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Reportable Segment Information
6 Months Ended
Jun. 30, 2016
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 six months ended June 30, 2016 and 2015 were as follows: 
 
Three Months Ended
June 30
 
Six Months Ended
June 30
($ in millions)
2016
 
2015
 
2016
 
2015
Net sales:
 
 
 
 
 
 
 
Performance Coatings
$
2,338

 
$
2,410

 
$
4,377

 
$
4,465

Industrial Coatings
1,444

 
1,411

 
2,816

 
2,751

Glass
282

 
279

 
543

 
546

Total
$
4,064

 
$
4,100

 
$
7,736

 
$
7,762

Segment income:
 
 
 
 
 
 
 
Performance Coatings
$
428

 
$
411

 
$
707

 
$
673

Industrial Coatings
292

 
260

 
557

 
504

Glass
43

 
37

 
71

 
67

Total
763

 
708

 
1,335

 
1,244

Corporate
(59
)
 
(65
)
 
(120
)
 
(132
)
Interest expense, net of interest income
(24
)
 
(24
)
 
(48
)
 
(42
)
Legacy items (a)
(10
)
 
(6
)
 
(20
)
 
(18
)
Asset write-downs
(10
)
 

 
(14
)
 

Gain from sale of equity affiliate
20

 

 
20

 

Transaction-related costs (b)
(7
)
 
(21
)
 
(9
)
 
(30
)
Business restructuring

 
(140
)
 

 
(140
)
Income from continuing operations before income taxes
$
673

 
$
452

 
$
1,144

 
$
882

(a)
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 other charges which are not associated with PPG's current business portfolio, including the impact of the asbestos settlement. Until April 2016, legacy items also include equity earnings from PPG’s minority investment in Pittsburgh Glass Works, LLC.
(b)
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 for the step up to fair value of inventories acquired in acquisitions. These costs also include certain severance costs and charges associated with the Company's recent business portfolio transformation.