$969 $1,202 $21,500 ($13,600)($2,239)$7,832 $191 $8,023 
归属控股和非控股利益的净利润— — 400 — — 400 9 409 
其他综合损失，净额— — — — (12)(12)(2)(14)
现金股利— — (153)— — (153)— (153)
购买库存股— — — (152)— (152)— (152)
发行库存股— 31 — 6 — 37 — 37 
股票补偿活动— (11)— — — (11)— (11)
分红派息给非控股权益的子公司普通股— — — — — — (2)(2)
减少非控股权益— — — — — — (11)(11)
酒精饮料销售 $ 32,907 45.5％ $ 30,136 42.1％ $ 66,223$969 $1,222 $21,747 ($13,746)($2,251)$7,941 $185 $8,126 
归属于控股权益和非控股权益的净利润— — 528 — — 528 9 537 
其他综合损失，净额— — — — (412)(412)(2)(414)
现金股利— — (152)— — (152)— (152)
购买库存股— — — (152)— (152)— (152)
发行库存股— 3 — 1 — 4 — 4 
股票补偿活动— 10 — — — 10 — 10 
分红派息给非控股权益的子公司普通股股东— — — — — — (13)(13)
其他— — — — — — (1)(1)
2024年6月30日$969 $1,235 $22,123 ($13,897)($2,663)$7,767 $178 $7,945 
归属于控股和非控股权益的净利润— — 468 — — 468 6 474 
其他综合损失，净额— — — — (117)(117)1 (116)
现金股利— — (159)— — (159)— (159)
购买库存股— — — (202)— (202)— (202)
发行库存股— 11 — 8 — 19 — 19 
股票补偿活动— 12 — — — 12 — 12 
向非控股股东支付子公司普通股的分红派息— — — — — — (1)(1)
2024年9月30日$969 $1,258 $22,432 ($14,091)($2,780)$7,788 $184 $7,972 
附注是这份简明合并基本报表的重要组成部分。
5
目录
（单位：百万美元）普通股资本公积金未分配利润库存股累计其他综合损失总PPG非控股权益总费用
2023年1月1日$969 $1,130 $20,828 ($13,525)($2,810)$6,592 $117 $6,709 
归属控股和非控股利益的净利润— — 264 — — 264 9 273 
其他综合收益，扣除税后— — — — 402 402 1 403 
现金股利— — (146)— — (146)— (146)
发行库存股— 21 — 10 — 31 — 31 
股票补偿活动— (1)— — — (1)— (1)
分红派息在子公司普通股上支付给非控股权利益— — — — — — (1)(1)
非控制股东权益减少— — — — — — (15)(15)
2023年3月31日$969 $1,150 $20,946 ($13,515)($2,408)$7,142 $111 $7,253 
归属于控股和非控股权益的净利润— — 490 — — 490 7 497 
其他综合收益/(亏损)，税后净额— — — — 109 109 — 109 
现金股利— — (146)— — (146)— (146)
发行库存股— 7 — 3 — 10 — 10 
股票补偿活动— 9 — — — 9 — 9 
子公司普通股支付给非控制股东的分红派息— — — — — — (10)(10)
收购非控股权益— — — — — — 70 70 
2023年6月30日$969 $1,166 $21,290 ($13,512)($2,299)$7,614 $178 $7,792 
归属于控股和非控股利益的净收入— — 426 — — 426 10 436 
其他综合损失，净额— — — — (173)(173)(2)(175)
现金股利— — (153)— — (153)— (153)
发行库存股— 18 — 10 — 28 — 28 
股票补偿活动— 9 — — — 9 — 9 
子公司普通股支付给非控股利益的分红派息— — — — — — (2)(2)
2023年9月30日$969 $1,193 $21,563 ($13,502)($2,472)$7,751 $184 $7,935 
附注是这份简明合并基本报表的重要组成部分。
6
目录
PPG INDUSTRIES，INC.及其子公司
现金流简明综合报告（未经审计）
截至九个月的结束日期
9月30日
（单位：百万美元）20242023
经营活动：
归属控股和非控股利益的净利润$1,420 $1,206 
净利润调整为经营活动现金流量：
折旧和摊销404 408 
养老金结算费用— 190 
股票补偿费用32 42 
延迟所得税(68)(131)
用于重组行动的现金(37)(44)
特定资产和负债账户的变动（扣除收购净额）：
应收账款(436)(358)
存货(163)70 
其他资产(36)(70)
应付账款及应计费用(26)72 
应交税费及利息2 92 
非流动资产和负债，净额20 (133)
其他(38)169 
经营活动现金流量$1,074 $1,513 
投资活动：
资本支出($523)($381)
业务收购, 净现金结余扣除(29)(108)
资产出售所得— 25 
用于结算跨货币掉期合约的支付(107)(13)
从结算跨货币掉期合约中获得的收益118 60 
其他30 18 
投资活动所用现金($511)($399)
筹资活动：
来自商业票据和短期债务的净收益$408 $— 
三个月或更短期限借款的净变化(1)(16)
贷款收益，扣除费用后的净收益274 550 
偿还到期贷款信贷协议— (800)
偿还长期债务(300)(300)
购买库存股(511)— 
PPG普通股派发的股息(464)(445)
其他(23)6 
筹集融资活动所用现金($617)($1,005)
汇率变动对现金及现金等价物的影响(209)10 
现金及现金等价物的净(减少)/增加($263)$119 
现金及现金等价物期初余额1,514 1,099 
现金及现金等价物期末余额$1,251 $1,218 
补充现金流信息披露：
支付的利息，扣除资本化金额$198 $181 
请参阅未经审计的合并财务报表附注$481 $378 
非现金投资活动补充披露:
资本支出在期末的应付账款和应计负债中计入$89 $75 
附注是这份简明合并基本报表的重要组成部分。
7
目录
PPG INDUSTRIES，INC.及其子公司
未经审计的简明合并财务报表注释
 
1.报告范围
本基本报表未经审计，根据美国证券交易委员会（“SEC”）和美国通用会计准则（“U.S. GAAP”）的要求编制，供中期报告使用。根据这些规定，通常需要的某些脚注和其他财务信息可以简化或省略。这些报表包括所有调整，仅包含为了公正展示PPG于2024年9月30日财务状况和股东权益，2024年9月30日和2023年的三个和九个月业绩以及2024年和2023年的九个月现金流量而必要的常规、重复性调整。所有公司间的余额和交易已经被予以消除。重大事后事项将在报告发布日期进行评估，并在适用时披露。这些基本报表应与PPG的2023年度10-k表中包含的合并财务报表和附注一起阅读（“2023 Form 10-K”）。
2024年8月29日，PPG宣布已达成协议，以约数百万美元的价格出售其硅产品业务。310与硅产品业务相关的资产和负债已被归类为持有待售项目，截至2024年9月30日的简明综合资产负债表。有关更多信息，请参阅附注3，剥离。
每年的每个季度，净销售额、费用、资产和负债都可能有所变化。因此，截至2024年9月30日的三个月和九个月的经营业绩以及这些未经审计的简明综合财务报表的趋势，可能并不一定能反映出整个年度可预期的结果。
为符合当期呈报的要求，对特定之前期间金额进行了重新分类。这些重新分类对我们先前报告的净利润、总资产、现金流量或股东权益没有影响。
2.新的会计准则
近期采纳的会计准则
自2024年1月1日起，PPG采纳了“会计准则更新（“ASU”）第2023-02号，投资-权益法和合营企业（主题323）：利用比例摊销方法会计处理税收抵免结构投资”的规定。该ASU允许报告实体选择根据比例摊销方法处理税收资本投资，无论所收到的所得税抵免来自哪个税收抵免计划，只要满足特定条件。采纳这一ASU对PPG的合并财务状况、经营成果或现金流量没有实质影响。
最近颁布的会计准则
2023年11月，财务会计准则委员会（“FASB”）发布了ASU No. 2023-07“报告分部披露的改进（主题280）”。该ASU更新了当前的报告分部披露要求，要求披露经常提供给首席运营决策者（“CODM”）并包括在每个报告的各项利润或损失措施中的重要的可报告分部费用。该ASU还要求披露将CODM确定为个人的头衔和职位，或组或委员会的名称，并说明CODM如何使用报告的分部利润或损失措施来评估分部绩效并决定如何分配资源。该ASU将于2024年12月31日结束的年度期间生效。采纳此ASU将导致额外的披露，但不会影响PPG的合并财务状况、经营成果或现金流。
2023年12月，FASB发布了ASU 2023-09“所得税披露的改进（话题740）”。该ASU更新了当前所得税披露要求，要求披露有效税率调整内的特定信息类别，以及按管辖区分类披露支付的所得税金额。该ASU将于2025年12月31日结束的年度期间生效。采纳该ASU将导致额外披露，但不会影响PPG的合并财务状况、经营业绩或现金流量。
3.出售
2024年8月29日，PPG宣布已达成协议，以约数百万美元的价格出售其硅产品业务。310百万美元。预计交易将在2024年第四季度结束，取决于惯例的关闭条件。公司在签订这项最终协议时确定了资产和
8
目录
二氧化硅产品业务的负债符合2024年9月30日编制的简明综合资产负债表中作为待售进行分类的标准。公司确定即将进行的剥离不符合停止运营的准则，因为这不会代表公司的战略转变，因此，其结果将包含在公司连续经营部门的工业涂料报告业务部门中。
硅制品业务作为持有待售类别在简明合并资产负债表中主要资产和负债的账面价值如下：
（单位：百万美元）2024年9月30日
应收款项，净额$50 
存货24 
其他资产4 
固定资产、土地及设备（减累计折旧281美元净额）146 
商誉2 
延迟所得税1 
经营租赁权使用资产6 
其他4 
待售资产$237 
应付账款及应计费用$65 
经营租赁负债流动部分1 
经营租赁负债5 
其他负债2 
待售负债$73 

4.     存货
（单位：百万美元）2024年9月30日2023年12月31日
成品$1,247 $1,197 
在制品272 236 
原材料693 640 
用品51 54 
总库存$2,263 $2,127 
大多数美国库存都是按先进先出法进行估值。这些库存分别占2024年9月30日和2023年12月31日的总库存的 16%和20% 0分之 。如果采用先进先出（"FIFO"）库存估值方法，截至2024年9月30日和2023年12月31日，库存将增加000万美元。235万美元和249 百万美元。
9
目录
5.    商誉和其他可辨认无形资产
公司通过每年至少进行定性评估或定量测试，或者在出现减值迹象时更频繁地进行测试，来测试无限寿命无形资产和商誉的减值。定性评估是对因素进行评估以判断是否更可能是报告单位或资产的公允价值小于其账面价值。
截至2024年9月30日结束的九个月内，公司未发现任何报告单位的商誉减值迹象，也未发现任何无限期无形资产减值迹象。
2024年9月30日结束的九个月中，归属于每个报告段的商誉账面价值变化如下：
（单位：百万美元）表现
涂料		制造业
涂料		总费用
2024年1月1日，到期日期。$4,994 $1,206 $6,200 
收购，包括购买会计调整2 — 2 
重新分类为待售资产(a)
— (2)(2)
标准板(115)(5)(120)
2024年9月30日$4,881 $1,199 $6,080 
(a)金额代表将$分配给按照为可供出售分类的硅产品业务处置组。有关更多信息，请参阅附注3，剥离。2百万美元的商誉分配给分类为持有待售的硅产品业务处置集团。有关更多信息，请参阅附注3，剥离。
截至2024年9月30日和2023年12月31日，累计商誉减值损失总计$158百万，所有均与性能涂料可报告部门相关。
公司可识别无形资产账面价值的摘要如下：
 2024年9月30日2023年12月31日
（单位：百万美元）毛利
搬运
数量		累积的
摊销		净利毛利
搬运
数量		累积的
摊销		净利
不定期可辨认无形资产
商标$1,333 $— $1,333 $1,442 $— $1,442 
有限寿命可识别无形资产
取得的技术。$841 ($696)$145 $845 ($678)$167 
与客户相关1,906 (1,308)598 1,933 (1,259)674 
商标名称313 (188)125 319 (180)139 
其他49 (47)2 50 (48)2 
确定有限生命无形资产总额$3,109 ($2,239)$870 $3,147 ($2,165)$982 
可辨识无形资产总额$4,442 ($2,239)$2,203 $4,589 ($2,165)$2,424 
公司可辨认的无形资产按其预计有用生命周期进行摊销。
截至2024年9月30日，可识别无形资产预计未来摊销费用如下：
（单位：百万美元）未来摊销费用
2024年剩下的三个月$35 
2025$128 
2026$107 
2027$96 
2028$83 
2029$78 
此后$343 
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目录
6.     业务重组
公司记录了重组负债，代表因合并某些业务所发生的费用，包括收购和减员计划的业务。这些费用主要包括离职费用和其他一些现金成本。由于这些计划，公司还会因为部分资产减少了预期的可用寿命而产生额外的非现金加速折旧费用。这些费用不分配给公司的可报告业务部门。有关更多信息，请参阅附注16“可报告业务部门信息”。
以下表格总结了2024年和2023年9月30日结束的重组准备活动：
总储备
（单位：百万美元）20242023
1月1日$113 $169 
已批准的重组行动— 12 
释放之前的储备和其他调整(a)
(3)(16)
现金支付(37)(44)
标准板— (2)
9月30日$73 $119 
(a)特定的发布记录了完成计划的业务重组行动所需成本的当前估计。
预计大多数已批准的业务重组行动和相关现金支出将在接下来的十二个月内完成。
7.    借款
信贷协议
2023年4月，PPG签订了一项欧元指数500百万的定期贷款信贷协议（“定期贷款”）。该定期贷款使公司有能力将贷款额度增加至不超过250百万。该定期贷款中包含的契约与下文讨论的信贷协议中的一致，对于这类设施而言，都是常见且惯例性的限制性契约，包括除指定例外情况外，限制公司设立留置权或其他负担，进行售后回租交易以及进行合并、合并或转让所有或绝大部分资产。定期贷款在2026年4月终止，所有未偿还金额在该日期前支付。2023年4月，PPG在定期贷款下贷款了500百万欧元。2023年12月，PPG获得足够的贷款人承诺，使定期贷款额度增加250百万欧元。2024年1月，PPG借入了额外的250百万欧元。该定期贷款以欧元计价，并被指定为对公司欧洲业务的净投资进行套期保值。有关更多信息，请参阅“附注12 - 金融工具、套期活动和公允价值计量”部分。
2023年3月，PPG修订了其 五年 信贷协议（“信贷协议”）日期为2019年8月30日。对信贷协议的修订将LIBOR为基础的参考利率选项替换为基于Term SOFR的参考利率选项。信贷协议的其他条款保持不变。2023年7月，PPG修订并重述了信贷协议，将期限延长至2028年7月27日。经修订和重述的信贷协议规定了一个价值2.3 十亿美元无担保循环信贷额度。公司有权将信贷协议的规模增加至最多750 百万美元，需获得出借人承诺和其他前提条件。公司有权根据信贷协议规定的特定条件，将公司的某些子公司指定为信贷协议的借款人。在进行任何此类指定时，公司需要担保任何这些子公司在信贷协议下的义务。截至2024年9月30日和2023年12月31日，信贷协议下有 否 未偿还金额。
根据信贷协议，借款可以以美元或欧元进行。 信贷协议规定，贷款的利率根据公司选择的两个指定基准利率之一加上根据信贷协议中定义的某些公式确定的一定比例。此外，信贷协议还包括一项承诺费，根据信贷协议定义，适用于信贷协议下未使用承诺的金额范围从 0.060可以降低至0.75%每年0.125年利率为%。
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目录
信贷协议还支持公司的商业票据借款，根据PPG的意图和能力将这些借款以长期方式再融资。截至2024年9月30日，商业票据借款未还金额为$408百万美元，截至2023年12月31日，商业票据借款未还金额为 否 百万美元。
信用协议包含其类型设施通常和习惯的限制性契约，其中包括对公司创建留置权或其他担保、进行售后租赁交易和进行合并、收购或转让所有或几乎所有资产的能力的限制，除特定例外情况外。信用协议还要求公司保持总负债与总资本化比率的比例，根据信用协议定义，为 60%或更少；但是，对于公司在任何财政季度中以超过$1 十亿收购，并在此后的五个财政季度内，总负债与总资本化比率在任何时候不得超过 65%。截至2024年9月30日，根据信用协议定义的总负债与总资本化之比为 44%.
信贷协议包含，其他事项包括，允许放贷人加速贷款的惯例违约事件，其中包括未能及时根据信贷协议或其他重大债务的到期日进行支付、未能满足信贷协议中包含的契约、公司控制权变更以及破产和破产的指定事件。
其他长期负债活动
2024年8月，PPG的$ **筆。300百万美元的运营租赁负债的当前部分，分别为2023年9月30日和2022年12月31日。2.4到期，公司用手头现金偿还了这笔债务。
2023年3月，PPG的$300百万美元的运营租赁负债的当前部分，分别为2023年9月30日和2022年12月31日。3.2%票据到期，公司用现金偿还了这笔债务。
2022年5月，PPG完成了欧元的公开募股300百万 1.8752025 年到期票据百分比和欧元700百万 2.7502029 年到期票据的百分比。这些票据是根据PPG现有的货架注册声明以及公司与作为受托人的纽约银行梅隆信托公司签订的经补充的契约（“2022年契约”）发行的。管理这些票据的2022年契约包含契约，除其他外，限制了公司承担某些留置权担保债务、进行某些售后回租交易以及对公司全部或几乎所有资产进行某些合并、合并、转让、转让或租赁的能力。这些票据的条款还要求公司在控制权变更触发事件（定义见2022年契约）时提出回购票据的提议，价格等于 101本金加上应计和未付利息的百分比。公司可以根据契约不时发行额外债务。扣除折扣和费用后，票据的总现金收益为美元1,061百万。这些票据以欧元计价，被指定为公司欧洲业务净投资的套期保值。有关更多信息，请参阅附注12 “金融工具、套期保值活动和公允价值计量”。
在2022年3月，PPG进行了私募发行 15年 €50百万美元的运营租赁负债的当前部分，分别为2023年9月30日和2022年12月31日。1.95% 固定利息票据。该票据包含与上述 % 票据在实质上一致的契约。 1.875该债务安排以欧元计价，并被指定为公司欧洲业务的净投资对冲。有关更多信息，请参见第12条 "金融工具、对冲活动和公允价值计量"。
2021 年 2 月，PPG 订立了 $2.0十亿美元定期贷款信贷协议（“定期贷款信贷协议”），为公司收购Tikkurila提供资金，并支付与之相关的费用、成本和开支。定期贷款信贷协议使公司能够借款，本金总额不超过美元2.0以无担保为基础的十亿美元。除了为收购Tikkurila融资而借入的金额外，定期贷款信贷协议还允许公司在2021年12月31日之前再偿还多达11笔借款，用于营运资金和一般公司用途。定期贷款信贷协议包含的契约与上述信贷协议中的契约一致，是同类设施的通常和惯常的限制性契约，除特定例外情况外，其中包括限制公司设定留置权或其他抵押权、进行售后和回租交易以及合并、合并或转让其全部或几乎所有资产的能力。定期贷款信贷协议计划到期，所有未偿还的借款应在该协议下首次借款之日起三周年之日到期并支付。2021 年 6 月，PPG 借入了美元700根据定期贷款信贷协议，为公司收购Tikkurila提供资金，并支付与之相关的费用、成本和开支。2021 年 12 月，PPG 额外借入了美元700根据定期贷款信贷协议，百万美元。在 2022 年和 2023 年，PPG 偿还了美元300百万和美元1.1分别使用手头现金的10亿美元定期贷款信贷协议。截至2023年12月31日，定期贷款信贷协议已全部偿还。
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目录
限制性条款和交叉违约条款
截至2024年9月30日，PPG公司完全遵守了其各种信贷协议、贷款协议和债券契约中的限制性契约。
另外，公司的信贷协议包含惯例的跨违约条款。这些条款规定，如果在其他协议中规定的宽限期内拖欠一笔1000万美元或更多的债务服务付款，则可能导致违约事件发生在本协议下。公司的主要债务义务没有得到公司联属公司的担保或抵押。100百万美元或更长时限内拖欠债务付款可能导致本协议下的违约事件。公司的主要债务义务没有得到公司联属公司的担保或抵押。
信用证和保证金
截至2024年9月30日和2023年12月31日，公司有未结的信用证和担保债券金额为$247 百万美元和美元232百万，分别。
8.    每股普通股收益
期权等稀释证券对2024年9月30日和2023年三个月和九个月结束后计算的每股摊薄收益的加权平均普通股在以下方面包括：
 三个月结束
9月30日		截至九个月
9月30日
（股数单位为百万）2024202320242023
Weighted average common shares outstanding233.3 236.2 234.5 236.0 
摊薄效应:
股票期权0.3 0.6 0.4 0.5 
其他股票补偿计划0.7 0.7 0.7 0.7 
潜在稀释普通股1.0 1.3 1.1 1.2 
调整后的加权平均流通普通股234.3 237.5 235.6 237.2 
每股普通股股息分红派息$0.68 $0.65 $1.98 $1.89 
无发行新股的证券 (a):
股票期权1.6 0.4 1.3 0.9 
(a)由于其具有抵消稀释效果，未计入每股摊薄收益。
9.    所得税
截至九个月
9月30日
20242023
税前收入的有效税率22.9 %22.5 %
2024年9月30日止的九个月的所得税费用基于估计的年度有效税率，这需要管理层做出其对年度税前收入或损失的最佳估计。在这一年中，PPG管理层定期根据PPG运营的各个国家的因素变化（如价格、货运量、产品组合、原材料膨胀和制造业务）更新预测的年度税前结果。如果美国和海外所得税前结果的实际2024年度结果与估计值不同，2024年度中承认的实际所得税费用可能与用于估计2024年9月30日止的所得税费用的预测金额不同。
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目录
10.    养老金和其他离退休福利
在2023年3月，公司购买了团体年金合同，将某些在美国的公司的退休人员的养老金福利义务转移给了第三方保险公司，这些退休人员正从美国养老金计划中领取每月的养老福利支付。受影响的每位退休人员的年金支付金额等于该个人的养老金福利金额。团体年金合同的购买是直接由美国计划的资产资助的。通过将义务和资产转移给保险公司，公司将其整体养老金预计福利义务减少了$309百万元，并确认了一项非现金养老金结算费用为$190百万。
养老金净周期性成本和其他离退休福利成本的服务成本包含在销售成本中，不包括折旧和摊销，销售、一般和管理费用，以及研发净费用，表内简明综合利润表。除了2023年3月31日结束的季度的养老金结算费用外，所有其余的净周期性福利成本元件都记录在其他收入/费用中，表内简明综合利润表。
截至2024年和2023年9月30日的三个月和九个月的净定期养老金福利成本及其他退休后福利成本如下：
养老金
三个月结束
9月30日		截至九个月
9月30日
($ in millions)2024202320242023
服务成本$2 $2 $6 $6 
利息成本25 28 77 83 
计划资产预期回报(28)(28)(82)(83)
摊销已计算的损失6 6 17 16 
结算1 — 9 191 
净周期福利成本$6 $8 $27 $213 
 其他退休福利
 三个月结束
9月30日		截至九个月
9月30日
($ in millions)2024202320242023
服务成本$1 $1 $3 $3 
利息成本5 7 17 20 
摊销年金的盈利— — (1)(1)
先前服务信用摊销(1)(2)(3)(5)
净周期福利成本$5 $6 $16 $17 
截至2024年9月30日的九个月内，净定期养老金成本较2023年下降，主要是由于在2023年第一季度确认的养老金结算费用。
PPG预计2024年全年的净定期退休金费用约为 $35百万 以及净定期其他退休后费用约为 $21百万。
对确定收益养老金计划的贡献
三个月结束
9月30日		截至九个月
9月30日
($ in millions)2024202320242023
美国固定收益养老金计划强制性缴款$5 $— $5 $— 
非美国固定收益养老金强制性缴款— 1 2 3 
总固定收益养老金强制性缴款$5 $1 $7 $3 
PPG预计将在2024年剩余三个月内对其确定福利养老金计划做出最低限度的贡献，区间为$10 百万到 $20百万。此外，除任何强制性缴款外，PPG可能会选择在2024年及以后对其确定福利养老金计划进行自愿缴款。
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目录
11.    累计其他综合损失 (AOCL)
($ in millions)
外币翻译调整 (a)
养老金和其他离退休福利调整，扣除税后 (b)
衍生工具未实现收益，扣除税后累计其他全面收益亏损
2023年1月1日($2,254)($557)$1 ($2,810)
当年延期至权益中的调整170 (14)— 156 
从权益中再分类至净利润30 152 — 182 
2023年9月30日($2,054)($419)$1 ($2,472)
2024年1月1日($1,746)($494)$1 ($2,239)
本年度推迟至其他综合收益(558)1 — (557)
从其他综合收益重新分类至净利润— 16 — 16 
2024年9月30日($2,304)($477)$1 ($2,780)
(a)与未实现外币资本投资对冲相关的税费成本为$39百万美元和$85百万美元，分别为2024年9月30日和2023年。
(b)与养老金和其他退休后福利调整相关的税收优惠为$8 百万美元和美元47截至2024年和2023年9月30日的九个月，金额为百万。来自AOCL的重分类包括在净定期福利成本的计算中（见第10注，"养老金和其他退休后福利"）。
12.    金融工具、套期活动和公允价值计量
金融工具包括现金及现金等价物、短期投资、托管现金、可交易的股权证券、应收账款、公司持有的寿险保险、应付账款、短期和长期债务工具以及衍生工具。这些金融工具的公允值大致等同于其2024年9月30日和2023年12月31日的账面值总和，但不包括长期债务工具。
对冲活动
公司面临由于外汇汇率和利率变化带来的市场风险。因此，已使用包括衍生工具在内的金融工具来对冲部分这些基本经济风险。其中某些工具可能会在满足必要条件后符合公允价值、现金流和净投资对冲的资格，包括抵消对冲或基础风险的有效性。不符合对冲会计资格的衍生工具的公允价值变动会在发生的期间计入所得税前的利润。
PPG的政策不允许投机性使用衍生金融工具。PPG与高信用质量的交易对手进行衍生金融工具交易，并在这些交易对手之间分散其头寸，以降低其信用损失的风险。公司在截至2024年和2023年9月30日的三个月和九个月期间，没有在衍生品上实现信用损失。
PPG所有未偿还的衍生工具在PPG未能履行其债务或支付义务时将面临加速结算。如果公司被收购，而收购方不承担其衍生工具合同安排下的支付义务，或者如果PPG进入破产、接管或重组程序，其未偿还的衍生工具也将面临加速结算。
在截至2024年9月30日和2023年的三个月和九个月期间，没有任何衍生工具被取消指定或停止作为避险工具，也没有在累积其他综合损失中推迟的收益或损失，在截至2024年9月30日和2023年的九个月期间重分类至损益前所得税在损益表中与不再预期发生的预期交易的对冲相关。
公允价值套期保值
公司不时使用利率期货来管理其对不断变化的利率的敞口。在未清盘时，利率期货通常被指定为公司某些未清偿债务义务的公允价值套期保值工具，并按公允价值计入。
PPG拥有利率互换，将固定利率债务转换为变动利率债务d $375百万 o2024年9月30日和2023年12月31日这些互换被指定为公允价值套期保值，并账列
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目录
公允价值。这些掉期的公允价值变动以及相关债务的公允价值变动被记录在随附的简明合并收益表中的利息费用中。这些利率掉期的公允价值为负债。 的 $8百万 和$14百万，分别是2024年9月30日和2023年12月31日。
。
PPG有时将特定的外币远期合约指定为公司在第三方交易中以外币计价的汇率波动敞口的现金流量套期工具。2023年和2022年七月未存在收入合同的改善成本。没有 2024年9月30日和2023年12月31日尚未解决的现金流量套期工具。
净投资套期保值
PPG使用跨货币互换和外币欧元债务对其在欧洲业务中的净投资的大部分进行对冲，具体如下：
PPG与欧元指数的美元交叉货币掉期合同的总名义金额为 的 $375 百万美元和美元475截至2024年9月30日和2023年12月31日为止，该金额为百万，并将这些合同指定为对公司在欧洲业务的净投资的对冲。在这些合同的有效期内，PPG将以美元收取付款，并向交易对手以欧元支付款项。截止2024年9月30日和2023年12月31日，美元对欧元指数交叉货币掉期合同的公允价值为净资产。的 $30百万 和 $33百万。
At 截至2024年9月30日和2023年12月31日，PPG已经 指定了 €3.2十亿 和 €3.0十亿，分别是 将欧元计价的借款作为其在公司欧洲业务的净投资的一部分的对冲。这些工具的账面价值为 $3.6私人股权和其他投资的金额分别为52.27亿美元和53.98亿美元，截至2023年7月31日和2023年1月31日。3.3截至2024年9月30日和2023年12月31日，分别为十亿。
其他金融工具
PPG使用外币远期合约来管理某些未选择或不符合套期会计资格的净交易敞口；因此，这些工具的公允价值变动记录在利润表中的其他收益/费用中。这些外币远期合约相关的基础名义金额分别为 $2.9十亿 和 $2.5十亿 在2024年9月30日和2023年12月31日，这些合约的公允价值为净负债 $21百万 截至2024年9月30日为负债净额，截至 $23百万 截至2023年12月31日。
累计其他综合损益中延后的收益/损失
下表总结了2024年9月30日和2023年9月30日止的九个月内，关于衍生和债务金融工具的其他综合收益（"OCI"）中推迟的盈利和亏损金额，以及在简明综合收入表内确认的盈利和亏损金额及其位置。所有金额均按税前基础显示。
2024年9月30日2023年9月30日浓缩合并损益表中的标题
($ in millions)在其他综合收益中递延的损失确认的收益/(损失)在其他综合收益中递延的收益确认的收益/(损失)
经济
   外汇远期合约
$— $38 $— $37 其他（收入）/费用，净额
公允价值
   利率掉期
— (8)— (7)利息支出
总远期合约和利率互换$— $30 $— $30 
净投资额
跨货币掉期($1)$7 $2 $10 利息支出
外币计价债务(33)— 48 — 
总净投资($34)$7 $50 $10 
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目录
公允价值衡量
公司遵循公允价值计量等级来衡量其资产和负债。截至2024年9月30日和2023年12月31日，按公允价值定期计量的资产和负债包括现金等价物、股权证券和衍生品。此外，公司还按公允价值计量其养老金计划资产（有关详细信息，请参见2023年10-k表格中第8项下的第14条“员工福利计划”）。公司的金融资产和负债是根据以下三个级别的输入进行计量的：
一级输入是指公司在计量日期能够获取的相同资产和负债的活跃市场报价。一级输入被认为是公允价值最可靠的证据，因为它们基于来自不同金融信息服务提供商和证券交易所的未经调整的市场报价。
二级输入是在活跃交易所非报价的直接或间接可观察价格，包括活跃市场中类似资产和负债的报价价格，在非活跃市场中为相同或类似资产或负债的报价价格，非报价价格以及可观察的资产或负债的输入，以及主要来源于或通过相关性或其他手段从可观察市场数据推导或证实的输入。衍生工具的公允价值反映了工具的合同条款，包括期限至到期日，并使用可观察的市场指数，包括远期曲线。
Level 3输入是用于衡量资产或负债公允价值的不可观察输入。截至2024年9月30日和2023年12月31日，公司未在其简明合并资产负债表中记录使用Level 3输入衡量的任何循环金融资产或负债。
资产和负债以公允价值定期报告
2024年9月30日2023年12月31日
($ in millions)第1级第2级第3级第1级第2级第3级
资产:
其他流动资产：
可变现股份$9 $— $— $9 $— $— 
外币远期合约 (a)
$— $9 $— $— $28 $— 
跨货币掉期 (b)
$— $— $— $— $2 $— 
投资:
可变现股份$87 $— $— $74 $— $— 
其他资产：
跨货币掉期 (b)
$— $30 $— $— $31 $— 
负债：
应付账款和应计费用:
外币远期合约 (a)
$— $30 $— $— $5 $— 
其他负债项：
利率掉期交易 (c)
$— $8 $— $— $14 $— 
(a)未被指定为避险工具的衍生品
(b)净投资套期保值
(c)公允价值对冲
长期债务
($ in millions)
2024年9月30日 (a)
2023年12月31日。(b)
开多期债务 - 账面价值$6,466 $6,042 
开多期债务 - 公允价值$6,339 $5,781 
(a)不包括融资租赁义务$8 百万和开空借款$3 百万。
(b)不包括$的融资租赁债务8 百万美元的短期借款4截至2023年12月31日，我们的数额为
债务工具的公允价值是使用Level 2的输入进行计量的，包括折现现金流和利率期货，这些利率期货目前对于公司剩余期限相同的工具是可用的。.
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目录
13.    按股票补偿计算的费用
公司的股权补偿包括期权、受限股票单位（"RSUs"）和以实现目标总股东回报（"TSR"）为基础获得的有条件股票授予。所有目前的期权、RSUs和有条件股票授予均在PPG Industries公司修订后的全面激励计划（"PPG修订全面激励计划"）下进行，该计划于2016年4月21日生效并进行了修订和重新表述。
三个月结束
9月30日		截至九个月
9月30日
($ in millions)2024202320242023
基于股票的薪酬费用$10 $8 $32 $42 
1,095.8 $3 $2 $7 $9 
截至2024年和2023年9月30日的九个月期间，基于股票的薪酬补助如下：
截至九个月
9月30日
20242023
股份公允价值股份公允价值
股票期权426,389 $43.83 410,001 $38.55 
限制性股票单位243,504 $135.61 289,573 $125.79 
有条件股份 (a)
51,543 $142.65 52,389 $129.03 
(a)有形股份的数量代表了奖励的目标价值。
股票期权通常在授予后的 月后可以行使，且最长期限为 年。股票期权的薪资费用在归属期内根据授予日的公允价值进行记录。 36 股票期权通常在授予后的 月后可以行使，且最长期限为 年。股票期权的薪资费用在归属期内根据授予日的公允价值进行记录。 10 股票期权通常在授予后的 月后可以行使，且最长期限为 年。股票期权的薪资费用在归属期内根据授予日的公允价值进行记录。 截至2024年9月30日的九个月内授予的股票期权的公允价值是依据以下加权平均假设计算的：
加权平均行权价格$142.65
无风险利率4.3 %
期权的预期寿命（以年为单位）6.5
预期股息收益率1.7 %
预期波动率28.4 %
无风险利率是通过使用授予日期的美国国债收益率曲线并采用等于期权预期寿命的到期时间来确定的。期权的预期寿命是根据会计指导中简化方法的规定，通过归纳合格期和最大期限的平均值计算得出的。预期的股息收益率和波动率则基于与期权预期寿命相等的历史股票价格和股息金额的数据。
基于时间的RSU通常在授予日期后的一段时间内解锁，并将在解锁期结束时由公司自行决定以股票、现金或两者的组合形式支付。 三年 基于绩效的RSU的解锁取决于实现特定的年度业绩目标，即调整后的每股收益增长和资本回报现金流量，期限为授予日期后的三个日历年度结束期。除非被取消，否则绩效为基础的RSU将由公司自行决定在绩效期结束时以股票、现金或两者的组合形式支付。 三年 如果PPG达到绩效目标，则绩效期结束时基于绩效的RSU将以股票、现金或两者的组合形式由公司自行决定支付。
股票单位的表现奖励股（RSUs）的归属支出金额可能会在区间内0%200% 的原始授予量，根据实现的调整后每股收益增长水平和年现金流回报率绩效目标达成的频率，在构成归属期的三个日历年期间。对每股收益增长和现金流回报率目标的绩效是每年计算一次，每个目标的年度支付在该期内等权重计算。 三年 期内行权。
公司还为选定的关键高管提供有条件股票授予，这些股票可以根据PPG的总回报率（TSR）在赠与日期后的 三年 期间获得。有条件股票授予（称为“TSR奖励”）每年进行，并在每个 三年 期间结束时，根据公司的股票
18
目录
绩效。绩效是通过确定PPG普通股的股东总回报百分位排名来衡量与S&P 500指数的TSR相对比。 三年 授予日期后的期间内，通过确定PPG普通股的股东总回报在其TSR与S&P 500指数之间的百分位排名来衡量。该比较组代表了整个S&P 500指数，即在绩效期间开始时存在的所有公司，不包括因不再公开交易而从指数中移除的任何公司。 三年 根据计划协议中规定的标准所实现的绩效来确定奖励期后的奖励。奖励的付款范围可能为初始授予的%，如果达到目标绩效，则获得%的支付。 0% 到 200初始授予的%。如果达到目标绩效，则获得%的支付。 100如果目标绩效达到，那么获得的%。有条件的股票奖励在奖励期间可以获得股利等值物，这些股利将支付给参与者或积入参与者的递延报酬计划帐户，奖励期结束时根据获得的有条件股票实际数目进行奖励支付。奖励期结束时的任何支付可能以股票、现金或二者的组合形式进行。 TSR奖励被分类为负债奖励，补偿费用将在 三年 根据奖励的公允价值确定奖励期限（考虑公司股东回报率的百分位排名），在每个报告期间重新计量直到奖励结算。
14.    承诺和有关方面的负债
PPG涉及多起诉讼和索赔，包括一些已对他人提起的诉讼，这些诉讼寻求大量的经济赔偿。这些诉讼和索赔可能涉及合同、专利、环保母基、产品责任、反垄断、就业以及与PPG当前和过去的业务活动相关的其他事务。就这些诉讼和索赔而言，涉及人身伤害、财产损失及某些其他索赔时，PPG认为其拥有足够的保险；然而，PPG的某些保险公司正在对某些索赔的保险范围提出异议，未来某些保险公司也可能对索赔的保险范围提出异议。PPG对他人的诉讼和索赔包括对保险公司及其他第三方的索赔，涉及与环保母基、石棉及其他事务相关的实际损失和或有损失。
任何当前或未来的诉讼和索赔的结果本质上是不可预测的。然而，管理层认为，从总体上看，涉及PPG的所有诉讼和索赔的结果不会对PPG的合并财务状况或流动性产生重大影响；然而，这种结果可能对任何特定期间的运营结果产生重大影响，尤其是当成本（如有）被确认时。
石棉事宜
截至2024年9月30日，公司已经知悉针对公司及其部分子公司的某些与石棉有关的索赔。公司正在积极地为这些与石棉有关的索赔进行辩护。与石棉有关的索赔包括针对公司提出的以下索赔：
•曝露于公司或其子公司制造、销售或分销的石棉或含石棉产品（“产品索赔”）;
•公司现在或曾经拥有、租赁或占用的场所因石棉引起的人身伤害索赔（“场所索赔”）；和
•针对公司在2013年收购的一家子公司的石棉相关索赔（“子公司索赔”）。
公司监视并审查与石棉索赔相关的活动，并定期评估其对这些索赔的估计负债以及所有基本假设，以确定是否需要调整这些索赔的准备金。此外，作为其定期监控和审查的补充，公司与律师进行讨论，并聘请估值顾问分析其索赔历史，估算公司对石棉相关索赔的潜在责任金额。截至2024年9月30日和2023年12月31日，公司的石棉相关准备金总计$46百万美元和$48百万，分别。
公司相信，根据目前可获得的信息，对于石棉相关索赔的总准备金$46百万将足以覆盖公司当前及可估计的未来潜在石棉责任。这些准备金已包含在公司资产负债表上的所有板块中，涉及重要的管理判断并代表公司对这些索赔责任的当前最佳估计。
由于石棉相关索赔保留金的性质存在许多不确定性，这些不确定性可能随时间变化，包括（i）提起的最终索赔数量；（ii）已封闭、驳回或休眠索赔是否重新提起、恢复或复活；（iii）解决当前已知和未来未知的索赔所需金额；（iv）可用于支付此类索赔的保险金额，如果有的话；（v）侵权系统的不可预测因素，包括法庭排期的变化以及预定进行审判的司法管辖区；（vi）任何审判的结果，包括可能的判决或陪审团裁决；（vii）在许多情况下缺乏具体信息。
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目录
公司可能要承担的责任相关的暴露，以及索赔方因这种暴露而导致的疾病；(viii) 适用的联邦和/或州侵权责任法可能发生的变化。所有这些因素可能会对未来的与石棉相关的责任估计产生重要影响。虽然公司的石棉诉讼的最终结果无法确定，但公司相信，任何因其与石棉相关的索赔而产生的财务风险不会对公司的合并财务状况、流动性或经营结果产生重大不利影响。
环境事务
据管理层看来，公司在环保母基方面运营良好，公司环保方面的不确定性结果不会对PPG的财务状况或流动性产生重大影响；但是，任何此类结果可能对任何特定期间的运营结果造成重大影响，如果发生费用的话。管理层预计公司环保方面的不确定性将在较长时期内解决。
随着在某些环保母基地点的修复工作进展，PPG继续细化其对预期未来修复项目成本估计的假设。PPG的持续评估可能导致额外的收入亏损，以调整这些地点的储备。在2024年和2023年，基于更新的估计，已记录某些费用以增加这些地点的现有储备。与环保母基修复行动相关的其他某些费用在发生时计入费用。
截至2024年9月30日和2023年12月31日，PPG公司因PPG公司位于新泽西州泽西市的前铬制造工厂、玻璃和化学制造工厂，以及其他环境应激情况，包括当前制造地点和国家优先名单网站，而设立了环保母基储备。这些储备列示为应付账款和应计负债，以及附注的简明综合资产负债表中的其他负债。
环境保护区
（以百万美元计）2024 年 9 月 30 日2023 年 12 月 31 日
新泽西镀铬$60 $53 
玻璃和化学品55 54 
其他116 120 
环境储量总量$231 $227 
当前部分$45 $52 
在附属的简明综合损益表中，环保母基净额中包括用于环境修复成本的税前费用。 截至2024年9月30日和2023年9月30日三个月和九个月结束的环境修复税前费用和现金支出如下所示：
三个月结束
9月30日		截至九个月
9月30日
($ in millions)2024202320242023
环保母基整治税前(收入)/费用，净额($1)$3 $23 $16 
环保母基活动现金支出$6 $12 $19 $28 
在2024年第二季度，公司确认了与一些遗留PPG制造场地有关的税前环保治理费用$20百万。这些旧环境治理费用主要与新泽西州铬场地的地下水治理和监测预期成本增加以及宾夕法尼亚州福特城固体废物处理区的治理设计变更有关。
整治措施：新泽西铬
2009年6月，PPG与新泽西州环保母基部(“NJDEP”)和新泽西州泽西市达成了一项和解协议（以部分同意判决的形式（"同意"））。根据该同意，PPG接受了对其在泽西市的前铬制造地点及周边多个地区的修复活动的唯一责任。新泽西铬场的修复要求PPG修复被六价铬污染的土壤和地下水，并执行其他一些环保母基修复活动。所有新泽西铬场修复成本估算的最重要假设与土壤中铬的浓度和分布范围有关。
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目录
PPG定期评估迄今为止发生的成本评估与当前进展以及最新信息的潜在成本影响，包括受影响的土壤和地下水范围，以及工程、行政和其他相关成本。根据这些评估，储备金相应地做出调整。截至 2024年9月30日和2023年未经审计的合并资产负债表上。在 2023年12月31日，PPG对所有新泽西铬污染地点的修复储备金分别为$60百万美元和$53百万美元。这一负债的主要成本元件与受影响土壤的挖掘以及地下水修复有关。这些元件分别占2024年9月30日累积金额的约 60%和 25%。
未来还有多个事件尚未发生，包括进一步的救济选择和设计、救济的实施和执行，以及适用的政府机构或社区组织的批准。关于新泽西Chrome站点未来这些事件的时间存在相当大的不确定性。预计这些事件将在未来几年内进一步得到解决。随着这些事件的发生，以及环保母基修复措施成本估算的变化，对这一环保母基修复事项的现有准备金将继续进行调整。
整治：玻璃、化学品及其他场地
在PPG正在管理环保母基责任的其他站点中，PPG正在俄亥俄州巴伯顿的一个化学制造工厂进行整治行动，PPG已根据美国环保局的资源保护和回收法实施了设施调查和改正措施研究。PPG还在印第安纳州科科莫的一个传统玻璃制造工厂遗留的影响进行处理，采取了印第安纳环保管理局自愿整治计划，以及在宾夕法尼亚州福特城附近的一个与传统玻璃制造工厂有关的场地，根据宾夕法尼亚环境保护部的宾夕法尼亚土地回收计划监督。PPG目前正在这些地点进行额外的调查和整治活动。
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.
15.    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.
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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 and nine months ended September 30, 2024 and 2023, service revenue constituted less than 5% of total revenue.
Net sales by segment and region for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended
September 30		Nine Months Ended
September 30
($ in millions)2024202320242023
Performance Coatings
United States and Canada$1,342 $1,287 $3,868 $3,807 
Europe, Middle East and Africa ("EMEA")955 932 2,820 2,822 
Asia Pacific287 274 817 821 
Latin America337 387 1,078 1,099 
Total$2,921 $2,880 $8,583 $8,549 
Industrial Coatings
United States and Canada$587 $654 $1,842 $1,969 
EMEA411 461 1,359 1,519 
Asia Pacific464 459 1,324 1,295 
Latin America192 190 572 564 
Total$1,654 $1,764 $5,097 $5,347 
Total Net Sales
United States and Canada$1,929 $1,941 $5,710 $5,776 
EMEA1,366 1,393 4,179 4,341 
Asia Pacific751 733 2,141 2,116 
Latin America529 577 1,650 1,663 
Total PPG$4,575 $4,644 $13,680 $13,896 
Allowance for Doubtful Accounts
All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators, including, but not limited to, regional business environment risk, political risk, and commercial and financing risks.
PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions.
The following table summarizes the activity for the allowance for doubtful accounts for the nine months ended September 30, 2024 and 2023:
Trade Receivables Allowance for Doubtful Accounts
($ in millions)20242023
January 1$25 $31 
Bad debt expense12 10 
Write-offs and recoveries of previously reserved trade receivables(9)(15)
Other— (3)
September 30$28 $23 
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16.    Reportable Business Segment Information
PPG is a multinational manufacturer with 10 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution.
The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, architectural coatings – Americas and Asia Pacific, architectural coatings – EMEA, protective and marine coatings and traffic solutions operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings, adhesives, sealants and finishes, along with paint strippers, stains and related chemicals, pavement marking products, transparencies and transparent armor and paint films.
The Industrial Coatings reportable business segment is comprised of the automotive original equipment manufacturer ("OEM") coatings, industrial coatings, packaging coatings and specialty coatings and materials operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings and finishes along with adhesives, sealants, metal pretreatment products, optical monomers and coatings, low-friction coatings, paint films, precipitated silicas and other specialty materials.
Reportable business segment net sales and segment income for the three and nine months ended September 30, 2024 and 2023 were as follows: 
Three Months Ended
September 30		Nine Months Ended
September 30
($ in millions)2024202320242023
Net sales:
Performance Coatings$2,921 $2,880 $8,583 $8,549 
Industrial Coatings1,654 1,764 5,097 5,347 
Total $4,575 $4,644 $13,680 $13,896 
Segment income:
Performance Coatings$513 $452 $1,485 $1,384 
Industrial Coatings199 246 707 736 
Total$712 $698 $2,192 $2,120 
Corporate unallocated(72)(88)(224)(240)
Interest expense, net of interest income(19)(25)(49)(94)
Business restructuring-related costs, net (a)
— (13)(15)(27)
Portfolio optimization (b)
(10)(15)(42)(22)
Legacy environmental remediation charges(c)
— — (20)— 
Pension settlement charge (d)
— — — (190)
Insurance recovery (e)
— — — 9 
Income before income taxes$611 $557 $1,842 $1,556 
(a)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other (income)/charges, net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed 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 condensed consolidated statement of income.
(b)Portfolio optimization includes losses on the sale of non-core assets, including the loss recognized in the second quarter 2024 on the sale of the Company's traffic solutions business in Argentina and the loss recognized in the third quarter 2023 on the sale of the Company's legacy industrial Russian operations, which are included in Other (income)/charges, net in the condensed consolidated statement of income. Portfolio optimization also 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 condensed consolidated statement of income. In 2023, net loss of $2 million was attributable to noncontrolling interests.
(c)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the condensed consolidated statement of income.
(d)In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in the U.S. to third-party insurance companies, resulting in a non-cash pension settlement charge.
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(e)In the first quarter 2023, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2020.
17.    Supplier Finance Programs
PPG has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. PPG’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms PPG negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. These amounts are included within Accounts payable and accrued liabilities on the accompanying condensed consolidated balance sheet.
The rollforward of outstanding obligations confirmed as valid under the supplier finance programs for the nine months ended September 30, 2024 is as follows:
($ in millions)2024
January 1$301 
Invoices confirmed 504 
Confirmed invoices paid (558)
Currency impact 57 
September 30 $304 
18.    Subsequent Events
Divestitures
On October 17, 2024, PPG announced that it had entered into a definitive agreement to sell 100% of its architectural coatings business in the U.S. and Canada at a transaction value of approximately $550 million to American Industrial Partners (AIP), an industrials investor. Net cash paid to PPG at closing will include customary adjustments for working capital and net debt. The transaction, which is expected to close in late 2024 or early 2025, subject to customary closing conditions, is the result of PPG’s evaluation of strategic alternatives for the business, which was first announced on February 26, 2024.
In 2023, net sales of the U.S. and Canada architectural coatings business were approximately $2.0 billion. The company expects to record a loss in the fourth quarter 2024 related to the sale of the business of approximately $300 million pre-tax, including the recognition of accumulated foreign currency losses and the impairment of goodwill. The assets and liabilities of the U.S. and Canada architectural coatings business were classified as held and used as of September 30, 2024.
Business Restructuring
On October 16, 2024, the Company approved a comprehensive cost reduction program with anticipated annualized pre-tax savings of approximately $175 million once fully implemented, including savings of $60 million in 2025. The multi-year program is focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the two recently announced agreements to sell PPG’s silicas products business and the architectural coatings business in the U.S. and Canada. The program includes various facility closures and other targeted fixed cost reductions. The Company expects to record a pretax restructuring charge of approximately $250 million, based on current exchange rates, in PPG’s fourth quarter 2024 financial results. This charge represents employee severance and other cash costs. As a result of this program, the Company also expects to recognize a $120 million non-cash charge due to the recognition of accumulated currency losses related to the exit of certain international operations and to incur approximately $100 million of incremental non-cash accelerated depreciation expense over the life of the program for certain assets due to their reduced expected asset life. In addition, the Company expects to incur other cash costs of approximately $70 million over the duration of this program, consisting of incremental restructuring-related cash costs for certain items that are required to be recognized as period expense as incurred. The restructuring actions will result in the net reduction of approximately 1,800 positions, primarily in Europe and the U.S.


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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and the notes thereto included in the condensed consolidated financial statements in Part I, Item 1, “Financial Statements,” of this report and in conjunction with the 2023 Form 10-K.
Highlights
Net sales were approximately $4.6 billion for the three months ended September 30, 2024, a decrease of 1.5% compared to the prior year, primarily due to the unfavorable impact of foreign currency translation and the divestitures of the non-North American portion of the traffic solutions business.
Income before income taxes was $611 million for the three months ended September 30, 2024, an increase of $54 million compared to the prior year. This increase was primarily due to improved manufacturing productivity, certain reductions in overhead, and lower depreciation, amortization and net interest costs, partially offset by wage and benefits inflation.
Results of Operations
Three Months Ended
September 30		Percent ChangeNine Months Ended
September 30		Percent Change
($ in millions, except percentages)202420232024 vs. 2023202420232024 vs. 2023
Net sales$4,575 $4,644 (1.5)%$13,680 $13,896 (1.6)%
Cost of sales, exclusive of depreciation and amortization$2,663 $2,752 (3.2)%$7,842 $8,214 (4.5)%
Selling, general and administrative$1,062 $1,047 1.4 %$3,203 $3,108 3.1 %
Depreciation$97 $102 (4.9)%$298 $287 3.8 %
Amortization$32 $40 (20.0)%$106 $121 (12.4)%
Research and development, net$105 $108 (2.8)%$325 $322 0.9 %
Interest expense$67 $64 4.7 %$184 $190 (3.2)%
Interest income($48)($39)23.1 %($135)($96)40.6 %
Pension settlement charge$— $— — %$— $190 (100.0)%
Other (income)/charges, net($14)$13 (207.7)%$15 $4 275.0 %
Net Sales by Region
Three Months Ended
September 30		Percent ChangeNine Months Ended
September 30		Percent Change
($ in millions, except percentages)202420232024 vs. 2023202420232024 vs. 2023
United States and Canada$1,929 $1,941 (0.6)%$5,710 $5,776 (1.1)%
EMEA1,366 1,393 (1.9)%4,179 4,341 (3.7)%
Asia Pacific751 733 2.5 %2,141 2,116 1.2 %
Latin America529 577 (8.3)%1,650 1,663 (0.8)%
Total$4,575 $4,644 (1.5)%$13,680 $13,896 (1.6)%
Three Months Ended September 30, 2024
Net sales decreased $69 million due to the following:
● Unfavorable foreign currency translation and divestiture-related sales (-1%)
For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.
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Cost of sales, exclusive of depreciation and amortization, decreased $89 million primarily due to improved manufacturing productivity.
Selling, general and administrative expense increased $15 million primarily due to wage and benefits inflation partially offset by certain overhead reductions.
Interest expense increased $3 million primarily due to higher interest rates. Interest income increased $9 million primarily due to higher interest rates.
Other (income)/charges, net increased by $27 million of income primarily due to the absence of a loss on the third quarter 2023 sale of the Company's legacy Russian industrial operations and an increase in realized foreign currency gains.
Nine Months Ended September 30, 2024
Net sales decreased $216 million due to the following:
● Lower sales volumes (-1%)
● Unfavorable foreign currency translation and divestiture-related sales (-1%)
For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.
Cost of sales, exclusive of depreciation and amortization, decreased $372 million primarily due to moderating raw material costs during the first six months of 2024 and lower sales volumes.
Selling, general and administrative expense increased $95 million primarily due to wage and benefits inflation and growth-related investments.
Depreciation expense increased $11 million primarily due to higher capital expenditures in recent periods.
Interest expense decreased $6 million primarily due to lower debt balances. Interest income increased $39 million primarily due to higher interest rates and higher intra-quarter cash and cash equivalents balances during the period.
A pension settlement charge of $190 million was recorded in the first quarter 2023 associated with the Company's purchase of group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in the U.S. to third-party insurance companies. Refer to Note 10, "Pensions and Other Postretirement Benefits" in Part I, Item 1 of this Form 10-Q for additional information.
Other (income)/charges, net increased by $11 million of charges primarily due to a non-cash loss on the second quarter 2024 sale of the Argentina portion of the traffic solutions business and the absence of a first quarter 2023 insurance recovery related to hurricane damage at a southern U.S. factory, partially offset by the absence of a loss on the third quarter 2023 sale of the Company's legacy Russian industrial operations and an increase in realized foreign currency gains.
Effective Tax Rate and Earnings Per Diluted Share
Three Months Ended
September 30		Percent ChangeNine Months Ended
September 30		Percent Change
($ in millions, except percentages and amounts per share)202420232024 vs. 2023202420232024 vs. 2023
Income tax expense$137 $121 13.2 %$422 $350 20.6 %
Effective tax rate22.4 %21.7 %0.7 %22.9 %22.5 %0.4 %
Adjusted effective tax rate, continuing operations*22.5 %19.5 %3.0 %23.2 %22.0 %1.2 %
Earnings per diluted share, continuing operations$2.00 $1.79 11.7 %$5.93 $4.97 19.3 %
Adjusted earnings per diluted share*$2.13 $2.07 2.9 %$6.49 $6.15 5.5 %
*See Regulation G Reconciliation below
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Adjusted earnings per diluted share for the three months ended September 30, 2024 increased year-over-year primarily due to improved manufacturing productivity and certain reductions in overhead, partially offset by wage and benefits inflation.
Adjusted earnings per diluted share for the nine months ended September 30, 2024 increased year-over-year primarily due to moderating raw material costs during the first six months of 2024, partially offset by wage and benefits inflation.
Regulation G Reconciliations - Results from Operations
PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, PPG’s effective tax rate and segment income adjusted for certain items. PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate and segment income adjusted for these items are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share and the adjusted effective tax rate may not be comparable to similarly titled measures as reported by other companies.
Income before income taxes from continuing operations is reconciled to adjusted income before income taxes from continuing operations, the effective tax rate from continuing operations is reconciled to the adjusted effective tax rate from continuing operations and net income from continuing operations (attributable to PPG) and earnings per share – assuming dilution (attributable to PPG) are reconciled to adjusted net income from continuing operations (attributable to PPG) and adjusted earnings per share – assuming dilution below.
Three Months Ended September 30, 2024
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income (attributable to PPG)
Earnings Per Diluted Share(a)
As reported, continuing operations$611 $137 22.4 %$468 $2.00 
Adjusted for:
Acquisition-related amortization expense32 8 24.4 %24 0.10 
Portfolio optimization(b)
10 2 24.3 %8 0.03 
Adjusted, continuing operations, excluding certain items$653 $147 22.5 %$500 $2.13 
Three Months Ended September 30, 2023
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income (attributable to PPG)
Earnings Per Diluted Share(a)
As reported, continuing operations$557 $121 21.7 %$426 $1.79 
Adjusted for:
Acquisition-related amortization expense40 10 23.9 %30 0.13 
Portfolio optimization(b)
15 (12)(77.2)%27 0.11 
Business restructuring-related costs, net(c)
13 3 22.9 %10 0.04 
Adjusted, continuing operations, excluding certain items$625 $122 19.5 %$493 $2.07 
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Nine Months Ended September 30, 2024
($ in millions, except percentages and per share amounts)Income Before Income TaxesTax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted share(a)
As reported, continuing operations$1,842 $422 22.9 %$1,396 $5.93 
Adjusted for:
Acquisition-related amortization expense106 26 24.5 %80 0.33 
Portfolio optimization(b)
42 12 28.6 %30 0.13 
Business restructuring-related costs, net(c)
15 5 32.5 %10 0.04 
Legacy environmental remediation charges(d)
20 5 24.3 %15 0.06 
Adjusted, continuing operations, excluding certain items$2,025 $470 23.2 %$1,531 $6.49 
Nine Months Ended September 30, 2023
($ in millions, except percentages and per share amounts)Income Before Income TaxesTax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted share(a)
As reported, continuing operations$1,556 $350 22.5 %$1,180 $4.97 
Adjusted for:
Pension settlement charge (e)
190 46 24.2 %144 0.61 
Acquisition-related amortization expense121 30 24.3 %91 0.39 
Business restructuring-related costs, net (c)
27 6 23.5 %21 0.09 
Portfolio optimization(b)
22 (10)(45.2)%30 0.12 
Insurance recovery of expenses incurred due to a natural disaster (f)
(9)(2)24.3 %(7)(0.03)
Adjusted, continuing operations, excluding certain items$1,907 $420 22.0 %$1,459 $6.15 
(a)Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.
(b)Portfolio optimization includes losses on the sale of non-core assets, including the loss recognized in the second quarter 2024 on the sale of the Company's traffic solutions business in Argentina and the loss recognized in the third quarter 2023 on the sale of the Company's legacy industrial Russian operations, which are included in Other (income)/charges, net in the condensed consolidated statement of income. Portfolio optimization also 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 condensed consolidated statement of income. In 2023, net loss of $2 million was attributable to noncontrolling interests.
(c)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other (income)/charges, net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed 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 condensed consolidated statement of income.
(d)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 condensed consolidated statement of income.
(e)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.
(f)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.

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Performance of Reportable Business Segments
Performance Coatings
Three Months Ended
September 30		$ Change% ChangeNine Months Ended
September 30		$ Change% Change
($ in millions, except percentages)202420232024 vs. 20232024 vs. 2023202420232024 vs. 20232024 vs. 2023
Net sales$2,921 $2,880 $41 1.4 %$8,583 $8,549 $34 0.4 %
Segment income$513 $452 $61 13.5 %$1,485 $1,384 $101 7.3 %
Amortization expense $22 $28 ($6)(21.4)%$74 $87 ($13)(14.9)%
Segment income, excluding amortization expense $535 $480 $55 11.5 %$1,559 $1,471 $88 6.0 %
Three Months Ended September 30, 2024
Performance Coatings net sales increased due to the following:
● Higher sales volumes (+2%)
● Higher selling prices (+1%)
Offset by:
● Unfavorable foreign currency translation (-1%)
● Divestiture-related sales (-1%)
Architectural coatings - Americas and Asia Pacific net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") increased a low single-digit percentage compared to the prior-year third quarter driven by increased sales volumes in the U.S. and Canada coupled with higher prices. In the U.S. and Canada, growth initiatives through our partnership with The Home Depot® drove higher professional contractor sales volumes. In Mexico, the business benefited from our strong concessionaire network.
Architectural coatings – EMEA organic sales were flat year over year, as higher prices were offset by lower sales volumes. Consumer confidence remained weak during the quarter, and regional demand was uneven by country. Sales volumes were strong in central and eastern Europe offset by lower sales volumes in western Europe.
Automotive refinish coatings organic sales increased by a mid-single-digit percentage versus the prior year. In the U.S., sales volumes were higher compared to prior-year results even with lower industry-wide insurance claims. In Europe, organic sales increased year over year driven by price, and demand improved slightly in Latin America. In China, demand for refinish products is recovering and is expected to improve in the coming quarters.
Aerospace coatings organic sales increased by a double-digit percentage compared to the third quarter 2023, led by higher selling prices and sales volume. Demand remained strong as customer order backlogs are at similar levels to the prior quarter. Global air travel has improved year over year but remains about 3% below pre-pandemic levels for both domestic and international flights. The company remains focused on debottlenecking and expanding manufacturing capabilities to drive volume and earnings growth.
Protective and marine coatings organic sales increased by a low single-digit percentage compared to the prior-year third quarter driven by higher sales volumes in Europe and the Asia Pacific region partially offset by lower sales volumes in the United States. The third quarter was the sixth consecutive quarter with positive year-over-year sales volume growth. In Europe and the Asia Pacific region, increased sales volumes were driven by share gains in marine maintenance and repair, reflecting demand for PPG's sustainably advantaged products.
Traffic solutions organic sales increased by a low single-digit percentage compared with the prior-year third quarter primarily due to increased sales volumes offset by lower prices. Seasonally, second and third quarter sales in the traffic solutions business are typically more than twice the sales in the first and fourth quarter due to the difficulty of applying traffic markings in colder temperatures.
Segment income was $513 million, an increase of 13% versus the prior year, primarily due to higher sales volumes and selling prices, partially offset by wage inflation.
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Nine Months Ended September 30, 2024
Performance Coatings net sales were flat due to the following:
● Higher selling prices (+1%)
Partially offset by:
● Lower sales volumes and divestiture-related sales (-1%)
Architectural coatings - Americas and Asia Pacific organic sales were flat year-over-year with slightly higher selling prices offset by slightly lower sales volumes.
Architectural coatings – EMEA organic sales decreased by a low single-digit percentage year over year driven by lower sales volumes. Regional demand was uneven by country, with strong sales volumes in central and eastern Europe offset by lower sales volumes in western Europe.
Automotive refinish coatings organic sales were flat year over year as selling price increases offset lower sales volumes.
Aerospace coatings sales volumes increased by a high single-digit percentage as demand was strong in all regions. Sales also increased due to the benefit of higher selling prices.
Protective and marine coatings organic sales increased by a low single-digit percentage primarily due to strong demand in Europe and the Asia Pacific region.
Traffic solutions organic sales were flat as higher sales volumes in the U.S. were offset by lower selling prices.
Segment income increased $101 million year over year primarily due to higher selling prices, lower manufacturing costs and moderating raw material costs during the first six months of 2024, which more than offset wage and benefits inflation and higher growth-related spending.
Looking Ahead
In the fourth quarter, we expect demand to continue to be strong in aerospace coatings and expect growth in automotive refinish coatings above industry rates. We expect that consumer demand will remain tepid in Europe. Our architectural coatings - Americas and Asia Pacific business is anticipated to benefit from growth initiatives with The Home Depot® and from our strong concessionaire network.
Industrial Coatings
Three Months Ended
September 30		$ Change% ChangeNine Months Ended
September 30		$ Change% Change
($ in millions, except percentages)202420232024 vs. 20232024 vs. 2023202420232024 vs. 20232024 vs. 2023
Net sales$1,654 $1,764 ($110)(6.2)%$5,097 $5,347 ($250)(4.7)%
Segment income$199 $246 ($47)(19.1)%$707 $736 ($29)(3.9)%
Amortization expense $10 $12 ($2)(16.7)%$30 $34 ($4)(11.8)%
Segment income, excluding amortization expense $209 $258 ($49)(19.0)%$737 $770 ($33)(4.3)%
Three Months Ended September 30, 2024
Industrial Coatings segment net sales decreased due to the following:
● Lower selling prices (-3%)
● Lower sales volumes (-3%)
Automotive OEM coatings organic sales decreased by a double-digit percentage compared to the third quarter 2023 driven by lower sales volumes and lower indexed-based selling prices for certain customer contracts. Overall global demand weakened in the third quarter. Sales volume declines in the U.S. and Europe were partially offset by sales volume increases in Latin America. In Western Europe and the U.S., automotive industry build rates were significantly lower than the third quarter 2023 with reduced demand and extended OEM downtime.
In the industrial coatings business, organic sales decreased by a mid-single-digit percentage compared to the prior year due to lower sales volumes and lower indexed-based prices. Overall, global industrial production remained
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sluggish, especially in Europe and the U.S. Sales volume declines in those regions more than offset strong growth in the Asia Pacific and Latin America regions.
Packaging coatings organic sales increased by a low single-digit percentage compared to the prior year with higher sales volumes partially offset by lower, index-driven prices. Global beverage demand remains strong, and PPG is well positioned to support the growth.
Specialty coatings and materials organic sales increased by a low single-digit percentage due to higher sales volumes partially offset by lower selling prices.
Segment income decreased $47 million year over year primarily due to lower index-based pricing, lower sales volumes and wage and benefits inflation, partially offset by lower overhead costs.
Nine Months Ended September 30, 2024
Industrial Coatings segment net sales decreased due to the following:
● Lower selling price (-3%)
● Lower sales volumes (-1%)
● Unfavorable foreign currency translation (-1%)
Automotive OEM coatings organic sales decreased by a high single-digit percentage year over year driven by lower sales volumes and lower index-based selling prices for certain customer contracts. Sales volume increases in the Asia Pacific and Latin America regions were more than offset by declines in Europe and the U.S.
In the industrial coatings business, organic sales decreased by a mid-single-digit percentage year over year driven by lower sales volumes and indexed-based prices. Softening global industrial demand resulted in lower sales volumes in all regions except Asia Pacific where sales volumes increased by a mid single-digit percentage.
Packaging coatings organic sales increased by a low single-digit percentage year over year as higher sales volumes were partially offset by lower selling prices in all regions.
Specialty coatings and materials organic sales increased by a mid-single-digit percentage primarily due to higher sales volumes, partially offset by the absence of European energy-related surcharge pricing in the prior year period.
Segment income decreased $29 million year over year primarily due to index-based selling price declines, partially offset by moderating raw material costs during the first six months of 2024.
Looking Ahead
In the fourth quarter, we expect both automotive production build rates and global industrial production to remain at low levels, especially in the U.S. and Europe. For the packaging coatings business, we expect continued strong growth in the Asia Pacific region.
Liquidity and Capital Resources
PPG had cash and short-term investments totaling $1.3 billion and $1.6 billion at September 30, 2024 and December 31, 2023, respectively.
The Company continues to believe that cash on hand and short-term investments, cash from operations and the Company's access to capital markets will be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans and contractual obligations.
Cash from operating activities
Cash from operating activities for the nine months ended September 30, 2024 and 2023 was $1,074 million and $1,513 million, respectively. The $439 million decrease in cash from operating activities was primarily due to unfavorable changes in working capital compared to the prior year.
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Operating Working Capital
Operating working capital is a subset of total working capital and represents (1) trade receivables – net of the allowance for doubtful accounts (2) FIFO inventories and (3) trade liabilities. We believe operating working capital represents the key components of working capital under the operating control of our businesses. A key metric we use to measure our working capital management is operating working capital as a percentage of sales (current quarter sales annualized).
($ in millions, except percentages)September 30, 2024December 31, 2023September 30, 2023
Trade receivables, net$3,223 $2,881 $3,213 
Inventories, FIFO2,498 2,376 2,479 
Trade creditors’ liabilities2,536 2,612 2,491 
Operating working capital$3,185 $2,645 $3,201 
Operating working capital as a % of sales17.4 %15.2 %17.2 %
Days sales outstanding59 55 57 
Environmental
Three Months Ended
September 30		Nine Months Ended
September 30
($ in millions)2024202320242023
Cash outlays for environmental remediation activities$6 $12 $19 $28 
($ in millions)Remainder of
2024		Annually
2025 - 2028
Projected future cash outlays for environmental remediation activities$10 - $30$20 - $75
Cash used for investing activities
Cash used for investing activities for the nine months ended September 30, 2024 and 2023 was $511 million and $399 million, respectively. The $112 million increase in cash used for investing activities was primarily due to higher capital expenditures compared to the prior year.
Total capital spending is expected to be approximately $650 million to $700 million in 2024 in support of future organic growth opportunities.
Cash used for financing activities
Cash used for financing activities for the nine months ended September 30, 2024 and 2023 was $617 million and $1,005 million, respectively. The $388 million decrease in cash used for financing activities was primarily due to higher net debt proceeds, partially offset by higher share repurchases compared to the prior year.
Credit Agreements
In April 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 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 terminates and all amounts outstanding are payable in April 2026. In April 2023, PPG borrowed €500 million under the Term Loan. In December 2023, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €250 million. In January 2024, PPG borrowed the additional €250 million.
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 above and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the
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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 was scheduled to mature and all outstanding borrowings were to be due and payable on the third anniversary of the date of the initial borrowing under the Agreement. In June 2021, PPG borrowed $700 million under Term Loan Credit Agreement to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. In December 2021, PPG borrowed an additional $700 million under the Term Loan Credit Agreement. In 2022 and 2023, PPG repaid $300 million and $1.1 billion, respectively, of the Term Loan Credit Agreement using cash on hand. The Term Loan Credit Agreement was fully repaid as of December 31, 2023.
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 remained unchanged. In July 2023, PPG amended and restated the Credit Agreement, extending the term through July 27, 2028. The amended and restated Credit Agreement provides for a $2.3 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 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 $408 million commercial paper borrowings outstanding as of September 30, 2024 and no commercial paper borrowings outstanding as of December 31, 2023.
The Term Loan and the Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan and the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of September 30, 2024, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 44%.
Other Debt Issued and Repaid
In August 2024, PPG's $300 million 2.4% notes matured, and the Company repaid this obligation using cash on hand.
In March 2023, PPG's $300 million 3.2% notes matured, and the Company repaid this obligation using cash on hand.
Other Liquidity Information
Restructuring
Aggregate restructuring savings were approximately $10 million in the third quarter 2024. Total restructuring savings are expected to be at least $35 million in 2024. In addition, the Company continues to review its cost structure to identify additional cost savings opportunities. Refer to Note 6, “Business Restructuring” in Part I, Item 1 of this Form 10-Q for further details on the Company's business restructuring programs. We expect cash outlays related to these actions in the range of $50 million to $60 million in 2024.
Global Silicas Business - Strategic Review
During the first quarter 2024, PPG announced that it would review strategic alternatives for its global silicas products business. During the third quarter 2024, PPG signed an agreement to sell its global silicas products business to QEMETICA S.A., a Warsaw, Poland-based, privately-held manufacturer of soda ash, silicates and other specialty chemicals for approximately $310 million in pre-tax proceeds. Refer to Note 3, "Divestitures" in Part I, Item 1 of this Form 10-Q for further detail related to this transaction.
United States and Canada Architectural Coatings Business - Strategic Review
During the first quarter 2024, PPG announced that it would review strategic alternatives for its architectural coatings U.S. and Canada business. On October 17, 2024, PPG announced that it had entered into a definitive agreement to sell 100% of its architectural coatings business in the U.S. and Canada at a transaction value of approximately $550 million to American Industrial Partners (AIP), an industrials investor. Refer to Note 18, "Subsequent Events" in Part I, Item 1 of this Form 10-Q for further detail related to this transaction.
Currency
Comparing spot exchange rates at September 30, 2024 and at December 31, 2023, the U.S. dollar strengthened against the currencies of many countries within the regions PPG operates, most notably the Mexican peso. As a result, consolidated net assets at September 30, 2024 decreased by $558 million compared to December 31, 2023.
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Comparing average exchange rates during the first nine months of 2024 to those of the first nine months of 2023, the U.S. dollar was relatively flat compared to the currencies of most countries where PPG operates. Changes in foreign exchange rates had an unfavorable impact on Income before income taxes for the nine months ended September 30, 2024 of $1 million from the translation of these foreign earnings into U.S. dollars.
New Accounting Standards
Refer to Note 2, “New Accounting Standards” in Part I, Item 1 of this Form 10-Q for further details on recently issued accounting guidance.
Commitments and Contingent Liabilities, including Environmental Matters
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. See Part II, Item 1, “Legal Proceedings” of this Form 10-Q and Note 14, “Commitments and Contingent Liabilities” in Part I, Item 1 of this Form 10-Q for a description of certain of these lawsuits.
As discussed in Part II, Item 1 and Note 14, although the result of any future litigation of such lawsuits and claims is inherently unpredictable, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG, including asbestos-related claims, will not have a material effect on PPG’s consolidated 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.
As also discussed in Note 14, PPG has significant reserves for environmental contingencies. Refer to the Environmental Matters section of Note 14 for details of these reserves. It is PPG’s policy to accrue expenses for contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. 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.
Critical Accounting Estimates
Management has evaluated the accounting policies used in the preparation of the financial statements and related notes presented in this Form 10-Q and believes those policies to be reasonable and appropriate. We believe that the most critical accounting estimates made in the preparation of our financial statements are those related to accounting for contingencies, under which we accrue a loss when it is probable that a liability has been incurred and the amount can be reasonably estimated, and to accounting for pensions, other postretirement benefits, business combinations, goodwill and other identifiable intangible assets with indefinite lives because of the importance of management judgment in making the estimates necessary to apply these policies.
For a comprehensive discussion of the Company’s critical accounting estimates, see Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2023 Form 10-K. There were no material changes in the Company’s critical accounting estimates from the 2023 Form 10-K.
Forward-Looking Statements
Management’s Discussion and Analysis and other sections of this Quarterly Report contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” "looking ahead" and other expressions that indicate future events and trends. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports to the Securities and Exchange Commission ("SEC"). Also, note the following cautionary statements.
Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include statements related to the global economic conditions, geopolitical issues in Europe, effects on our business of COVID-19, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, the ability to recover margins, customer inventory levels, PPG inventory levels, our ability to maintain favorable supplier
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relationships and arrangements, the cost reduction program, including the timing and amounts of the expected future restructuring charges, accelerated depreciation, and cash costs and the timing and realization of anticipated cost savings from restructuring actions, the ability to identify additional cost savings opportunities, the timing and expected benefits of our acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, the amount of future share repurchases, economic and political conditions in the markets we serve, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, the unpredictability of existing and possible future litigation, including asbestos litigation, and government investigations. However, it is not possible to predict or identify all such factors.
Consequently, while the list of factors presented here and in the 2023 Form 10-K under Item 1A is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
Consequences of material differences in the results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or income, business disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in Item 1A of the 2023 Form 10-K and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Foreign Currency Risk
We conduct operations in many countries around the world. Our results of operations are subject to both currency transaction risk and currency translation risk. Certain foreign currency forward contracts outstanding during 2024 and 2023 served as a hedge of a portion of PPG’s exposure to foreign currency transaction risk. The fair value of these contracts was a net liability of $21 million and a net asset of $23 million as of September 30, 2024 and December 31, 2023, respectively. The potential reduction in PPG's Income before income taxes resulting from the impact of adverse changes in exchange rates on the fair value of its outstanding foreign currency hedge contracts of 10% for European and Canadian currencies and 20% for Asian and Latin American currencies was $446 million for the nine months ended September 30, 2024 and $402 million for the year ended December 31, 2023.
PPG had U.S. dollar to euro cross currency swap contracts with a total notional amount of $375 million and $475 million as of September 30, 2024 and December 31, 2023, respectively. The fair value of these contracts were net assets of $30 million and $33 million as of September 30, 2024 and December 31, 2023, respectively. A 10% increase in the value of the euro to the U.S. dollar would have had an unfavorable effect on the fair value of these swap contracts by reducing the value of these instruments by $38 million and $46 million at September 30, 2024 and December 31, 2023, respectively.
As of September 30, 2024 and December 31, 2023, PPG had non-U.S. dollar denominated borrowings outstanding of $3.6 billion and $3.3 billion, respectively. A weakening of the U.S. dollar by 10% against European currencies and by 20% against Asian and South American currencies would have resulted in unrealized translation losses on these borrowings of $396 million at September 30, 2024 and $363 million at December 31, 2023.
Interest Rate Risk
The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to minimize its interest costs. PPG has interest rate swaps which converted $375 million of fixed rate debt to variable rate debt as of both September 30, 2024 and December 31, 2023. The fair values of these contracts were a liability of $8 million and $14 million as of September 30, 2024 and December 31, 2023, respectively. An increase in variable interest rates of 10% would have lowered the fair values of these swaps and increased annual interest expense by $4 million and $5 million for the periods ended September 30, 2024 and December 31, 2023, respectively. Considering the debt balance outstanding at September 30, 2024 and December 31, 2023, a 10% increase in interest rates in the U.S., Canada, Mexico and Europe and a 20% increase in interest rates in Asia and South America would have increased annual interest expense associated with PPG's variable rate debt obligations by $5 million and by $2 million, respectively. Further a 10% reduction in interest rates would have increased the fair value of the Company's fixed rate debt by approximately $79 million and $96 million at September 30, 2024 and December 31, 2023, respectively; however, such changes would not have had an effect on PPG's Income before income taxes or cash flows.
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There were no other material changes in the Company’s exposure to market risk from December 31, 2023 to September 30, 2024. Refer to Note 12, “Financial Instruments, Hedging Activities and Fair Value Measurements” in Part I, Item 1 of this Form 10-Q for a description of our instruments subject to market risk.
Item 4. Controls and Procedures
a. Evaluation of disclosure controls and procedures. Based on their evaluation as of the end of the period covered by this Form 10-Q, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.
b. Changes in internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
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, asbestos exposure, antitrust, employment, securities and other matters arising out of the conduct of PPG’s current and past business activities. To the extent 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 certain insurers may contest coverage with respect to 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.
From the late 1880’s until the early 1970’s, PPG owned property located in Cadogan and North Buffalo Townships, Pennsylvania which was used for the disposal of solid waste from PPG’s former glass manufacturing facility in Ford City, Pennsylvania. In October 2018, the Pennsylvania Department of Environmental Protection (the “DEP”) approved PPG’s cleanup plan for the Cadogan Property. In April 2019, PPG and the DEP entered into a consent order and agreement (“CO&A”) which incorporated PPG’s approved cleanup plan and a draft final permit for the collection and discharge of seeps emanating from the former disposal area. The CO&A includes a civil penalty of $1.2 million for alleged past unauthorized discharges. PPG’s former disposal area is also the subject of a citizens’ suit filed by the Sierra Club and PennEnvironment seeking remedial measures beyond the measures specified in PPG’s approved cleanup plan, a civil penalty in addition to the penalty included in the CO&A and plaintiffs’ attorneys fees. PPG and the plaintiffs settled plaintiffs’ claims for injunctive relief and PPG agreed to enhancements to the DEP approved cleanup plan and a $250,000 donation to a Pennsylvania nonprofit organization. This settlement has been memorialized by an amendment to the CO&A which was appended to a Consent Agreement between PPG and the plaintiffs which has been entered by the federal court. The remaining claims in the case for attorneys’ fees and a civil penalty are not affected by this settlement. A trial on the issue of a civil penalty under the Clean Water Act was held in June 2024. Following the trial, the Judge indicated that they will circulate a schedule for the submission of post-trial briefs. The Judge also indicated that they intend to appoint a Special Master to review the parties' positions on plaintiffs' fees. PPG believes that the remaining claims are without merit and intends to defend itself against these claims vigorously.
In 2006, a lawsuit was filed against PPG in a local court in Manaus, Brazil, captioned Di Gregório Navegação LTDA v. PPG Industries, Inc., Case No. 0644620-62.2020.8.04.0001 (“Di Gregório”) arising from a November 1998 fire on board a cargo ship off the coast of Brazil. The plaintiff was a charterer of the ship and brought claims for various alleged damages. The ship was transporting, among other cargo, products from PPG’s former commodity chemicals business. The Di Gregório litigation remained pending as of July 18, 2012 when PPG separated the assets and liabilities related to its former commodity chemicals business into a newly formed subsidiary structure, of which Eagle Spinco Inc. (“Eagle Spinco”) was the parent company. Axiall Corporation (“Axiall”) in 2013 acquired Eagle Spinco (including its subsidiaries) through a merger. In 2016, Westlake Corporation acquired Axiall through a merger (including Eagle Spinco and its subsidiaries) and succeeded to Eagle Spinco’s rights and obligations under
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the original 2012 Separation Agreement between PPG and Eagle Spinco. For convenience, Westlake Corporation, Axiall, and Eagle Spinco collectively are referred to as “Westlake.”
Under the 2012 Separation Agreement, Eagle Spinco entities assumed the specifically scheduled Di Gregório liability, and Eagle Spinco was required to remove PPG as an obligor for the Di Gregório liability. To the extent Eagle Spinco cannot or will not remove PPG as an obligor, the Separation Agreement provides that Eagle Spinco and Axiall must act as agents or subcontractors of PPG and pay any liability in the matter on PPG’s behalf. The Separation Agreement also provides PPG with uncapped rights of indemnification for any damages PPG incurs arising from the Di Gregório litigation and for any failure by Eagle Spinco related entities (now Westlake through its acquisition of Axiall) to satisfy its contractual obligations.
Since 2013, Westlake exclusively has controlled and continues to control the defense of the Di Gregório litigation. Nevertheless, PPG recently learned that Westlake failed ever to substitute itself into the case in place of PPG, remove PPG as the obligor, or otherwise inform the Brazilian court that it is the party in interest that assumed all liability for the matter. On May 30, 2024, Westlake informed PPG that the Brazilian court entered a May 21, 2024 award of more than $700 million, including compound prejudgment interest, fees and costs, against “PPG Industries, Inc.” as the originally named (albeit nominal) defendant in the case. More recently, Westlake informed PPG that it believes simple prejudgment interest applies to the judgment which would result in the award being less than $350 million. Westlake also informed PPG that while it will continue to defend the case and pursue an appeal of the award, it would not post any bond, pay any judgment, or take any steps to prevent the plaintiff from attempting to execute on the judgment against PPG.
On May 17, 2024, Eagle Spinco filed a lawsuit against PPG in Delaware Superior Court alleging breach of the Separation Agreement and requesting declaratory relief (the “Eagle Spinco Lawsuit”). In its lawsuit, Eagle Spinco sought to have the Di Gregório liability determined to be one in which its obligation is only to indemnify PPG for any damages it incurs in the case, net of any insurance coverage available from PPG’s insurers, rather than stand in the shoes of PPG in the first instance and respect the obligation as an assumed liability under the Separation Agreement for which it did not purchase the rights to PPG’s insurance assets.
Because the Di Gregório liability was a specifically scheduled assumed liability under the Separation Agreement and given that Westlake failed to remove PPG as the obligor, PPG separately filed a lawsuit against Westlake on June 13, 2024 in the Court of Chancery in Delaware (the “PPG Lawsuit”), asserting claims for specific performance, declaratory relief, breach of contract, and equitable estoppel. The PPG Lawsuit explains PPG’s belief that: (a) the Di Gregório case is an assumed liability of Westlake, (b) Westlake has a continuing duty to act as an agent of PPG to satisfy any award if it is unable or unwilling to remove PPG as an obligor in the case, (c) Westlake has the duty to pay in the first instance any award, bond, court fees and other costs regardless of whether the court ultimately determines the Di Gregório case to be an assumed or indemnifiable liability, and (d) PPG has uncapped rights of indemnification should Westlake fail to satisfy its obligations under the Separation Agreement. Eagle Spinco filed counterclaims in the PPG Lawsuit restating the claims it originally asserted in the Eagle Spinco Lawsuit. Accordingly, it dismissed its previously filed Eagle Spinco Lawsuit and now exclusively is asserting its position in the PPG Lawsuit.
PPG intends to vigorously enforce its rights and Westlake’s obligations under the 2012 Separation Agreement and to hold Westlake accountable for any damages PPG suffers as a result of Westlake’s refusal to honor its contractual obligations. The Delaware Court of Chancery has set a trial date of December 12, 2024 for the PPG Lawsuit. PPG believes that the risk of loss associated with this matter is remote.
For many years, PPG has been a defendant in lawsuits involving claims alleging personal injury from exposure to asbestos. For a description of asbestos litigation affecting the Company, see Note 14, “Commitments and Contingent Liabilities” in Part I, Item 1 of this Form 10-Q.
Item 1A. Risk Factors
There were no material changes in the Company’s risk factors from the risks disclosed in the 2023 Form 10-K.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
The following table summarizes the Company's stock repurchase activity for the three months ended September 30, 2024:
MonthTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Programs
Maximum Number of Shares That May Yet Be Purchased Under the Programs (1)
July 2024
Repurchase program— $— — 25,283,292 
August 2024
Repurchase program814,215 $122.96 814,215 23,975,612 
September 2024
Repurchase program782,060 $127.87 782,060 22,726,533 
Total quarter ended September 30, 2024
Repurchase program1,596,275 $125.36 1,596,275 22,726,533 
(1)In December 2017, PPG's Board of Directors approved a $2.5 billion share repurchase program. In April 2024, PPG's Board of Directors authorized the repurchase of an additional $2.5 billion of outstanding common stock. The remaining shares yet to be purchased under the share repurchase programs have been calculated using PPG’s closing stock price on the last business day of the respective month. The repurchase programs do not have an expiration date.

Item 5. Other Information
Rule 10b5-1 Trading Plans
During the three months ended September 30, 2024, none of the Company's directors or officers, as defined in Section 16 of the Securities Exchange Act of 1934, adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K of the Securities Exchange Act of 1934.
Business Restructuring
On October 16, 2024, the Company approved a comprehensive cost reduction program with anticipated annualized pre-tax savings of approximately $175 million once fully implemented, including savings of $60 million in 2025. The multi-year program is focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the two recently announced agreements to sell PPG’s silicas products business and the architectural coatings business in the U.S. and Canada. The program includes various facility closures and other targeted fixed cost reductions. The Company expects to record a pretax restructuring charge of approximately $250 million, based on current exchange rates, in PPG’s fourth quarter 2024 financial results. This charge represents employee severance and other cash costs. As a result of this program, the Company also expects to recognize a $120 million non-cash charge due to the recognition of accumulated currency losses related to the exit of certain international operations and to incur approximately $100 million of incremental non-cash accelerated depreciation expense over the life of the program for certain assets due to their reduced expected asset life. In addition, the Company expects to incur other cash costs of approximately $70 million over the duration of this program, consisting of incremental restructuring-related cash costs for certain items that are required to be recognized as period expense as incurred. The restructuring actions will result in the net reduction of approximately 1,800 positions, primarily in Europe and the U.S.
Item 6. Exhibits
See the Index to Exhibits on page 39.
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PPG INDUSTRIES, INC. AND SUBSIDIARIES
Index to Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Form 10-Q.
†31.1  
†31.2  
††32.1  
††32.2  
101.INS*  Inline XBRL Instance Document
101.SCH**  Inline XBRL Taxonomy Extension Schema Document
101.CAL**  Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**  Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**  Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE**  Inline XBRL Taxonomy Extension Presentation Linkbase Document
104Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.
† Filed herewith.
†† Furnished herewith.
*The instance document does not appear in the Interactive Data File because its XBRL (Extensible Business Reporting Language) tags are embedded within the Inline XBRL document.
**Attached as Exhibit 101 to this report are the following documents formatted in Inline XBRL: (i) the Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2024 and 2023, (ii) the Condensed Consolidated Balance Sheet at September 30, 2024 and December 31, 2023, (iii) the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2024 and 2023, and (iv) Notes to Condensed Consolidated Financial Statements for the nine months ended September 30, 2024.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 PPG INDUSTRIES, INC.
(Registrant)
Date:October 17, 2024By:/s/ Vincent J. Morales
Vincent J. Morales
 Senior Vice President and Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer)
By:/s/ Brian R. Williams
Brian R. Williams
Vice President and Controller
(Principal Accounting Officer and Duly Authorized Officer)
40