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Reportable Segment Information (Tables)
6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Reconciliation of Revenue and Operating Income from Segments to Consolidated
Reportable segment net sales and segment income for the three and six months ended June 30, 2013 and 2012 were as follows: 
 
Three Months
Ended June 30
 
Six Months
Ended June 30
 
2013
 
2012
 
2013
 
2012
 
(Millions)
Net sales:
 
 
 
 
 
 
 
Performance Coatings
$
1,688

 
$
1,241

 
$
2,812

 
$
2,391

Industrial Coatings
1,241

 
1,099

 
2,424

 
2,175

Architectural Coatings - EMEA
571

 
601

 
1,025

 
1,118

Optical and Specialty Materials
326

 
314

 
640

 
648

Glass
269

 
273

 
525

 
529

Total (a)
$
4,095

 
$
3,528

 
$
7,426

 
$
6,861

Segment income:
 
 
 
 
 
 
 
Performance Coatings
$
255

 
$
204

 
$
427

 
$
364

Industrial Coatings
191

 
143

 
369

 
293

Architectural Coatings - EMEA
69

 
64

 
89

 
80

Optical and Specialty Materials
96

 
95

 
195

 
204

Glass
8

 
23

 
13

 
31

Total
619

 
529

 
1,093

 
972

Legacy items (b)
(11
)
 
(15
)
 
(57
)
 
(190
)
Business restructuring (See Note 8)

 

 

 
(208
)
Acquisition-related costs (c)
(21
)
 

 
(28
)
 
(6
)
Interest expense, net of interest income
(38
)
 
(40
)
 
(81
)
 
(81
)
Other unallocated corporate expense – net
(60
)
 
(48
)
 
(120
)
 
(108
)
Income from continuing operations before income taxes
$
489

 
$
426

 
$
807

 
$
379


(a)
Intersegment net sales for the three and six months ended June 30, 2013 and 2012 were not material.
(b)
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 environmental remediation costs, and certain charges which are considered to be unusual or non-recurring, including the earnings impact of the proposed asbestos settlement. Legacy items also include equity earnings from PPG’s approximate 40 percent investment in the former automotive glass and services business. The expense for the six months ended June 30, 2013 and 2012 includes nonrecurring environmental remediation pretax charges of $12 million and $159 million, respectively. The 2012 charge relates to continued environmental remediation activities at legacy chemicals sites, primarily at PPG’s former Jersey City, N.J. chromium manufacturing plant and associated sites. The expense for the six months ended June 30, 2013 includes a pretax charge of $18 million for the settlement losses related to certain legacy Canadian glass pension plans.
(c)
For the three and six months ended June 30, 2013, the expense includes the flow-through cost of sales of the step up to fair value of inventory acquired primarily from the North American architectural coatings business of AkzoNobel and advisory, legal, accounting, valuation and other professional or consulting fees incurred in connection with acquisition activity. For the six months ended June 30, 2012, the expense represents the flow-through cost of sales of the step up to fair value of inventory acquired from Dyrup and Colpisa. These costs are considered to be unusual and non-recurring and do not reduce the segment earnings used to evaluate the performance of the operating segments.