PPG Industries Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>PPG Industries Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

PPG INDUSTRIES INC (PPG) filed a Annual Report (10-K) with the SEC on February 15, 2024. PPG Industries Inc. filed its 2023 Form 10-K on February 15, 2024. The filing covers the fiscal year ending December 31, 2023. PPG Industries Inc. is incorporated in Pennsylvania. The company's principal business is in Paints, Varnishes, Lacquers, Enamels & Allied Products. The filing includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking PPG INDUSTRIES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of PPG's financial health, operational segments, and strategic direction for investors and stakeholders. The detailed financial statements and risk factors within the report are crucial for understanding the company's performance and outlook in the paints and coatings industry.

Risk Assessment

Risk Level: medium — PPG INDUSTRIES INC shows moderate risk based on this filing. The company operates in the cyclical paints and coatings industry, which is subject to economic downturns and fluctuations in raw material costs, as indicated by the broad SIC code and the nature of its products.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess PPG's performance and future prospects in the paints and coatings market.

Key Numbers

• 2023 — Fiscal Year (Fiscal year end)
• 1231 — Fiscal Year End (Fiscal year end)
• 2024-02-15 — Filing Date (Filed as of date)
• 141 — Document Count (Public document count)

Key Players & Entities

• PPG INDUSTRIES INC (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240215 (date) — Filed as of date
• PAINTS, VARNISHES, LACQUERS, ENAMELS & ALLIED PRODUCTS (industry) — Standard Industrial Classification
• PITTSBURGH (location) — Business address city
• PA (location) — Business address state
• 15272 (postal_code) — Business address zip
• 4124343131 (phone_number) — Business phone

FAQ

Industry Context

PPG Industries operates within the paints, varnishes, lacquers, enamels, and allied products sector, a segment of the broader chemical manufacturing industry.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (10-K) detailing financial performance and business operations.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
2. Analyze the risk factors section to understand potential challenges and uncertainties facing PPG Industries.
3. Compare PPG's reported financial metrics against industry benchmarks and historical performance.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K
• 2024-02-15: Filing Date — Date the 10-K was officially filed with the SEC

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $1.66 — ch registered Common Stock – Par Value $1.66 2/3 PPG New York Stock Exchange 0.875%
• $33,112 million — common stock held by non-affiliates was $33,112 million. DOCUMENTS INCORPORATED BY REFERENCE
• $456 — ing depreciation of research facilities $456 $470 $463 % of annual net sales 2.5 %
• $470 — epreciation of research facilities $456 $470 $463 % of annual net sales 2.5 % 2.7 %
• $463 — iation of research facilities $456 $470 $463 % of annual net sales 2.5 % 2.7 % 2.8
• $500 million — ase to our operating costs of more than $500 million. Given the uncertainty associated with
• $102 million — on increased Net sales by approximately $102 million and Income before income taxes by appro
• $25 million — me before income taxes by approximately $25 million. Refer to Note 20, "Revenue Recognitio

Filing Documents

• ppg-20231231.htm (10-K) — 2727KB
• ppg2023ex411-descriptionof.htm (EX-4.11) — 65KB
• ppg202310kex106.htm (EX-10.6) — 213KB
• exhibit1012-ppg2024globals.htm (EX-10.12) — 106KB
• exhibit1013-ppg2024globalt.htm (EX-10.13) — 117KB
• exhibit1014-ppg2024globalr.htm (EX-10.14) — 211KB
• exhibit1015-ppg2024annualg.htm (EX-10.15) — 202KB
• exhibit1016-ppg2024bodrsut.htm (EX-10.16) — 47KB
• ppg2023ex131-marketinforma.htm (EX-13.1) — 39KB
• ppg2023ex21-subsidiariesof.htm (EX-21) — 153KB
• ppg2023ex23-consentofindep.htm (EX-23) — 3KB
• ppg2023ex24-powerofattorney.htm (EX-24) — 29KB
• ppg202310kex311.htm (EX-31.1) — 9KB
• ppg202310kex312.htm (EX-31.2) — 9KB
• ppg202310kex321.htm (EX-32.1) — 4KB
• ppg202310kex322.htm (EX-32.2) — 4KB
• exhibit971-ppgindustriesin.htm (EX-97.1) — 17KB
• image.jpg (GRAPHIC) — 19KB
• ppg-20231231_g1.gif (GRAPHIC) — 25KB
• 0000079879-24-000040.txt (&nbsp;) — 18040KB
• ppg-20231231.xsd (EX-101.SCH) — 93KB
• ppg-20231231_cal.xml (EX-101.CAL) — 145KB
• ppg-20231231_def.xml (EX-101.DEF) — 525KB
• ppg-20231231_lab.xml (EX-101.LAB) — 1268KB
• ppg-20231231_pre.xml (EX-101.PRE) — 867KB
• ppg-20231231_htm.xml (XML) — 3176KB

Business

Item 1. Business 3

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 13

Cybersecurity

Item 1C. Cybersecurity 13

Properties

Item 2. Properties 14

Legal Proceedings

Item 3. Legal Proceedings 14

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 16 Part II

Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17

[Reserved]

Item 6. [Reserved] 17

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 29

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 31

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 73

Controls and Procedures

Item 9A. Controls and Procedures 73

Other Information

Item 9B. Other Information 73

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 73 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 73

Executive Compensation

Item 11. Executive Compensation 73

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 74

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 74

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 74 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 74

Form 10-K Summary

Item 16. Form 10-K Summary 77

Signatures

Signatures 78 2023 PPG ANNUAL REPORT AND FORM 10-K 2 Part I

Business

Item 1. Business PPG Industries, Inc. manufactures and distributes a broad range of paints, coatings and specialty materials. PPG was incorporated in Pennsylvania in 1883. PPG's vision is to be the first-choice partner to meet our customers' evolving needs for innovative paints, coatings and surface solutions to protect and beautify the world. PPG has a proud heritage with a demonstrated commitment to innovation, sustainability, community engagement and development of leading-edge paint, coatings and specialty materials technologies. Through dedication and industry-leading expertise, we solve our customers' biggest challenges, collaborating closely to find the right path forward. PPG is a global leader with manufacturing facilities and equity affiliates in more than 70 countries. PPG supplies paints, coatings and specialty materials to customers serving a wide array of end-uses, including industrial equipment and components; packaging material; aircraft and marine equipment; automotive original equipment; automotive refinish and aftermarket; pavement marking products; as well as coatings for other industrial and consumer products. PPG also serves commercial and residential new build and maintenance customers by supplying coatings to painting and maintenance contractors and directly to consumers for decoration and maintenance. The coatings industry is highly competitive and consists of several large firms with global presence and many firms supplying local or regional markets. PPG competes in its primary markets with the world's largest coatings companies, most of which have global operations, and with many regional coatings companies. PPG's business is comprised of two reportable business segments: Performance Coatings and Industrial Coatings as described below: 2023 PPG ANNUAL REPORT AND FORM 10-K 3 PERFORMANCE COATINGS Strategic Business Unit Products Primary Customers / End-uses Main Distribution Methods Primary Brands Aerospace Coatings Coatings, sea