v3.23.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2023
Revenue Disclosure [Abstract]  
Revenue Recognition Revenue Recognition
The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. 
The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.
The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three months ended March 31, 2023 and 2022, service revenue constituted less than 5% of total revenue.
Net sales by segment and region for the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended
March 31
($ in millions)20232022
Performance Coatings
United States and Canada$1,123 $1,063 
Europe, Middle East and Africa ("EMEA")900 949 
Asia Pacific256 274 
Latin America349 284 
Total$2,628 $2,570 
Industrial Coatings
United States and Canada$653 $652 
EMEA528 504 
Asia Pacific391 423 
Latin America180 159 
Total$1,752 $1,738 
Total Net Sales
United States and Canada$1,776 $1,715 
EMEA1,428 1,453 
Asia Pacific647 697 
Latin America529 443 
Total PPG$4,380 $4,308 
Allowance for Doubtful Accounts
All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks.
PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions.
The following table summarizes the activity for the allowance for doubtful accounts for the three months ended March 31, 2023 and 2022:
Trade Receivables Allowance for Doubtful Accounts
($ in millions)20232022
January 1$31 $31 
Bad debt expense3 43 
Recoveries of previously reserved trade receivables(3)(6)
Other(1)— 
March 31$30 $68 
In the first quarter 2022, PPG recorded a bad debt reserve of $43 million associated with the adverse economic impacts of the Russian invasion of Ukraine. Refer to Note 7, "Impairment and Other Related Charges" for additional information.