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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
  –––––––––––––––––––––––––––––––––––––––––––––––––
FORM 10-Q
  –––––––––––––––––––––––––––––––––––––––––––––––––
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2021
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission file number 1-1687
ppg-20210930_g1.gif
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
PPG INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
25-0730780
(I.R.S. Employer Identification No.)
Pennsylvania
(State or Other Jurisdiction of Incorporation or Organization)
One PPG Place, Pittsburgh, Pennsylvania
(Address of Principal Executive Offices)
15272
(Zip Code)
(412) 434-3131
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $1.66 2/3
PPGNew York Stock Exchange
0.875% Notes due 2022PPG 22New York Stock Exchange
0.875% Notes due 2025PPG 25New York Stock Exchange
1.400% Notes due 2027PPG 27New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.    
Large Accelerated FilerAccelerated Filer
Non-accelerated Filer
 
Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes     No 
As of September 30, 2021, 237,400,853 shares of the Registrant’s common stock, par value $1.66 2/3 per share, were outstanding.



PPG INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
 
1

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PPG INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Income (Unaudited)
($ in millions, except per share amounts)
 Three Months Ended
September 30
Nine Months Ended
September 30
 2021202020212020
Net sales$4,372 $3,685 $12,612 $10,077 
Cost of sales, exclusive of depreciation and amortization2,733 2,026 7,594 5,637 
Selling, general and administrative950 836 2,796 2,507 
Depreciation100 96 286 280 
Amortization46 36 126 104 
Research and development, net114 92 323 279 
Interest expense30 34 91 107 
Interest income(7)(4)(19)(18)
Impairment charge21  21  
Business restructuring, net  (21)172 
Other charges 21 28 45 
Other income(56)(24)(146)(53)
Income before income taxes$441 $572 $1,533 $1,017 
Income tax expense96 124 370 224 
Income from continuing operations$345 $448 $1,163 $793 
Income from discontinued operations, net of tax   3 
Net income attributable to controlling and noncontrolling interests$345 $448 $1,163 $796 
Net income attributable to noncontrolling interests(1)(6)(10)(9)
Net income (attributable to PPG)$344 $442 $1,153 $787 
Amounts attributable to PPG:
Income from continuing operations, net of tax$344 $442 $1,153 $784 
Income from discontinued operations, net of tax   3 
Net income (attributable to PPG)$344 $442 $1,153 $787 
Earnings per common share:
Income from continuing operations, net of tax$1.45 $1.87 $4.85 $3.32 
Income from discontinued operations, net of tax   0.01 
Earnings per common share (attributable to PPG)$1.45 $1.87 $4.85 $3.33 
Earnings per common share – assuming dilution:
Income from continuing operations, net of tax$1.43 $1.86 $4.81 $3.30 
Income from discontinued operations, net of tax   0.01 
Earnings per common share (attributable to PPG) - assuming dilution$1.43 $1.86 $4.81 $3.31 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
2


Condensed Consolidated Statement of Comprehensive Income (Unaudited)
($ in millions)
 Three Months Ended
September 30
Nine Months Ended
September 30
 2021202020212020
Net income attributable to the controlling and noncontrolling interests$345 $448 $1,163 $796 
Other comprehensive (loss)/income, net of tax:
Defined benefit pension and other postretirement benefits6 3 (1)9 
Unrealized foreign currency translation adjustments(215)136 (276)(453)
Other comprehensive (loss)/income, net of tax($209)$139 ($277)($444)
Total comprehensive income$136 $587 $886 $352 
Less: amounts attributable to noncontrolling interests:
Net income(1)(6)(10)(9)
Unrealized foreign currency translation adjustments2 (2)5 6 
Comprehensive income attributable to PPG$137 $579 $881 $349 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
3

PPG INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheet (Unaudited)
($ in millions)
September 30, 2021December 31, 2020
Assets
Current assets:
Cash and cash equivalents$1,216 $1,826 
Short-term investments88 96 
Receivables, net3,382 2,726 
Inventories2,249 1,735 
Other current assets365 415 
Total current assets$7,300 $6,798 
Property, plant and equipment (net of accumulated depreciation of $4,517 and $4,349)3,350 3,127 
Goodwill6,206 5,102 
Identifiable intangible assets, net2,842 2,351 
Deferred income taxes311 379 
Investments272 267 
Operating lease right-of-use assets906 847 
Other assets696 685 
Total$21,883 $19,556 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities$4,378 $3,792 
Restructuring reserves187 281 
Short-term debt and current portion of long-term debt704 578 
Current portion of operating lease liabilities194 180 
Total current liabilities$5,463 $4,831 
Long-term debt6,092 5,171 
Operating lease liabilities709 677 
Accrued pensions933 945 
Other postretirement benefits718 733 
Deferred income taxes642 435 
Other liabilities916 949 
Total liabilities$15,473 $13,741 
Commitments and contingent liabilities (Note 14)
Shareholders’ equity:
Common stock$969 $969 
Additional paid-in capital1,065 1,008 
Retained earnings20,226 19,469 
Treasury stock, at cost(13,136)(13,158)
Accumulated other comprehensive loss(2,871)(2,599)
Total PPG shareholders’ equity$6,253 $5,689 
Noncontrolling interests157 126 
Total shareholders’ equity$6,410 $5,815 
Total$21,883 $19,556 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
4

PPG INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders' Equity (Unaudited)
($ in millions)
Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive (Loss)/IncomeTotal PPGNon-controlling InterestsTotal
January 1, 2021$969 $1,008 $19,469 ($13,158)($2,599)$5,689 $126 $5,815 
Net income attributable to the controlling and noncontrolling interests— — 378 — — $378 7 $385 
Other comprehensive loss, net of tax— — — — (131)($131)(2)($133)
Cash dividends— — (128)— — ($128)— ($128)
Issuance of treasury stock— 25 — 10 — $35 — $35 
Stock-based compensation activity— (4)— — — ($4)— ($4)
Reductions in noncontrolling interests— — — — — — (1)(1)
March 31, 2021$969 $1,029 $19,719 ($13,148)($2,730)$5,839 $130 $5,969 
Net income attributable to the controlling and noncontrolling interests— — 431 — — $431 2 $433 
Other comprehensive income/(loss), net of tax— — — — 66 $66 (1)$65 
Cash dividends— — (128)— — ($128)— ($128)
Issuance of treasury stock— 17 — 10 — $27 — $27 
Stock-based compensation activity— 7 — — — $7 — $7 
Dividends paid on subsidiary common stock to noncontrolling interests— — — — — — (4)($4)
Acquisition of noncontrolling interests (Note 3)— — — — — — 53 $53 
Reductions in noncontrolling interests— — — — — — (11)($11)
June 30, 2021$969 $1,053 $20,022 ($13,138)($2,664)$6,242 $169 $6,411 
Net income attributable to the controlling and noncontrolling interests— — 344 — — $344 1 $345 
Other comprehensive loss, net of tax— — — — (207)($207)(2)($209)
Cash dividends— — (140)— — ($140)— ($140)
Issuance of treasury stock— 3 — 2 — $5 — $5 
Stock-based compensation activity— 9 — — — $9 — $9 
Dividends paid on subsidiary common stock to noncontrolling interests— — — — — — (1)($1)
Reductions in noncontrolling interests— — — — — — (10)($10)
September 30, 2021$969 $1,065 $20,226 ($13,136)($2,871)$6,253 $157 $6,410 
5

Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive (Loss)/IncomeTotal PPGNon-controlling InterestsTotal
January 1, 2020$969 $950 $18,906 ($13,191)($2,350)$5,284 $119 $5,403 
Net income attributable to the controlling and noncontrolling interests— — 243 — — $243 5 $248 
Other comprehensive loss, net of tax— — — — (692)($692)(10)($702)
Cash dividends— — (120)— — ($120)— ($120)
Issuance of treasury stock— 12 — 4 — $16 — $16 
Stock-based compensation activity— (8)— — — ($8)— ($8)
March 31, 2020$969 $954 $19,029 ($13,187)($3,042)$4,723 $114 $4,837 
Net income attributable to the controlling and noncontrolling interests— — 102 — — $102 (2)$100 
Other comprehensive income, net of tax— — — — 117 $117 2 $119 
Cash dividends— — (121)— — ($121)— ($121)
Issuance of treasury stock— 2 — 3 — $5 — $5 
Stock-based compensation activity— 6 — — — $6 — $6 
Dividends paid on subsidiary common stock to noncontrolling interests— — — — — — (3)($3)
Reductions in noncontrolling interests— — — — — — (5)($5)
June 30, 2020$969 $962 $19,010 ($13,184)($2,925)$4,832 $106 $4,938 
Net income attributable to the controlling and noncontrolling interests— — 442 — — $442 6 $448 
Other comprehensive income, net of tax— — — — 137 $137 2 $139 
Cash dividends— — (127)— — ($127)— ($127)
Issuance of treasury stock— 10 — 8 — $18 — $18 
Stock-based compensation activity— 8 — — — $8 — $8 
Dividends paid on subsidiary common stock to noncontrolling interests— — — — — — (1)(1)
Reductions in noncontrolling interests— — — — — — 1 1 
September 30, 2020$969 $980 $19,325 ($13,176)($2,788)$5,310 $114 $5,424 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
6

PPG INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Cash Flows (Unaudited)
Nine Months Ended
September 30
($ in millions)20212020
Operating activities:
Net income attributable to controlling and noncontrolling interests$1,163 $796 
Less: Income from discontinued operations (3)
Income from continuing operations1,163 793 
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization412 384 
Pension (income) expense(27)29 
Debt extinguishment charge 7 
Environmental remediation charges26 12 
Business restructuring, net(21)172 
Impairment charge21  
Stock-based compensation expense39 29 
Gain from sale of production facility(34) 
Equity affiliate income, net of dividends(6)2 
Deferred income taxes58 4 
Cash contributions to pension plans(3)(7)
Cash used for restructuring actions(60)(98)
Change in certain asset and liability accounts (net of acquisitions):
Receivables(376)(63)
Inventories(334)36 
Other current assets24 26 
Accounts payable and accrued liabilities423 (23)
Taxes and interest payable(52)(72)
Noncurrent assets and liabilities, net(74)19 
Other(73)(87)
Cash from operating activities - continuing operations$1,106 $1,163 
Cash from operating activities - discontinued operations 1 
Cash from for operating activities$1,106 $1,164 
Investing activities:
Capital expenditures(220)(170)
Business acquisitions, net of cash balances acquired(2,137)(45)
Proceeds from sale of production facility47  
Payments for the settlement of cross currency swap contracts(4)(5)
Proceeds from the settlement of cross currency swap contracts15 21 
Other23 8 
Cash used for investing activities($2,276)($191)
Financing activities:
Net change in borrowing with maturities of three months or less (7)
Proceeds from Term Loan Credit Agreement, net of fees699  
Proceeds on commercial paper and short-term debt, net of payments375 1,397 
Repayment of term loan(400)(1,000)
Proceeds from revolving credit facility 800 
Repayment of revolving credit facility  (800)
Proceeds from the issuance of debt, net of discounts and fees692 415 
Repayment of long-term debt(173)(503)
Repayment of acquired debt(207)(12)
Issuance of treasury stock46 23 
Dividends paid on PPG common stock(396)(368)
Payments related to tax withholding on stock-based compensation awards(18)(11)
Other(12)(39)
Cash from financing activities$606 ($105)
Effect of currency exchange rate changes on cash and cash equivalents(46)(76)
Net (decrease)/increase in cash and cash equivalents($610)$792 
Cash and cash equivalents, beginning of period1,826 1,216 
Cash and cash equivalents, end of period$1,216 $2,008 
Supplemental disclosures of cash flow information:
Interest paid, net of amount capitalized$110 $121 
Taxes paid, net of refunds$376 $293 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
7

PPG INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
 
1.Basis of Presentation
The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the financial position and shareholders' equity of PPG as of September 30, 2021 and the results of its operations and cash flows for the three and nine months ended September 30, 2021 and 2020. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2020 Annual Report on Form 10-K (the "2020 Form 10-K").
Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three and nine months ended September 30, 2021 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year.
2.New Accounting Standards
Accounting Standards Adopted in 2021
Effective January 1, 2021, PPG adopted Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." This ASU is intended to simplify various aspects of accounting for income taxes by eliminating certain exceptions within Accounting Standards Codification Topic 740, "Income Taxes" and to clarify certain aspects of the current accounting guidance. Adoption of this standard did not materially impact PPG's consolidated financial position, results of operations or cash flows.
Accounting Standards to be Adopted in Future Years
In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40).” This ASU simplifies the accounting for convertible debt instruments by removing certain accounting separation models as well as the accounting for debt instruments with embedded conversion features that are not required to be accounted for as derivative instruments. The ASU also updates and improves the consistency of earnings per share calculations for convertible instruments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows.
In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform." This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in this ASU are effective through December 31, 2022. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows.
3.Acquisitions and Divestitures
Acquisitions
The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the following acquisitions, was not significant.
Tikkurila
On June 10, 2021, PPG completed its tender offer for all of the outstanding shares of Tikkurila Ojy ("Tikkurila"). Tikkurila is a leading Nordic producer and distributor of decorative paint and coatings, including an industrial paint business that produces paints and coatings for the wood and metal industries, among others.
8

As of September 30, 2021, PPG had purchased approximately 97.9% of Tikkurila's issued and outstanding shares. All remaining outstanding shares will be acquired through a squeeze out process. As of March 31, 2021, PPG owned 9.32% of the outstanding shares. As of September 30, 2021, the minority interest is classified as Noncontrolling interests on the condensed consolidated balance sheet. The company paid an aggregate purchase price of $1.7 billion, net of cash acquired. The purchase price was allocated based on information available at the acquisition date and is subject to customary post-closing adjustments. The estimated fair value of assets acquired and liabilities assumed as reflected in the preliminary purchase price allocation included goodwill and identifiable intangible assets of $1.1 billion and $601 million, respectively. The acquired identifiable intangible assets consist of indefinite-lived trademarks of $405 million and other intangible assets with finite lives of $196 million, which consist primarily of customer relationships, trade names, and acquired technology, subject to amortization over a weighted average period of 15 years. The fair values assigned to assets acquired and liabilities assumed are based on management's best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of the valuation of deferred tax assets, tax liabilities, and payroll tax liabilities. See Note 5 “Goodwill and Other Identifiable Intangible Assets” for additional information.
The results of this business since the date of acquisition have been reported within two operating segments: the architectural coatings – EMEA business and the industrial coatings business. The architectural coatings – EMEA business is included within the Performance Coatings reportable business segment and the industrial coatings business is included within the Industrial Coatings reportable business segment.
Other Acquisitions
On May 14, 2021, PPG completed the acquisition of Wörwag, a global manufacturer of coatings for industrial and automotive applications. The company specializes in developing sustainable liquid, powder and film coatings. The results of this business since the date of acquisition have been reported within the automotive original equipment manufacturer ("OEM") coatings business within the Industrial Coatings reportable business segment.
On April 19, 2021, PPG announced that it had acquired Cetelon Lackfabrik GmbH, a manufacturer of coatings for automotive and light truck wheel applications. The results of this business since the date of acquisition have been reported within the automotive OEM coatings business within the Industrial Coatings reportable business segment.
On February 22, 2021, PPG completed the acquisition of VersaFlex, a manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and waste water infrastructure, flooring, transportation infrastructure, and industrial applications. The results of this business since the date of acquisition have been reported within the protective and marine coatings business within the Performance Coatings reportable business segment.
Divestitures
In December 2020, PPG committed to a plan to sell certain entities in smaller, non-strategic countries. The planned sale is expected to occur in 2021. In the third quarter 2021, an incremental impairment charge of $21 million was recorded in the condensed consolidated statement of income, representing the excess net book value of the net assets over the anticipated sales proceeds less costs to sell these entities. The assets and liabilities of these entities are reported as held for sale in Other current assets and Accounts payable and accrued liabilities, respectively, on the accompanying condensed consolidated balance sheet as of September 30, 2021 and December 31, 2020. The results of these entities are reported within the Performance Coatings reportable business segment.
The major classes of assets and liabilities of these entities included in the PPG consolidated balance sheet are as as follows:
($ in millions)September 30, 2021December 31, 2020
Cash and cash equivalents$14 $20 
Receivables 5 
Inventories 5 
Assets held for sale$14 $30 
Accounts payable and accrued liabilities$14 $14 
Operating lease liabilities6 6 
Deferred income taxes3 3 
Other liabilities1 1 
Liabilities held for sale$24 $24 
9

4.Inventories
($ in millions)September 30, 2021December 31, 2020
Finished products$1,241 $1,021 
Work in process254 187 
Raw materials714 490 
Supplies40 37 
Total Inventories$2,249 $1,735 
Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 28% and 33% of total inventories at September 30, 2021 and December 31, 2020, respectively. If the first-in, first-out method of inventory valuation had been used, inventories would have been $153 million and $110 million higher as of September 30, 2021 and December 31, 2020, respectively.
5.Goodwill and Other Identifiable Intangible Assets
The Company tests indefinite-lived intangible assets and goodwill for impairment by either performing a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount.
Although it was determined that a triggering event had not occurred as of September 30, 2021, the Company will continue to monitor the impacts of the COVID-19 pandemic on the Company and significant changes in key assumptions that could result in future period impairment charges. The Company did not identify an indication of impairment for each of its reporting units and indefinite-lived intangible assets as of September 30, 2021.
The change in the carrying amount of goodwill attributable to each reportable segment for the nine months ended September 30, 2021 was as follows:
($ in millions)Performance
Coatings
Industrial
Coatings
Total
January 1, 2021$4,023 $1,079 $5,102 
Acquisitions, including purchase accounting adjustments1,156 135 1,291 
Foreign currency impact(156)(31)(187)
September 30, 2021$5,023 $1,183 $6,206 
A summary of the carrying value of the Company's identifiable intangible assets is as follows:
 September 30, 2021December 31, 2020
($ in millions)Gross
Carrying
Amount
Accumulated
Amortization
NetGross
Carrying
Amount
Accumulated
Amortization
Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks$1,454 N/A$1,454 $1,101 N/A$1,101 
Definite-Lived Identifiable Intangible Assets
Acquired technology$865 ($607)$258 $813 ($585)$228 
Customer-related1,968 (1,043)925 1,849 (994)855 
Trade names340 (140)200 277 (129)148 
Other51 (46)5 64 (45)19 
Total Definite Lived Intangible Assets$3,224 ($1,836)$1,388 $3,003 ($1,753)$1,250 
Total Identifiable Intangible Assets$4,678 ($1,836)$2,842 $4,104 ($1,753)$2,351 
The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives.
10

As of September 30, 2021, estimated future amortization expense of identifiable intangible assets is as follows:
($ in millions)Future Amortization Expense
Remaining three months of 2021$45 
2022$180 
2023$170 
2024$155 
2025$145 
2026$130 
Thereafter$563 
6. Business Restructuring
The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company will also incur incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected asset life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 17, "Reportable Business Segment Information" for additional information.
2020 Restructuring Program
In June 2020, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program addresses weakened global economic conditions stemming from the COVID-19 pandemic and related pace of recovery in a few end-use markets along with further opportunities to optimize supply chain and functional costs. The plan included a voluntary separation program that was offered in the U.S. and Canada. The majority of these restructuring actions are expected to be completed by the end of 2021 with the remainder of the actions expected to be completed in the first half of 2022.
2019 and 2018 Restructuring Programs
In June 2019, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program is the result of a comprehensive internal operational assessment to identify further opportunities to improve the profitability of the overall business portfolio. This program includes further manufacturing optimization; targeted pruning of low-profit business in certain regions; exiting certain smaller product lines that are not meeting profitability objectives; reorganization of certain business unit cost structures based on the current economic climate; and certain redundancy actions related to recent acquisitions. The majority of these restructuring actions are expected to be completed by the end of 2021 with the remainder of the actions expected to be completed in the first half of 2022.
In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee headcount and production capacity in certain businesses based on product demand, as well as reductions in various global functional and administrative costs. The majority of these restructuring actions are complete with the remainder of the actions expected to be completed by the end of 2021.
The following table summarizes the reserve activity for the nine months ended September 30, 2021 and 2020:
Total Reserve
($ in millions)20212020
January 1$293 $224 
Approved restructuring actions2 198 
Release of prior reserves and other adjustments (a)
(23)(26)
Cash payments(60)(98)
Foreign currency impact(14)10 
September 30$198 $308 
(a)Releases of $23 million and $26 million were recorded in the nine months ended September 30, 2021 and 2020, respectively, to reflect the current estimate of the costs to complete these actions.
11

7.Borrowings
In June 2021, PPG borrowed $700 million under the $2.0 billion Term Loan Credit Agreement (the "Term Loan Credit Agreement") entered into in February 2021 to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. The Term Loan Credit Agreement provides the Company with the ability to borrow up to an aggregate principal amount of $2.0 billion on an unsecured basis. Prior to December 31, 2021, the Company may make up to eleven additional borrowings of term loans under the Term Loan Credit Agreement, which may be used for working capital and general corporate purposes. The Term Loan Credit Agreement contains covenants 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 Credit Agreement matures and all outstanding borrowings are due and payable on the third anniversary of the date of the initial borrowing under the Agreement.
Also in the second quarter of 2021, two of PPG's long-term debt obligations matured; $134 million 9% non-callable debentures and non-U.S. debt of €30 million. The Company paid $170 million to settle these obligations using cash on hand.
In March 2021, PPG completed a public offering of $700 million aggregate principal amount of 1.200% notes due 2026. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to the Indenture between the Company and the Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2021 Indenture"). The 2021 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to