Cover
Cover | 9 Months Ended |
Sep. 30, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 1-1687 |
Entity Registrant Name | PPG INDUSTRIES INC |
Entity Tax Identification Number | 25-0730780 |
Entity Incorporation, State or Country Code | PA |
Entity Address, Address Line One | One PPG Place |
Entity Address, City or Town | Pittsburgh |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 15272 |
City Area Code | 412 |
Local Phone Number | 434-3131 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 236,463,211 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0000079879 |
Current Fiscal Year End Date | --12-31 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $1.66 |
Trading Symbol | PPG |
Security Exchange Name | NYSE |
0.000% Notes Due 2019 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.000% Notes due 2019 |
Trading Symbol | PPG 19 |
Security Exchange Name | NYSE |
0.875% Notes Due 2022 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2022 |
Trading Symbol | PPG 22 |
Security Exchange Name | NYSE |
0.875% Notes Due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2025 |
Trading Symbol | PPG 25 |
Security Exchange Name | NYSE |
1.400% Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.400% Notes due 2027 |
Trading Symbol | PPG 27 |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,826 | $ 3,817 | $ 11,474 | $ 11,729 |
Cost of sales, exclusive of depreciation and amortization | 2,181 | 2,253 | 6,542 | 6,813 |
Selling, general and administrative | 887 | 867 | 2,710 | 2,718 |
Depreciation | 99 | 89 | 276 | 267 |
Amortization | 34 | 33 | 101 | 103 |
Research and development, net | 107 | 110 | 323 | 336 |
Interest expense | 33 | 31 | 99 | 88 |
Interest income | (10) | (6) | (23) | (18) |
Business restructuring, net | 2 | (12) | 175 | 71 |
Other charges | 26 | 25 | 69 | 72 |
Other income | (14) | (24) | (61) | (72) |
Income before income taxes | 481 | 451 | 1,263 | 1,351 |
Income tax expense | 109 | 79 | 297 | 270 |
Income from continuing operations | 372 | 372 | 966 | 1,081 |
Income from discontinued operations, net of tax | 1 | 10 | 3 | 16 |
Net income attributable to controlling and noncontrolling interests | 373 | 382 | 969 | 1,097 |
Less: Net income attributable to noncontrolling interests | 6 | 4 | 18 | 14 |
Net income (attributable to PPG) | 367 | 378 | 951 | 1,083 |
Income from continuing operations, net of tax | 366 | 368 | 948 | 1,067 |
Income from discontinued operations, net of tax | $ 1 | $ 10 | $ 3 | $ 16 |
Income from continuing operations, net of tax (in usd per share) | $ 1.55 | $ 1.52 | $ 4 | $ 4.34 |
Income from discontinued operations, net of tax (in usd per share) | 0 | 0.04 | 0.01 | 0.07 |
Net income (attributable to PPG) (in usd per share) | 1.55 | 1.56 | 4.01 | 4.41 |
Income from continuing operations, net of tax (in usd per share) | 1.54 | 1.51 | 3.98 | 4.32 |
Income from discontinued operations, net of tax (in usd per share) | 0 | 0.04 | 0.01 | 0.06 |
Net income (attributable to PPG) (in usd per share) | $ 1.54 | $ 1.55 | $ 3.99 | $ 4.38 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to controlling and noncontrolling interests | $ 373 | $ 382 | $ 969 | $ 1,097 |
Other comprehensive (loss)/income, net of tax: | ||||
Defined benefit pension and other postretirement benefits | (2) | (12) | 4 | 20 |
Unrealized foreign currency translation adjustments | (103) | 89 | (37) | (62) |
Derivative financial instruments | 1 | (2) | 0 | (2) |
Other comprehensive (loss)/income, net of tax | (104) | 75 | (33) | (44) |
Total comprehensive income | 269 | 457 | 936 | 1,053 |
Less: amounts attributable to noncontrolling interests: | ||||
Net income | (6) | (4) | (18) | (14) |
Unrealized foreign currency translation adjustments | 6 | 3 | 5 | 11 |
Comprehensive income attributable to PPG | $ 269 | $ 456 | $ 923 | $ 1,050 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,432 | $ 902 |
Short-term investments | 58 | 61 |
Receivables (less allowance for doubtful accounts of $27 and $24) | 3,028 | 2,845 |
Inventories | 1,860 | 1,783 |
Other current assets | 439 | 370 |
Total current assets | 6,817 | 5,961 |
Property, plant and equipment (net of accumulated depreciation of $3,964 and $3,828) | 2,862 | 2,805 |
Goodwill | 4,335 | 4,070 |
Identifiable intangible assets, net | 2,083 | 1,972 |
Deferred income taxes | 194 | 229 |
Investments | 254 | 251 |
Operating | 742 | 0 |
Other assets | 777 | 727 |
Total | 18,064 | 16,015 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 3,636 | 3,623 |
Restructuring reserves | 141 | 99 |
Short-term debt and current portion of long-term debt | 639 | 651 |
Operating | 162 | 0 |
Total current liabilities | 4,578 | 4,373 |
Long-term debt | 4,885 | 4,365 |
Operating | 588 | 0 |
Accrued pensions | 627 | 645 |
Other postretirement benefits | 616 | 629 |
Deferred income taxes | 455 | 429 |
Other liabilities | 960 | 842 |
Total liabilities | 12,709 | 11,283 |
Shareholders’ equity: | ||
Common stock | 969 | 969 |
Additional paid-in capital | 925 | 788 |
Retained earnings | 18,735 | 18,131 |
Treasury stock, at cost | (13,054) | (12,958) |
Accumulated other comprehensive loss | (2,328) | (2,300) |
Total PPG shareholders’ equity | 5,247 | 4,630 |
Noncontrolling interests | 108 | 102 |
Total shareholders’ equity | 5,355 | 4,732 |
Total | $ 18,064 | $ 16,015 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 27 | $ 24 |
Property, accumulated depreciation | $ 3,964 | $ 3,828 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) Statement - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss)/Income | Total PPG | Non-controlling Interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adjustment to retained earnings - Adoption of ASU 2016-16 | $ (4) | $ (4) | ||||||
Beginning balance at Dec. 31, 2017 | 5,672 | $ 969 | $ 756 | $ 17,140 | $ (11,251) | $ (2,057) | 5,557 | $ 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 340 | 334 | 334 | 6 | ||||
Other comprehensive loss, net of tax | 161 | 159 | 159 | 2 | ||||
Cash dividends | (112) | (112) | (112) | |||||
Purchase of treasury stock | (600) | (600) | (600) | |||||
Issuance of treasury stock | 31 | 24 | 7 | 31 | ||||
Stock-based compensation activity | (19) | (19) | (19) | |||||
Reductions in noncontrolling interests | (2) | (2) | ||||||
Reclassification from other comprehensive income to retained earnings - Adoption of ASU 2018-02 | 0 | 107 | (107) | |||||
Ending balance at Mar. 31, 2018 | 5,467 | 969 | 761 | 17,465 | (11,844) | (2,005) | 5,346 | 121 |
Beginning balance at Dec. 31, 2017 | 5,672 | 969 | 756 | 17,140 | (11,251) | (2,057) | 5,557 | 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 1,097 | |||||||
Other comprehensive loss, net of tax | (44) | |||||||
Reclassification from other comprehensive income to retained earnings - Adoption of ASU 2018-02 | (107) | |||||||
Ending balance at Sep. 30, 2018 | 5,078 | 969 | 772 | 17,988 | (12,552) | (2,197) | 4,980 | 98 |
Beginning balance at Mar. 31, 2018 | 5,467 | 969 | 761 | 17,465 | (11,844) | (2,005) | 5,346 | 121 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 375 | 371 | 371 | 4 | ||||
Other comprehensive loss, net of tax | (280) | (270) | (270) | (10) | ||||
Cash dividends | (110) | (110) | (110) | |||||
Purchase of treasury stock | (463) | (463) | (463) | |||||
Issuance of treasury stock | 3 | 1 | 2 | 3 | ||||
Stock-based compensation activity | 7 | 7 | 7 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (2) | (2) | ||||||
Reductions in noncontrolling interests | (14) | (14) | ||||||
Ending balance at Jun. 30, 2018 | 4,983 | 969 | 769 | 17,726 | (12,305) | (2,275) | 4,884 | 99 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 382 | 378 | 378 | 4 | ||||
Other comprehensive loss, net of tax | 75 | 78 | 78 | (3) | ||||
Cash dividends | (116) | (116) | (116) | |||||
Purchase of treasury stock | (250) | (250) | (250) | |||||
Issuance of treasury stock | 4 | 1 | 3 | 4 | ||||
Stock-based compensation activity | 2 | 2 | 2 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (2) | (2) | ||||||
Ending balance at Sep. 30, 2018 | 5,078 | 969 | 772 | 17,988 | (12,552) | (2,197) | 4,980 | 98 |
Beginning balance at Dec. 31, 2018 | 4,732 | 969 | 788 | 18,131 | (12,958) | (2,300) | 4,630 | 102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 317 | 312 | 312 | 5 | ||||
Other comprehensive loss, net of tax | 75 | 76 | 76 | (1) | ||||
Cash dividends | (113) | (113) | (113) | |||||
Purchase of treasury stock | (175) | (175) | (175) | |||||
Issuance of treasury stock | 184 | 121 | 63 | 184 | ||||
Stock-based compensation activity | (10) | (10) | (10) | |||||
Ending balance at Mar. 31, 2019 | 5,010 | 969 | 899 | 18,330 | (13,070) | (2,224) | 4,904 | 106 |
Beginning balance at Dec. 31, 2018 | 4,732 | 969 | 788 | 18,131 | (12,958) | (2,300) | 4,630 | 102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 969 | |||||||
Other comprehensive loss, net of tax | (33) | |||||||
Ending balance at Sep. 30, 2019 | 5,355 | 969 | 925 | 18,735 | (13,054) | (2,328) | 5,247 | 108 |
Beginning balance at Mar. 31, 2019 | 5,010 | 969 | 899 | 18,330 | (13,070) | (2,224) | 4,904 | 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 279 | 272 | 272 | 7 | ||||
Other comprehensive loss, net of tax | (4) | (6) | (6) | 2 | ||||
Cash dividends | (114) | (114) | (114) | |||||
Issuance of treasury stock | 16 | 7 | 9 | 16 | ||||
Stock-based compensation activity | 7 | 7 | 7 | |||||
Dividends paid on subsidiary common stock to noncontrolling interests | (5) | (5) | ||||||
Reductions in noncontrolling interests | (2) | (2) | ||||||
Ending balance at Jun. 30, 2019 | 5,187 | 969 | 913 | 18,488 | (13,061) | (2,230) | 5,079 | 108 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 373 | 367 | 367 | 6 | ||||
Other comprehensive loss, net of tax | (104) | (98) | (98) | (6) | ||||
Cash dividends | (120) | (120) | (120) | |||||
Issuance of treasury stock | 12 | 5 | 7 | 12 | ||||
Stock-based compensation activity | 7 | 7 | 7 | |||||
Ending balance at Sep. 30, 2019 | $ 5,355 | $ 969 | $ 925 | $ 18,735 | $ (13,054) | $ (2,328) | $ 5,247 | $ 108 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net income attributable to controlling and noncontrolling interests | $ 969 | $ 1,097 |
Less: Income from discontinued operations | (3) | (16) |
Income from continuing operations | 966 | 1,081 |
Adjustments to reconcile net income to cash from operations: | ||
Depreciation and amortization | 377 | 370 |
Pension expense | 38 | 30 |
Environmental remediation charges, net | 61 | 34 |
Business restructuring, net | 175 | 71 |
Impairment of a non-manufacturing asset | 0 | 9 |
Stock-based compensation expense | 28 | 21 |
Equity affiliate loss, net of dividends | (4) | (3) |
Deferred income tax benefit | (26) | (5) |
Cash contributions to pension plans | (8) | (89) |
Cash used for restructuring actions | (35) | (48) |
Change in certain asset and liability accounts: | ||
Receivables | (188) | (419) |
Inventories | (49) | (285) |
Other current assets | (70) | (5) |
Accounts payable and accrued liabilities | 35 | 102 |
Taxes and interest payable | 59 | 51 |
Noncurrent assets and liabilities, net | (52) | (144) |
Other | (40) | (90) |
Cash from operating activities - continuing operations | 1,275 | 687 |
Cash used for operating activities - discontinued operations | (4) | (20) |
Cash from operating activities | 1,271 | 667 |
Investing activities: | ||
Capital expenditures | (224) | (226) |
Business acquisitions, net of cash balances acquired | (564) | (98) |
Payments for the settlement of cross currency swap contracts | (8) | (23) |
Proceeds from the settlement of cross currency swap | 26 | 20 |
Other | 22 | 16 |
Cash used for investing activities | (748) | (311) |
Financing activities: | ||
Net change in borrowing with maturities of three months or less | 6 | 5 |
Net payments on commercial paper and short-term debt | 0 | (1) |
Proceeds from the issuance of debt, net of discounts and fees | 595 | 992 |
Repayment of long-term debt | (3) | (5) |
Repayment of acquired debt | 23 | 0 |
Purchase of treasury stock | (175) | (1,313) |
Issuance of treasury stock | 32 | 14 |
Payments related to tax withholding on stock-based compensation awards | (15) | (14) |
Other | (29) | (10) |
Cash from/(used for) financing activities | 41 | (670) |
Effect of currency exchange rate changes on cash and cash equivalents | (34) | (19) |
Net increase/(decrease) in cash and cash equivalents | 530 | (333) |
Cash and cash equivalents, beginning of period | 902 | 1,436 |
Cash and cash equivalents, end of period | 1,432 | 1,103 |
Interest paid, net of amount capitalized | 93 | 68 |
Taxes paid, net of refunds | $ 282 | $ 320 |
Reissuance of common stock for business acquisition | 164 | 0 |
Retained Earnings | ||
Financing activities: | ||
Dividends paid | $ (347) | $ (338) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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, 2019 , and the results of its operations and cash flows for the three and nine months ended September 30, 2019 and 2018 . 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 2018 Annual Report on Form 10-K (the "2018 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, 2019 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. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Adopted in 2019 Effective January 1, 2019, PPG adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases." This ASU requires substantially all leases be recorded on the balance sheet as right of use assets and lease obligations. PPG adopted the ASU using a retrospective adoption method at January 1, 2019, as outlined in ASU No. 2018-11, "Leases - Targeted Improvements." Under this method of adoption, there is no impact to the comparative condensed consolidated statement of income and condensed consolidated balance sheet. PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. PPG will continue to report periods prior to January 1, 2019 in its financial statements under prior guidance as outlined in Accounting Standards Codification Topic 840, "Leases." In addition, PPG elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications. Adoption of this standard did not materially impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 3 , " Leases " for further details. Accounting Standards to be Adopted in Future Years In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software." This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Entities may choose to adopt the new ASU as of its fiscal year beginning after December 15, 2018. PPG did not early adopt this standard. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space and equipment, including fleet vehicles. PPG determines if a contract is a lease at the inception of the arrangement. PPG reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. The components of lease expense were as follows: ($ in millions) Classification in the Condensed Consolidated Statement of Income Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost Cost of sales, exclusive of depreciation and amortization $8 $26 Operating lease cost Selling, general and administrative 50 147 Total operating lease cost $58 $173 Finance lease cost: Amortization of right-of-use assets Depreciation $1 $2 Interest on lease liabilities Interest Expense — 1 Total finance lease cost $1 $3 Total lease cost $59 $176 Total operating lease cost is inclusive of the following: ($ in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Variable lease costs $3 $10 Short-term lease costs $1 $4 Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying. ($ in millions) Classification on the Condensed Consolidated Balance Sheet September 30, 2019 Assets: Operating Operating lease right-of-use assets $742 Finance (a) Property, plant, and equipment 19 Total leased assets $761 Liabilities: Current Operating Current portion of operating lease liabilities $162 Finance Short-term debt and current portion of long-term debt 3 Noncurrent Operating Operating lease liabilities 588 Finance Long-term debt 8 Total lease liabilities $761 (a) Net of accumulated depreciation of $11 million . ($ in millions) Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $157 Operating cash flows from finance leases $— Financing cash flows from finance leases $3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $145 Finance leases $1 As of September 30, 2019 Weighted-average remaining lease term (in years) Operating leases 7.5 Finance leases 6.3 Weighted-average discount rate Operating leases 3.1 % Finance leases 9.3 % Nearly all of PPG’s lease contracts do not provide a readily determinable implicit rate. For these contracts, PPG’s estimated incremental borrowing rate is based on information available at the inception of the lease. As of September 30, 2019 , maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases Remaining three months of 2019 $50 $1 2020 173 3 2021 134 2 2022 105 2 2023 82 1 Thereafter 303 4 Total lease payments $847 $13 Less: Interest 97 2 Total lease obligations $750 $11 Disclosures related to periods prior to adoption of ASU 2016-02 PPG adopted ASU 2016-02 using a retrospective adoption method at January 1, 2019 as noted in Note 2 , " New Accounting Standards ." As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows: ($ in millions) Operating Leases Capital Leases 2019 $207 $3 2020 157 3 2021 116 1 2022 93 1 2023 76 1 Beyond 2023 $244 $3 |
Leases | Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space and equipment, including fleet vehicles. PPG determines if a contract is a lease at the inception of the arrangement. PPG reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. The components of lease expense were as follows: ($ in millions) Classification in the Condensed Consolidated Statement of Income Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost Cost of sales, exclusive of depreciation and amortization $8 $26 Operating lease cost Selling, general and administrative 50 147 Total operating lease cost $58 $173 Finance lease cost: Amortization of right-of-use assets Depreciation $1 $2 Interest on lease liabilities Interest Expense — 1 Total finance lease cost $1 $3 Total lease cost $59 $176 Total operating lease cost is inclusive of the following: ($ in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Variable lease costs $3 $10 Short-term lease costs $1 $4 Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying. ($ in millions) Classification on the Condensed Consolidated Balance Sheet September 30, 2019 Assets: Operating Operating lease right-of-use assets $742 Finance (a) Property, plant, and equipment 19 Total leased assets $761 Liabilities: Current Operating Current portion of operating lease liabilities $162 Finance Short-term debt and current portion of long-term debt 3 Noncurrent Operating Operating lease liabilities 588 Finance Long-term debt 8 Total lease liabilities $761 (a) Net of accumulated depreciation of $11 million . ($ in millions) Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $157 Operating cash flows from finance leases $— Financing cash flows from finance leases $3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $145 Finance leases $1 As of September 30, 2019 Weighted-average remaining lease term (in years) Operating leases 7.5 Finance leases 6.3 Weighted-average discount rate Operating leases 3.1 % Finance leases 9.3 % Nearly all of PPG’s lease contracts do not provide a readily determinable implicit rate. For these contracts, PPG’s estimated incremental borrowing rate is based on information available at the inception of the lease. As of September 30, 2019 , maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases Remaining three months of 2019 $50 $1 2020 173 3 2021 134 2 2022 105 2 2023 82 1 Thereafter 303 4 Total lease payments $847 $13 Less: Interest 97 2 Total lease obligations $750 $11 Disclosures related to periods prior to adoption of ASU 2016-02 PPG adopted ASU 2016-02 using a retrospective adoption method at January 1, 2019 as noted in Note 2 , " New Accounting Standards ." As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows: ($ in millions) Operating Leases Capital Leases 2019 $207 $3 2020 157 3 2021 116 1 2022 93 1 2023 76 1 Beyond 2023 $244 $3 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On August 14, 2019, PPG completed the acquisition of Dexmet Corporation, a specialty materials manufacturer. Headquartered in Wallingford, Connecticut, Dexmet Corporation specializes in customized, highly-engineered, expanded and perforated metal foils and polymers used for structural applications. 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 acquisition, was not significant. The results of this business since the date of acquisition have been reported within the aerospace coatings business within the Performance Coatings reportable segment. On April 16, 2019, PPG completed the acquisition of Hemmelrath, an automotive coatings manufacturer. Headquartered in Klingenberg, Germany, Hemmelrath is a global manufacturer of coatings for automotive original equipment manufacturers ("OEMs"). 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 acquisition, was not significant. The results of this business since the date of acquisition have been reported within the automotive OEM coatings business within the Industrial Coatings reportable segment. On March 1, 2019, PPG completed the acquisition of Whitford Worldwide Company ("Whitford"), a global manufacturer that specializes in low-friction and nonstick coatings for industrial applications and consumer products. Whitford employs more than 700 people and operates 10 manufacturing facilities globally. 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 acquisition, was not significant. The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable segment. In January 2018, PPG acquired ProCoatings, a leading architectural paint and coatings wholesaler located in The Netherlands. ProCoatings, established in 2001, distributes a large portfolio of well-known professional paint brands through its network of 23 multi-brand stores. The company employs nearly 100 people. 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 acquisition, was not significant.The results of this business since the date of acquisition have been reported within the architectural coatings - Europe, Middle East and Africa (EMEA) business within the Performance Coatings reportable segment. Divestitures Glass Segment Income from discontinued operations, net of tax related to the former Glass reportable business segment for the three and nine months ended September 30, 2018 were as follows: ($ in millions) Three Months Ended Nine Months Ended Income from operations $13 $21 Income tax expense 3 5 Income from discontinued operations, net of tax $10 $16 During the third quarter of 2018, PPG released $13 million of previously recorded accruals and contingencies established in conjunction with the divestitures of businesses within the former Glass segment as a result of completed actions, new information and updated estimates. Also in the third quarter of 2018, PPG made a final payment of $20 million to Vitro S.A.B. de C.V related to the transfer of certain pension obligations upon the sale of the former flat glass business. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories ($ in millions) September 30, 2019 December 31, 2018 Finished products $1,159 $1,105 Work in process 207 193 Raw materials 460 452 Supplies 34 33 Total Inventories $1,860 $1,783 Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 34% and 36% of total inventories at September 30, 2019 and December 31, 2018 , respectively. If the first-in, first-out method of inventory valuation had been used, inventories would have been $127 million and $113 million higher as of September 30, 2019 and December 31, 2018 , respectively. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The change in the carrying amount of goodwill attributable to each reportable segment for the nine months ended September 30, 2019 was as follows: ($ in millions) Performance Coatings Industrial Coatings Total January 1, 2019 $3,266 $804 $4,070 Acquisitions, including purchase accounting adjustments 130 229 359 Foreign currency impact (71 ) (23 ) (94 ) September 30, 2019 $3,325 $1,010 $4,335 A summary of the carrying value of the Company's identifiable intangible assets is as follows: September 30, 2019 December 31, 2018 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,131 N/A $1,131 $1,140 N/A $1,140 Definite-Lived Identifiable Intangible Assets Acquired technology $694 ($536 ) $158 $648 ($515 ) $133 Customer-related 1,525 (840 ) 685 1,396 (798 ) 598 Trade names 204 (105 ) 99 190 (96 ) 94 Other 49 (39 ) 10 44 (37 ) 7 Total Definite Lived Intangible Assets $2,472 ($1,520 ) $952 $2,278 ($1,446 ) $832 Total Identifiable Intangible Assets $3,603 ($1,520 ) $2,083 $3,418 ($1,446 ) $1,972 The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives. As of September 30, 2019 , estimated future amortization expense of identifiable intangible assets is as follows: ($ in millions) Future Amortization Expense Remaining three months of 2019 $24 2020 115 2021 110 2022 95 2023 90 2024 75 Thereafter 443 |
Business Restructuring
Business Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Business Restructuring | 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. 2019 Restructuring Program 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. A pretax restructuring charge of $184 million was recorded in PPG's second quarter financial results. In the third quarter of 2019, additional programs were approved by management and charges of $10 million were recorded in PPG's financial results. These charges represent employee severance and certain other cash costs. The majority of restructuring actions are expected to be completed by the end of the fourth quarter 2020 with the remainder of the actions expected to be completed in 2022. 2018 Restructuring Program In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee headcount and production capacity in certain businesses based on product demand, as well as reductions in various global functional and administrative costs. Substantially all actions from this business restructuring plan are expected to be complete by the end of the first quarter of 2020. 2016 Restructuring Program In December 2016, PPG’s Board of Directors approved a business restructuring program which includes actions necessary to reduce the Company's global cost structure. The program is focused on certain regions and end-use markets where business conditions were the weakest, as well as reductions in production capacity and various global functional and administrative costs. Substantially all actions from this business restructuring plan have been completed. The following table summarizes the reserve activity for the nine months ended September 30, 2019 : ($ in millions) Total Reserve December 31, 2018 $110 2019 restructuring charges 194 Cash payments (35 ) Release of prior reserves and other adjustments (19 ) Foreign currency impact (8 ) September 30, 2019 $242 In 2019, adjustments of $19 million were recorded to reduce the remaining restructuring reserves established under previously approved programs to reflect the current estimate of the costs to complete these actions. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings On August 30, 2019, PPG amended and restated its five-year credit agreement (the “Credit Agreement”) with several banks and financial institutions. The Credit Agreement amends and restates the Company's existing five year credit agreement dated as of December 18, 2015. 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. As of September 30, 2019 and December 31, 2018, there were no amounts outstanding under the existing or prior credit agreement. Borrowings under the Credit Agreement may be made in U.S. Dollars or in Euros. The Credit Agreement provides that loans will bear interest at rates based, at the Company’s option, on one of two specified base rates plus a margin based on certain formulas defined in the Credit Agreement. Additionally, the Credit Agreement contains a Commitment Fee, as defined in the Credit Agreement, on the amount of unused commitments under the Credit Agreement ranging from 0.060% to 0.125% per annum. The Credit Agreement also supports the Company’s commercial paper borrowings. There were no commercial paper borrowings outstanding as of September 30, 2019 and December 31, 2018. The Credit Agreement contains 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 Credit Agreement also requires the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the 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 September 30, 2019, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 49%. The Credit Agreement contains, among other things, customary events of default that would permit the lenders to accelerate the loans, including the failure to make timely payments when due under the Credit Agreement or other material indebtedness, the failure to satisfy covenants contained in the Credit Agreement, a change in control of the Company and specified events of bankruptcy and insolvency. On August 15, 2019, PPG completed a public offering of $300 million aggregate principal amount of 2.4% notes due 2024 and $300 million aggregate principal amount of 2.8% notes due 2029. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "Indenture"). The 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 notes upon a Change of Control Triggering Event (as defined in the 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 Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $595 million . In February 2018, PPG completed a public offering of $300 million aggregate principal amount of 3.2% notes due 2023 and $700 million aggregate principal amount of 3.75% notes due 2028. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to the Indenture. The 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 notes upon a Change of Control Triggering Event (as defined in the 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 Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $992 million . A portion of the notes were converted from a fixed interest rate to a floating interest rate using interest rate swap contracts. For more information, refer to Note 13 , “ Financial Instruments, Hedging Activities and Fair Value Measurements .” |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 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 and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended (number of shares in millions) 2019 2018 2019 2018 Weighted average common shares outstanding 237.1 242.2 236.9 245.8 Effect of dilutive securities: Stock options 0.7 0.7 0.6 0.8 Other stock compensation plans 0.7 0.7 0.7 0.7 Potentially dilutive common shares 1.4 1.4 1.3 1.5 Adjusted weighted average common shares outstanding 238.5 243.6 238.2 247.3 Dividends per common share $0.51 $0.48 $1.47 $1.38 Excluded from the computation of earnings per diluted share due to their antidilutive effect were 1.0 million outstanding stock options for the three and nine months ended September 30, 2019 and 2018 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Nine Months Ended 2019 2018 Effective tax rate on pretax income from continuing operations 23.5 % 20.0 % The effective tax rate of 23.5% for the nine months ended September 30, 2019 reflects a benefit of $23 million of discrete items associated with PPG's U.S. and foreign jurisdictions. For the nine months ended September 30, 2018, the effective tax rate was 20.0% inclusive of a $38 million benefit for discrete items related to U.S. income tax reform. Income tax expense for the first nine months of 2019 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss. During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which PPG operates based on changes in factors such as prices, shipments, product mix, raw material inflation and manufacturing operations. To the extent that actual 2019 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2019 could be different from the forecasted amount used to estimate the Income tax expense for the nine months ended September 30, 2019 . |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits Service cost for net periodic pension and other postretirement benefit costs is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statements of income. All other components of net periodic benefit cost are now recorded in Other charges, except for pension settlement charges, in the accompanying condensed consolidated statements of income. The net periodic pension and other postretirement benefit costs for the three and nine months ended September 30, 2019 and 2018 were as follows: Pension Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Service cost $6 $8 $17 $24 Interest cost 26 23 79 71 Expected return on plan assets (35 ) (37 ) (105 ) (113 ) Amortization of actuarial losses 16 16 47 48 Net periodic benefit cost $13 $10 $38 $30 Other Postretirement Benefits Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Service cost $3 $2 $7 $7 Interest cost 6 6 19 18 Amortization of actuarial losses 2 5 6 14 Amortization of prior service credit (14 ) (15 ) (43 ) (45 ) Net periodic benefit cost ($3 ) ($2 ) ($11 ) ($6 ) PPG expects its 2019 net periodic pension and other postretirement benefit cost will be approximately $35 million , with pension expense representing approximately $50 million and other postretirement benefit cost representing a benefit of approximately $15 million . Contributions to Defined Benefit Pension Plans Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 U.S. defined benefit pension contributions $— $50 $— $75 Non-U.S. defined benefit pension mandatory contributions $2 $4 $8 $14 PPG made voluntary contributions of $50 million and $25 million its U.S. defined benefit pension plans in September 2018 and January 2018, respectively. PPG expects to make mandatory contributions to its non-U.S. pension plans in the range of $5 million to $10 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | ($ in millions) Unrealized Foreign Currency Translation Adjustments Pension and Other Postretirement Benefit Adjustments, net of tax (c) Unrealized Gain/(Loss) on Derivatives, net of tax (d) Accumulated Other Comprehensive Loss January 1, 2019 ($1,734 ) ($568 ) $2 ($2,300 ) Current year deferrals to AOCI (a) (151 ) — — (151 ) Current year deferrals to AOCI, net of tax (b) 119 (6 ) (3 ) 110 Reclassifications from AOCI to net income — 10 3 13 Period change ($32 ) $4 $— ($28 ) September 30, 2019 ($1,766 ) ($564 ) $2 ($2,328 ) January 1, 2018 ($1,567 ) ($493 ) $3 ($2,057 ) Current year deferrals to AOCI (172 ) — — (172 ) Current year deferrals to AOCI, net of tax (b) 121 6 (6 ) 121 Reclassifications from AOCI to net income — 14 4 18 Period change ($51 ) $20 ($2 ) ($33 ) Reclassification from AOCI to Retained earnings - Adoption ASU 2018-02 (23 ) (84 ) — (107 ) September 30, 2018 ($1,641 ) ($557 ) $1 ($2,197 ) (a) Except for income taxes of $6 million related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time. (b) The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges for the nine months ended September 30, 2019 and 2018 was $39 million and $29 million , respectively. (c) The tax cost/(benefit) related to the adjustment for pension and other postretirement benefits for the nine months ended September 30, 2019 and 2018 was $2 million and ($3) million , respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 11 , " Pensions and Other Postretirement Benefits "). (d) The tax benefit related to the changes in the unrealized loss on derivatives for the nine months ended September 30, 2019 and 2018 was $1 million and $2 million , respectively. Reclassifications from AOCI are included in the gain recognized on cash flow hedges (See Note 13 , " Financial Instruments, Hedging Activities and Fair Value Measurements "). |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 September 30, 2019 and December 31, 2018 , 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 these underlying economic exposures. Certain of these instruments 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 and nine month periods ended September 30, 2019 and 2018 . 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 and nine month periods ended September 30, 2019 and 2018 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 nine month periods ended September 30, 2019 and 2018 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 it’s 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. In February of 2018, PPG entered into interest rate swaps which converted $525 million of fixed rate debt to variable rate debt. The 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. Cash Flow Hedges 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. Underlying notional amounts related to these foreign currency forward contracts were $24 million at September 30, 2019 and $50 million at December 31, 2018 , respectively. 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: In August of 2019, PPG entered into U.S. dollar to euro cross currency swap contracts with a total notional amount of $300 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 payments in U.S. dollars and make payments in euros to the counterparties. In February 2018, PPG entered into U.S. dollar to euro cross currency swap contracts with a total notional amount of $575 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 payments in U.S. dollars and make payments in euros to the counterparties. Also in February 2018, the Company settled outstanding U.S. dollar to euro cross currency swap contracts with a total notional amount of $560 million . As of September 30, 2019 and December 31, 2018 , PPG had designated €2.3 billion 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 as of September 30, 2019 and December 31, 2018 was $2.5 billion and $2.6 billion , respectively. Other Financial Instruments PPG uses foreign currency forward contracts to manage net transaction exposures that 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 $2.4 billion and $2.5 billion at September 30, 2019 and December 31, 2018 , respectively. Gains/Losses Deferred in Accumulated Other Comprehensive Loss As of September 30, 2019 , 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 $325 million . As of December 31, 2018 , the Company had accumulated pretax unrealized translation gains of $161 million . The following table summarizes the location within the condensed consolidated financial statements and amount of gains (losses) related to derivative financial instruments activity for the nine months ended September 30, 2019 and 2018 . All dollar amounts are shown on a pretax basis. September 30, 2019 September 30, 2018 ($ in millions) (Loss)/ Gain/(Loss) Recognized Gain Deferred in OCI Gain/(Loss) Recognized Caption In Condensed Consolidated Statement of Income Economic Foreign currency forward contracts $— $44 $— $37 Other charges Fair Value Interest rate swaps — 2 — 3 Interest expense Cash Flow Foreign currency forward contracts (1) (4 ) 4 7 (5 ) Other charges and Cost of sales Total Cash Flow ($4 ) $50 $7 $35 Net Investment Cross currency swaps $34 $12 $7 $8 Interest expense Foreign denominated debt 130 — 92 — Total Net Investment $164 $12 $99 $8 (1) For the period ended September 30, 2019 , the amounts excluded from effectiveness testing recognized in earnings based on an amortized approach was expense of $2 million . Fair Value Measurements The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of September 30, 2019 and December 31, 2018 , 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 2018 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 does not have any recurring financial assets or liabilities that are recorded in its consolidated balance sheets as of September 30, 2019 and December 31, 2018 that are classified as Level 3 inputs. Assets and liabilities reported at fair value on a recurring basis: September 30, 2019 December 31, 2018 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $4 $— $— $4 $— $— Foreign currency forward contracts (a) — 50 — — 45 — Investments: Marketable equity securities 77 — — 69 — — Other assets: Cross currency swaps (b) — 70 — — 35 — Interest rate swaps (c) — 47 — — 8 — Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (d) — — — — 1 — Foreign currency forward contracts (a) — 5 — — 9 — Other liabilities: Foreign currency forward contracts (b) — 1 — — — — (a) Derivatives not designated as hedging instruments (c) Fair value hedges (b) Net investment hedges (d) Cash flow hedges Long-Term Debt ($ in millions) September 30, 2019 (a) December 31, 2018 (b) Long-term debt - carrying value $5,504 $5,000 Long-term debt - fair value $5,882 $5,101 (a) Excluding finance lease obligations of $11 million and short term borrowings of $9 million as of September 30, 2019 . (b) Excluding capital lease obligations of $12 million and short term borrowings of $4 million as of December 31, 2018 . The fair values of the debt instruments were based on discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities and were measured using level 2 inputs. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. Shares available for future grants under the PPG Amended Omnibus Plan were 7.0 million as of September 30, 2019 . Stock-based compensation and the income tax benefit recognized during the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Stock-based compensation $9 $3 $28 $21 Income tax benefit recognized $2 $1 $6 $5 Grants of stock-based compensation during the nine months ended September 30, 2019 and 2018 were as follows: Nine Months Ended 2019 2018 Grant Details Shares Fair Value Shares Fair Value Stock options 588,870 $22.50 532,705 $25.27 Restricted stock units 233,306 $104.69 249,062 $107.23 Contingent shares (a) 51,850 $109.74 52,450 $115.64 (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 nine months ended September 30, 2019 was calculated with the following weighted average assumptions: Weighted average exercise price $109.74 Risk-free interest rate 2.6 % Expected life of option in years 6.5 Expected dividend yield 1.6 % Expected volatility 20.0 % 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 180% of the original grant, based upon the frequency with which the annual earnings per share growth and cash flow return on capital performance targets are met over the three calendar year periods comprising the vesting period. Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three -year period following the date of grant based on PPG's 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 as it existed at the beginning of the three -year performance period excluding any companies that have been removed from the index because they ceased to be publicly traded during the performance period. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both at the Company's discretion. 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. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 and property damage, 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 if the settlement is not implemented. 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. Shareholder Class Action On May 20, 2018, a putative securities class action lawsuit was filed in the U.S. District Court for the Central District of California against the Company and three of its current and former officers. On September 21, 2018, an Amended Class Action Complaint was filed in the lawsuit. The Amended Complaint, captioned Trevor Mild v. PPG Industries, Inc., Michael H. McGarry, Vincent J. Morales, and Mark C. Kelly, asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of persons who purchased or otherwise acquired stock of the Company between January 19, 2017 and May 10, 2018. The allegations relate to, among other things, allegedly false and misleading statements and/or failures to disclose information about the Company’s business, operations and prospects. The parties reached a settlement in principal on May 1, 2019. On June 2, 2019, the plaintiff filed with the Court a Petition for Preliminary Approval of the proposed settlement, including the proposed settlement amount of $25 million . On July 25, 2019, the Court granted preliminary approval of the settlement, and now the parties are proceeding with the remaining procedures required to obtain final approval. The Court has scheduled October 21, 2019 for a hearing to consider the plaintiff’s request for final approval of the settlement. PPG’s insurance carriers confirmed to the Company insurance coverage for the full amount of the proposed settlement. As of September 30, 2019, PPG recorded an accrued liability of $25 million for the proposed settlement amount and a corresponding asset for the insurance coverage of $25 million Asbestos Matters Prior to 2000, the Company had been named as a defendant in numerous claims alleging bodily injury from (i) exposure to asbestos-containing products allegedly manufactured, sold or distributed by the Company, its subsidiaries, or for which they are otherwise alleged to be liable; (ii) exposure to asbestos allegedly present at a facility owned or leased by the Company; or (iii) exposure to asbestos-containing products of Pittsburgh Corning Corporation (“PC”) for which the Company was alleged to be liable under a variety of legal theories (the Company and Corning Incorporated were each 50% shareholders in PC). Pittsburgh Corning Corporation asbestos bankruptcy In 2000, PC filed for Chapter 11 in the U.S. Bankruptcy Court for the Western District of Pennsylvania in an effort to permanently and comprehensively resolve all of its pending and future asbestos-related liability claims. At the time of the bankruptcy filing, the Company had been named as one of many defendants in approximately 114,000 open claims. The Bankruptcy Court subsequently entered a series of orders preliminarily enjoining the prosecution of asbestos litigation against PPG until after the effective date of a confirmed PC plan of reorganization. During the pendency of this preliminary injunction staying asbestos litigation against PPG, PPG and certain of its historical liability insurers negotiated a settlement with representatives of present and future asbestos claimants. That settlement was incorporated into a PC plan of reorganization that was confirmed by the Bankruptcy Court on May 24, 2013 and ultimately became effective on April 27, 2016. With the effectiveness of the plan, the preliminary injunction staying the prosecution of asbestos litigation against PPG expired by its own terms on May 27, 2016. In accordance with the settlement, the Bankruptcy Court issued a permanent channeling injunction under Section 524(g) of the Bankruptcy Code that prohibits present and future claimants from asserting claims against PPG that arise, in whole or in part, out of exposure to asbestos or asbestos-containing products manufactured, sold and/or distributed by PC or asbestos on or emanating from any PC premises. The channeling injunction, by its terms, also prohibits codefendants in cases that are subject to the channeling injunction from asserting claims against PPG for contribution, indemnification or other recovery. The channeling injunction also precludes the prosecution of claims against PPG arising from alleged exposure to asbestos or asbestos-containing products to the extent that a claimant is alleging or seeking to impose liability, directly or indirectly, for the conduct of, claims against, or demands on PC by reason of PPG’s: (i) ownership of a financial interest in PC; (ii) involvement in the management of PC, or service as an officer, director or employee of PC or a related party; (iii) provision of insurance to PC or a related party; or (iv) involvement in a financial transaction affecting the financial condition of PC or a related party. 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 PPG and its participating insurers for the benefit of current and future PC asbestos claimants (the “Trust”). The Trust is the sole recourse for holders of PC Relationship Claims. PPG and its affiliates have no further liability or responsibility for, and will be permanently protected from, pending and future PC Relationship Claims. The channeling injunction does not extend to present and future claims against PPG that arise out of alleged exposure to asbestos or asbestos-containing products historically manufactured, sold and/or distributed by PPG or its subsidiaries or for which they are alleged to be liable that are not PC Relationship Claims, and does not extend to claims against PPG alleging personal injury allegedly caused by asbestos on premises presently or formerly owned, leased or occupied by PPG. These claims are referred to as non-PC Relationship Claims. In accordance with the PC plan of reorganization, PPG's equity interest in PC was canceled. PPG satisfied its funding obligations to the Trust on June 9, 2016, when it conveyed to the Trust the stock it owned in Pittsburgh Corning Europe and 2,777,778 shares of PPG’s common stock and made a cash payment to the Trust in the amount of $764 million . PPG’s historical insurance carriers participating in the PC plan of reorganization are required to make cash payments to the Trust of approximately $1.7 billion , subject to a right of prepayment at a 5.5% discount rate. On October 13, 2016, the Bankruptcy Court issued an order entering a final decree and closing the Chapter 11 case. That order provided that the Bankruptcy Court retained jurisdiction to enforce any order issued in the case and any agreements approved by the court, enforce the terms and conditions of the modified third amended Plan, and consider any requests to reopen the case. Non-PC relationship asbestos claims At the time PC filed for bankruptcy, PPG had been named as one of many defendants in one or more of the categories of asbestos-related claims identified above. Over the course of the 16 years during which the PC bankruptcy proceedings, and corresponding preliminary injunction staying the prosecution of asbestos-related claims against PPG, were pending, certain plaintiffs alleging premises claims filed motions seeking to lift the stay with respect to more than 1,000 individually-identified premises claims. The Bankruptcy Court granted motions to lift the stay in respect to certain of these premises claims and directed PPG to engage in a process to address any additional premises claims that were the subject of pending or anticipated lift-stay motions. As a result of the overall process as directed by the Bankruptcy Court involving more than 1,000 premises claims between 2006 and May 27, 2016, hundreds of these claims were withdrawn or dismissed without payment and approximately 650 premises claims were dismissed upon agreements by PPG and its insurers to resolve such claims in exchange for monetary payments. With respect to the remaining claims still reportable within the inventory of 114,000 asbestos-related claims at the time PC filed for bankruptcy, the Company considers such claims to fall within one or more of the following categories: (1) claims that have been closed or dismissed as a result of processes undertaken during the bankruptcy; (2) claims that may have been previously filed on the dockets of state and federal courts in various jurisdictions, but are inactive as to the Company; and (3) claims that are subject, in whole or in part, to the channeling injunction and thus will be resolved, in whole or in part, in accordance with the Trust procedures established under the PC bankruptcy reorganization plan. As a result of the foregoing, the Company does not consider these three categories of claims to be open or active litigation against it, although the Company cannot now determine whether, or the extent to which, any of these claims may in the future be reinstituted, reinstated, or revived such that they may become open and active asbestos-related claims against it. Current open and active claims post-Pittsburgh Corning bankruptcy As of September 30, 2019 , the Company was aware of approximately 675 open and active asbestos-related claims pending against the Company and certain of its subsidiaries. These claims consist primarily of non-PC Relationship Claims and claims against a subsidiary of PPG. The Company is defending the remaining open and active claims vigorously. Since April 1, 2013, a subsidiary of PPG has been implicated in claims alleging death or injury caused by asbestos-containing products manufactured, distributed or sold by a North American architectural coatings business or its predecessors which was acquired by PPG. All such claims have been either served upon or tendered to the seller for defense and indemnity pursuant to obligations undertaken by the seller in connection with the Company’s purchase of the North American architectural coatings business. The seller has accepted the defense of these claims subject to the terms of various agreements between the Company and the seller. The seller’s defense and indemnity obligations in connection with newly filed claims ceased with respect to claims filed after April 1, 2018. PPG has established reserves totaling approximately $180 million for asbestos-related claims that would not be channeled to the Trust which, based on presently available information, we believe will be sufficient to encompass all of PPG’s current and potential future asbestos liabilities. These reserves include a $162 million reserve established in 2009 in connection with an amendment to the PC plan of reorganization. These reserves, which are included within Other liabilities on the accompanying condensed consolidated balance sheets, represent PPG’s best estimate of its liability for these claims. PPG does not have sufficient current claim information or settlement history on which to base a better estimate of this liability in light of the fact that the Bankruptcy Court’s injunction staying most asbestos claims against the Company was in effect from April 2000 through May 2016. PPG will monitor the activity associated with its remaining asbestos claims and evaluate, on a periodic basis, its estimated liability for such claims, its insurance assets then available, and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. Environmental Matters It is PPG’s policy to accrue expenses for environmental contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. 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. See Note 14, "Commitments and Contingent Liabilities," under Item 8 of the 2018 Form 10-K for additional descriptions of the following environmental matters. As remediation at certain legacy 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 increase the reserves for these sites. Remediation activities at our legacy sites are not related to the ongoing operations of PPG. In 2019 and 2018, 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 September 30, 2019 and December 31, 2018 , PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, N.J. (“New Jersey Chrome”), legacy 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) September 30, 2019 December 31, 2018 New Jersey Chrome $150 $151 Glass and chemical 72 90 Other 71 50 Total $293 $291 Current portion $115 $105 Pretax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Environmental remediation pretax charges $24 $4 $75 $39 Cash outlays for environmental remediation activities $21 $14 $57 $45 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. One site was subsequently removed from the JCO process during 2014 and will be remediated separately at a future date. A total of 19 sites remain subject to the JCO process. The most significant assumptions underlying the estimate of remediation costs for all 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 treated in place, the quantity that will have to be excavated and transported for offsite disposal, and the nature of disposal required. PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non-hazardous soils, daily soil excavation rates, and engineering, administrative and other associated costs. Based on these assessments, the reserve is adjusted accordingly. Principal factors affecting costs include refinements in the estimate of the mix of hazardous to non-hazardous soils to be excavated, an overall increase in soil volumes to be excavated, enhanced water management requirements, decreased daily soil excavation rates due to site conditions, initial estimates for remedial actions related to groundwater, and oversight and management costs. The reserve adjustments for the estimated costs to remediate all New Jersey Chrome sites are exclusive of any third party indemnification, as the recovery of any such amounts is uncertain. Groundwater remediation at the former Garfield Avenue chromium manufacturing site and five adjacent sites is expected to occur over several years after NJDEP's approval of the work plan. Ongoing groundwater monitoring will be utilized to develop a final groundwater remedial action work plan which is currently expected to be submitted to NJDEP in 2021. PPG’s financial reserve for remediation of all New Jersey Chrome sites was $150 million at September 30, 2019 . The major cost components of this liability continue to be related to excavation, transportation and disposal of impacted soil, as well as construction services. These components each account for approximately 20% , 15% and 27% of the accrued amount, respectively. There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Final resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will be adjusted. Remediation: Glass, Chemical and Other Sites Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a legacy chemical manufacturing site in Barberton, Ohio, where PPG has completed a Facility Investigation and Corrective Measure Study under the United States Environmental Protection Agency's Resource Conservation and Recovery Act Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations. With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites. Remediation: Reasonably Possible Matters In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million . Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them. The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments. Other Matters The Company had outstanding letters of credit and surety bonds of $142 million and guarantees of $9 million as of September 30, 2019 . The Company does not believe any loss related to such guarantees is likely. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Disclosure [Abstract] | |
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 and nine months ended September 30, 2019 and 2018 , service revenue constituted approximately 5% of total revenue. Net sales by segment and region for the three and nine months ended September 30, 2019 and 2018 were as follows: ($ in millions) Performance Coatings Industrial Coatings Total Net Sales Three Months Ended Three Months Ended Three Months Ended 2019 2018 2019 2018 2019 2018 United States and Canada $1,060 $1,028 $605 $606 $1,665 $1,634 EMEA 732 741 395 397 1,127 1,138 Asia-Pacific 278 272 366 380 644 652 Latin America 243 248 147 145 390 393 Total $2,313 $2,289 $1,513 $1,528 $3,826 $3,817 ($ in millions) Performance Coatings Industrial Coatings Total Net Sales Nine Months Ended Nine Months Ended Nine Months Ended 2019 2018 2019 2018 2019 2018 United States and Canada $3,123 $3,175 $1,841 $1,836 $4,964 $5,011 EMEA 2,213 2,259 1,283 1,338 3,496 3,597 Asia-Pacific 804 791 1,066 1,171 1,870 1,962 Latin America 711 722 433 437 1,144 1,159 Total $6,851 $6,947 $4,623 $4,782 $11,474 $11,729 |
Reportable Segment Information
Reportable Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | PPG is a multinational manufacturer with 9 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution. The Performance Coatings reportable segment is comprised of the automotive refinish coatings, aerospace coatings, architectural coatings – Americas and Asia-Pacific, architectural coatings - EMEA, and protective and marine coatings operating segments. This reportable segment primarily supplies a variety of protective and decorative coatings, sealants and finishes along with paint strippers, stains and related chemicals, as well as transparencies and transparent armor. The Industrial Coatings reportable segment is comprised of the automotive OEM coatings, industrial coatings, packaging coatings, and the specialty coatings and materials operating segments. This reportable segment primarily supplies a variety of protective and decorative coatings and finishes along with adhesives, sealants, metal pretreatment products, optical monomers and coatings, precipitated silicas, and other specialty materials. Reportable segment net sales and segment income for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Net sales: Performance Coatings $2,313 $2,289 $6,851 $6,947 Industrial Coatings 1,513 1,528 4,623 4,782 Total $3,826 $3,817 $11,474 $11,729 Segment income: Performance Coatings $380 $331 $1,102 $1,039 Industrial Coatings 206 169 659 631 Total $586 $500 $1,761 $1,670 Corporate (43 ) (26 ) (133 ) (92 ) Interest expense, net of interest income (23 ) (25 ) (76 ) (70 ) Legacy items (a) — — (1 ) 5 Environmental remediation charges, net (21 ) — (61 ) (34 ) Business restructuring-related costs, net (b) (18 ) 8 (203 ) (80 ) Costs associated with accounting investigations — (2 ) (7 ) (11 ) Acquisition-related costs (c) — — (17 ) — Impairment of a non-manufacturing asset — — — (9 ) Legacy legal settlement — — — (10 ) Costs related to customer assortment changes — (4 ) — (18 ) Income before income taxes $481 $451 $1,263 $1,351 (a) Legacy items include current costs related to former operations of the Company, including pension and other postretirement benefit costs, certain charges for legal matters and certain environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio. (b) Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs. (c) Acquisition-related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred to effect significant acquisitions, as well as similar fees and other costs to effect divestitures not classified as discontinued operations. These costs also include the flow-through cost of sales for the step up to fair value of inventory acquired in acquisitions. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | Accounting Standards Adopted in 2019 Effective January 1, 2019, PPG adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases." This ASU requires substantially all leases be recorded on the balance sheet as right of use assets and lease obligations. PPG adopted the ASU using a retrospective adoption method at January 1, 2019, as outlined in ASU No. 2018-11, "Leases - Targeted Improvements." Under this method of adoption, there is no impact to the comparative condensed consolidated statement of income and condensed consolidated balance sheet. PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. PPG will continue to report periods prior to January 1, 2019 in its financial statements under prior guidance as outlined in Accounting Standards Codification Topic 840, "Leases." In addition, PPG elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications. Adoption of this standard did not materially impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 3 , " Leases " for further details. Accounting Standards to be Adopted in Future Years In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software." This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Entities may choose to adopt the new ASU as of its fiscal year beginning after December 15, 2018. PPG did not early adopt this standard. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: ($ in millions) Classification in the Condensed Consolidated Statement of Income Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost Cost of sales, exclusive of depreciation and amortization $8 $26 Operating lease cost Selling, general and administrative 50 147 Total operating lease cost $58 $173 Finance lease cost: Amortization of right-of-use assets Depreciation $1 $2 Interest on lease liabilities Interest Expense — 1 Total finance lease cost $1 $3 Total lease cost $59 $176 Total operating lease cost is inclusive of the following: ($ in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Variable lease costs $3 $10 Short-term lease costs $1 $4 |
Schedule of Classification on the Condensed Consolidated Balance Sheet | ($ in millions) Classification on the Condensed Consolidated Balance Sheet September 30, 2019 Assets: Operating Operating lease right-of-use assets $742 Finance (a) Property, plant, and equipment 19 Total leased assets $761 Liabilities: Current Operating Current portion of operating lease liabilities $162 Finance Short-term debt and current portion of long-term debt 3 Noncurrent Operating Operating lease liabilities 588 Finance Long-term debt 8 Total lease liabilities $761 (a) Net of accumulated depreciation of $11 million . |
Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations | ($ in millions) Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $157 Operating cash flows from finance leases $— Financing cash flows from finance leases $3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $145 Finance leases $1 |
Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate | As of September 30, 2019 Weighted-average remaining lease term (in years) Operating leases 7.5 Finance leases 6.3 Weighted-average discount rate Operating leases 3.1 % Finance leases 9.3 % |
Schedule of Maturities of Lease Liabilities, Operating Lease | As of September 30, 2019 , maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases Remaining three months of 2019 $50 $1 2020 173 3 2021 134 2 2022 105 2 2023 82 1 Thereafter 303 4 Total lease payments $847 $13 Less: Interest 97 2 Total lease obligations $750 $11 |
Schedule of Maturities of Lease Liabilities, Finance Lease | As of September 30, 2019 , maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases Remaining three months of 2019 $50 $1 2020 173 3 2021 134 2 2022 105 2 2023 82 1 Thereafter 303 4 Total lease payments $847 $13 Less: Interest 97 2 Total lease obligations $750 $11 |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows: ($ in millions) Operating Leases Capital Leases 2019 $207 $3 2020 157 3 2021 116 1 2022 93 1 2023 76 1 Beyond 2023 $244 $3 |
Schedule of Future Minimum Lease Payments for Capital Leases | As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows: ($ in millions) Operating Leases Capital Leases 2019 $207 $3 2020 157 3 2021 116 1 2022 93 1 2023 76 1 Beyond 2023 $244 $3 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Glass Segment Income from discontinued operations, net of tax related to the former Glass reportable business segment for the three and nine months ended September 30, 2018 were as follows: ($ in millions) Three Months Ended Nine Months Ended Income from operations $13 $21 Income tax expense 3 5 Income from discontinued operations, net of tax $10 $16 During the third quarter of 2018, PPG released $13 million of previously recorded accruals and contingencies established in conjunction with the divestitures of businesses within the former Glass segment as a result of completed actions, new information and updated estimates. Also in the third quarter of 2018, PPG made a final payment of $20 million to Vitro S.A.B. de C.V related to the transfer of certain pension obligations upon the sale of the former flat glass business. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | ($ in millions) September 30, 2019 December 31, 2018 Finished products $1,159 $1,105 Work in process 207 193 Raw materials 460 452 Supplies 34 33 Total Inventories $1,860 $1,783 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill Attributable to Each Reportable Segment | The change in the carrying amount of goodwill attributable to each reportable segment for the nine months ended September 30, 2019 was as follows: ($ in millions) Performance Coatings Industrial Coatings Total January 1, 2019 $3,266 $804 $4,070 Acquisitions, including purchase accounting adjustments 130 229 359 Foreign currency impact (71 ) (23 ) (94 ) September 30, 2019 $3,325 $1,010 $4,335 |
Identifiable Intangible Assets with Finite Lives | A summary of the carrying value of the Company's identifiable intangible assets is as follows: September 30, 2019 December 31, 2018 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,131 N/A $1,131 $1,140 N/A $1,140 Definite-Lived Identifiable Intangible Assets Acquired technology $694 ($536 ) $158 $648 ($515 ) $133 Customer-related 1,525 (840 ) 685 1,396 (798 ) 598 Trade names 204 (105 ) 99 190 (96 ) 94 Other 49 (39 ) 10 44 (37 ) 7 Total Definite Lived Intangible Assets $2,472 ($1,520 ) $952 $2,278 ($1,446 ) $832 Total Identifiable Intangible Assets $3,603 ($1,520 ) $2,083 $3,418 ($1,446 ) $1,972 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of September 30, 2019 , estimated future amortization expense of identifiable intangible assets is as follows: ($ in millions) Future Amortization Expense Remaining three months of 2019 $24 2020 115 2021 110 2022 95 2023 90 2024 75 Thereafter 443 |
Business Restructuring (Tables)
Business Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the reserve activity for the nine months ended September 30, 2019 : ($ in millions) Total Reserve December 31, 2018 $110 2019 restructuring charges 194 Cash payments (35 ) Release of prior reserves and other adjustments (19 ) Foreign currency impact (8 ) September 30, 2019 $242 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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 and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended (number of shares in millions) 2019 2018 2019 2018 Weighted average common shares outstanding 237.1 242.2 236.9 245.8 Effect of dilutive securities: Stock options 0.7 0.7 0.6 0.8 Other stock compensation plans 0.7 0.7 0.7 0.7 Potentially dilutive common shares 1.4 1.4 1.3 1.5 Adjusted weighted average common shares outstanding 238.5 243.6 238.2 247.3 Dividends per common share $0.51 $0.48 $1.47 $1.38 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Nine Months Ended 2019 2018 Effective tax rate on pretax income from continuing operations 23.5 % 20.0 % |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net Periodic Benefit Cost | The net periodic pension and other postretirement benefit costs for the three and nine months ended September 30, 2019 and 2018 were as follows: Pension Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Service cost $6 $8 $17 $24 Interest cost 26 23 79 71 Expected return on plan assets (35 ) (37 ) (105 ) (113 ) Amortization of actuarial losses 16 16 47 48 Net periodic benefit cost $13 $10 $38 $30 Other Postretirement Benefits Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Service cost $3 $2 $7 $7 Interest cost 6 6 19 18 Amortization of actuarial losses 2 5 6 14 Amortization of prior service credit (14 ) (15 ) (43 ) (45 ) Net periodic benefit cost ($3 ) ($2 ) ($11 ) ($6 ) |
Defined Contribution Plan Disclosures | Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 U.S. defined benefit pension contributions $— $50 $— $75 Non-U.S. defined benefit pension mandatory contributions $2 $4 $8 $14 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ($ in millions) Unrealized Foreign Currency Translation Adjustments Pension and Other Postretirement Benefit Adjustments, net of tax (c) Unrealized Gain/(Loss) on Derivatives, net of tax (d) Accumulated Other Comprehensive Loss January 1, 2019 ($1,734 ) ($568 ) $2 ($2,300 ) Current year deferrals to AOCI (a) (151 ) — — (151 ) Current year deferrals to AOCI, net of tax (b) 119 (6 ) (3 ) 110 Reclassifications from AOCI to net income — 10 3 13 Period change ($32 ) $4 $— ($28 ) September 30, 2019 ($1,766 ) ($564 ) $2 ($2,328 ) January 1, 2018 ($1,567 ) ($493 ) $3 ($2,057 ) Current year deferrals to AOCI (172 ) — — (172 ) Current year deferrals to AOCI, net of tax (b) 121 6 (6 ) 121 Reclassifications from AOCI to net income — 14 4 18 Period change ($51 ) $20 ($2 ) ($33 ) Reclassification from AOCI to Retained earnings - Adoption ASU 2018-02 (23 ) (84 ) — (107 ) September 30, 2018 ($1,641 ) ($557 ) $1 ($2,197 ) (a) Except for income taxes of $6 million related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time. (b) The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges for the nine months ended September 30, 2019 and 2018 was $39 million and $29 million , respectively. (c) The tax cost/(benefit) related to the adjustment for pension and other postretirement benefits for the nine months ended September 30, 2019 and 2018 was $2 million and ($3) million , respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 11 , " Pensions and Other Postretirement Benefits "). (d) The tax benefit related to the changes in the unrealized loss on derivatives for the nine months ended September 30, 2019 and 2018 was $1 million and $2 million , respectively. Reclassifications from AOCI are included in the gain recognized on cash flow hedges (See Note 13 , " Financial Instruments, Hedging Activities and Fair Value Measurements "). |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, Cash Flow and Net Investment Hedges | following table summarizes the location within the condensed consolidated financial statements and amount of gains (losses) related to derivative financial instruments activity for the nine months ended September 30, 2019 and 2018 . All dollar amounts are shown on a pretax basis. September 30, 2019 September 30, 2018 ($ in millions) (Loss)/ Gain/(Loss) Recognized Gain Deferred in OCI Gain/(Loss) Recognized Caption In Condensed Consolidated Statement of Income Economic Foreign currency forward contracts $— $44 $— $37 Other charges Fair Value Interest rate swaps — 2 — 3 Interest expense Cash Flow Foreign currency forward contracts (1) (4 ) 4 7 (5 ) Other charges and Cost of sales Total Cash Flow ($4 ) $50 $7 $35 Net Investment Cross currency swaps $34 $12 $7 $8 Interest expense Foreign denominated debt 130 — 92 — Total Net Investment $164 $12 $99 $8 |
Assets and Liabilities Reported at Fair Value on a Recurring Basis | Assets and liabilities reported at fair value on a recurring basis: September 30, 2019 December 31, 2018 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $4 $— $— $4 $— $— Foreign currency forward contracts (a) — 50 — — 45 — Investments: Marketable equity securities 77 — — 69 — — Other assets: Cross currency swaps (b) — 70 — — 35 — Interest rate swaps (c) — 47 — — 8 — Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (d) — — — — 1 — Foreign currency forward contracts (a) — 5 — — 9 — Other liabilities: Foreign currency forward contracts (b) — 1 — — — — (a) Derivatives not designated as hedging instruments (c) Fair value hedges (b) Net investment hedges (d) Cash flow hedges |
Long-term Debt [Text Block] | ($ in millions) September 30, 2019 (a) December 31, 2018 (b) Long-term debt - carrying value $5,504 $5,000 Long-term debt - fair value $5,882 $5,101 (a) Excluding finance lease obligations of $11 million and short term borrowings of $9 million as of September 30, 2019 . (b) Excluding capital lease obligations of $12 million and short term borrowings of $4 million as of December 31, 2018 . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Activity [Table Text Block] | Stock-based compensation and the income tax benefit recognized during the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Stock-based compensation $9 $3 $28 $21 Income tax benefit recognized $2 $1 $6 $5 |
Details of Grants of Stock-based Compensation | Grants of stock-based compensation during the nine months ended September 30, 2019 and 2018 were as follows: Nine Months Ended 2019 2018 Grant Details Shares Fair Value Shares Fair Value Stock options 588,870 $22.50 532,705 $25.27 Restricted stock units 233,306 $104.69 249,062 $107.23 Contingent shares (a) 51,850 $109.74 52,450 $115.64 (a) The number of contingent shares represents the target value of the award. |
Weighted Average Assumptions Used in Calculating the Fair Value of Stock Option | The fair value of the stock option grants issued during the nine months ended September 30, 2019 was calculated with the following weighted average assumptions: Weighted average exercise price $109.74 Risk-free interest rate 2.6 % Expected life of option in years 6.5 Expected dividend yield 1.6 % Expected volatility 20.0 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Liabilities [Table Text Block] | Environmental Reserves ($ in millions) September 30, 2019 December 31, 2018 New Jersey Chrome $150 $151 Glass and chemical 72 90 Other 71 50 Total $293 $291 Current portion $115 $105 |
Environmental Costs [Table Text Block] | Pretax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Environmental remediation pretax charges $24 $4 $75 $39 Cash outlays for environmental remediation activities $21 $14 $57 $45 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Disclosure [Abstract] | |
Revenue from External Customers by Geographic Areas | Net sales by segment and region for the three and nine months ended September 30, 2019 and 2018 were as follows: ($ in millions) Performance Coatings Industrial Coatings Total Net Sales Three Months Ended Three Months Ended Three Months Ended 2019 2018 2019 2018 2019 2018 United States and Canada $1,060 $1,028 $605 $606 $1,665 $1,634 EMEA 732 741 395 397 1,127 1,138 Asia-Pacific 278 272 366 380 644 652 Latin America 243 248 147 145 390 393 Total $2,313 $2,289 $1,513 $1,528 $3,826 $3,817 ($ in millions) Performance Coatings Industrial Coatings Total Net Sales Nine Months Ended Nine Months Ended Nine Months Ended 2019 2018 2019 2018 2019 2018 United States and Canada $3,123 $3,175 $1,841 $1,836 $4,964 $5,011 EMEA 2,213 2,259 1,283 1,338 3,496 3,597 Asia-Pacific 804 791 1,066 1,171 1,870 1,962 Latin America 711 722 433 437 1,144 1,159 Total $6,851 $6,947 $4,623 $4,782 $11,474 $11,729 |
Reportable Segment Information
Reportable Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation Of Revenue And Operating Income From Segments To Consolidated [Text Block] | Reportable segment net sales and segment income for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended ($ in millions) 2019 2018 2019 2018 Net sales: Performance Coatings $2,313 $2,289 $6,851 $6,947 Industrial Coatings 1,513 1,528 4,623 4,782 Total $3,826 $3,817 $11,474 $11,729 Segment income: Performance Coatings $380 $331 $1,102 $1,039 Industrial Coatings 206 169 659 631 Total $586 $500 $1,761 $1,670 Corporate (43 ) (26 ) (133 ) (92 ) Interest expense, net of interest income (23 ) (25 ) (76 ) (70 ) Legacy items (a) — — (1 ) 5 Environmental remediation charges, net (21 ) — (61 ) (34 ) Business restructuring-related costs, net (b) (18 ) 8 (203 ) (80 ) Costs associated with accounting investigations — (2 ) (7 ) (11 ) Acquisition-related costs (c) — — (17 ) — Impairment of a non-manufacturing asset — — — (9 ) Legacy legal settlement — — — (10 ) Costs related to customer assortment changes — (4 ) — (18 ) Income before income taxes $481 $451 $1,263 $1,351 (a) Legacy items include current costs related to former operations of the Company, including pension and other postretirement benefit costs, certain charges for legal matters and certain environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio. (b) Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs. (c) Acquisition-related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred to effect significant acquisitions, as well as similar fees and other costs to effect divestitures not classified as discontinued operations. These costs also include the flow-through cost of sales for the step up to fair value of inventory acquired in acquisitions. |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | $ 58 | $ 173 |
Finance lease cost: | ||
Interest on lease liabilities | 0 | 1 |
Amortization of right-of-use assets | 1 | 2 |
Total finance lease cost | 1 | 3 |
Total lease cost | 59 | 176 |
Variable lease costs | 3 | 10 |
Short-term lease costs | 1 | 4 |
Cost of sales, exclusive of depreciation and amortization | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | 8 | 26 |
Selling, general and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | $ 50 | $ 147 |
Leases - Schedule of Classifica
Leases - Schedule of Classification on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Operating | $ 742 | $ 0 |
Finance | 19 | |
Total leased assets | 761 | |
Current | ||
Operating | 162 | 0 |
Finance | 3 | |
Noncurrent | ||
Operating | 588 | $ 0 |
Finance | 8 | |
Total lease liabilities | 761 | |
Accumulated depreciation | $ 11 |
Leases - Schedule of Cash Paid
Leases - Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 157 |
Operating cash flows from finance leases | 0 |
Financing cash flows from finance leases | 3 |
Operating leases | 145 |
Finance leases | $ 1 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, operating leases | 7 years 6 months |
Weighted-average remaining lease term, finance leases | 6 years 3 months 18 days |
Weighted-average discount rate, operating leases | 3.10% |
Weighted-average discount rate, finance leases | 9.30% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Remaining three months of 2019 | $ 50 | |
2020 | 173 | |
2021 | 134 | |
2022 | 105 | |
2023 | 82 | |
Thereafter | 303 | |
Total lease payments | 847 | |
Less: Interest | 97 | |
Total lease obligations | 750 | |
Finance Leases | ||
Remaining three months of 2019 | 1 | |
2020 | 3 | |
2021 | 2 | |
2022 | 2 | |
2023 | 1 | |
Total lease payments | 13 | |
Less: Interest | 2 | |
Thereafter | 4 | |
Total lease obligations | $ 11 | |
Operating Leases | ||
2019 | $ 207 | |
2020 | 157 | |
2021 | 116 | |
2022 | 93 | |
2023 | 76 | |
Thereafter | 244 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | 3 | |
2020 | 3 | |
2021 | 1 | |
2022 | 1 | |
2023 | 1 | |
Beyond 2023 | $ 3 |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions (Details) | Sep. 30, 2019 |
ProCoatings [Member] | |
Business Acquisition [Line Items] | |
Number of Stores | 23 |
Acquisitions and Divestitures D
Acquisitions and Divestitures Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from operations | $ 13 | |||
Income tax expense | $ 109 | 79 | $ 297 | $ 270 |
Income from discontinued operations, net of tax | $ 1 | 10 | 3 | 16 |
Cash used for operating activities - discontinued operations | 20 | $ (4) | (20) | |
Glass Segment [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from operations | 13 | 21 | ||
Income tax expense | 3 | 5 | ||
Income from discontinued operations, net of tax | $ 10 | $ 16 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,159 | $ 1,105 |
Work in process | 207 | 193 |
Raw materials | 460 | 452 |
Supplies | 34 | 33 |
Total | $ 1,860 | $ 1,783 |
Inventories (Additional Informa
Inventories (Additional Information) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Line Items] | ||
First-in, first-out method of inventory valuation, amount of increase in inventory value | $ 127 | $ 113 |
UNITED STATES | ||
Inventory Disclosure [Line Items] | ||
U.S. inventories as a percentage of total inventories | 34.00% | 36.00% |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets (Carrying Amount of Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 4,070 |
Acquisitions | 359 |
Currency | (94) |
Ending Balance | 4,335 |
Performance Coatings [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 3,266 |
Acquisitions | 130 |
Currency | (71) |
Ending Balance | 3,325 |
Industrial Coatings [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 804 |
Acquisitions | 229 |
Currency | (23) |
Ending Balance | $ 1,010 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets with Finite Lives) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Trademarks | $ 1,131 | $ 1,140 |
Gross Carrying Amount | 2,472 | 2,278 |
Accumulated Amortization | (1,520) | (1,446) |
Net | 952 | 832 |
Intangible assets, gross (excluding goodwill) | 3,603 | 3,418 |
Total Identifiable Intangible Assets | 2,083 | 1,972 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 24 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 115 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 110 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 95 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 90 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 75 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 443 | |
Acquired technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 694 | 648 |
Accumulated Amortization | (536) | (515) |
Net | 158 | 133 |
Customer-related intangibles [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,525 | 1,396 |
Accumulated Amortization | (840) | (798) |
Net | 685 | 598 |
Tradenames [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 204 | 190 |
Accumulated Amortization | (105) | (96) |
Net | 99 | 94 |
Other [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 49 | 44 |
Accumulated Amortization | (39) | (37) |
Net | $ 10 | $ 7 |
Business Restructuring (Schedul
Business Restructuring (Schedule of Restructuring Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 242 | $ 242 | $ 110 | |||
Payments for Restructuring | 35 | $ 48 | ||||
Restructuring Reserve, Accrual Adjustment | 19 | |||||
Business restructuring, net | 2 | $ (12) | 175 | $ 71 | ||
Restructuring Reserve, Translation Adjustment | (8) | |||||
2019 Restructuring Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Business restructuring, net | $ 10 | $ 184 | $ 194 |
Borrowings (Details)
Borrowings (Details) - USD ($) | Aug. 30, 2019 | Aug. 15, 2019 | Feb. 28, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | |||||
Revolving credit facility outstanding | $ 2,200,000,000 | ||||
Line of credit facility, additional borrowing capacity available to lender conditions | $ 750,000,000 | ||||
Long-term commercial paper | $ 0 | $ 0 | |||
Aggregate cash proceeds from the notes | $ 595,000,000 | $ 992,000,000 | |||
2.4% Notes due 2024 [Member] | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Stated interest rate | 2.40% | ||||
2.8% Notes due 2029 [Member] | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Stated interest rate | 2.80% | ||||
3.2% Notes due 2023 [Member] | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Stated interest rate | 3.20% | ||||
3.75% Notes due 2028 [Member] | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Aggregate principal amount | $ 700,000,000 | ||||
Stated interest rate | 3.75% | ||||
Minimum [Member] | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Commitment fee percentage | 0.06% | ||||
Maximum [Member] | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Commitment fee percentage | 0.125% |
Earnings Per Common Share (Calc
Earnings Per Common Share (Calculations) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Diluted [Abstract] | ||||
Weighted average common shares outstanding | 237,100,000 | 242,200,000 | 236,900,000 | 245,800,000 |
Effect of dilutive securities: | ||||
Stock options | 700,000 | 700,000 | 600,000 | 800,000 |
Other stock compensation plans | 700,000 | 700,000 | 700,000 | 700,000 |
Potentially dilutive common shares | 1,400,000 | 1,400,000 | 1,300,000 | 1,500,000 |
Adjusted weighted average common shares outstanding | 238,500,000 | 243,600,000 | 238,200,000 | 247,300,000 |
Dividends per common share (in dollars per share) | $ 0.0051 | $ 0.0048 | $ 0.0147 | $ 0.0138 |
Outstanding stock options excluded from the computation of diluted earnings per share due to their antidilutive effect | 1,000,000 | 1,000,000 | 1,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 23.50% | 20.00% |
Other Tax Expense (Benefit) | $ 23 | $ 38 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ (3) | $ (2) | $ (11) | $ (6) |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3 | 2 | 7 | 7 |
Interest cost | 6 | 6 | 19 | 18 |
Amortization of actuarial losses | 2 | 5 | 6 | 14 |
Amortization of prior service credit | 14 | 15 | 43 | 45 |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 8 | 17 | 24 |
Interest cost | 26 | 23 | 79 | 71 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 35 | 37 | 105 | 113 |
Amortization of actuarial losses | 16 | 16 | 47 | 48 |
Net periodic benefit cost | $ 13 | $ 10 | $ 38 | $ 30 |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefits (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Net periodic benefit cost | $ (3) | $ (2) | $ (11) | $ (6) | ||
Pension | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Net periodic benefit cost | 13 | 10 | 38 | 30 | ||
UNITED STATES | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Contributions to defined benefit pension plans | 0 | 50 | 0 | 75 | ||
Foreign Plan | Minimum [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Expected employer mandatory contributions | 5 | 5 | ||||
Foreign Plan | Maximum [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Expected employer mandatory contributions | 10 | 10 | ||||
Voluntary Contribution | UNITED STATES | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Contributions to defined benefit pension plans | 50 | $ 25 | ||||
Mandatory Contribution | Foreign Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Contributions to defined benefit pension plans | $ 2 | $ 4 | $ 8 | $ 14 | ||
Scenario, Forecast [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Net periodic benefit cost | $ 35 | |||||
Scenario, Forecast [Member] | Pension | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Net periodic benefit cost | 50 | |||||
Scenario, Forecast [Member] | Other Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Net periodic benefit cost | $ 15 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated other comprehensive loss | $ (2,328) | $ (2,197) | $ (2,300) | $ (2,057) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (151) | (172) | |||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 110 | 121 | |||
Reclassifications of Temporary to Permanent Equity | $ 0 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 13 | 18 | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 6 | ||||
Tax benefit (cost) related to unrealized currency translation adjustments other than translation of foreign denominated balance sheets | 39 | 29 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (28) | (33) | |||
Pension and other postretirement benefit adjustments, tax cost | 2 | (3) | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 1 | 2 | |||
Accumulated Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated other comprehensive loss | (1,766) | (1,641) | (1,734) | (1,567) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (151) | (172) | |||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 119 | 121 | |||
Reclassifications of Temporary to Permanent Equity | 23 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (32) | (51) | |||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated other comprehensive loss | (564) | (557) | (568) | (493) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 | |||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | (6) | 6 | |||
Reclassifications of Temporary to Permanent Equity | 84 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 10 | 14 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 4 | 20 | |||
AOCI Attributable to Parent | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Reclassifications of Temporary to Permanent Equity | $ 107 | 107 | |||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated other comprehensive loss | 2 | 1 | $ 2 | $ 3 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 | |||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | (3) | (6) | |||
Reclassifications of Temporary to Permanent Equity | 0 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3 | 4 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 0 | $ (2) |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements (Additional Information) (Details) € in Billions | 9 Months Ended | ||||||||||
Sep. 30, 2019EUR (€) | Sep. 30, 2019USD ($) | Aug. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Notional amount | $ 560,000,000 | ||||||||||
Fair Value of Debt Instrument Designated as a Hedge of Net Investment in Foreign Operations | $ 2,500,000,000 | $ 2,600,000,000 | |||||||||
Accumulated pretax unrealized translation gains (losses) in AOCI, related to both the euro-denominated borrowings and the cross currency swaps that have been designated as hedges of net investments | 5,355,000,000 | $ 5,187,000,000 | $ 5,010,000,000 | 4,732,000,000 | $ 5,078,000,000 | $ 4,983,000,000 | $ 5,467,000,000 | $ 5,672,000,000 | |||
Capital Lease Obligations | 11,000,000 | 12,000,000 | |||||||||
Short-term Debt | 9,000,000 | 4,000,000 | |||||||||
Long-term Debt | 5,504,000,000 | 5,000,000,000 | |||||||||
Long-lived assets fair value amount | 5,882,000,000 | 5,101,000,000 | |||||||||
Interest Rate Swap [Member] | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Notional amount | 525,000,000 | ||||||||||
Foreign currency contracts [Member] | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Notional amount | 2,400,000,000 | 2,500,000,000 | |||||||||
Currency Swap [Member] | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Notional amount | $ 300,000,000 | $ 575,000,000 | |||||||||
Cash Flow Hedging [Member] | Foreign currency contracts [Member] | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Notional amount | 24,000,000 | 50,000,000 | |||||||||
Net Investment Hedging [Member] | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Long-term Debt | € | € 2.3 | ||||||||||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Accumulated pretax unrealized translation gains (losses) in AOCI, related to both the euro-denominated borrowings and the cross currency swaps that have been designated as hedges of net investments | $ 325,000,000 | $ 161,000,000 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements (Cash Flow and Net Investment Hedges) (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Aug. 30, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | |
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 560,000,000 | ||||
Ineffective portion of expense | $ 2,000,000 | ||||
Foreign currency contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 2,400,000,000 | $ 2,500,000,000 | |||
Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 525,000,000 | ||||
Currency Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 300,000,000 | $ 575,000,000 | |||
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) Recognized Amount | 2,000,000 | $ 3,000,000 | |||
Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) Deferred in OCI | (4,000,000) | 7,000,000 | |||
Gain (Loss) Recognized Amount | 50,000,000 | 35,000,000 | |||
Cash Flow Hedging [Member] | Foreign currency contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 24,000,000 | $ 50,000,000 | |||
Cash Flow Hedging [Member] | Foreign currency contracts [Member] | Other Expense | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) Deferred in OCI | (4,000,000) | 7,000,000 | |||
Gain (Loss) Recognized Amount | 4,000,000 | (5,000,000) | |||
Net Investment Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) Deferred in OCI | 164,000,000 | 99,000,000 | |||
Gain (Loss) Recognized Amount | 12,000,000 | 8,000,000 | |||
Net Investment Hedging [Member] | Currency Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) Deferred in OCI | 34,000,000 | 7,000,000 | |||
Gain (Loss) Recognized Amount | 12,000,000 | 8,000,000 | |||
Net Investment Hedging [Member] | Other Foreign Currency Denominated Debt [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) Deferred in OCI | 130,000,000 | 92,000,000 | |||
Not Designated as Hedging Instrument | Foreign currency contracts [Member] | Other Expense | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) Recognized Amount | $ 44,000,000 | $ 37,000,000 |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements (Assets and liabilities reported at fair value on a recurring basis) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Marketable equity securities [Member] | Other current assets [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 4,000,000 | $ 4,000,000 |
Marketable equity securities [Member] | Other current assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Marketable equity securities [Member] | Other current assets [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Marketable equity securities [Member] | Investments [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 77,000,000 | 69,000,000 |
Marketable equity securities [Member] | Investments [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Marketable equity securities [Member] | Investments [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Foreign currency contracts [Member] | Accounts payable and accrued liabilities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency contracts [Member] | Accounts payable and accrued liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 1,000,000 |
Foreign currency contracts [Member] | Accounts payable and accrued liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency contracts [Member] | Other Noncurrent Liabilities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency contracts [Member] | Other Noncurrent Liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,000,000 | 0 |
Foreign currency contracts [Member] | Other Noncurrent Liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Other current assets [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Other current assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 50,000,000 | 45,000,000 |
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Other current assets [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 5,000,000 | 9,000,000 |
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Cross currency swaps [Member] | Other assets [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Cross currency swaps [Member] | Other assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 70,000,000 | 35,000,000 |
Cross currency swaps [Member] | Other assets [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest Rate Swap [Member] | Other assets [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest Rate Swap [Member] | Other assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 47,000,000 | 8,000,000 |
Interest Rate Swap [Member] | Other assets [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grants under the PPG Omnibus Plan | 7,000,000 | 7,000,000 | ||
Stock-based compensation expense | $ 9 | $ 3 | $ 28 | $ 21 |
Total income tax benefit recognized related to the stock-based compensation | $ 2 | $ 1 | $ 6 | $ 5 |
Stock options granted from the PPG Omnibus Plan | 588,870 | 532,705 | ||
Stock options granted from the PPG Omnibus Plan, weighted average fair value per share (in usd per share) | $ 22.50 | $ 25.27 | ||
Maximum term of the outstanding stock options for the PPG Omnibus Plan and the PPG Stock Plan for certain employees | 10 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted | 233,306 | 249,062 | ||
RSUs granted, weighted average fair value per share (in usd per share) | $ 104.69 | $ 107.23 | ||
Award vesting period (in years) | 3 years | |||
Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted | 51,850 | 52,450 | ||
RSUs granted, weighted average fair value per share (in usd per share) | $ 109.74 | $ 115.64 | ||
Executive Officer Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognizing compensation costs (in years) | 3 years | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable period | 36 months |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions Used in Calculating Fair Value of Stock Option) (Details) | 9 Months Ended |
Sep. 30, 2019$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted average exercise price (in usd per share) | $ 109.74 |
Risk free interest rate | 2.60% |
Expected life of option in years | 6 years 6 months |
Expected dividend yield | 1.60% |
Expected volatility | 20.00% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities Asbestos Information (Details) claim in Thousands, $ in Millions | 1 Months Ended | ||||
May 14, 2002shares | Sep. 30, 2019USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2000claim | |
Prepayment of future pre-tax cash payments to the trust | $ 764 | ||||
Loss Contingency, Pending Claims, Number | claim | 114 | ||||
Other Reserves | $ 180 | ||||
Asbestos Issue [Member] | |||||
Loss Contingency, Pending Claims, Number | 675 | ||||
Other Reserves | $ 162 | ||||
Individually Identified Premises Claims [Member] | |||||
Loss Contingency, Pending Claims, Number | claim | 1 | ||||
Pittsburgh Corning Corporation [Member] | Asbestos Issue [Member] | |||||
Settlement Payables Shares | shares | 2,777,778 | ||||
Insurance Settlements Receivable | $ 1,700 | ||||
Settlement Prepayment Discount Rate | 5.50% |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Additional Information) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)Location | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Location | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2009Location | |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Litigation Settlement, Amount Awarded to Other Party | $ 25 | |||||
Insurance Settlements Receivable, Current | $ 25 | 25 | ||||
Environmental remediation charges, net | 21 | $ 0 | 61 | $ 34 | ||
Reserves for environmental contingencies | 293 | 293 | $ 291 | |||
Reserves for environmental contingencies classified as current liabilities | 115 | 115 | 105 | |||
Environmental remediation charge | 24 | 4 | 75 | 39 | ||
Payments for Environmental Liabilities | 21 | $ 14 | 57 | $ 45 | ||
Guarantees | 9 | 9 | ||||
Outstanding letters of credit | 142 | 142 | ||||
Minimum [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Unreserved loss contingencies related to environmental matters | 100 | |||||
Maximum [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Unreserved loss contingencies related to environmental matters | 200 | |||||
Jersey City Manufacturing Plant [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Reserves for environmental contingencies | 150 | 150 | 151 | |||
Legacy Glass and Chemical Sites [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Reserves for environmental contingencies | 72 | 72 | 90 | |||
Other Environmental Contingencies [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Reserves for environmental contingencies | $ 71 | $ 71 | $ 50 | |||
Judicial Consent Order [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Total number of sites to be remediated | Location | 19 | 19 | 20 | |||
Excavation of Soil [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Percentage of the total remaining reserve | 20.00% | 20.00% | ||||
Soil Treatment, Transportation And Disposal Of Excavated Soil [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Percentage of the total remaining reserve | 15.00% | 15.00% | ||||
Construction Services (Related To Soil Excavation, Groundwater Management And Site Security) [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Percentage of the total remaining reserve | 27.00% | 27.00% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule Of Revenue By Revenue Source (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,826 | $ 3,817 | $ 11,474 | $ 11,729 |
Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,313 | 2,289 | 6,851 | 6,947 |
Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,513 | 1,528 | 4,623 | 4,782 |
United States and Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,665 | 1,634 | 4,964 | 5,011 |
United States and Canada | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,060 | 1,028 | 3,123 | 3,175 |
United States and Canada | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 605 | 606 | 1,841 | 1,836 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,127 | 1,138 | 3,496 | 3,597 |
EMEA | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 732 | 741 | 2,213 | 2,259 |
EMEA | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 395 | 397 | 1,283 | 1,338 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 644 | 652 | 1,870 | 1,962 |
Asia-Pacific | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 278 | 272 | 804 | 791 |
Asia-Pacific | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 366 | 380 | 1,066 | 1,171 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 390 | 393 | 1,144 | 1,159 |
Latin America | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 243 | 248 | 711 | 722 |
Latin America | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 147 | $ 145 | $ 433 | $ 437 |
Revenue from Contract with Customer | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Service revenue, percentage of total revenue | 5.00% |
Reportable Segment Informatio_2
Reportable Segment Information (Additional Information) (Details) | 9 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Number of Operating Segments | 9 |
Reportable Segment Informatio_3
Reportable Segment Information (Segment Net Sales and Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ 3,826 | $ 3,817 | $ 11,474 | $ 11,729 |
Segment income (loss) | 586 | 500 | 1,761 | 1,670 |
Corporate | (43) | (26) | (133) | (92) |
Interest expense, net of interest income | (23) | (25) | (76) | (70) |
Legacy items | 0 | 0 | (1) | 5 |
Costs associated with accounting investigations | 0 | (2) | (7) | (11) |
Impairment of a non-manufacturing asset | 0 | 0 | 0 | 9 |
Litigation Settlement, Expense | 0 | 0 | 0 | 10 |
Costs related to customer assortment change | 0 | (4) | 0 | (18) |
Environmental remediation charges | (21) | 0 | (61) | (34) |
Restructuring Costs | 18 | (8) | 203 | 80 |
Transaction-related (costs) gain, net | 0 | 0 | (17) | 0 |
Income before income taxes | 481 | 451 | 1,263 | 1,351 |
Performance Coatings [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 2,313 | 2,289 | 6,851 | 6,947 |
Segment income (loss) | 380 | 331 | 1,102 | 1,039 |
Industrial Coatings [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 1,513 | 1,528 | 4,623 | 4,782 |
Segment income (loss) | $ 206 | $ 169 | $ 659 | $ 631 |