Fair Value Measurement

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The carrying value of cash equivalents, short-term investments, cash held in escrow, marketable equity securities, company-owned life insurance and short-term debt instruments approximate their fair value at December 31, 2013 and 2012.

PPG follows a fair value measurement hierarchy to measure its assets and liabilities. The Company's financial assets and liabilities are measured using inputs from the following three levels.

Level 1 inputs are quoted prices (unadjusted) 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 these derivative instruments reflect the contractual terms of the derivatives, 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 December 31, 2013 and 2012 that are classified as Level 3 inputs.

Long-term debt (excluding capital lease obligations), had carrying and fair values totaling $3,346 million and $3,683 million, respectively, as of December 31, 2013. Long-term debt (excluding capital lease obligations), had carrying and fair values totaling $3,939 million and $4,484 million, respectively, as of December 31, 2012. The fair values of the debt instruments were determined using Level 2 inputs based on discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities.

Assets and liabilities reported at fair value on a recurring basis:

		December 31, 2013
(Millions)		Level 1		Level 2		Level 3
Assets:
Short-term investments:
	Commercial paper and certificates of deposit	$	—	$	50	$	—
Other current assets:
	Marketable equity securities	5		—		—
	Foreign currency contracts	—		25		—
	Equity forward arrangement	—		207		—
Investments:
	Marketable equity securities	70		—		—
Other assets:
	Foreign currency contracts	—		2		—
Liabilities:
Accounts payable and accrued liabilities:
	Foreign currency contracts	—		7		—
Other liabilities:
	Cross currency swaps	—		120		—
	Foreign currency contracts	—		11		—

		December 31, 2012
(Millions)		Level 1		Level 2		Level 3
Assets:
Short-term investments:
	Commercial paper and certificates of deposit	$	—	$	455	$	—
Other current assets:
	Marketable equity securities	5		—		—
	Foreign currency contracts	—		3		—
	Equity forward arrangement	—		130		—
Investments:
	Marketable equity securities	60		—		—
Liabilities:
Accounts payable and accrued liabilities:
	Foreign currency contracts	—		1		—
Other liabilities:
	Cross currency swaps	—		95		—

Assets and liabilities reported at fair value on a nonrecurring basis:

There were no significant adjustments to the fair value of nonmonetary assets or liabilities during the years ended December 31, 2013, 2012 and 2011.