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Reportable Segment Information
3 Months Ended
Mar. 31, 2017
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, coatings services 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, and coatings services.
The Glass reportable segment is comprised of the fiber glass operating segment. This reportable segment primarily supplies continuous-strand fiber glass products in North America. The results of the European fiber glass business which was sold October 1, 2016, have not been reclassified as discontinued operations, as the divestiture of the European fiber glass business did not have a major impact on PPG's ongoing results of operations.
Reportable segment net sales and segment income for the three months ended March 31, 2017 and 2016 were as follows: 
 
Three Months Ended
March 31
($ in millions)
2017
 
2016
Net sales:
 
 
 
Performance Coatings
$
2,017

 
$
2,039

Industrial Coatings
1,469

 
1,372

Glass
83

 
133

Total
$
3,569

 
$
3,544

Segment income:
 
 
 
Performance Coatings
$
285

 
$
279

Industrial Coatings
273

 
265

Glass
9

 
14

Total
$
567

 
$
558

Corporate
(64
)
 
(61
)
Interest expense, net of interest income
(21
)
 
(24
)
Legacy items (a)
(8
)
 
(11
)
Asset write-down

 
(4
)
Pension settlement charge
(22
)
 

Transaction-related costs (b)
(4
)
 
(2
)
Income from continuing operations before income taxes
$
448

 
$
456

(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 may 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.