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Reportable Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Reportable Segment Information
Reportable Business Segment Information
In conjunction with the Company’s continued strategic focus on its coatings businesses, including the Company's recently completed actions to grow its global architectural coatings business, as well as the divestiture of its 51% ownership interest in its Transitions Optical joint venture and 100% of its sunlens business to Essilor, the Company has realigned its segment reporting structure effective for the first quarter ended March 31, 2014. The change in the reportable segment structure reflects the manner in which the Company is currently managing its business.
Under the new segment reporting structure, the Company’s reportable business segments have changed from the five segments of Performance Coatings, Industrial Coatings, Architectural Coatings-Europe, Middle East and Africa, Optical and Specialty Materials and Glass to the following three segments: Performance Coatings, Industrial Coatings and Glass. The segment financial results of the former Architectural Coatings-Europe, Middle East and Africa segment are now included in the Performance Coatings segment along with the architectural coatings - Americas and Asia Pacific businesses, and the financial results of what remains of the former Optical and Specialty Materials segment, which is now named specialty coatings and materials, are included in the Industrial Coatings segment. 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 prior year information has been adjusted to conform to the new segment reporting structure.
The Performance Coatings reportable segment is comprised of the refinish, aerospace, 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 original equipment manufacturer (“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, Teslin® and other specialty materials.
The Glass reportable segment is comprised of the flat glass and fiber glass operating segments. This reportable segment primarily supplies flat glass and continuous-strand fiber glass products.
Reportable segment net sales and segment income for the three and nine months ended September 30, 2014 and 2013 were as follows: 
 
Three Months
Ended September 30
 
Nine Months
Ended September 30
 
2014
 
2013
 
2014
 
2013
($ in millions)
 
Net sales:
 
 
 
 
 
 
 
Performance Coatings
$
2,257

 
$
2,190

 
$
6,607

 
$
6,027

Industrial Coatings
1,395

 
1,306

 
4,208

 
3,935

Glass
283

 
278

 
838

 
803

Total (a)
$
3,935

 
$
3,774

 
$
11,653

 
$
10,765

Segment income:
 
 
 
 
 
 
 
Performance Coatings
$
345

 
$
325

 
$
966

 
$
841

Industrial Coatings
240

 
206

 
728

 
622

Glass
33

 
21

 
48

 
34

Total
618

 
552

 
1,742

 
1,497

Legacy items (b)
(25
)
 
(99
)
 
(46
)
 
(156
)
Business restructuring
—

 
(98
)
 
—

 
(98
)
Acquisition-related costs (c)
(4
)
 
(6
)
 
(10
)
 
(31
)
Interest expense, net of interest income
(34
)
 
(37
)
 
(104
)
 
(118
)
Other corporate expense
(56
)
 
(65
)
 
(187
)
 
(184
)
Income from continuing operations before income taxes
$
499

 
$
247

 
$
1,395

 
$
910



(a)
Intersegment net sales for the three and nine months ended September 30, 2014 and 2013 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% investment in the former automotive glass and services business.

The three and nine months ended September 30, 2014 includes a pre-tax gain of $116 million for the sale of a North American flat glass manufacturing facility and an equity affiliate's sale of a business as well as pre-tax charges of $138 million for an increase to legacy environmental reserves. The three months ended September 30, 2013 included a pre-tax charge of $89 million for an increase to legacy environmental reserves. The nine months ended September 30, 2013 included pre-tax charges of $101 million for an increase to legacy environmental reserves and $18 million for final settlement of certain legacy Canadian pension plans.

(c)
Includes advisory, legal, accounting, valuation and other professional or consulting fees incurred in connection with acquisition activity. In addition, for the nine months ended September 30, 2013, the expense includes flow-through costs of sales of the step up to fair value of inventory acquired primarily from the North American architectural coatings business acquisition.