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Reportable Segment Information
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2015 and 2014 were as follows: 
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
($ in millions)
2015
 
2014
 
2015
 
2014
Net sales:
 
 
 
 
 
 
 
Performance Coatings
$
2,240

 
$
2,257

 
$
6,705

 
$
6,607

Industrial Coatings
1,354

 
1,395

 
4,105

 
4,208

Glass
278

 
283

 
824

 
838

Total
$
3,872

 
$
3,935

 
$
11,634

 
$
11,653

Segment income:
 
 
 
 
 
 
 
Performance Coatings
$
379

 
$
345

 
$
1,052

 
$
966

Industrial Coatings
241

 
240

 
745

 
728

Glass
32

 
33

 
99

 
48

Total
652

 
618

 
1,896

 
1,742

Interest expense, net of interest income
(21
)
 
(34
)
 
(63
)
 
(104
)
Transaction-related costs (a)
(1
)
 
(4
)
 
(31
)
 
(10
)
Business restructuring
—

 
—

 
(140
)
 
—

Legacy items (b)
(14
)
 
(25
)
 
(32
)
 
(46
)
Corporate
(35
)
 
(56
)
 
(167
)
 
(187
)
Income from continuing operations before income taxes
$
581

 
$
499

 
$
1,463

 
$
1,395

(a)
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.
(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 nonrecurring, 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.
The expense for the three and nine months ended September 30, 2015 also includes a pretax charge of $7 million for the settlement losses related to certain legacy Canadian glass pension plans.