Borrowings and Lines of Credit (Tables)

12 Months Ended

Dec. 31, 2016

Debt and Bank Credit Agreements and Leases

Long-term Debt Obligations



	As of December 31,
($ in millions)	2016		2015
1.9 % notes, due 2016⁽¹⁾	$	—	$	250
3-year variable rate bank loan, due 2017 (€500)	526		544
6.65% notes, due 2018	—		125
0.00% note, due 2019 (€300)	313		—
2.3% notes, due 2019	298		297
3.6% notes, due 2020	496		496
9% non-callable debentures, due 2021⁽¹⁾	133		133
0.875% notes, due 2022 (€600)	626		647
0.875% note, due 2025 (€600)	621		—
1.4% notes, due 2027 (€600)	620		641
2.5% note, due 2029 (€80)	83		86
7.70% notes, due 2038	174		174
5.5% notes, due 2040	247		246
3% note, due 2044 (€120)	118		122
Commercial paper	—		459
Impact of derivatives on debt⁽¹⁾	3		4
Various other non-U.S. debt, weighted average 3.8% as of December 31, 2016 and 6.1% of December 31, 2015.	41		42
Capital lease obligations	18		14
Total	$	4,317	$	4,280
Less payments due within one year	530		254
Long-term debt	$	3,787	$	4,026

(1)

PPG entered into several interest rate swaps which had the effect of converting fixed rate notes to variable rates, based on the three-month London Interbank Offered Rate (LIBOR). There were no interest rate swaps outstanding related to these instruments as of December 31, 2016 and 2015. The impact of the derivatives on debt represents the fair value adjustment of the debt while the interest rate swaps were outstanding, which is being amortized as a reduction to interest expense over the remaining term of the debt. The weighted average effective interest rate for these borrowings, including the effects of the swaps, was 8.4% and 3.1% for the years ended December 31, 2016 and 2015, respectively. Refer to Note 9, “Financial Instruments, Hedging Activities, and Fair Value Measurements” for additional information.

Debt Instrument Redemption [Table Text Block]

The following table is a summary of the debt instruments redeemed and the tender offers completed:



($ in millions)	Amount Paid
Public notes redeemed:
7 ³/₈% notes, due 2016	$	146
6 ⁷/₈% notes, due 2017	75
6.65% notes, due 2018	575
7.4% notes, due 2019	199
2.70% notes, due 2022	400
Total of make-whole premiums paid to redeem notes	179
Tender Offer:
9% debentures, due 2021	16
7.70% notes, due 2038	74
Total of premiums paid on tender offer	43
Total cash paid for debt redemption	$	1,707

The cash proceeds related to these borrowings net of discounts and fees were as follows:



($ in millions)	Proceeds
3-year variable rate bank loan ⁽¹⁾	$	620
2.30% notes, due 2019	297
15-year 2.5% fixed rate note⁽¹⁾	99
30-year 3.0% fixed rate note ⁽¹⁾	142
Total cash proceeds	$	1,158

(1) These debt arrangements are denominated in euro and have been designated as net investment hedges of the Company’s european operations. For more information refer to Note 9 “Financial Instruments, Hedging Activities and Fair Value Measurements.”

Schedule of Maturities of Long-term Debt [Table Text Block]

Long-term Debt Maturities

Aggregate maturities of long-term debt during the next five years excluding commercial paper are:



($ in millions)	Maturity per year
2017	$	530
2018	4
2019	614
2020	498
2021	132
Thereafter	$	2,539

Short-Term Debt Outstanding

Short-term debt outstanding as of December 31, 2016 and 2015, was as follows:



($ in millions)	2016		2015
Various, weighted average 5.8% as of December 31, 2016 and 13.2% as of December 31, 2015	$	99	$	29

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Minimum lease commitments for operating leases that have initial or remaining lease terms in excess of one year are as follows:



($ in millions)	As of December 31, 2016
2017	$	200
2018	164
2019	131
2020	97
2021	62
Beyond 2021	$	200