Reportable Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Business Segment Information

PPG is a multinational manufacturer with 11 operating segments that are organized based on the Company’s major product lines. These operating segments are also the Company’s reporting units for purposes of testing goodwill for impairment. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution into three reportable business segments.

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 months ended March 31, 2015 and 2014 were as follows: 

	Three Months Ended March 31
	2015			2014
($ in millions)
Net sales:
Performance Coatings	$	2,055		$	2,007
Industrial Coatings	1,340			1,363
Glass	267			266
Total (a)	$	3,662		$	3,636
Segment income:
Performance Coatings	$	262		$	248
Industrial Coatings	244			231
Glass	30			4
Total	536			483
Legacy items (b)	(12		)	(10		)
Transaction-related costs (c)	(9		)	(3		)
Interest expense, net of interest income	(18		)	(35		)
Other corporate expense	(67		)	(63		)
Income from continuing operations before income taxes	$	430		$	372

(a) Intersegment net sales for the three months ended March 31, 2015 and 2014 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 38% investment in the former automotive glass and services business.

(c) Transaction-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 disposals not classified as discontinued operations. These costs also include the flow-through cost of sales of the step up to fair value of inventory acquired in acquisitions.