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Recast Regulation G Reconciliations - Results from Operations
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended March 31, 2024
As reported, continuing operations$542 $128 23.6 %$405 $1.71 
Includes:
Acquisition-related amortization expense35 9 24.6 %26 0.11 
Business restructuring-related costs, net(2)
11 3 27.4 %`8 0.03 
Portfolio optimization(3)
6 2 24.2 %4 0.02 
Adjusted, continuing operations, excluding certain items$594 $142 23.9 %$443 $1.87 
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended June 30, 2024
As reported, continuing operations$651 $149 22.9 %$493 $2.09 
Includes:
Acquisition-related amortization expense35 8 24.6 %27 0.11 
Business restructuring-related costs, net(2)
4 2 46.0 %`2 0.01 
Portfolio optimization(3)
26 8 31.3 %18 0.08 
Legacy environmental remediation charges(4)
20 5 24.3 %15 0.06 
Adjusted, continuing operations, excluding certain items$736 $172 23.4 %$555 $2.35 
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended September 30, 2024
As reported, continuing operations$578 $128 22.1 %$444 $1.90 
Includes:
Acquisition-related amortization expense30 7 24.4 %23 0.10 
Portfolio optimization(3)
10 2 24.3 %8 0.03 
Adjusted, continuing operations, excluding certain items$618 $137 22.2 %$475 $2.03 
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended December 31, 2024
As reported, continuing operations$81 $70 86.4 %$2 $0.01 
Includes:
Acquisition-related amortization expense32 8 24.4 %24 0.10 
Business restructuring-related costs, net(2)
362 48 13.2 %`314 1.35 
Portfolio optimization(3)
17 (18)(104.1 %)35 0.15 
Legacy environmental remediation charges(4)
4 1 24.3 %3 0.01 
Insurance recoveries(6)
(4)(1)24.3 %(3)(0.01)
Adjusted, continuing operations, excluding certain items$492 $108 22.0 %$375 $1.61 


($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Year-ended December 31, 2024
As reported, continuing operations$1,852 $475 25.6 %$1,344 $5.72 
Includes:
Acquisition-related amortization expense132 32 24.2 %100 0.42 
Business restructuring-related costs, net(2)
377 53 14.1 %`324 1.39 
Portfolio optimization(3)
59 (6)(10.2 %)65 0.28 
Legacy environmental remediation charges(4)
24 6 25.0 %18 0.07 
Insurance recoveries(6)
(4)(1)25.0 %(3)(0.01)
Adjusted, continuing operations, excluding certain items$2,440 $559 22.9 %$1,848 $7.87 

($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended March 31, 2023
As reported, continuing operations$333 $76 22.8 %$248 $1.05 
Includes:
Acquisition-related amortization expense37 9 24.5 %28 0.12 
Pension settlement charge(7)
190 46 24.2 %`144 0.61 
Insurance recoveries(6)
(9)(2)24.3 %(7)(0.03)
Adjusted, continuing operations, excluding certain items$551 $129 23.4 %$413 $1.75 
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended June 30, 2023
As reported, continuing operations$616 $142 23.1 %$466 $1.96 
Includes:
Acquisition-related amortization expense37 9 24.6 %28 0.12 
Business restructuring-related costs, net(2)
10 2 24.0 %`8 0.03 
Portfolio optimization(3)
7 2 24.3 %3 0.01 
Adjusted, continuing operations, excluding certain items$670 $155 23.1 %$505 $2.12 
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended September 30, 2023
As reported, continuing operations$532 $116 21.8 %$406 $1.71 
Includes:
Acquisition-related amortization expense36 9 23.9 %27 0.11 
Business restructuring-related costs, net(2)
15 3 22.9 %`12 0.05 
Portfolio optimization(3)
15 (12)(77.2 %)27 0.11 
Adjusted, continuing operations, excluding certain items$598 $116 19.4 %$472 $1.98 


($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Quarter-ended December 31, 2023
As reported, continuing operations$209 $94 45.0 %$103 $0.43 
Includes:
Acquisition-related amortization expense44 12 27.3 %32 0.13 
Business restructuring-related costs, net(2)
16 3 18.8 %`13 0.06 
Portfolio optimization(3)
31 3 9.7 %28 0.12 
Legacy environmental remediation charges(4)
24 7 23.3 %17 0.07 
Impairment and other related charges(5)
160 — — %160 0.67 
Insurance recoveries(6)
(7)(2)28.6 %(5)(0.02)
Argentina currency devaluation losses(8)
20 (4)(20.0 %)24 0.10 
Adjusted, continuing operations, excluding certain items$497 $113 22.7 %$372 $1.56 
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Year-ended December 31, 2023
As reported, continuing operations$1,690 $428 25.3 %$1,223 $5.16 
Includes:
Acquisition-related amortization expense154 39 25.3 %115 0.48 
Business restructuring-related costs, net(2)
41 8 19.5 %`33 0.14 
Portfolio optimization(3)
53 (7)(13.2 %)58 0.24 
Legacy environmental remediation charges(4)
24 7 23.3 %17 0.07 
Impairment and other related charges(5)
160 — — %160 0.67 
Insurance recoveries(6)
(16)(4)25.0 %(12)(0.05)
Pension settlement charge(7)
190 46 24.2 %`144 0.61 
Argentina currency devaluation losses(8)
20 (4)(20.0 %)24 0.10 
Adjusted, continuing operations, excluding certain items$2,316 $513 22.2 %$1,762 $7.42 
($ in millions, except percentages and per share amounts)Income Before Income TaxesIncome Tax ExpenseEffective Tax RateNet Income
(attributable to PPG)
Earnings per Diluted Share(1)
Year-ended December 31, 2022
As reported, continuing operations$1,355 $320 23.6 %$1,007 $4.24 
Includes:
Acquisition-related amortization expense145 35 24.1 %110 0.46 
Business restructuring-related costs, net(2)
72 18 25.3 %`54 0.23 
Portfolio optimization(3)
10 (2)(20.0 %)12 0.05 
Impairment and other related charges(5)
231 29 12.7 %202 0.86 
Adjusted, continuing operations, excluding certain items$1,813 $400 22.1 %$1,385 $5.84 
(1)Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.

(2)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the Company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/


charges, net in the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 recognition of the accumulated foreign currency translation losses.

(3)Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of $129 million on the sale of the Company's silicas products business in the fourth quarter 2024, and the losses on the sales of the Company's traffic solutions business in Argentina in the second quarter 2024, the Company's European and Australian Traffic Solutions businesses in the fourth quarter 2023 and the Company's legacy industrial Russian operations in the third quarter 2023. Portfolio optimization includes advisory, legal, accounting, valuation, other professional or consulting fees and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the consolidated statement of income. Portfolio optimization also includes an impairment charge of $146 million recognized during the fourth quarter 2024 when the Company's remaining operations in Russia were classified as held for sale, which is included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 impairment charge.

(4)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the consolidated statement of income.

(5)In the fourth quarter 2023, the Company recorded impairment and other related charges due to a non-cash goodwill impairment recognized for the Traffic Solutions reporting unit as a result of its annual goodwill impairment test. The fair value of the Traffic Solutions reporting unit decreased primarily due to increases in the cost of capital (discount rate assumption) and declines in the reporting unit’s long-term forecast driven by challenges at its operations in Argentina due to the highly inflationary environment and changes to the reporting unit’s global footprint, including the fourth quarter 2023 divestiture of its European and Australian businesses. In 2022, the Company recorded impairment and other related charges due to the wind down of the Company’s operations in Russia.

(6)In the fourth quarter 2024 and the fourth quarter 2023, the Company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. In the first quarter 2023, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2020. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.

(7)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.

(8)In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar. Argentina currency devaluation losses represent foreign currency translation losses recognized during December 2023 related to the devaluation of the Argentine peso, which is included in Other charges/(income), net on the consolidated statement of income.



PPG INDUSTRIES, INC. AND SUBSIDIARIES
RECAST BUSINESS SEGMENT INFORMATION
($ in millions)
Quarter EndedQuarter EndedQuarter EndedQuarter EndedYear Ended
March 31, 2024June 30, 2024September 30, 2024December 31, 2024December 31, 2024
Net sales to external customers$966$1,070$1,004$881$3,921
Cost of sales, exclusive of depreciation and amortization458 513 494 439 1,904 
Selling, general and administrative 301 309 289 287 1,186 
Depreciation and amortization26 26 26 26 104 
Other15 11 12 11 49 
     Global Architectural segment income$166$211$183$118$678
Net sales to external customers$1,184$1,418$1,373$1,262$5,237
Cost of sales, exclusive of depreciation and amortization628 773 755 695 2,851 
Selling, general and administrative 245 261 258 253 1,017 
Depreciation and amortization34 34 31 33 132 
Other26 24 23 22 95 
     Performance Coatings segment income$251$326$306$259$1,142
Net sales to external customers$1,699$1,747$1,655$1,586$6,687
Cost of sales, exclusive of depreciation and amortization1,119 1,164 1,132 1,083 4,498 
Selling, general and administrative 212 210 207 209 838 
Depreciation and amortization52 53 52 49 206 
Other67 61 64 60 252 
     Industrial Coatings segment income$249$259$200$185$893
Total net sales to external customers$3,849$4,235$4,032$3,729$15,845
Total segment income$666$796$689$562$2,713
Corporate / Non-Segment Items
Corporate / non-segment unallocated, exclusive of depreciation and amortization(76)(67)(72)(76)(291)
Corporate / non-segment depreciation and amortization(18)(11)(10)(11)(50)
Interest expense, net of interest income(13)(17)(19)(15)(64)
Business restructuring-related costs, net(1)
(11)(4)— (362)(377)
Portfolio optimization(2)
(6)(26)(10)(17)(59)
Legacy environmental remediation charges(3)
— (20)— (4)(24)
Insurance recoveries (4)
— — — 4 4 
     Total income from continuing operations before income taxes$542$651$578$81$1,852




Quarter EndedQuarter EndedQuarter EndedQuarter EndedYear EndedYear Ended
March 31, 2023June 30, 2023September 30, 2023December 31, 2023December 31, 2023December 31, 2022
Net sales to external customers$975$1,066$1,037$943$4,021$3,852
Cost of sales, exclusive of depreciation and amortization495 543 512 472 2,022 2,096 
Selling, general and administrative279 296 293 302 1,170 1,058 
Depreciation and amortization25 25 26 25 101 102 
Other16 16 10 13 55 38 
     Global Architectural segment income$160$186$196$131$673$558
Net sales to external customers$1,153$1,424$1,322$1,233$5,132$4,792
Cost of sales, exclusive of depreciation and amortization634 787 779 693 2,893 2,813 
Selling, general and administrative230 246 234 256 966 879 
Depreciation and amortization35 34 35 35 139 142 
Other24 28 32 31 115 111 
     Performance Coatings segment income$230$329$242$218$1,019$847
Net sales to external customers$1,753$1,833$1,767$1,736$7,089$6,970
Cost of sales, exclusive of depreciation and amortization1,201 1,235 1,187 1,136 4,759 5,062 
Selling, general and administrative201 217 214 238 870 786 
Depreciation and amortization53 53 53 54 213 207 
Other57 78 67 77 279 269 
     Industrial Coatings segment income$241$250$246$231$968$646
Total net sales to external customers$3,881$4,323$4,126$3,912$16,242$15,614
Total segment income$631$765$684$580$2,660$2,051
Corporate / Non-Segment Items
Corporate / non-segment unallocated, exclusive of depreciation and amortization(76)(86)(80)(88)(330)(219)
Corporate / non-segment depreciation and amortization(8)(10)(17)(26)(61)(51)
Interest expense, net of interest income(33)(36)(25)(13)(107)(113)
Business restructuring-related costs, net (1)
— (10)(15)(16)(41)(72)


Portfolio optimization (2)
— (7)(15)(31)(53)(10)
Legacy environmental remediation charges (3)
— — — (24)(24)— 
Insurance recoveries (4)
9 — — 7 16 — 
Impairment and other related charges, net (5)
— — — (160)(160)(231)
Argentina currency devaluation losses (6)
— — — (20)(20)— 
Pension settlement charge (7)
(190)— — (190)— 
     Total income from continuing operations before income taxes $333$616$532$209$1,690$1,355
(1)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the Company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/charges, net in the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 recognition of the accumulated foreign currency translation losses.

(2)Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of $129 million on the sale of the Company's silicas products business in the fourth quarter 2024, and the losses on the sales of the Company's traffic solutions business in Argentina in the second quarter 2024, the Company's European and Australian Traffic Solutions businesses in the fourth quarter 2023 and the Company's legacy industrial Russian operations in the third quarter 2023. Portfolio optimization includes advisory, legal, accounting, valuation, other professional or consulting fees and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the consolidated statement of income. Portfolio optimization also includes an impairment charge of $146 million recognized during the fourth quarter 2024 when the Company's remaining operations in Russia were classified as held for sale, which is included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 impairment charge.

(3)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the consolidated statement of income.

(4)In the fourth quarter 2024 and the fourth quarter 2023, the Company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. In the first quarter 2023, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2020. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.

(5)In the fourth quarter 2023, the Company recorded impairment and other related charges due to a non-cash goodwill impairment recognized for the Traffic Solutions reporting unit as a result of its annual goodwill impairment test. The fair value of the Traffic Solutions reporting unit decreased primarily due to increases in the cost of capital (discount rate assumption) and declines in the reporting unit’s long-term forecast driven by challenges at its operations in Argentina due to the highly inflationary environment and changes to the reporting unit’s global footprint, including the fourth quarter 2023 divestiture of its European and Australian businesses. In 2022, the Company recorded impairment and other related charges due to the wind down of the Company’s operations in Russia.

(6)In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar. Argentina currency devaluation losses represent foreign currency translation losses recognized during December 2023 related to


the devaluation of the Argentine peso, which is included in Other charges/(income), net on the consolidated statement of income.

(7)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.

PPG INDUSTRIES, INC. AND SUBSIDIARIES
RECAST QUARTERLY INFORMATION
($ in millions)
Quarter EndedQuarter EndedQuarter EndedQuarter EndedYear Ended
March 31, 2024June 30, 2024September 30, 2024December 31, 2024
December 31, 2024(1)
Net sales to external customers$ 3,849$ 4,235$ 4,032$ 3,729$ 15,845
Cost of sales, exclusive of depreciation and amortization$ 2,205$ 2,450$ 2,380$ 2,217$ 9,252
Net income attributable to PPG
Continuing operations$ 405$ 493$ 444$ 2$ 1,344
Discontinued operations(5)3524(282)(228)
Net income$ 400$ 528$ 468$ (280)$ 1,116
Earnings (loss) per common share
Continuing operations$ 1.72$ 2.10$ 1.90$ 0.01$ 5.73
Discontinued operations(0.02)0.150.11(1.22)(0.98)
Earnings per common share$ 1.70$ 2.25$ 2.01$ (1.21)$ 4.75
Earnings per common share - assuming dilution
Continuing operations$ 1.71$ 2.09$ 1.90$ 0.01$ 5.71
Discontinued operations(0.02)0.150.10(1.21)(0.98)
Earnings per common share - assuming dilution$ 1.69$ 2.24$ 2.00$ (1.20)$ 4.73
Weighted average shares235.6234.5233.3231.8233.8
Weighted average shares - assuming dilution236.9235.7234.3232.8234.9


Quarter EndedQuarter EndedQuarter EndedQuarter EndedYear Ended
($ in millions)March 31, 2023June 30, 2023September 30, 2023December 31, 2023
December 31, 2023(1)
Net sales to external customers$ 3,881$ 4,323$ 4,126$ 3,912$ 16,242
Cost of sales, exclusive of depreciation and amortization$ 2,331$ 2,567$ 2,479$ 2,301$ 9,678
Net income attributable to PPG
Continuing operations$ 248$ 466$ 406$ 103$ 1,223
Discontinued operations162420(13)47
Net income$ 264$ 490$ 426$ 90$ 1,270
Earnings (loss) per common share-
Continuing operations$ 1.05$ 1.97$ 1.72$ 0.44$ 5.18
Discontinued operations0.070.110.08(0.06)0.20
Earnings per common share$ 1.12$ 2.08$ 1.80$ 0.38$ 5.38
Earnings per common share - assuming dilution
Continuing operations$ 1.05$ 1.96$ 1.71$ 0.43$ 5.15
Discontinued operations0.060.100.08(0.05)0.19
Earnings per common share - assuming dilution$ 1.11$ 2.06$ 1.79$ 0.38$ 5.34
Weighted average shares235.8236236.2236.2236.0
Weighted average shares - assuming dilution236.9237.3237.5237.3237.2
(1) Full year earnings per share was calculated using full year weighted average shares outstanding. As such, the sum of the quarters may not equal total earnings per share for the year.
Note that the historical amounts shown above have been recast to present the results of the architectural coatings business in the United States and Canada as discontinued operations.