10-Q 1 ppg-20220331.htm 10-Q ppg-20220331
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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: March 31, 2022
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-20220331_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 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 March 31, 2022, 236,194,347 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)
 Three Months Ended
March 31
($ in millions, except per share amounts)20222021
Net sales$4,308 $3,881 
Cost of sales, exclusive of depreciation and amortization2,698 2,232 
Selling, general and administrative974 891 
Depreciation102 90 
Amortization43 39 
Research and development, net115 102 
Interest expense30 30 
Interest income(9)(6)
Impairment and other related charges290  
Other charges13 17 
Other income(26)(13)
Income before income taxes$78 $499 
Income tax expense55 114 
Net income attributable to controlling and noncontrolling interests$23 $385 
Net income attributable to noncontrolling interests(5)(7)
Net income (attributable to PPG)$18 $378 
Earnings per common share (attributable to PPG)$0.08 $1.59 
Earnings per common share (attributable to PPG) - assuming dilution$0.08 $1.58 
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)
 Three Months Ended
March 31
($ in millions)20222021
Net income attributable to controlling and noncontrolling interests$23 $385 
Other comprehensive income/(loss), net of tax:
Defined benefit pension and other postretirement benefits(4)(5)
Unrealized foreign currency translation adjustments37 (128)
Other comprehensive income/(loss), net of tax$33 ($133)
Total comprehensive income$56 $252 
Less: amounts attributable to noncontrolling interests:
Net income(5)(7)
Unrealized foreign currency translation adjustments3 2 
Comprehensive income attributable to PPG$54 $247 
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)March 31, 2022December 31, 2021
Assets
Current assets:
Cash and cash equivalents$960 $1,005 
Short-term investments73 67 
Receivables, net3,659 3,152 
Inventories2,439 2,171 
Other current assets496 379 
Total current assets$7,627 $6,774 
Property, plant and equipment (net of accumulated depreciation of $4,564 and $4,532)3,322 3,442 
Goodwill6,232 6,248 
Identifiable intangible assets, net2,590 2,783 
Deferred income taxes237 197 
Investments267 274 
Operating lease right-of-use assets879 891 
Other assets734 742 
Total$21,888 $21,351 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities$4,492 $4,392 
Restructuring reserves171 173 
Short-term debt and current portion of long-term debt319 9 
Current portion of operating lease liabilities190 192 
Total current liabilities$5,172 $4,766 
Long-term debt6,834 6,572 
Operating lease liabilities684 693 
Accrued pensions821 834 
Other postretirement benefits668 672 
Deferred income taxes667 646 
Other liabilities709 757 
Total liabilities$15,555 $14,940 
Commitments and contingent liabilities (Note 14)
Shareholders’ equity:
Common stock$969 $969 
Additional paid-in capital1,093 1,081 
Retained earnings20,251 20,372 
Treasury stock, at cost(13,381)(13,386)
Accumulated other comprehensive loss(2,714)(2,750)
Total PPG shareholders’ equity$6,218 $6,286 
Noncontrolling interests115 125 
Total shareholders’ equity$6,333 $6,411 
Total$21,888 $21,351 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
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PPG INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders' Equity (Unaudited)
($ in millions)Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive (Loss)/IncomeTotal PPGNon-controlling InterestsTotal
January 1, 2022$969 $1,081 $20,372 ($13,386)($2,750)$6,286 $125 $6,411 
Net income attributable to controlling and noncontrolling interests— — 18 — — 18 5 23 
Other comprehensive income/(loss), net of tax— — — — 36 36 (3)33 
Cash dividends— — (139)— — (139)— (139)
Issuance of treasury stock— 24 — 5 — 29 — 29 
Stock-based compensation activity— (12)— — — (12)— (12)
Dividends paid on subsidiary common stock to noncontrolling interests— — — — — — (1)(1)
Reductions in noncontrolling interests— — — — — — (11)(11)
March 31, 2022$969 $1,093 $20,251 ($13,381)($2,714)$6,218 $115 $6,333 
($ in millions)Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal PPGNon-controlling InterestsTotal
January 1, 2021$969 $1,008 $19,469 ($13,158)($2,599)$5,689 $126 $5,815 
Net income attributable to 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 $5,969 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
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PPG INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Cash Flows (Unaudited)
Three Months Ended
March 31
($ in millions)20222021
Operating activities:
Net income attributable to controlling and noncontrolling interests$23 $385 
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization145 129 
Pension income(7)(9)
Environmental remediation charges 16 
Impairment and other related charges290  
Stock-based compensation expense6 17 
Deferred income taxes(36)(7)
Cash used for restructuring actions(32)(26)
Change in certain asset and liability accounts (net of acquisitions):
Receivables(530)(354)
Inventories(325)(189)
Other current assets(88)(37)
Accounts payable and accrued liabilities326 110 
Taxes and interest payable(54)22 
Noncurrent assets and liabilities, net(30)(32)
Other8 (48)
Cash used for operating activities($304)($23)
Investing activities:
Capital expenditures($194)($80)
Business acquisitions, net of cash balances acquired(9)(356)
Other20 12 
Cash used for investing activities($183)($424)
Financing activities:
Proceeds from commercial paper and short-term debt, net of payments$586 $300 
Repayment of term loan (400)
Proceeds from the issuance of debt, net of discounts and fees55 692 
Purchase of treasury stock(40)— 
Issuance of treasury stock6 20 
Dividends paid on PPG common stock(139)(128)
Payments related to tax withholding on stock-based compensation awards(12)(11)
Other(13)(4)
Cash from financing activities$443 $469 
Effect of currency exchange rate changes on cash and cash equivalents(1)(40)
Net decrease in cash and cash equivalents($45)($18)
Cash and cash equivalents, beginning of period1,005 1,826 
Cash and cash equivalents, end of period$960 $1,808 
Supplemental disclosures of cash flow information:
Interest paid, net of amount capitalized$52 $52 
Taxes paid, net of refunds$114 $97 
Supplemental disclosure of noncash investing activities:
Capital expenditures accrued within Accounts payable and accrued liabilities at period-end$31 $31 
The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.
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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 March 31, 2022 and the results of its operations and cash flows for the three months ended March 31, 2022 and 2021. 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 2021 Annual Report on Form 10-K (the "2021 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 months ended March 31, 2022 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 2022
Effective January 1, 2022, PPG adopted Accounting Standards Update ("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 certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Adoption of this standard did not materially impact PPG's consolidated financial position, results of operations or cash flows.
Recently Issued Accounting Standards
In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform." This ASU provides optional expedients and exceptions to U.S. GAAP 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. As of March 31, 2022, PPG has not applied any of the optional expedients or exceptions allowed under this ASU. PPG does not believe that this ASU will have a material impact on its consolidated financial position, results of operations or cash flows.
3.Inventories
($ in millions)March 31, 2022December 31, 2021
Finished products$1,369 $1,175 
Work in process257 234 
Raw materials774 723 
Supplies39 39 
Total Inventories$2,439 $2,171 
Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 29% of total inventories at both March 31, 2022 and December 31, 2021. If the first-in, first-out method of inventory valuation had been used, inventories would have been $206 million and $174 million higher as of March 31, 2022 and December 31, 2021, respectively.
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4.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.
The Company identified indicators that the carrying value of an indefinite-lived intangible asset and certain definite-lived intangible assets may not be recoverable as of March 31, 2022, and the carrying value of those assets was assessed for impairment. As a result of this assessment, the Company recorded impairment charges of $124 million related to the indefinite-lived intangible asset and $23 million related to definite-lived intangible assets in the condensed consolidated statement of income during the three months ended March 31, 2022. Refer to Note 7, "Impairment and Other Related Charges" for additional information.
The Company did not identify an indication of goodwill impairment for any of its reporting units as of March 31, 2022.
The change in the carrying amount of goodwill attributable to each reportable segment for the three months ended March 31, 2022 was as follows:
($ in millions)Performance
Coatings
Industrial
Coatings
Total
January 1, 2022$5,034 $1,214 $6,248 
Acquisitions, including purchase accounting adjustments39 (10)29 
Foreign currency impact(44)(1)(45)
March 31, 2022$5,029 $1,203 $6,232 
A summary of the carrying value of the Company's identifiable intangible assets is as follows:
 March 31, 2022December 31, 2021
($ in millions)Gross
Carrying
Amount
Accumulated
Amortization
NetGross
Carrying
Amount
Accumulated
Amortization
Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks$1,333 N/A$1,333 $1,449 N/A$1,449 
Definite-Lived Identifiable Intangible Assets
Acquired technology$856 ($624)$232 $862 ($616)$246 
Customer-related1,927 (1,081)846 1,956 (1,064)892 
Trade names326 (150)176 336 (144)192 
Other50 (47)3 51 (47)4 
Total Definite-Lived Intangible Assets$3,159 ($1,902)$1,257 $3,205 ($1,871)$1,334 
Total Identifiable Intangible Assets$4,492 ($1,902)$2,590 $4,654 ($1,871)$2,783 
The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives.
As of March 31, 2022, estimated future amortization expense of identifiable intangible assets is as follows:
($ in millions)Future Amortization Expense
Remaining nine months of 2022$140 
2023$165 
2024$150 
2025$135 
2026$115 
2027$100 
Thereafter$452 
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5. Business Restructuring
The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company also incurs incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected asset life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 16, "Reportable Business Segment Information" for additional information.
In the fourth quarter 2021, the Company approved business restructuring actions related to recent acquisitions targeting further consolidation of its manufacturing footprint and headcount reductions. The majority of these restructuring actions are expected to be completed by the end of 2023.
In the second quarter 2020, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program addressed weakened global economic conditions stemming from COVID-19 and related pace of recovery in a few end-use markets along with further opportunities to optimize supply chain and functional costs. In the second quarter 2019, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The remaining actions of the 2020 and 2019 restructuring programs are expected to be completed in 2022.
The following table summarizes restructuring reserve activity for the three months ended March 31, 2022 and 2021:
Total Reserve
($ in millions)20222021
January 1$231 $293 
Cash payments(32)(26)
Foreign currency impact(5)(11)
March 31$194 $256 
6.Borrowings
In March 2022, PPG privately placed a 15-year €50 million 1.95% fixed interest note. This note contains covenants materially consistent with the 1.200% notes discussed below. This debt arrangement is denominated in euros and has been designated as a net investment hedge of the Company's European operations. Refer to Note 12 "Financial Instruments, Hedging Activities and Fair Value Measurements" for additional information.
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 repurchase the notes upon a Change of Control Triggering Event (as defined in the 2021 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the 2021 Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $692 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 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 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. In June 2021, PPG borrowed $700 million under the Term Loan Credit Agreement to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. In December 2021,
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PPG borrowed an additional $700 million under the Term Loan Credit Agreement. Borrowings of $1.4 billion were outstanding under the Term Loan Credit Agreement as of March 31, 2022 and December 31, 2021.
In April 2020, PPG entered into a $1.5 billion 364-Day Term Loan Credit Agreement (the “Term Loan”). The Term Loan contained 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. In 2020, PPG repaid $1.1 billion of the Term Loan using cash on hand. In the first quarter 2021, PPG repaid the remaining $400 million of the Term Loan using cash on hand. The Term Loan terminated on April 13, 2021.
In August 2019, PPG amended and restated its five-year credit agreement (the “Credit Agreement”) with several banks and financial institutions. The Credit Agreement provides for a $2.2 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 Credit Agreement will terminate on August 30, 2024. 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 no amounts outstanding under the credit agreement as of March 31, 2022 and December 31, 2021.
The Term Loan Credit Agreement and Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan Credit Agreement and 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 March 31, 2022, Total Indebtedness to Total Capitalization as defined under the Credit Agreement and Term Loan Credit Agreement was 51%.
The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. Commercial paper borrowings of $1.0 billion and $440 million were outstanding as of March 31, 2022 and December 31, 2021, respectively.
Letters of Credit and Surety Bonds
The Company had outstanding letters of credit and surety bonds of $160 million as of March 31, 2022.
7.Impairment and Other Related Charges
In the first quarter 2022, Russian military forces invaded Ukraine. This military action had significant and immediate adverse economic impacts on businesses operating in Russia and Ukraine. Based on deteriorating business conditions and regulatory restrictions, including the impact of economic sanctions imposed on Russia by the United States, the European Union and other governments, PPG immediately ceased sales to Russian state-owned entities, announced that the Company would cease all new investments in Russia and commenced actions to wind down most of the Company’s operations in Russia.
Based on this change in facts and circumstances, the long-term cash flow forecast for the Company’s operations in Russia was significantly reduced. This reduction in the long-term cash flow forecast indicated that the carrying amounts of long-lived assets and certain indefinite-lived intangible assets associated with the Company’s operations in Russia may not be recoverable, and the carrying value of these assets was tested for impairment. Additionally, the Company evaluated trade receivables for estimated future credit losses, inventories for declines in net realizable value and other current assets for impairment in light of the deteriorating economic conditions in Russia and Ukraine. As a result, during the three months ended March 31, 2022, the Company recognized $290 million of Impairment and other related charges in the condensed consolidated statement of income, comprised of $201 million of long-lived asset impairment charges and $89 million of other related charges.
The $201 million of long-lived asset impairment charges is comprised of $124 million related to indefinite-lived intangible assets, $54 million related to Property, plant and equipment, net and $23 million related to definite-lived intangible assets. The $89 million of other related charges represent reserves established for Receivables, Inventories, and Other current assets impacted by the adverse economic consequences of the Russian invasion of Ukraine.
During both the three months ended March 31, 2022 and the twelve months ended December 31, 2021, net sales in Russia represented approximately 1% of PPG net sales.
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8.Earnings Per Common Share
The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three months ended March 31, 2022 and 2021 were as follows:
 Three Months Ended
March 31
(number of shares in millions)20222021
Weighted average common shares outstanding236.6 237.4 
Effect of dilutive securities:
Stock options0.9 0.9 
Other stock compensation plans0.7 0.7 
Potentially dilutive common shares1.6 1.6 
Adjusted weighted average common shares outstanding238.2 239.0 
Dividends per common share$0.59 $0.54 
Excluded from the computation of earnings per diluted share due to their antidilutive effect were 0.5 million and zero outstanding stock options for the three months ended March 31, 2022 and 2021, respectively.
9.Income Taxes
Three Months Ended
March 31
20222021
Effective tax rate on pretax income70.5 %22.8 %
The first quarter effective tax rate of 70.5% reflects a tax benefit of $27 million on the $290 million Impairment and other related charges associated with PPG’s operations in Russia.
Income tax expense for the three months ended March 31, 2022 and 2021 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss. During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which PPG operates based on changes in factors such as prices, shipments, product mix, raw material inflation and manufacturing operations. To the extent that actual 2022 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2022 could be different from the forecasted amount used to estimate the Income tax expense for the three months ended March 31, 2022.
10.Pensions and Other Postretirement Benefits
Service cost for net periodic pension and other postretirement benefit costs is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statements of income. All other components of net periodic benefit cost are recorded in Other charges in the accompanying condensed consolidated statements of income.
Net periodic pension and other postretirement benefit (income)/cost for the three months ended March 31, 2022 and 2021 was as follows:
 PensionOther Postretirement Benefits
 Three Months Ended
March 31
Three Months Ended
March 31
($ in millions)2022202120222021
Service cost$2 $3 $3 $3 
Interest cost19 16 4 3 
Expected return on plan assets(36)(38)  
Amortization of actuarial losses8 10 4 6 
Amortization of prior service credit  (3)(14)
Net periodic benefit (income)/cost($7)($9)$8 ($2)
Net periodic other postretirement expense was higher for the three months ended March 31, 2022 compared to
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2021 due to a decrease in the benefit associated with a 2017 other postretirement benefit plan design change. The 2017 plan design change resulted in a significant reduction in the Company’s postretirement benefit obligation, the impact of which was amortized as a reduction of net periodic benefit cost through 2021.
PPG expects 2022 full year net periodic pension income of approximately $25 million and net periodic other postretirement expense of approximately $30 million.
Contributions to Defined Benefit Pension Plans
Three Months Ended
March 31
($ in millions)20222021
Non-U.S. defined benefit pension mandatory contributions$1 $1 
PPG expects to make contributions to its defined benefit pension plans in the range of $10 million to $15 million during the remaining nine months of 2022. PPG may make voluntary contributions to its defined benefit pension plans in 2022 and beyond.
11.Accumulated Other Comprehensive Loss (AOCL)
($ in millions)
Foreign Currency Translation Adjustments (1)
Pension and Other Postretirement Benefit Adjustments, net of tax (2)
Unrealized Gain on Derivatives, net of taxAccumulated Other Comprehensive Loss
January 1, 2021($1,663)($937)$1 ($2,599)
Current year deferrals to AOCL(126)(7) (133)
Reclassifications from AOCL to net income 2  2 
March 31, 2021($1,789)($942)$1 ($2,730)
January 1, 2022($1,988)($763)$1 ($2,750)
Current year deferrals to AOCL30 (11) 19 
Reclassifications from AOCL to net income10 7  17 
March 31, 2022($1,948)($767)$1 ($2,714)
(1)The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges as of March 31, 2022 and 2021 was $11 million and $30 million, respectively.
(2)The tax cost related to the adjustment for pension and other postretirement benefits as of March 31, 2022 and 2021 was $2 million and $1 million, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit costs (See Note 10, "Pensions and Other Postretirement Benefits").
12.Financial Instruments, Hedging Activities and Fair Value Measurements
Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at March 31, 2022 and December 31, 2021, in the aggregate, except for long-term debt instruments.
Hedging Activities
The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge a portion of these underlying economic exposures. Certain of these instruments may qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred.
PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the three months ended March 31, 2022 and 2021.
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All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement.
There were no derivative instruments de-designated or discontinued as hedging instruments during the three months ended March 31, 2022 and 2021, and there were no gains or losses deferred in Accumulated other comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated statement of income in the three months ended March 31, 2022 and 2021 related to hedges of anticipated transactions that were no longer expected to occur.
Fair Value Hedges
The Company uses interest rate swaps from time to time to manage its exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value.
PPG has interest rate swaps which converted $525 million of fixed rate debt to variable rate debt. These swaps are designated as fair value hedges and are carried at fair value. Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in interest expense in the accompanying condensed consolidated statement of income. The fair value of these interest rate swaps was an asset of $10 million and $36 million at March 31, 2022 and December 31, 2021, respectively.
Cash Flow Hedges
At times, PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. There were no outstanding cash flow hedges at March 31, 2022 and December 31, 2021.
Net Investment Hedges
PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a significant portion of its net investment in its European operations, as follows:
As of March 31, 2022 and December 31, 2021, PPG had U.S. dollar to euro cross currency swap contracts with total notional amounts of $775 million and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payment in U.S. dollars and make payments in euros to the counterparties. As of March 31, 2022 and December 31, 2021, the fair value of the U.S. dollar to euro cross currency swap contracts were net assets of $55 million and $50 million, respectively.
As of March 31, 2022 and December 31, 2021, PPG had designated €1.5 billion and €1.4 billion, respectively, of euro-denominated borrowings as hedges of a portion of its net investment in the Company's European operations. The carrying value of these instruments was $1.6 billion as of March 31, 2022 and December 31, 2021.
Other Financial Instruments
PPG uses foreign currency forward contracts to manage certain net transaction exposures that either have not been elected, or do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other charges in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $1.8 billion and $1.9 billion at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, the fair value of these contracts were net assets of $34 million and $24 million, respectively.
Gains/Losses Deferred in Accumulated Other Comprehensive Loss
As of March 31, 2022 and December 31, 2021, the Company had accumulated pretax unrealized translation gains in Accumulated other comprehensive loss on the condensed consolidated balance sheet related to the euro-denominated borrowings, foreign currency forward contracts, and the cross currency swaps of $252 million and $204 million, respectively.
The following table summarizes the location within the condensed consolidated financial statements and amount of gains related to derivative and debt financial instruments for the three months ended March 31, 2022 and 2021. All amounts are shown on a pretax basis.
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March 31, 2022March 31, 2021Caption In Condensed Consolidated Statement of Income
($ in millions)Gain Deferred in OCIGain RecognizedGain Deferred in OCI(Loss)/Gain Recognized
Economic
   Foreign currency forward contracts
$— $12 $— ($3)Other charges
Fair Value
   Interest rate swaps
— 3 — 4 Interest expense
Total forward contracts and interest rate swaps$ $15 $ $1 
Net Investment
Cross currency swaps$5 $3 $28 $4 Interest expense
Foreign denominated debt43 — 97 — 
Total Net Investment$48 $3 $125 $4 
Fair Value Measurements
The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of March 31, 2022 and December 31, 2021, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 13, "Employee Benefit Plans" under Item 8 in the 2021 Form 10-K for further details). The Company's financial assets and liabilities are measured using inputs from the following three levels:
Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges.
Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments' contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves.
Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company did not have any recurring financial assets or liabilities that were recorded in its condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 that were classified as Level 3 inputs.
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Assets and liabilities reported at fair value on a recurring basis:
March 31, 2022December 31, 2021
($ in millions)Level 1Level 2Level 3Level 1Level 2Level 3
Assets:
Other current assets:
Marketable equity securities$9 $ $ $6 $ $ 
Foreign currency forward contracts (a)
 38   28  
Cross currency swaps (b)
 30     
Interest rate swaps (c)
 1     
Investments:
Marketable equity securities$84 $ $ $98 $ $ 
Other assets:
Cross currency swaps (b)
$ $25 $ $ $50 $ 
Interest rate swaps (c)
 9   36  
Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)
$ $4 $ $ $4 $ 
(a)Derivatives not designated as hedging instruments
(b)Net investment hedges
(c)Fair value hedges
Long-Term Debt
($ in millions)
March 31, 2022 (a)
December 31, 2021 (b)
Long-term debt - carrying value$7,129 $6,565 
Long-term debt - fair value$7,202 $6,958 
(a)Excluding finance lease obligations of $9 million and short-term borrowings of $15 million as of March 31, 2022.
(b)Excluding finance lease obligations of $10 million and short-term borrowings of $6 million as of December 31, 2021.
The fair values of the debt instruments were based on discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities and were measured using Level 2 inputs.
13.Stock-Based Compensation
The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. There were 4.7 million shares available for future grants under the PPG Amended Omnibus Plan as of March 31, 2022.
Stock-based compensation expense and the associated income tax benefit recognized during the three months ended March 31, 2022 and 2021 were as follows:
Three Months Ended
March 31
($ in millions)20222021
Stock-based compensation expense$6 $17 
Income tax benefit recognized$1 $4 
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Grants of stock-based compensation during the three months ended March 31, 2022 and 2021 were as follows:
Three Months Ended
March 31
20222021
Grant DetailsSharesFair ValueSharesFair Value
Stock options487,277 $36.52 527,464 $29.27 
Restricted stock units189,411 $143.92 162,601 $129.64 
Contingent shares (a)
57,134 $151.87 55,540 $136.60 
(a)The number of contingent shares represents the target value of the award.
Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock option grants issued during the three months ended March 31, 2022 was calculated with the following weighted average assumptions:
Weighted average exercise price$151.87
Risk free interest rate2.0 %
Expected life of option in years6.5
Expected dividend yield1.6 %
Expected volatility25.7 %
The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected life of options is calculated using the average of the vesting term and the maximum term, as prescribed by accounting guidance on the use of the simplified method for determining the expected term of an employee share option. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options.
Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period. Performance-based RSUs vest based on achieving specific annual performance targets for earnings per share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets.
The amount paid upon vesting of performance-based RSUs may range from 0% to 200% of the original grant, based upon the level of earnings per share growth achieved and frequency with which the annual cash flow return on capital performance target is met over the three calendar year periods comprising the vesting period. Performance against the earnings per share growth and the cash flow return on capital target is calculated annually, and the annual payout for each goal is weighted equally over the three-year period.
The Company also provides grants of contingent shares to selected key executives that may be earned based on PPG total shareholder return (“TSR”) over the three-year period following the date of grant. Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three-year period based on the Company’s stock performance. Performance is measured by determining the percentile rank of the total shareholder return of PPG common stock in relation to the total shareholder return of the S&P 500 Index for the three-year period following the date of grant. This comparison group represents the entire S&P 500 Index as it existed at the beginning of the performance period, excluding any companies that were removed from the index because they ceased to be publicly traded. The payment of awards following the three-year award period is based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 200% of the initial grant. Contingent share awards earn dividend equivalents for the award period, which are paid to participants or credited to the participants’ deferred compensation plan accounts with the award payout at the end of the period based on the actual number of contingent shares that are earned. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both. The TSR awards qualify as liability awards, and compensation expense is recognized over the three-year award period based on the fair value of the awards (giving consideration to the Company’s percentile rank of total shareholder return) remeasured in each reporting period until settlement of the awards.
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14.Commitments and Contingent Liabilities
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, antitrust, employment and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that 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 other insurers, as they had prior to the asbestos settlement described below, may contest coverage with respect to some of the asbestos claims. 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.
The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.
Asbestos Matters
Prior to 2000, the Company had been named as a defendant in numerous claims alleging bodily injury from exposure to asbestos, including exposure to asbestos-containing products of Pittsburgh Corning Corporation (“PC”) for which the Company was alleged to be liable (the Company and Corning Incorporated were each 50% shareholders in PC prior to April 27, 2016). In 2000, PC filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Pennsylvania, and the Bankruptcy Court enjoined the prosecution of asbestos litigation against the Company during the pendency of the bankruptcy proceeding.
Following a settlement with certain of the Company’s insurers that was incorporated into a plan of reorganization for PC, the Bankruptcy Court issued a channeling injunction that prohibits claimants from asserting claims against, among others, the Company arising out of exposure to asbestos or asbestos-containing products manufactured, sold or distributed by PC or asbestos on or emanating from any PC premises. The channeling injunction by its terms also precludes the prosecution of other asbestos-related claims against the Company arising out of prior relationships with PC. The foregoing PC-related claims are referred to as “PC Relationship Claims.” The channeling injunction channels the Company’s liability for PC Relationship Claims to a trust funded in part by the Company and certain of its insurers (the “Trust”), and this Trust is the sole recourse for holders of PC Relationship Claims.
The channeling injunction does not extend to claims against the Company alleging:
exposure to asbestos or asbestos-containing products manufactured, sold or distributed by the Company or its subsidiaries that are not PC Relationship Claims (“Products Claims”); and
personal injury caused by asbestos on premises presently or formerly owned, leased or occupied by the Company (“Premises Claims”).
In 2009, the Company established a $162 million reserve for Products Claims that it has monitored and reviewed on a periodic basis, and until 2021, the Company had not had sufficient current claims information or settlement history on which to base a better estimate of this liability in light of the Bankruptcy Court’s injunction staying most asbestos claims against the Company which was in effect from April 2000 through May 2016.
Current open and active claims
The Company is aware of certain asbestos-related claims pending against the Company and certain of its subsidiaries, consisting of Products Claims, Premises Claims and claims against a subsidiary the Company acquired in 2013 (“Subsidiary Claims”). The Company is defending these claims vigorously.
In 2019, as certain claims data became available and as a supplement to its periodic monitoring and review, the Company began performing an annual valuation analysis, based in part on discussions with counsel and reports from valuation consultants, of its claims history and the amount of the Company’s potential liability for asbestos-related claims. As a result of the Company’s 2019 review of its asbestos-related liabilities, a charge of $12 million was recorded in the consolidated statement of income to increase the reserve to reflect the Company’s estimates of potential liability for Premises Claims and Subsidiary Claims.
In 2020, based on the results of the Company’s annual valuation analysis, no adjustments to the Company’s estimate of its asbestos-related liabilities were required.
In the fourth quarter of 2021, as additional claims data became available following the expiration of the Bankruptcy Court’s injunction in May 2016, the Company adjusted its estimate of potential liability for Products Claims. The
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2021 valuation analysis with respect to Products Claims was based, in part, upon a review of claims data; annual filings by disease and year; pending, paid and dismissed claims; indemnity cash flows; and estimates of future claim, indemnity and acceptance rates. The Company also further adjusted its estimates of potential liability for Premises Claims and Subsidiary Claims in the fourth quarter of 2021.
As a result of the Company’s fourth quarter 2021 review of its asbestos-related liabilities, income of $133 million was recorded in the consolidated statement of income to reduce the reserve to reflect the Company’s current estimate of potential liability for asbestos-related bodily injury claims through December 31, 2057. As of December 31, 2021, the Company’s asbestos-related reserves totaled $54 million.
As of March 31, 2022, the Company's total asbestos-related reserves were $52 million. The Company believes that, based on presently available information, the total reserves of $52 million for asbestos-related claims will be sufficient to encompass all of the Company’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying condensed consolidated balance sheets, involve significant management judgment and represent the Company’s current best estimate of its liability for these claims.
The Company monitors and reviews the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required.
The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) whether closed, dismissed or dormant claims are reinstituted, reinstated or revived; (iii) the amounts required to resolve both currently known and future unknown claims; (iv) the amount of insurance, if any, available to cover such claims; (v) the unpredictable aspects of the tort system, including a changing trial docket and the jurisdictions in which trials are scheduled; (vi) the outcome of any trials, including potential judgments or jury verdicts; (vii) the lack of specific information in many cases concerning exposure for which the Company is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (viii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. While the ultimate outcome of the Company’s asbestos litigation cannot be predicted with certainty, the Company believes that any financial exposure resulting from its asbestos-related claims will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.
Environmental Matters
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.
As remediation at certain environmental sites progresses, PPG continues to refine its assumptions underlying the estimates of the expected future costs of its remediation programs. PPG’s ongoing evaluation may result in additional charges against income to adjust the reserves for these sites. In 2022 and 2021, certain charges have been recorded based on updated estimates to increase existing reserves for these sites. Certain other charges related to environmental remediation actions are also expensed as incurred.
As of March 31, 2022 and December 31, 2021, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, New Jersey (“New Jersey Chrome”), glass and chemical manufacturing sites, and for other environmental contingencies, including current manufacturing locations and National Priority List sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying condensed consolidated balance sheet.
Environmental Reserves
($ in millions)March 31, 2022December 31, 2021
New Jersey Chrome$71 $89 
Glass and chemical81 83 
Other110 110 
Total$262 $282 
Current portion$85 $97 
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Pretax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three months ended March 31, 2022 and 2021 were as follows:
Three Months Ended
March 31
($ in millions)20222021
Environmental remediation pretax charges$6 $19 
Cash outlays for environmental remediation activities$23 $9 
Remediation: New Jersey Chrome
In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and 19 additional sites. The principal contaminant of concern is hexavalent chromium. The JCO also provided for the appointment of a court-approved Site Administrator who is responsible for establishing a master schedule for the remediation of the 20 PPG sites which existed at that time. Over the years, sites have been added as well as removed from the JCO process. Of the original sites in the JCO, a total of 6 soil sites and 11 groundwater sites remain subject to the JCO process.
The most significant assumptions underlying the estimate of remediation costs for the New Jersey Chrome sites are those related to the extent and concentration of chromium impacts in the soil, as these determine the quantity of soil that must be excavated and transported for offsite disposal, and the nature of disposal required. Remediation of chromium contaminated soils at the location of the former manufacturing site has been substantially completed pursuant to approved remedial action work plans. Remediation of chromium contaminated soils at certain other smaller sites is dependent on redevelopment activity by others, the timing of which is unknown. PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information. Based on these assessments, the reserve is adjusted accordingly.
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