EX-99.1 26 exhibit991-quarterlyrecast.htm EX-99.1

Exhibit 99.1

Recast Regulation G Reconciliations - Results from Operations

($ in millions, except percentages and per share amounts)			Income Before Income Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			35						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			35						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			30						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			32						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

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($ in millions, except percentages and per share amounts)			Income Before Income Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			132						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			37						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			37						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			36						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

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($ in millions, except percentages and per share amounts)			Income Before Income Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			44						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			154						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 Taxes						Income Tax Expense						Effective Tax Rate						Net 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 expense			145						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)/

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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.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES
RECAST BUSINESS SEGMENT INFORMATION
($ in millions)
			Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended			Year Ended
			March 31, 2024			June 30, 2024			September 30, 2024			December 31, 2024			December 31, 2024
Net sales to external customers			$966			$1,070			$1,004			$881			$3,921
Cost of sales, exclusive of depreciation and amortization			458			513			494			439			1,904
Selling, general and administrative			301			309			289			287			1,186
Depreciation and amortization			26			26			26			26			104
Other			15			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 amortization			628			773			755			695			2,851
Selling, general and administrative			245			261			258			253			1,017
Depreciation and amortization			34			34			31			33			132
Other			26			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 amortization			1,119			1,164			1,132			1,083			4,498
Selling, general and administrative			212			210			207			209			838
Depreciation and amortization			52			53			52			49			206
Other			67			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

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			Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended			Year Ended			Year Ended
			March 31, 2023			June 30, 2023			September 30, 2023			December 31, 2023			December 31, 2023			December 31, 2022
Net sales to external customers			$975			$1,066			$1,037			$943			$4,021			$3,852
Cost of sales, exclusive of depreciation and amortization			495			543			512			472			2,022			2,096
Selling, general and administrative			279			296			293			302			1,170			1,058
Depreciation and amortization			25			25			26			25			101			102
Other			16			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 amortization			634			787			779			693			2,893			2,813
Selling, general and administrative			230			246			234			256			966			879
Depreciation and amortization			35			34			35			35			139			142
Other			24			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 amortization			1,201			1,235			1,187			1,136			4,759			5,062
Selling, general and administrative			201			217			214			238			870			786
Depreciation and amortization			53			53			53			54			213			207
Other			57			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)

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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

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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 Ended			Quarter Ended			Quarter Ended			Quarter Ended			Year Ended
			March 31, 2024			June 30, 2024			September 30, 2024			December 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)			35			24			(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)			0.15			0.11			(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)			0.15			0.10			(1.21)			(0.98)
Earnings per common share - assuming dilution			$ 1.69			$ 2.24			$ 2.00			$ (1.20)			$ 4.73
Weighted average shares			235.6			234.5			233.3			231.8			233.8
Weighted average shares - assuming dilution			236.9			235.7			234.3			232.8			234.9

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			Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended			Year Ended
($ in millions)			March 31, 2023			June 30, 2023			September 30, 2023			December 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 operations			16			24			20			(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 operations			0.07			0.11			0.08			(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 operations			0.06			0.10			0.08			(0.05)			0.19
Earnings per common share - assuming dilution			$ 1.11			$ 2.06			$ 1.79			$ 0.38			$ 5.34
Weighted average shares			235.8			236			236.2			236.2			236.0
Weighted average shares - assuming dilution			236.9			237.3			237.5			237.3			237.2

(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.