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Reportable Business Segment Information (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Reportable Business Segment
($ in millions)
Reportable Business Segments
Performance Coatings

 
Industrial Coatings

 
Corporate / Eliminations /
Non-Segment Items(1)

 
Consolidated Totals

2017
 
 
 
 
 
 
 
Net sales to external customers

$8,732

 

$6,018

 
$
—

 

$14,750

Intersegment net sales
—

 
—

 
—

 
—

Total net sales

$8,732

 

$6,018

 
$
—

 

$14,750

Segment income

$1,323

 

$972

 
$
—

 

$2,295

Legacy items(2)
 
 
 
 
 
 
(1
)
Pension settlement charge
 
 
 
 
 
 
(60
)
Transaction-related costs(5) 
 
 
 
 
 
 
(9
)
Asset write-downs
 
 
 
 
 
 
(7
)
Gain from sale of the Plaka business
 
 
 
 
 
 
25

Gain from a legal settlement
 
 
 
 
 
 
18

Gain from sale of a non-operating asset
 
 
 
 
 
 
13

Interest expense, net of interest income
 
 
 
 
 
 
(85
)
Corporate unallocated(1)
 
 
 
 
 
 
(181
)
Income before income taxes
 
 
 
 
 
 

$2,008

Depreciation and amortization

$272

 

$164

 

$24

 

$460

Share of net earnings (loss) of equity affiliates

$2

 

$—

 

$10

 

$12

Segment assets(3)

$9,763

 

$4,563

 

$2,212

 

$16,538

Investment in equity affiliates

$32

 

$13

 

$89

 

$134

Expenditures for property (including business acquisitions)

$224

 

$328

 

$133

 

$685



($ in millions)
Reportable Business Segments
Performance Coatings

 
Industrial Coatings

 
Corporate / Eliminations /
Non-Segment Items(1)

 
Consolidated Totals

2016
 
 
 
 
 
 
 
Net sales to external customers

$8,580

 

$5,690

 

$—

 

$14,270

Intersegment net sales
—

 
1

 
(1
)
 
—

Total net sales

$8,580

 

$5,691

 

($1
)
 

$14,270

Segment income

$1,314

 

$1,042

 

$—

 

$2,356

Legacy items(2)
 
 
 
 
 
 
(114
)
Business restructuring charge
 
 
 
 
 
 
(195
)
Transaction-related costs(5)
 
 
 
 
 
 
(8
)
Pension settlement charges
 
 
 
 
 
 
(968
)
Asset write-downs
 
 
 
 
 
 
(23
)
Gains on disposals of ownership interests in business affiliates
 
 
 
 
 
 
46

Interest expense, net of interest income
 
 
 
 
 
 
(99
)
Corporate unallocated(1)
 
 
 
 
 
 
(209
)
Income before income taxes
 
 
 
 
 
 

$786

Depreciation and amortization

$272

 

$143

 

$25

 

$440

Share of net earnings/(loss) of equity affiliates

$5

 

$1

 

$2

 

$8

Segment assets(3)

$9,168

 

$3,972

 

$2,629

 

$15,769

Investment in equity affiliates

$30

 

$13

 

$3

 

$46

Expenditures for property (including business acquisitions)

$187

 

$510

 

$32

 

$729


($ in millions)
Reportable Business Segments
Performance Coatings

 
Industrial Coatings

 
Corporate / Eliminations /
Non-Segment Items(1)

 
Consolidated Totals

2015
 

 
 

 
 

 


Net sales to external customers

$8,765

 

$5,476

 

$—

 

$14,241

Intersegment net sales
—

 
1

 
(1
)
 
—

Total net sales

$8,765

 

$5,477

 

($1
)
 

$14,241

Segment income

$1,302

 

$985

 

$—

 

$2,287

Legacy items(2)
 

 
 

 
 

 
(51
)
Business restructuring charge
 
 
 
 
 
 
(136
)
Transaction-related costs(5)
 
 
 
 
 
 
(44
)
Interest expense, net of interest income
 

 
 

 
 

 
(86
)
Corporate unallocated(1)
 

 
 

 
 

 
(225
)
Income before income taxes
 

 
 

 
 

 

$1,745

Depreciation and amortization

$296

 

$124

 

$26

 

$446

Share of net earnings of equity affiliates

$7

 

$—

 

($3
)
 

$4

Segment assets(3)

$9,917

 

$3,643

 

$3,516

 

$17,076

Investment in equity affiliates

$45

 

$13

 

$36

 

$94

Expenditures for property (including business acquisitions)

$298

 

$414

 

$38

 

$750
Geographic Information
($ in millions)
 
 
 
 
 
Geographic Information
2017

 
2016

 
2015

Net sales(4)
 
 
 
 
 
United States and Canada

$6,309

 

$6,254

 

$6,232

Europe, Middle East and Africa (“EMEA”)
4,389

 
4,164

 
4,103

Asia Pacific
2,523

 
2,431

 
2,433

Latin America
1,529

 
1,421

 
1,473

Total

$14,750

 

$14,270

 

$14,241

Segment income
 
 
 
 
 
United States and Canada

$1,131

 

$1,152

 

$1,176

EMEA
569

 
590

 
539

Asia Pacific
361

 
382

 
359

Latin America
234

 
232

 
213

Total

$2,295

 

$2,356

 

$2,287

Property—net
 
 
 
 
 
United States and Canada

$1,224

 

$1,184

 

$1,101

EMEA
826

 
726

 
805

Asia Pacific
493

 
447

 
431

Latin America
281

 
251

 
271

Total

$2,824

 

$2,608

 

$2,608

(1)
Corporate intersegment net sales represent intersegment net sales eliminations. Corporate unallocated costs include the costs of corporate staff functions not directly associated with the operating segments, certain legal and insurance costs and stock-based compensation expense.
(2)
Legacy items include current costs related to former operations of the Company, including certain environmental remediation, pension and other postretirement benefit costs, legal costs and certain charges which are considered to be non-recurring. Until April 2016, legacy items also include equity earnings from PPG’s minority investment in Pittsburgh Glass Works, LLC. The Legacy items for 2016 include an environmental remediation pre-tax charge of $82 million. These charges relate to continued environmental remediation activities at legacy chemicals sites, primarily at PPG’s former Jersey City, N.J. chromium manufacturing plant and associated sites (Refer to Note 13, “Commitments and Contingent Liabilities”).
(3)
Segment assets are the total assets used in the operation of each segment. Corporate assets are principally cash and cash equivalents, cash held in escrow, short term investments, deferred tax assets and, until April 2016, PPG’s equity investment in it’s former automotive glass and services business. Non-segment items also includes the assets of businesses which have been reclassified as discontinued operations in the Consolidated Statement of Income. (Refer to Note 2, “Acquisitions and Divestitures”).
(4)
Net sales to external customers are attributed to geographic regions based upon the location of the operating unit shipping the product.
(5)
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 divestitures not classified as discontinued operations. These costs also include the flow-through cost of sales for the step up to fair value of inventory acquired in acquisitions.