10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 ________________________________________

FORM 10-Q

 ––––––––––––––––––––––––––––––––––––––––

QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended March 31, 2019

Commission File Number 1-1687

____________________________________________________________ 

PPG INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 

Pennsylvania	25-0730780
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One PPG Place, Pittsburgh, Pennsylvania	15272
(Address of principal executive offices)	(Zip Code)

(412) 434-3131

(Registrant’s telephone number, including area code)

–––––––––––––––––––––––––––––––––––––––––––––––––––––– 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý  No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ý  No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	ý	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes¨ Noý

As of March 31, 2019, 236,059,963 shares of the Registrant’s common stock, par value $1.66 2/3 per share, were outstanding.

PPG INDUSTRIES, INC. AND SUBSIDIARIES

INDEX

		PAGE
Part I. Financial Information
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Statement of Income	2
	Condensed Consolidated Statement of Comprehensive Income	3
	Condensed Consolidated Balance Sheet	4
	Condensed Consolidated Statement of Shareholders' Equity	5
	Condensed Consolidated Statement of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
Part II. Other Information
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6.	Exhibits	34
Signature		36

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Income (Unaudited)

($ in millions, except per share amounts)

	Three Months Ended March 31
	2019			2018
Net sales		$3,624			$3,781
Cost of sales, exclusive of depreciation and amortization	2,073			2,181
Selling, general and administrative	889			906
Depreciation	86			87
Amortization	32			36
Research and development, net	105			112
Interest expense	31			26
Interest income	(6		)	(5		)
Release of business restructuring reserves	(3		)	—
Other charges	14			41
Other income	(16		)	(24		)
Income before income taxes		$419			$421
Income tax expense	102			87
Income from continuing operations		$317			$334
Income from discontinued operations, net of tax	—			6
Net income attributable to controlling and noncontrolling interests		$317			$340
Less: Net income attributable to noncontrolling interests	(5		)	(6		)
Net income (attributable to PPG)		$312			$334
Amounts attributable to PPG:
Income from continuing operations, net of tax		$312			$328
Income from discontinued operations, net of tax	—			6
Net income (attributable to PPG)		$312			$334
Earnings per common share:
Income from continuing operations, net of tax		$1.32			$1.32
Income from discontinued operations, net of tax	—			0.02
Net income (attributable to PPG)		$1.32			$1.34
Earnings per common share – assuming dilution:
Income from continuing operations, net of tax		$1.31			$1.31
Income from discontinued operations, net of tax	—			0.02
Net income (attributable to PPG)		$1.31			$1.33

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

2

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

($ in millions)

	Three Months Ended March 31
	2019			2018
Net income attributable to the controlling and noncontrolling interests		$317			$340
Other comprehensive (loss) income, net of tax:
Defined benefit pension and other postretirement benefits	(6		)	17
Unrealized foreign currency translation adjustments	81			146
Derivative financial instruments	—			(2		)
Other comprehensive income, net of tax		$75			$161
Total comprehensive income		$392			$501
Less: amounts attributable to noncontrolling interests:
Net income	(5		)	(6		)
Unrealized foreign currency translation adjustments	1			(2		)
Comprehensive income attributable to PPG		$388			$493

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

3

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheet (Unaudited)

($ in millions)

	March 31, 2019			December 31, 2018
Assets
Current assets:
Cash and cash equivalents		$784			$902
Short-term investments	55			61
Receivables (less allowance for doubtful accounts of $26 and $24)	3,197			2,845
Inventories	1,965			1,783
Other	408			370
Total current assets		$6,409			$5,961
Property, plant and equipment (net of accumulated depreciation of $3,897 and $3,828)	2,866			2,805
Goodwill	4,103			4,070
Identifiable intangible assets, net	2,020			1,972
Deferred income taxes	242			229
Investments	261			251
Operating lease right-of-use assets	726			—
Other assets	744			727
Total		$17,371			$16,015
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities		$3,684			$3,623
Restructuring reserves	83			99
Short-term debt and current portion of long-term debt	653			651
Current portion of operating lease liabilities	168			—
Total current liabilities		$4,588			$4,373
Long-term debt	4,626			4,365
Operating lease liabilities	566			—
Accrued pensions	646			645
Other postretirement benefits	623			629
Deferred income taxes	447			429
Other liabilities	865			842
Total liabilities		$12,361			$11,283
Commitments and contingent liabilities (Note 15)
Shareholders’ equity:
Common stock	969			969
Additional paid-in capital	899			788
Retained earnings	18,330			18,131
Treasury stock, at cost	(13,070		)	(12,958		)
Accumulated other comprehensive loss	(2,224		)	(2,300		)
Total PPG shareholders’ equity		$4,904			$4,630
Noncontrolling interests	106			102
Total shareholders’ equity		$5,010			$4,732
Total		$17,371			$16,015

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

4

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Shareholders' Equity (Unaudited)

($ in millions)

	Common Stock		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive (Loss)/Income			Total PPG			Non-controlling Interests			Total
January 1, 2019		$969		$788			$18,131			($12,958	)		($2,300	)		$4,630			$102			$4,732
Net income attributable to the controlling and noncontrolling interests	—		—			312			—			—			312			5			317
Other comprehensive income/(loss), net of tax	—		—			—			—			76			76			(1		)	75
Cash dividends	—		—			(113		)	—			—			(113		)	—			(113		)
Purchase of treasury stock	—		—			—			(175		)	—			(175		)	—			(175		)
Issuance of treasury stock	—		121			—			63			—			184			—			184
Stock-based compensation activity	—		(10		)	—			—			—			(10		)	—			(10		)
March 31, 2019		$969		$899			$18,330			($13,070	)		($2,224	)		$4,904			$106			$5,010

	Common Stock		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive (Loss)/Income			Total PPG			Non-controlling Interests			Total
January 1, 2018		$969		$756			$17,140			($11,251	)		($2,057	)		$5,557			$115			$5,672
Net income attributable to the controlling and noncontrolling interests	—		—			334			—			—			334			6			340
Other comprehensive income, net of tax	—		—			—			—			159			159			2			161
Cash dividends	—		—			(112		)	—			—			(112		)	—			(112		)
Purchase of treasury stock	—		—			—			(600		)	—			(600		)	—			(600		)
Issuance of treasury stock	—		24			—			7			—			31			—			31
Stock-based compensation activity	—		(19		)	—			—			—			(19		)	—			(19		)
Reductions in noncontrolling interests	—		—			—			—			—			—			(2		)	(2		)
Reclassification from other comprehensive income to retained earnings - Adoption of ASU 2018-02	—		—			107			—			(107		)	—			—			—
Adjustment to retained earnings - Adoption of ASU 2016-16	—		—			(4		)	—			—			(4		)	—			(4		)
March 31, 2018		$969		$761			$17,465			($11,844	)		($2,005	)		$5,346			$121			$5,467

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

5

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Cash Flows (Unaudited)

	Three Months Ended March 31
($ in millions)	2019			2018
Operating activities:
Net income attributable to controlling and noncontrolling interests		$317			$340
Less: Income from discontinued operations	—			(6		)
Income from continuing operations		$317			$334
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization	118			123
Pension expense	12			10
Environmental remediation charges	10			34
Release of business restructuring reserves	(3		)	—
Stock-based compensation expense	9			9
Equity affiliate earnings, net of dividends	(4		)	(4		)
Deferred income tax benefit	(32		)	(5		)
Cash contributions to pension plans	(3		)	(30		)
Cash used for restructuring actions	(15		)	(17		)
Change in certain asset and liability accounts:
Receivables	(299		)	(373		)
Inventories	(152		)	(202		)
Other current assets	(56		)	(46		)
Accounts payable and accrued liabilities	(24		)	74
Taxes and interest payable	42			(45		)
Noncurrent assets and liabilities, net	(22		)	(75		)
Other	36			(15		)
Cash used for operating activities		($66	)		($228	)
Investing activities:
Capital expenditures	(47		)	(75		)
Business acquisitions, net of cash balances acquired	(57		)	(96		)
Payments for the settlement of cross currency swap contracts	(6		)	(13		)
Proceeds from the settlement of cross currency swap	16			—
Other	8			6
Cash used for investing activities		($86	)		($178	)
Financing activities:
Net change in borrowing with maturities of three months or less	9			7
Proceeds from commercial paper	300			—
Proceeds from the issuance of debt, net of discounts and fees	—			992
Repayment of long-term debt	(1		)	(1		)
Purchase of treasury stock	(175		)	(600		)
Issuance of treasury stock	7			9
Dividends paid	(113		)	(112		)
Payments related to tax withholding on stock-based compensation awards	(8		)	(13		)
Other	13			13
Cash from financing activities		$32			$295
Effect of currency exchange rate changes on cash and cash equivalents	2			21
Net decrease in cash and cash equivalents		($118	)		($90	)
Cash and cash equivalents, beginning of period	902			1,436
Cash and cash equivalents, end of period		$784			$1,346
Supplemental disclosures of cash flow information:
Interest paid, net of amount capitalized		$40			$24
Taxes paid, net of refunds		$94			$118
Supplemental disclosure of noncash investing activities:
Reissuance of common stock for business acquisition		$164			$—

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

6

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Basis of Presentation

The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the financial position and shareholders' equity of PPG as of March 31, 2019, and the results of its operations and cash flows for the three months ended March 31, 2019 and 2018. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2018 Annual Report on Form 10-K (the "2018 Form 10-K").

Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three months ended March 31, 2019 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year.

2. New Accounting Standards

Accounting Standards Adopted in 2019

Effective January 1, 2019, PPG adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases." This ASU requires substantially all leases be recorded on the balance sheet as right of use assets and lease obligations. The Company adopted the ASU using a retrospective adoption method at January 1, 2019, as outlined in ASU No. 2018-11, "Leases - Targeted Improvements." Under this method of adoption, there is no impact to the comparative condensed consolidated statement of income and condensed consolidated balance sheet. PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. PPG will continue to report periods prior to January 1, 2019 in its financial statements under prior guidance as outlined in Accounting Standards Codification Topic 840, "Leases". In addition, PPG elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications.

Adoption of this standard did not materially impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 3, “Leases” for further details.

Accounting Standards to be Adopted in Future Years

In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software." This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses.” This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Entities may choose to adopt the new ASU as of its fiscal year beginning after December 15, 2018. PPG did not early adopt this standard. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows.

3. Leases

PPG leases certain retail paint stores, warehouses, distribution facilities, office space and equipment, including fleet vehicles. PPG determines if a contract is a lease at the inception of the arrangement. PPG reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component.

7

Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

The components of lease expense were as follows:

($ in millions)	Classification in the Condensed Consolidated Statement of Income	Three Months Ended March 31, 2019
Operating lease cost (a)	Cost of sales, exclusive of depreciation and amortization		$9
Operating lease cost (a)	Selling, general and administrative	48
Total operating lease cost			$57
Finance lease cost:
Amortization of right-of-use assets	Depreciation		$1
Interest on lease liabilities	Interest Expense	—
Total finance lease cost			$1
Total lease cost			$58

(a) Includes variable lease costs of $4 million. Short-term lease costs were $1 million during the period.

Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying.

($ in millions)	Classification on the Condensed Consolidated Balance Sheet	March 31, 2019
Assets:
Operating	Other assets		$726
Finance (a)	Property, plant, and equipment	14
Total leased assets			$740
Liabilities:
Current
Operating	Current portion of operating lease liabilities		$168
Finance	Short-term debt and current portion of long-term debt	3
Noncurrent
Operating	Operating lease liabilities	566
Finance	Long-term debt	9
Total lease liabilities			$746

(a) Net of accumulated depreciation of $15 million.

($ in millions)	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$52
Operating cash flows from finance leases		$—
Financing cash flows from finance leases		$1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$34
Finance leases		$—

8

	As of March 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.4
Finance leases	6.2
Weighted-average discount rate
Operating leases	3.2	%
Finance leases	9.5	%

Nearly all of PPG’s lease contracts do not provide a readily determinable implicit rate. For these contracts, PPG’s estimated incremental borrowing rate is based on information available at the inception of the lease.

As of March 31, 2019, maturities of lease liabilities were as follows:

($ in millions)	Operating Leases		Finance Leases
Remaining nine months of 2019		$142		$3
2020	155		3
2021	116		3
2022	89		2
2023	70		2
Thereafter	255		4
Total lease payments		$827		$17
Less: Interest	93		5
Total lease obligations		$734		$12

Disclosures related to periods prior to adoption of ASU 2016-02

The Company adopted ASU 2016-02 using a retrospective adoption method at January 1, 2019 as noted in Note 2. "New Accounting Standards." As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows:

($ in millions)	Operating Leases		Capital Leases
2019		$207		$3
2020	157		3
2021	116		1
2022	93		1
2023	76		1
Beyond 2023		$244		$3

4. Acquisitions and Divestitures

Acquisitions

On April 16, 2019, PPG completed the acquisition of Hemmelrath, an automotive coatings manufacturer. Headquartered in Klingenberg, Germany, Hemmelrath is a global manufacturer of coatings for automotive original equipment manufacturers ("OEMs"). The pro-forma impact on PPG's sales and results of operations, including the pro forma effect of events that are directly attributable to the acquisition, are not anticipated to be significant. The results of this business will be reported within the automotive original equipment manufacturer ("OEM") coatings business within the Industrial Coatings reportable segment.

On March 1, 2019, PPG completed the acquisition of Whitford Worldwide Company ("Whitford"), a global manufacturer that specializes in low-friction and nonstick coatings for industrial applications and consumer products. Whitford employs more than 700 people and operates 10 manufacturing facilities globally. The pro-forma impact on PPG's sales and results of operations, including the pro forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable segment.

9

In January 2018, PPG acquired ProCoatings, a leading architectural paint and coatings wholesaler located in The Netherlands. ProCoatings, established in 2001, distributes a large portfolio of well-known professional paint brands through its network of 23 multi-brand stores. The company employs nearly 100 people. The pro-forma impact on PPG's sales and results of operations, including the pro forma effect of events that are directly attributable to the acquisition, was not significant.The results of this business since the date of acquisition have been reported within the architectural coatings - Europe, Middle East and Africa (EMEA) business within the Performance Coatings reportable segment.

Divestitures

Glass Segment

The Net sales and Income from discontinued operations, net of tax related to the former Glass reportable business segment for the three months ended March 31, 2018 were as follows:

($ in millions)	Three Months Ended March 31, 2018
Income from operations		$8
Income tax expense	2
Income from discontinued operations, net of tax		$6

5. Inventories

($ in millions)	March 31, 2019		December 31, 2018
Finished products		$1,234		$1,105
Work in process	211		193
Raw materials	486		452
Supplies	34		33
Total Inventories		$1,965		$1,783

Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 34% and 36% of total inventories at March 31, 2019 and December 31, 2018, respectively. If the first-in, first-out method of inventory valuation had been used, inventories would have been $126 million and $113 million higher as of March 31, 2019 and December 31, 2018, respectively.

6. Goodwill and Other Identifiable Intangible Assets

The change in the carrying amount of goodwill attributable to each reportable segment for the three months ended March 31, 2019 was as follows:

($ in millions)	Performance Coatings			Industrial Coatings			Total
January 1, 2019		$3,266			$804			$4,070
Acquisitions, including purchase accounting adjustments	2			46			48
Foreign currency impact	(11		)	(4		)	(15		)
March 31, 2019		$3,257			$846			$4,103

10

A summary of the carrying value of the Company's identifiable intangible assets is as follows:

	March 31, 2019							December 31, 2018
($ in millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks		$1,155	N/A				$1,155		$1,140	N/A				$1,140
Definite-Lived Identifiable Intangible Assets
Acquired technology		$673		($522	)		$151		$648		($515	)		$133
Customer-related	1,422		(822		)	600		1,396		(798		)	598
Trade names	205		(98		)	107		190		(96		)	94
Other	45		(38		)	7		44		(37		)	7
Total Definite Lived Intangible Assets		$2,345		($1,480	)		$865		$2,278		($1,446	)		$832
Total Identifiable Intangible Assets		$3,500		($1,480	)		$2,020		$3,418		($1,446	)		$1,972

The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives.

As of March 31, 2019, estimated future amortization expense of identifiable intangible assets is as follows:

($ in millions)	Future Amortization Expense
Remaining nine months of 2019		$88
2020	100
2021	95
2022	85
2023	75
2024	65
Thereafter	357

7. Business Restructuring

The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and asset write-downs.

2018 Restructuring Program

In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee headcount and production capacity in certain businesses based on current product demand, as well as reductions in various global functional and administrative costs. Substantially all actions from this business restructuring plan are expected to be complete by the end of the first quarter of 2020.

2016 Restructuring Program

In December 2016, PPG’s Board of Directors approved a business restructuring program which includes actions necessary to reduce the Company's global cost structure. The program is focused on certain regions and end-use markets where business conditions are the weakest, as well as reductions in production capacity and various global functional and administrative costs. Substantially all actions from this business restructuring plan are expected to be complete by the end of the third quarter of 2019.

11

The following table summarizes the reserve activity for the three months ended March 31, 2019:

($ in millions)	Total Reserve
December 31, 2018		$110
Cash payments	(15		)
Release of prior reserves	(3		)
Foreign currency impact	(1		)
March 31, 2019		$91

During the first quarter, adjustments of approximately $3 million were recorded to reduce the remaining restructuring reserves to reflect the current estimate of the costs to complete these actions.

8. Borrowings

During the first quarter of 2019, PPG issued $300 million of commercial paper. The Company's commercial paper borrowings are supported by the five-year credit agreement (the "Credit Agreement") entered into in 2015. As a result, the commercial paper borrowings as of March 31, 2019 are classified as long-term debt based on PPG's intent and ability to refinance these borrowings on a long-term basis.

In February 2018, PPG completed a public offering of $300 million aggregate principal amount of 3.2% notes due 2023 and $700 million aggregate principal amount of 3.75% notes due 2028. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented. The Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture.

The aggregate cash proceeds from the notes, net of discounts and fees, was $992 million. A portion of the notes were converted from a fixed interest rate to a floating interest rate using interest rate swap contracts. For more information, refer to Note 13, “Financial Instruments, Hedging Activities and Fair Value Measurements.”

9. Earnings Per Common Share

The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
(number of shares in millions)	2019		2018
Weighted average common shares outstanding	236.7		249.8
Effect of dilutive securities:
Stock options	0.7		0.9
Other stock compensation plans	0.6		0.7
Potentially dilutive common shares	1.3		1.6
Adjusted weighted average common shares outstanding	238.0		251.4
Dividends per common share		$0.48		$0.45

Excluded from the computation of earnings per diluted share due to their antidilutive effect were 1.6 million and 1.1 million outstanding stock options for the three months ended March 31, 2019 and 2018, respectively.

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10. Income Taxes

	Three Months Ended March 31
	2019		2018
Effective tax rate on pre-tax income from continuing operations	24.3	%	20.7	%

Income tax expense for the three months ended March 31, 2019 reflects $2 million for discrete items associated with PPG's U.S. and foreign locations and implementation of updated regulations associated with the 2017 Tax Cuts and Jobs Act for Global Intangible Low Taxed Income. For the three months ended March 31, 2018, discrete items of $15 million reduced Income tax expense. Income tax expense for the first three months of 2019 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss.

During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which we operate based on changes in factors such as prices, shipments, product mix, and raw material inflation and manufacturing operations. To the extent that actual 2019 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2019 could be different from the forecasted amount used to estimate the Income tax expense for the three months ended March 31, 2019.

11. Pensions and Other Postretirement Benefits

Service cost for net periodic pension and other postretirement benefit costs is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statements of income. All other components of net periodic benefit cost are now recorded in Other charges, except for pension settlement charges, in the accompanying condensed consolidated statements of income.

The net periodic pension and other postretirement benefit costs for the three months ended March 31, 2019 and 2018 were as follows:

	Pension						Other Postretirement Benefits
	Three Months Ended March 31						Three Months Ended March 31
($ in millions)	2019			2018			2019			2018
Service cost		$6			$8			$2			$2
Interest cost	26			24			6			6
Expected return on plan assets	(35		)	(38		)	—			—
Amortization of actuarial losses	15			16			2			5
Amortization of prior service credit	—			—			(14		)	(15		)
Net periodic benefit cost		$12			$10			($4	)		($2	)

PPG expects its 2019 net periodic pension and other postretirement benefit cost to be approximately $30 million, with pension expense representing approximately $45 million and other postretirement benefit cost representing a benefit of approximately $15 million.

Contributions to Defined Benefit Pension Plans

	Three Months Ended March 31
($ in millions)	2019		2018
U.S. defined benefit pension contributions		$—		$25
Non-U.S. defined benefit pension mandatory contributions		$3		$5

PPG made a voluntary contribution of $25 million to its U.S. defined benefit pension plans in January 2018. PPG expects to make mandatory contributions to its non-U.S. pension plans in the range of $15 million to $25 million during the remaining nine months of 2019. PPG may make voluntary contributions to its defined benefit pension plans in 2019 and beyond.

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12. Accumulated Other Comprehensive Loss

($ in millions)	Unrealized Foreign Currency Translation Adjustments					Pension and Other Postretirement Benefit Adjustments, net of tax (c)					Unrealized Gain (Loss) on Derivatives, net of tax (d)					Accumulated Other Comprehensive Loss
January 1, 2019				($1,734	)				($568	)				$2					($2,300	)
Current year deferrals to AOCI (a)	31					—					—					31
Current year deferrals to AOCI, net of tax (b)	51					(8	)				—					43
Reclassifications from AOCI to net income	—					2					—					2
Period change				$82					($6	)				$—					$76
March 31, 2019				($1,652	)				($574	)				$2					($2,224	)
January 1, 2018				($1,567	)				($493	)				$3					($2,057	)
Current year deferrals to AOCI	189					—					—					189
Current year deferrals to AOCI, net of tax (b)	(45	)				14					(5	)				(36	)
Reclassifications from AOCI to net income	—					3					3					6
Period change				$144					$17					($2	)				$159
Reclassification from AOCI to Retained earnings - Adoption ASU 2018-02			(23		)			(84		)			—					(107		)
March 31, 2018				($1,446	)				($560	)				$1					($2,005	)

(a) Except for income taxes of $6 million related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time.

(b) The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges for the three months ended March 31, 2019 and 2018 was $17 million and $21 million, respectively.

(c) The tax cost (benefit) related to the adjustment for pension and other postretirement benefits for the three months ended March 31, 2019 and 2018 was $1 million and ($1) million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 11, "Pensions and Other Postretirement Benefits").

(d) The tax cost (benefit) related to the changes in the unrealized gain (loss) on derivatives was insignificant for the three months ended March 31, 2019, and was ($1) million for the three months ended March 31, 2018. Reclassifications from AOCI are included in the gain recognized on cash flow hedges (See Note 13, "Financial Instruments, Hedging Activities and Fair Value Measurements").

13. Financial Instruments, Hedging Activities and Fair Value Measurements

Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at March 31, 2019 and December 31, 2018, in the aggregate, except for long-term debt instruments.

Hedging Activities

The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge these underlying economic exposures. Certain of these instruments qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred.

PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the three month periods ended March 31, 2019 and 2018.

All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement.

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There were no derivative instruments de-designated or discontinued as hedging instruments during the three month periods ended March 31, 2019 and 2018 and there were no gains or losses deferred in Accumulated other comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated income statement in the three month periods ended March 31, 2019 and 2018 related to hedges of anticipated transactions that were no longer expected to occur.

Fair Value Hedges

The Company uses interest rate swaps from time to time to manage it’s exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value.

In February of 2018, PPG entered into interest rate swaps which converted $525 million of fixed rate debt to variable rate debt. The swaps are designated as fair value hedges and are carried at fair value. Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in Interest expense in the accompanying condensed consolidated statement of income.

Cash Flow Hedges

PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. Underlying notional amounts related to these foreign currency forward contracts were $69 million at March 31, 2019 and $50 million at December 31, 2018.

Net Investment Hedges

PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a significant portion of its net investment in its European operations, as follows:

In February 2018, PPG entered into U.S. dollar to euro cross currency swap contracts with a total notional amount of $575 million and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payments in U.S. dollars and make payments in euros to the counterparties. Also in February 2018, the Company settled outstanding U.S. dollar to euro cross currency swap contracts with a total notional amount of $560 million.

As of March 31, 2019 and December 31, 2018, PPG had designated €2.3 billion of euro-denominated borrowings as hedges of a portion of its net investment in the Company's European operations. The carrying value of these instruments as of March 31, 2019 and December 31, 2018 was $2.6 billion and $2.7 billion, respectively.

Other Financial Instruments

PPG uses foreign currency forward contracts to manage net transaction exposures that do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other charges in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $2.5 billion at both March 31, 2019 and December 31, 2018.

Gains/Losses Deferred in Accumulated Other Comprehensive Loss

As of March 31, 2019, the Company had accumulated pre-tax unrealized translation gains in Accumulated other comprehensive loss on the condensed consolidated balance sheet related to the euro-denominated borrowings, foreign currency forward contracts and the cross currency swaps of $231 million. As of December 31, 2018, the Company had accumulated pre-tax unrealized translation gains of $161 million.

The following table summarizes the location within the condensed consolidated financial statements and amount of gains (losses) related to derivative financial instruments activity for the three months ended March 31, 2019 and 2018. All dollar amounts are shown on a pre-tax basis.

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	March 31, 2019					March 31, 2018
($ in millions)	Gain Deferred in OCI		Gain (Loss) Recognized			Loss Deferred in OCI			Gain (Loss) Recognized			Caption In Condensed Consolidated Statement of Income
Economic
Foreign currency forward contracts		$—		$6			$—			$4		Other charges
Fair Value
Interest rate swaps	—		—			—			1			Interest expense
Cash Flow
Foreign currency forward contracts(1)	—		(1		)	(6		)	(3		)	Other charges and Cost of sales
Total Cash Flow		$—		$5			($6	)		$2
Net Investment
Cross currency swaps		$13		$4			($26	)		$1		Interest expense
Foreign denominated debt	57		—			(68		)	—
Total Net Investment		$70		$4			($94	)		$1

(1) For the period ended March 31, 2019, the amounts excluded from effectiveness testing recognized in earnings based on an amortized approach was expense of $1 million.

Fair Value Measurements

The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of March 31, 2019 and December 31, 2018, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 13, "Employee Benefit Plans" under Item 8 in the 2018 Form 10-K for further details). The Company's financial assets and liabilities are measured using inputs from the following three levels:

Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges.

Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments' contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves.

Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company does not have any recurring financial assets or liabilities that are recorded in its consolidated balance sheets as of March 31, 2019 and December 31, 2018 that are classified as Level 3 inputs.

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Assets and liabilities reported at fair value on a recurring basis:

	March 31, 2019						December 31, 2018
($ in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Other current assets:
Marketable equity securities		$4		$—		$—		$4		$—		$—
Foreign currency forward contracts (a)	—		1		—		—		—		—
Foreign currency forward contracts (b)	—		29		—		—		45		—
Investments:
Marketable equity securities	78		—		—		69		—		—
Other assets:
Cross currency swaps (c)	—		48		—		—		35		—
Interest rate swaps (d)	—		18		—		—		8		—
Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)	—		1		—		—		1		—
Foreign currency forward contracts (b)	—		15		—		—		9		—

(a) Cash flow hedges	(c) Net investment hedges
(b) Derivatives not designated as hedging instruments	(d) Fair value hedges

Long-Term Debt

($ in millions)	March 31, 2019 (a)		December 31, 2018 (b)
Long-term debt - carrying value		$5,254		$5,000
Long-term debt - fair value		$5,447		$5,101

(a) Excluding finance lease obligations of $12 million and short term borrowings of $13 million as of March 31, 2019.

(b) Excluding capital lease obligations of $12 million and short term borrowings of $4 million as of December 31, 2018.

The fair values of the debt instruments were based on discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities and were measured using level 2 inputs.

14. Stock-Based Compensation

The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. Shares available for future grants under the PPG Amended Omnibus Plan were 7.4 million as of March 31, 2019.

Stock-based compensation and the income tax benefit recognized during the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
($ in millions)	2019		2018
Stock-based compensation		$9		$9
Income tax benefit recognized		$2		$2

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Grants of stock-based compensation during the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
	2019			2018
Grant Details	Shares	Fair Value		Shares	Fair Value
Stock options	588,870		$22.50	517,433		$25.38
Restricted stock units	179,564		$103.35	168,432		$110.28
Contingent shares (a)	51,850		$109.74	49,278		$116.32

(a) The number of contingent shares represents the target value of the award.

Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock option grants issued during the three months ended March 31, 2019 was calculated with the following weighted average assumptions:

Weighted average exercise price		$109.74
Risk-free interest rate	2.6		%
Expected life of option in years	6.5
Expected dividend yield	1.6		%
Expected volatility	20.0		%

The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected life of options is calculated using the average of the vesting term and the maximum term, as prescribed by accounting guidance on the use of the simplified method for determining the expected term of an employee share option. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options.

Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period. Performance-based RSUs vest based on achieving specific annual performance targets for earnings per share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets.

The amount paid upon vesting of performance-based RSUs may range from 0% to 180% of the original grant, based upon the frequency with which the annual earnings per share growth and cash flow return on capital performance targets are met over the three calendar year periods comprising the vesting period.

Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three-year period following the date of grant based on PPG's performance. Performance is measured by determining the percentile rank of the total shareholder return of PPG common stock in relation to the total shareholder return of the S&P 500 as it existed at the beginning of the three-year performance period excluding any companies that have been removed from the index because they ceased to be publicly traded during the performance period. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both at the Company's discretion. The TSR awards qualify as liability awards, and compensation expense is recognized over the three-year award period based on the fair value of the awards (giving consideration to the Company’s percentile rank of total shareholder return) remeasured in each reporting period until settlement of the awards.

15. Commitments and Contingent Liabilities

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, antitrust, employment and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury and property damage, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers, as they had prior to the asbestos settlement described below, may contest coverage with respect to some of the asbestos claims if the settlement is not implemented. PPG’s lawsuits

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and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters.

The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

Asbestos Matters

Prior to 2000, the Company had been named as a defendant in numerous claims alleging bodily injury from (i) exposure to asbestos-containing products allegedly manufactured, sold or distributed by the Company, its subsidiaries, or for which they are otherwise alleged to be liable; (ii) exposure to asbestos allegedly present at a facility owned or leased by the Company; or (iii) exposure to asbestos-containing products of Pittsburgh Corning Corporation (“PC”) for which the Company was alleged to be liable under a variety of legal theories (the Company and Corning Incorporated were each 50% shareholders in PC).

Pittsburgh Corning Corporation asbestos bankruptcy

In 2000, PC filed for Chapter 11 in the U.S. Bankruptcy Court for the Western District of Pennsylvania in an effort to permanently and comprehensively resolve all of its pending and future asbestos-related liability claims. At the time of the bankruptcy filing, the Company had been named as one of many defendants in approximately 114,000 open claims. The Bankruptcy Court subsequently entered a series of orders preliminarily enjoining the prosecution of asbestos litigation against PPG until after the effective date of a confirmed PC plan of reorganization. During the pendency of this preliminary injunction staying asbestos litigation against PPG, PPG and certain of its historical liability insurers negotiated a settlement with representatives of present and future asbestos claimants. That settlement was incorporated into a PC plan of reorganization that was confirmed by the Bankruptcy Court on May 24, 2013 and ultimately became effective on April 27, 2016. With the effectiveness of the plan, the preliminary injunction staying the prosecution of asbestos litigation against PPG expired by its own terms on May 27, 2016. In accordance with the settlement, the Bankruptcy Court issued a permanent channeling injunction under Section 524(g) of the Bankruptcy Code that prohibits present and future claimants from asserting claims against PPG that arise, in whole or in part, out of exposure to asbestos or asbestos-containing products manufactured, sold and/or distributed by PC or asbestos on or emanating from any PC premises. The channeling injunction, by its terms, also prohibits codefendants in cases that are subject to the channeling injunction from asserting claims against PPG for contribution, indemnification or other recovery. The channeling injunction also precludes the prosecution of claims against PPG arising from alleged exposure to asbestos or asbestos-containing products to the extent that a claimant is alleging or seeking to impose liability, directly or indirectly, for the conduct of, claims against, or demands on PC by reason of PPG’s: (i) ownership of a financial interest in PC; (ii) involvement in the management of PC, or service as an officer, director or employee of PC or a related party; (iii) provision of insurance to PC or a related party; or (iv) involvement in a financial transaction affecting the financial condition of PC or a related party. The foregoing PC related claims are referred to as “PC Relationship Claims.”

The channeling injunction channels the Company’s liability for PC Relationship Claims to a trust funded in part by PPG and its participating insurers for the benefit of current and future PC asbestos claimants (the “Trust”). The Trust is the sole recourse for holders of PC Relationship Claims. PPG and its affiliates have no further liability or responsibility for, and will be permanently protected from, pending and future PC Relationship Claims. The channeling injunction does not extend to present and future claims against PPG that arise out of alleged exposure to asbestos or asbestos-containing products historically manufactured, sold and/or distributed by PPG or its subsidiaries or for which they are alleged to be liable that are not PC Relationship Claims, and does not extend to claims against PPG alleging personal injury allegedly caused by asbestos on premises presently or formerly owned, leased or occupied by PPG. These claims are referred to as non-PC Relationship Claims.

In accordance with the PC plan of reorganization, PPG's equity interest in PC was canceled. PPG satisfied its funding obligations to the Trust on June 9, 2016, when it conveyed to the Trust the stock it owned in Pittsburgh Corning Europe and 2,777,778 shares of PPG’s common stock and made a cash payment to the Trust in the amount of $764 million. PPG’s historical insurance carriers participating in the PC plan of reorganization are required to make cash payments to the Trust of approximately $1.7 billion, subject to a right of prepayment at a 5.5% discount rate.

On October 13, 2016, the Bankruptcy Court issued an order entering a final decree and closing the Chapter 11 case. That order provided that the Bankruptcy Court retained jurisdiction to enforce any order issued in the case and any agreements approved by the court, enforce the terms and conditions of the modified third amended Plan, and consider any requests to reopen the case.

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Non-PC relationship asbestos claims

At the time PC filed for bankruptcy, PPG had been named as one of many defendants in one or more of the categories of asbestos-related claims identified above. Over the course of the 16 years during which the PC bankruptcy proceedings, and corresponding preliminary injunction staying the prosecution of asbestos-related claims against PPG, were pending, certain plaintiffs alleging premises claims filed motions seeking to lift the stay with respect to more than 1,000 individually-identified premises claims. The Bankruptcy Court granted motions to lift the stay in respect to certain of these premises claims and directed PPG to engage in a process to address any additional premises claims that were the subject of pending or anticipated lift-stay motions. As a result of the overall process as directed by the Bankruptcy Court involving more than 1,000 premises claims between 2006 and May 27, 2016, hundreds of these claims were withdrawn or dismissed without payment and approximately 650 premises claims were dismissed upon agreements by PPG and its insurers to resolve such claims in exchange for monetary payments.

With respect to the remaining claims still reportable within the inventory of 114,000 asbestos-related claims at the time PC filed for bankruptcy, the Company considers such claims to fall within one or more of the following categories: (1) claims that have been closed or dismissed as a result of processes undertaken during the bankruptcy; (2) claims that may have been previously filed on the dockets of state and federal courts in various jurisdictions, but are inactive as to the Company; and (3) claims that are subject, in whole or in part, to the channeling injunction and thus will be resolved, in whole or in part, in accordance with the Trust procedures established under the PC bankruptcy reorganization plan. As a result of the foregoing, the Company does not consider these three categories of claims to be open or active litigation against it, although the Company cannot now determine whether, or the extent to which, any of these claims may in the future be reinstituted, reinstated, or revived such that they may become open and active asbestos-related claims against it.

Current open and active claims post-Pittsburgh Corning bankruptcy

As of March 31, 2019, the Company was aware of approximately 460 open and active asbestos-related claims pending against the Company and certain of its subsidiaries. These claims consist primarily of non-PC Relationship Claims and claims against a subsidiary of PPG. The Company is defending the remaining open and active claims vigorously.

Since April 1, 2013, a subsidiary of PPG has been implicated in claims alleging death or injury caused by asbestos-containing products manufactured, distributed or sold by a North American architectural coatings business or its predecessors which was acquired by PPG. All such claims have been either served upon or tendered to the seller for defense and indemnity pursuant to obligations undertaken by the seller in connection with the Company’s purchase of the North American architectural coatings business. The seller has accepted the defense of these claims subject to the terms of various agreements between the Company and the seller. The seller’s defense and indemnity obligations in connection with newly filed claims ceased with respect to claims filed after April 1, 2018.

PPG has established reserves totaling approximately $180 million for asbestos-related claims that would not be channeled to the Trust which, based on presently available information, we believe will be sufficient to encompass all of PPG’s current and potential future asbestos liabilities.  These reserves include a $162 million reserve established in 2009 in connection with an amendment to the PC plan of reorganization.  These reserves, which are included within Other liabilities on the accompanying condensed consolidated balance sheets, represent PPG’s best estimate of its liability for these claims. PPG does not have sufficient current claim information or settlement history on which to base a better estimate of this liability in light of the fact that the Bankruptcy Court’s injunction staying most asbestos claims against the Company was in effect from April 2000 through May 2016. PPG will monitor the activity associated with its remaining asbestos claims and evaluate, on a periodic basis, its estimated liability for such claims, its insurance assets then available, and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required.

The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) the amounts required to resolve both currently known and future unknown claims; (iii) the amount of insurance, if any, available to cover such claims; (iv) the unpredictable aspects of the litigation process, including a changing trial docket and the jurisdictions in which trials are scheduled; (v) the outcome of any trials, including potential judgments or jury verdicts; (vi) the lack of specific information in many cases concerning exposure for which PPG is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (vii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. As a potential offset to any future asbestos financial exposure, under the PC plan of reorganization PPG retained, for its own account, the right to pursue insurance coverage from certain of its historical insurers that did not participate in the PC plan of reorganization. While the ultimate outcome of PPG’s asbestos litigation cannot be predicted with certainty, PPG believes that any financial exposure

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resulting from its asbestos-related claims will not have a material adverse effect on PPG’s consolidated financial position, liquidity or results of operations.

Environmental Matters

It is PPG’s policy to accrue expenses for environmental contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time. See Note 14, "Commitments and Contingent Liabilities," under Item 8 of the 2018 Form 10-K for additional descriptions of the following environmental matters.

As of March 31, 2019 and December 31, 2018, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, N.J. (“New Jersey Chrome”) and for other environmental contingencies, including National Priority List sites and legacy glass and chemical manufacturing sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying condensed consolidated balance sheet.

Environmental Reserves
($ in millions)	March 31, 2019		December 31, 2018
New Jersey Chrome		$137		$151
Glass and chemical	68		90
Other	61		50
Total		$266		$291
Current portion		$109		$105

Pre-tax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pre-tax charges and cash outlays related to such environmental remediation for the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
($ in millions)	2019		2018
Environmental remediation pre-tax charges		$16		$34
Cash outlays for environmental remediation activities		$16		$17

In the first quarter of 2019, a one-time charge was taken to increase an existing legacy reserve classified within "Other" sites above by $10 million. In the first quarter of 2018, charges were taken to increase the existing reserves for the New Jersey Chrome and glass and chemical sites by $26 million and $8 million, respectively.

Remediation: New Jersey Chrome

In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and 19 additional sites. The principal contaminant of concern is hexavalent chromium. The JCO also provided for the appointment of a court-approved Site Administrator who is responsible for establishing a master schedule for the remediation of the 20 PPG sites which existed at that time. One site was subsequently removed from the JCO process during 2014 and will be remediated separately at a future date. A total of 19 sites remain subject to the JCO process.

The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites are those related to the extent and concentration of chromium impacts in the soil, as these determine the quantity of soil that must be treated in place, the quantity that will have to be excavated and transported for offsite disposal, and the nature of disposal required. In 2018 and 2016, PPG completed updated assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non-hazardous soils, daily soil excavation rates, and engineering, administrative and

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other associated costs. Based on these assessments, the reserve has been adjusted accordingly as noted in the table above. Principal factors affecting costs included refinements in the estimate of the mix of hazardous to non-hazardous soils to be excavated, an overall increase in soil volumes to be excavated, enhanced water management requirements, decreased daily soil excavation rates due to site conditions, initial estimates for remedial actions related to groundwater, and increased oversight and management costs. The reserve adjustments for the estimated costs to remediate all New Jersey Chrome sites are exclusive of any third party indemnification, as the recovery of any such amounts is uncertain.

Groundwater remediation at the former Garfield Avenue chromium manufacturing site and five adjacent sites is expected to occur over several years after NJDEP's approval of the work plan. Ongoing groundwater monitoring will be utilized to develop a final groundwater remedial action work plan which is currently expected to be submitted to NJDEP in 2021.

PPG’s financial reserve for remediation of all New Jersey Chrome sites is $137 million at March 31, 2019. The major cost components of this liability continue to be related to excavation, transportation and disposal of impacted soil, as well as construction services. These components each account for approximately 19%, 17% and 31% of the accrued amount, respectively.

There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Final resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will be adjusted.

Remediation: Other Sites

Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a legacy chemical manufacturing site in Barberton, Ohio, where PPG has completed a Facility Investigation and Corrective Measure Study under USEPA’s Resource Conservation and Recovery Act (“RCRA”) Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations.

With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites.

Remediation: Reasonably Possible Matters

In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million. Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them.

The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments.

Other Matters

The Company had outstanding letters of credit and surety bonds of $143 million and guarantees of $14 million as of March 31, 2019. The Company does not believe any loss related to such guarantees is likely.

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16. Revenue Recognition

The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. 

The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.

The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three months ended March 31, 2019 and 2018, service revenue constituted approximately 5% of total revenue.

Net sales by segment and region for the three months ended March 31, 2019 and 2018 were as follows:

($ in millions)	Performance Coatings				Industrial Coatings				Total Net Sales
	Three Months Ended March 31				Three Months Ended March 31				Three Months Ended March 31
	2019		2018		2019		2018		2019		2018
United States and Canada		$953		$974		$613		$611		$1,566		$1,585
EMEA	688		707		426		473		1,114		1,180
Asia-Pacific	243		242		340		388		583		630
Latin America	224		237		137		149		361		386
Total		$2,108		$2,160		$1,516		$1,621		$3,624		$3,781

17. Reportable Business Segment Information

PPG is a multinational manufacturer with 9 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution.

The Performance Coatings reportable segment is comprised of the automotive refinish coatings, aerospace coatings, 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, and other specialty materials.

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Reportable segment net sales and segment income for the three months ended March 31, 2019 and 2018 were as follows: 

	Three Months Ended March 31
($ in millions)	2019			2018
Net sales:
Performance Coatings		$2,108			$2,160
Industrial Coatings	1,516			1,621
Total		$3,624			$3,781
Segment income:
Performance Coatings		$297			$280
Industrial Coatings	218			239
Total		$515			$519
Corporate	(45		)	(43		)
Interest expense, net of interest income	(25		)	(21		)
Legacy items (a)	(2		)	4
Environmental remediation charges	(10		)	(34		)
Release of business restructuring reserves	3			—
Accelerated depreciation and other costs from restructuring actions	(6		)	—
Acquisition-related costs (b)	(7		)	—
Costs associated with ongoing accounting investigations	(4		)	—
Costs related to customer assortment change	—			(4		)
Income before income taxes		$419			$421

(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 certain recurring environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio.

(b) Acquisition-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.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and the notes thereto included in the condensed consolidated financial statements in Part I, Item 1, “Financial Statements,” of this report and in conjunction with the 2018 Form 10-K.

Executive Overview

Below are our key financial results for the three months ended March 31, 2019:

• Net sales were approximately $3.6 billion, down 4.2% compared to the prior year.

• Cost of sales, exclusive of depreciation and amortization ("Cost of sales") was $2.1 billion, down 5.0% versus prior year. As a percentage of sales, Cost of sales decreased 0.5%.

• Selling, general and administrative ("SG&A") expense was $889 million, down 1.9% year-over-year. As a percentage of sales, SG&A expense increased 0.5%.

• Income before income taxes was $419 million.

• The reported effective tax rate was 24.3%. The adjusted effective tax rate was 24.4%.

• Income from continuing operations, net of tax (attributable to PPG) was $312 million.

• Earnings per diluted share from continuing operations was $1.31.

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For the three months ended March 31, 2019:

• Cash flows used by operating activities - continuing operations was $66 million, an increase of $162 million year-over-year.

• Capital expenditures, including business acquisitions (net of cash acquired), was $104 million.

• The Company paid $113 million in dividends and repurchased $175 million of its outstanding common stock.

Performance in the first quarter of 2019 compared to the first quarter of 2018

Performance Overview

Net Sales by Region

	Three Months Ended March 31				Percent Change
($ in millions, except percentages)	2019		2018		2019 vs. 2018
United States and Canada		$1,566		$1,585	(1.2	)%
Europe, Middle East and Africa (EMEA)	1,114		1,180		(5.6	)%
Asia-Pacific	583		630		(7.5	)%
Latin America	361		386		(6.5	)%
Total		$3,624		$3,781	(4.2	)%

Net sales decreased $157 million due to the following:

● Unfavorable foreign currency translation (-4%)

● Lower sales volumes (-3%)

Partially offset by:

● Higher selling prices (+3%)

● Slightly higher acquisition-related sales, net of dispositions

Higher selling prices were achieved across all businesses, reflecting the value of our products and services. These increases helped to offset persistent raw material and logistics cost inflation.

U.S and Canada net sales decreased, primarily driven by lower sales volumes.

Europe, Middle East and Africa ("EMEA") net sales decreased, driven by unfavorable foreign currency translation.

Asia Pacific net sales decreased, driven by unfavorable foreign currency translation and lower sales volumes.

Latin America net sales decreased versus the prior year driven by lower sales volumes.

Foreign currency translation decreased net sales approximately $160 million as the U.S. dollar strengthened against several foreign currencies versus the prior year, most notably the euro, Mexican peso and Chinese yuan.

For specific business results see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.

Cost of Sales, exclusive of depreciation and amortization

	Three Months Ended March 31						Percent Change
($ in millions, except percentages)	2019			2018			2019 vs. 2018
Cost of sales, exclusive of depreciation and amortization		$2,073			$2,181		(5.0	)%
Cost of sales as a percentage of net sales	57.2		%	57.7		%	(0.5	)%

Cost of sales, exclusive of depreciation and amortization, decreased $108 million primarily due to the following:

● Foreign currency translation

● Lower sales volumes

● Restructuring cost savings

Partially offset by:

● Cost of sales attributable to acquired businesses

● Raw materials and other cost inflation

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Selling, general and administrative expenses

	Three Months Ended March 31						Percent Change
($ in millions, except percentages)	2019			2018			2019 vs. 2018
Selling, general and administrative expenses (SG&A)		$889			$906		(1.9	)%
Selling, general and administrative expenses as a percentage of net sales	24.5		%	24.0		%	0.5	%

SG&A expense decreased $17 million primarily due to the following:

● Foreign currency translation

● Restructuring cost savings

Partially offset by:

● Wage and other cost inflation

● SG&A expenses attributable to acquired businesses

Other costs and income

	Three Months Ended March 31						Percent Change
($ in millions, except percentages)	2019			2018			2019 vs. 2018
Interest expense, net of Interest income		$25			$21		19.0	%
Other charges		$14			$41		(65.9	)%
Other income		($16	)		($24	)	(33.3	)%

Other charges

Other charges were lower in the three months ended March 31, 2019 compared to prior year due to lower environmental remediation charges of $16 million versus $34 million in 2018.

Other income

Other income was lower in the three months ended March 31, 2019 due to slightly lower equity earnings and royalty income compared to prior year.

Effective tax rate and earnings per diluted share

	Three Months Ended March 31						Percent Change
($ in millions, except percentages)	2019			2018			2019 vs. 2018
Income tax expense		$102			$87		17.2	%
Effective tax rate	24.3		%	20.7		%	3.6	%
Adjusted effective tax rate, continuing operations*	24.4		%	20.9		%	3.5	%
Earnings per diluted share, continuing operations		$1.31			$1.31		—	%
Adjusted earnings per diluted share*		$1.38			$1.42		(2.8	)%
*See Regulation G Reconciliation below

The effective tax rate for the three months ending March 31, 2019 reflects the benefit of U.S. tax legislation enacted in December 2017 as well as the impact of certain discrete tax items. The Company expects that its full year 2019 adjusted effective tax rate will be between 23% and 25%.

Earnings per diluted share from continuing operations for the three months ended March 31, 2019 and 2018 remained the same year-over-year due to items described further in the Regulation G reconciliation. The Company benefited from the 10.7 million shares repurchased in the last nine months of 2018 and 1.6 million shares repurchased in the first quarter of 2019.

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Regulation G Reconciliation - Results from Operations

PPG believes investors’ understanding of the Company’s operating performance is enhanced by the disclosure of net income, earnings per diluted share and the effective tax rate adjusted for certain charges. PPG’s management considers this information useful in providing insight into the Company’s ongoing operating performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income, earnings per diluted share and the effective tax rate adjusted for these items are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, earnings per diluted share and the effective tax rate may not be comparable to similarly titled measures as reported by other companies.

Income before income taxes from continuing operations is reconciled to adjusted income before income taxes from continuing operations, the effective tax rate from continuing operations is reconciled to the adjusted effective tax rate from continuing operations and net income from continuing operations (attributable to PPG) and earnings per share – assuming dilution (attributable to PPG) are reconciled to adjusted net income from continuing operations (attributable to PPG) and adjusted earnings per share – assuming dilution below:

	Three Months Ended March 31, 2019
($ in millions, except percentages and per share amounts)	Income Before Income Taxes			Tax Expense			Effective Tax Rate		Net income from continuing operations (attributable to PPG)			Earnings per diluted share
As reported, continuing operations		$419			$102		24.3	%		$312			$1.31
Adjusted for:
Acquisition-related costs	7			2			23.4	%	5			0.02
Environmental remediation charge	10			2			24.3	%	8			0.03
Costs associated with ongoing accounting investigations	4			1			24.3	%	3			0.01
Release of business restructuring reserves	(3		)	(1		)	25.6	%	(2		)	(0.01		)
Accelerated depreciation and other costs from restructuring actions	6			2			25.0	%	4			0.02
Adjusted, continuing operations, excluding certain items		$443			$108		24.4	%		$330			$1.38

	Three Months Ended March 31, 2018
($ in millions, except percentages and per share amounts)	Income Before Income Taxes		Tax Expense		Effective Tax Rate		Net income from continuing operations (attributable to PPG)		Earnings per diluted share
As reported, continuing operations		$421		$87	20.7	%		$328		$1.31
Adjusted for:
Costs related to customer assortment change	4		1		24.3	%	3		0.01
Environmental remediation charges	34		8		25.1	%	26		0.10
Adjusted, continuing operations, excluding certain items		$459		$96	20.9	%		$357		$1.42

Performance of Reportable Business Segments

Performance Coatings

	Three Months Ended March 31				$ Change			% Change
($ in millions, except per share amounts)	2019		2018		2019 vs. 2018			2019 vs. 2018
Net sales		$2,108		$2,160		($52	)	(2.4	)%
Segment income		$297		$280		$17		6.1	%

Performance Coatings net sales decreased $52 million due to the following:

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● Unfavorable foreign currency translation (-4%)

● Lower sales volumes (-2%)

Partially offset by:

● Higher selling prices (+3%)

● Slightly higher acquisition-related sales, net of dispositions

Higher selling prices were achieved across all businesses, reflecting the value of our products and services. These increases helped to offset persistent raw material and logistics cost inflation. Unfavorable foreign currency translation affected all businesses.

Architectural coatings - Americas and Asia-Pacific organic sales volumes were lower by a high-single-digit percentage primarily driven by certain previously announced customer assortment changes in the U.S. DIY channel. The U.S. and Canada company-owned stores network grew same store sales by a low-single-digit percentage. The PPG-Comex architectural coatings businesses had slightly lower organic sales due to the timing of the annual Easter promotion.

Architectural coatings - EMEA organic sales increased by a mid-single-digit percentage year-over-year, including volume growth in all key regions.

Automotive refinish coatings organic sales decreased by a low-single-digit percentage year-over-year. Sales volumes were impacted by lower sales in Europe due to pre-buying in the fourth quarter ahead of a January price increase. U.S. market demand was soft evidenced by lower collision claims during the quarter.

Aerospace coatings sales volumes grew by over 10 percent, marking the fourth consecutive quarter of more than 10 percent sales volume growth. This increase was supported by market outperformance in all major platforms stemming from technology-advantaged products and robust industry demand.

Protective and marine coatings sales volumes increased by a low-teen-digit percentage driven by strong sales volumes in China.

Segment income increased $17 million year-over-year due to higher selling prices and continued cost management offset by the earnings impact of lower sales volumes, raw material and logistics cost inflation and unfavorable foreign currency translation of approximately $10 million.

Looking Ahead

Looking ahead, raw material and logistics cost inflation is expected to continue in the second-quarter of 2019 at more moderate levels. Sales will be sequentially higher due to normal seasonality. Acquisition-related sales are forecast to add about $15 million of sales growth primarily from the SEM acquisition. Based on current exchange rates, foreign currency translation is expected to have an unfavorable impact on segment sales of about $80 million.

From a business perspective, continued strong performance is expected in aerospace coatings in the second quarter albeit with growth rates slightly below recent quarters as year-over-year comparisons become more challenging due to recent strong growth performance. For architectural coatings - EMEA, second quarter net sales are expected to be higher sequentially due to normal seasonal patterns. Net sales in architectural coatings - Americas and Asia-Pacific are expected to be lower in the second quarter due to DIY channel customer assortment changes that occurred in 2018, similar to the first quarter. Protective and marine coatings sales volume growth is expected to continue at lower levels sequentially.

Industrial Coatings

	Three Months Ended March 31				$ Change			% Change
($ in millions, except per share amounts)	2019		2018		2019 vs. 2018			2019 vs. 2018
Net sales		$1,516		$1,621		($105	)	(6.5	)%
Segment income		$218		$239		($21	)	(8.8	)%

Industrial Coatings segment net sales decreased $105 million due to the following:

● Lower sales volumes (-5%)

● Unfavorable foreign currency translation (-5%)

Partially offset by:

● Higher selling prices (+2%)

● Slightly higher acquisition-related sales, net of dispositions

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Higher selling prices were achieved across all businesses, reflecting the value of our products and services. These increases helped to offset persistent raw material and logistics cost inflation. Unfavorable foreign currency translation affected all businesses.

Sales volumes decreased a high-single-digit percentage in the automotive OEM coatings business versus the prior year, which was consistent with the overall global industry automotive build rate. PPG’s sales volume was lower than market performance in the U.S. and Canada region due to certain customers having longer production curtailments. Partially offsetting the lower sales volumes were higher selling prices in all major regions.

Aggregate industrial coatings and specialty coatings and materials sales volumes were down a low-single-digit percentage in the first quarter. Sales volumes were impacted by lower coil, general finishes, and automotive accessories end-use demand. Selling prices continued to increase during the quarter.

Packaging coatings sales volumes were down a low-single-digit percentage versus the prior year, as year-over-year growth moderated due to more modest customer adoption rates for new technologies. Sales volumes increased in Latin America due to recent customer wins in the region.

Segment income decreased $21 million year-over-year. Segment income benefited from improving selling prices and from prior business restructuring actions, which were more than offset by the earnings impact of lower sales volumes and elevated raw material and logistics costs. Unfavorable foreign currency translation decreased segment income by approximately $10 million, primarily related to the Chinese yuan, Mexican peso and the euro.

Looking ahead

Looking ahead, greater volatility in global industrial demand is expected to continue through the second quarter with inconsistencies by region. The carryover impact from 2018 cost inflation and significantly unfavorable foreign currency translation will impact second quarter earnings. The Company will continue to prioritize implementing selling price increases and operating margin recovery.

From a business perspective, industrial coatings and specialty coatings and materials sales volumes are anticipated to be moderately lower in the second quarter due to softer industrial production activity. In addition, acquisition-related sales are forecast to add about $80 million of sales growth from the Whitford and Hemmelrath acquisitions. Packaging coatings sales volume growth will continue to be modest due to lower customer adoption rates for new technologies and the anniversary of prior-year customer conversions. Global automotive industry demand is expected to remain soft in the second quarter for most regions with greater volatility expected in China and Europe.

Liquidity and Capital Resources

PPG had cash and short-term investments totaling $0.8 billion and $1.0 billion at March 31, 2019 and December 31, 2018, respectively.

Cash used by operating activities - continuing operations for the three months ended March 31, 2019 was $66 million. Cash used by operating activities - continuing operations was $228 million for the three months ended March 31, 2018. Operating cash flow increased primarily due to less growth in working capital in the first quarter of 2019 compared to the prior year.

Other uses of cash during the three months ended March 31, 2019 included:

• Capital expenditures, excluding acquisitions, of $47 million.

• Business acquisition cash spending of $57 million.

• Cash dividends paid of $113 million.

• Share repurchases of $175 million completed to offset the dilution related to the shares reissued in the acquisition of Whitford.

During the quarter, PPG issued $300 million of commercial paper borrowings. The Company's commercial paper borrowings are supported by the five-year credit agreement (the "Credit Agreement") entered into in 2015. As a result, the commercial paper borrowings as of March 31, 2019 are classified as long-term debt based on PPG's intent and ability to refinance these borrowings on a long-term basis. In February 2018, PPG completed a public debt offering of $300 million aggregate principal amount of 3.2% notes due 2023 and $700 million aggregate principal amount of 3.75% notes due 2028 and received aggregate net proceeds of $992 million.

Total capital spending in 2019 is expected to be in the range of 2.5% to 3.0% of full year sales. PPG expects to make mandatory contributions to its non-U.S. pension plans in the range of $15 million to $25 million during the remaining nine months of 2019. PPG may make voluntary contributions to its defined benefit pension plans in 2019 and beyond.

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A primary focus for the Company in 2019 will continue to be cash deployment focused on long-term shareholder value creation.

PPG's ratio of total debt, including finance leases, to total debt and equity was 52% at March 31, 2019 and December 31, 2018.

Operating Working Capital is a subset of total working capital and represents (1) trade receivables – net of the allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities. We believe Operating Working Capital represents the key components of working capital under the operating control of our businesses. A key metric we use to measure improvement in our working capital management is Operating Working Capital as a percentage of sales (current quarter sales annualized).

($ in millions, except percentages)	March 31, 2019			December 31, 2018			March 31, 2018
Trade Receivables, Net		$2,832			$2,505			$2,979
Inventories, FIFO	2,091			1,896			2,073
Trade Creditors’ Liabilities	2,316			2,177			2,492
Operating Working Capital		$2,607			$2,224			$2,560
Operating Working Capital as a % of Sales	18.0		%	15.3		%	16.9		%
Days sales outstanding	63			56			63
Days payable outstanding	97			96			98

Other Liquidity Information

The Company continues to believe that cash on hand and short term investments, cash from operations and the Company's access to capital markets will continue to be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans and PPG's contractual obligations.

Environmental

	Three Months Ended March 31
($ in millions)	2019		2018
Cash outlays for environmental remediation activities		$16		$17

($ in millions)	Remainder of 2019	Annually 2020 - 2023
Projected future cash outlays for environmental remediation activities	$65 - $85	$20 - $50

Restructuring

The 2016 restructuring actions have anticipated annual savings of approximately $125 million once fully implemented. The Company achieved approximately $60 million of savings in 2018 bringing the total savings to approximately $110 million to date. In May 2018, PPG initiated an $83 million global restructuring program. The program is largely centered around the change in customer assortment related to the U.S. architectural coatings DIY business. PPG recognized $18 million of savings from this program in 2018.

We expect to achieve the full-year annualized targeted cost savings of $125 million in 2019. Restructuring savings from the 2018 and 2016 programs are expected to be between $60 million and $70 million in 2019.

In addition, the Company continues to review its cost structure to identify additional cost savings opportunities. See Note 7, “Business Restructuring,” to the accompanying condensed consolidated financial statements for further details on the Company's business restructuring programs.

Currency

Comparing exchange rates as of December 31, 2018 to March 31, 2019, the U.S. dollar weakened against numerous currencies in which PPG operates, most notably the U.K. pound, the Canadian dollar, the Mexican pesos, and the Chinese yuan. As a result, consolidated net assets at March 31, 2019 decreased by $82 million compared to December 31, 2018.

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Comparing exchange rates during the first three months of 2019 to those of the first three months of 2018, the U.S. dollar strengthened against the currencies of most countries in which PPG operates, most notably the euro, U.K. pound, Chinese yuan and several other currencies in South America, Eastern Europe, and Asia. This had an unfavorable impact on Income before income taxes for the three months ended March 31, 2019 of $18 million from the translation of these foreign earnings into U.S. dollars.

New Accounting Standards

See Note 2, “New Accounting Standards,” to the accompanying condensed consolidated financial statements for further details on recently issued accounting guidance.

Commitments and Contingent Liabilities, including Environmental Matters

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. See Part II, Item 1, “Legal Proceedings” of this Form 10-Q and Note 15, “Commitments and Contingent Liabilities” to the accompanying condensed consolidated financial statements for a description of certain of these lawsuits.

As discussed in Part II, Item 1 and Note 15, although the result of any future litigation of such lawsuits and claims is inherently unpredictable, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG, including asbestos-related claims, will not have a material effect on PPG's consolidated financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

As also discussed in Note 15, PPG has significant reserves for environmental contingencies. Please refer to the Environmental Matters section of Note 15 for details of these reserves. A significant portion of our reserves for environmental contingencies relate to ongoing remediation at PPG's former chromium manufacturing plant in Jersey City, N.J. and associated sites ("New Jersey Chrome"). The Company continues to analyze, assess and remediate the environmental issues associated with New Jersey Chrome. Information will continue to be generated from the ongoing groundwater remedial investigation activities related to New Jersey Chrome and will be incorporated into a final draft remedial action work plan for groundwater expected to be submitted to the New Jersey Department of Environmental Protection no later than 2021.

It is possible that technological, regulatory and enforcement developments, the results of environmental studies and other factors could alter the Company’s expectations with respect to future charges against income and future cash outlays. Specifically, the level of expected future remediation costs and cash outlays is highly dependent upon activity related to New Jersey Chrome.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. Management’s Discussion and Analysis and other sections of this Quarterly Report contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward looking statement, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports to the Securities and Exchange Commission. Also, note the following cautionary statements.

Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include global economic conditions, increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials, the ability to achieve selling price increases, the ability to recover margins, customer inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in the markets we serve, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, the effectiveness of our internal control over financial reporting, the results of governmental actions relating to pending investigations, the results of shareholder actions relating to the restatement of our financial statements and the unpredictability of existing and possible future litigation. However, it is not possible to predict or identify all such factors.

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Consequently, while the list of factors presented here and in the 2018 Form 10-K under Item 1A are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Consequences of material differences in the results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or income, business disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in Item 1A of the 2018 Form 10-K and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Foreign Currency Risk

As of March 31, 2019 and December 31, 2018, PPG had non-U.S. dollar denominated borrowings outstanding of billion and $2.6 billion. A weakening of the U.S. dollar by 10% against European currencies and by 20% against Asian and South American currencies would have resulted in unrealized translation losses on these borrowings of $294 million as of March 31, 2019 and $299 million as of December 31, 2018.

The fair value of foreign currency forward contracts outstanding as of March 31, 2019 and December 31, 2018 was an asset of $14 million and $36 million, respectively. The potential reduction in PPG's Income before income taxes resulting from the impact of adverse changes in exchange rates on the fair value of its outstanding foreign currency hedge contracts of 10% for European and Canadian currencies and 20% for Asian and Latin American currencies for the three months ended March 31, 2019 was $266 million and $291 million for the period ended December 31, 2018.

In February 2018, PPG entered into U.S. dollar to euro cross currency swap contracts with a total notional amount of $575 million outstanding, resulting in an asset with a fair value of $48 million and $35 million as of March 31, 2019 and December 31, 2018, respectively. A 10% increase in the value of the euro to the U.S. dollar would have had an unfavorable effect on the fair value of these swap contracts by reducing the value of these instruments by $54 million and $57 at March 31, 2019 and December 31, 2018, respectively.

Interest Rate Risk

In March of 2018, PPG entered into interest rate swaps which converted $525 million of fixed rate debt to variable rate debt. The fair value of these contracts were assets of $18 million and $8 million as of March 31, 2019 and December 31, 2018, respectively. An increase in variable interest rates of 10% would lower the fair value of these swaps and increase interest expense by $10 million over the term of the instruments for the periods ended March 31, 2019 and December 31, 2018. A 10% increase in the interest rates in the U.S., Canada, Mexico and Europe and a 20% increase in the interest rates in Asia and south America would have an insignificant effect on PPG's variable rate debt obligations and interest expense for the periods ended March 31, 2019 and December 31, 2018, respectively. Further a 10% reduction in interest rates would have increased the present value of the Company's fixed rate debt by approximately $74 million and $84 million as of March 31, 2019 and December 31, 2018, respectively; however, such changes would not have had an effect on PPG's income before taxes or cash flows for the periods ended March 31, 2019 and December 31, 2018.

There were no other material changes in the Company’s exposure to market risk from December 31, 2018 to March 31, 2019. See Note 13, “Financial Instruments, Hedging Activities and Fair Value Measurements” for a description of our instruments subject to market risk.

Item 4. Controls and Procedures

a. Evaluation of disclosure controls and procedures. Based on their evaluation as of the end of the period covered by this Form 10-Q, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

b. Changes in internal control. There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, asbestos exposure, antitrust, employment, securities and other matters arising out of the conduct of PPG’s current and past business activities. To the extent these lawsuits and claims involve personal injury and property damage, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers may contest coverage. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters.

The Company has self-reported to the SEC information concerning the internal investigation of accounting matters described in the Explanatory Note and in Note 2, “Restatement of Previously Reported Consolidated Annual Financial Statements" under Item 8 of the 2017 Form 10-K/A. The Company continues to cooperate fully with the SEC’s ongoing investigation relating to these accounting matters. The Company is also cooperating fully with an investigation into the same accounting matters commenced by the U.S. Attorney’s Office for the Western District of Pennsylvania.

On May 20, 2018, a putative securities class action lawsuit was filed in the U.S. District Court for the Central District of California against the Company and certain of its current or former officers. On September 21, 2018, an Amended Class Action Complaint was filed in the action. The Amended Complaint, captioned Trevor Mild v. PPG Industries, Inc., Michael H. McGarry, Vincent J. Morales, and Mark C. Kelly, asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of putative classes of persons who purchased or otherwise acquired stock of the Company during various time periods between January 19, 2017 and May 10, 2018. The allegations relate to, among other things, allegedly false and misleading statements and/or failures to disclose information about the Company’s business, operations and prospects. On December 21, 2018, the Court denied the defendants’ motion to dismiss the lawsuit, and on January 4, 2019 the defendants filed answers to the Amended Complaint. This action remains pending. The Company believes this action is without merit and intends to defend itself vigorously.

From the late 1880’s until the early 1970’s, PPG owned property located in Cadogan and North Buffalo Townships, Pennsylvania which was used for the disposal of solid waste from PPG’s former glass manufacturing facility in Ford City, Pennsylvania. In October 2018, the Pennsylvania Department of Environmental Protection (the “DEP”) approved PPG’s cleanup plan for the Cadogan Property. In April 2019, PPG and the DEP entered into a consent order and agreement (“CO&A”) which incorporated PPG’s approved cleanup plan and a draft final permit for the collection and discharge of seeps emanating from the former disposal area. The CO&A includes a civil penalty of $1.2 million for alleged past unauthorized discharges. PPG’s former disposal area is also the subject of a citizens’ suit filed by the Sierra Club and PennEnvironment seeking remedial measures beyond the measures specified in PPG’s approved cleanup plan, a civil penalty in addition to the penalty included in the CO&A and plaintiffs’ attorneys fees. PPG believes that the citizen’s suit is without merit and intends to defend itself vigorously.

For many years, PPG has been a defendant in lawsuits involving claims alleging personal injury from exposure to asbestos. For a description of asbestos litigation affecting the Company, see Note 15, “Commitments and Contingent Liabilities” to the accompanying condensed consolidated financial statements under Part I, Item 1 of this Form 10-Q.

In the past, the Company and others have been named as defendants in several cases in various jurisdictions claiming damages related to exposure to lead and remediation of lead-based coatings applications. PPG has been dismissed as a defendant from most of these lawsuits and has never been found liable in any of these cases. After having not been named in a new lead-related lawsuit for 15 years, PPG was named as a defendant in two new Pennsylvania state court lawsuits filed by Montgomery County and Lehigh County in the respective counties on October 4, 2018 and October 12, 2018. Both suits seek declaratory relief arising out of alleged public nuisances in the counties associated with the presence of lead paint on various buildings constructed prior to 1980. The Company believes these actions are without merit and intends to defend itself vigorously.

Item 1A. Risk Factors

There were no material changes in the Company’s risk factors from the risks disclosed in the 2018 Form 10-K.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table summarizes the Company's stock repurchase activity for the three months ended March 31, 2019:

Month	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs (1)	Maximum Number of Shares That May Yet Be Purchased Under the Programs (1)
January 2019
Repurchase program	—		$—	—	17,406,935
February 2019
Repurchase program	—		$—	—	16,391,777
March 2019
Repurchase program	1,588,620		$110.18	1,588,620	14,710,341
Total quarter ended March 31, 2019
Repurchase program	1,588,620		$110.18	1,588,620	14,710,341

(1) In December 2017, PPG's board of directors approved a $2.5 billion share repurchase program. The remaining shares yet to be purchased under the program has been calculated using PPG’s closing stock price on the last business day of the respective month. This repurchase program has no expiration date.

Item 6. Exhibits

See the Index to Exhibits on page 35.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Index to Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Form 10-Q.

†*10.1	Post-Termination Agreement, dated March 28, 2019 by and between Jean-Marie Greindl and PPG Industries Europe SarL.
†31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
†31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
††32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
††32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

† Filed herewith.

†† Furnished herewith.

*Management contracts, compensatory plans, or arrangements required to be filed as an exhibit hereto pursuant to Item 601 of Regulation S-K.

**Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statement of Income for the three months ended March 31, 2019 and 2018, (ii) the Condensed Consolidated Balance Sheet at March 31, 2019 and December 31, 2018, (iii) the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019 and 2018, and (iv) Notes to Condensed Consolidated Financial Statements for the three months ended March 31, 2019.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			PPG INDUSTRIES, INC.
			(Registrant)
Date:	April 19, 2019	By:	/s/ Vincent J. Morales
			Vincent J. Morales
			Senior Vice President and Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer)
		By:	/s/ William E. Schaupp
			William E. Schaupp
			Vice President and Controller (Principal Accounting Officer and Duly Authorized Officer)

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EX-10.1

Exhibit 10.1

POST-TERMINATION AGREEMENT

THIS POST-TERMINATION AGREEMENT (this "Agreement") is made on March 28, 2019 (the “Execution Date”) between PPG Industries Europe Sàrl, whose registered office is at Route de Gilly 32, 1180 Rolle, Switzerland (the “Company"), and Jean-Marie Greindl, of Lausanne, Switzerland (the "Employee") who has been employed with the Company pursuant to an employment agreement dated November 5, 2010 (the "Employment Agreement").

NOW, THEREFORE, the Company and the Employee (the “Parties”) agree as follows:

Clause 1

Termination Date

1.1 The Company terminated the Employee’s Employment Agreement with effect as from April 30, 2019 (the "Planned Termination Date"). If the Employee becomes ill or has an accident (or for any other causes provided by Art. 336c par. of the Swiss Code of Obligations (“CO”), the Planned Termination Date shall be postponed according to Art. 336c par. 2 CO (the “Effective Termination Date”).

1.2 The Parties hereby acknowledge and recognize that this Agreement sets forth the terms and conditions upon which said employment relationship terminates.

1.3 The Employee resigned from his officer position as Senior Vice President, Architectural Coatings and President PPG EMEA of PPG Industries, Inc., effective January 9, 2019 at the Company’s request and agrees to resign from any other officer or director position he may have within PPG Industries, Inc. or any of its subsidiaries or affiliates (collectively, the “Group”). In this respect, the Employee shall sign any necessary documents provided by the Company on behalf of the Group.

1.4 The Employee shall be on a paid leave of absence (“Paid Leave”) from January 7, 2019 through and including the Effective Termination Date. During Paid Leave, the Employee is relieved of his day-to-day duties. However, should the Company exceptionally require his assistance during this period, the Employee is expected to be available. The Employee agrees that the Change in Control Employment Agreement between the Employee and PPG Industries, Inc. dated December 11, 2013 shall terminate upon the commencement of the Paid Leave.

Clause 2

Basis of Agreement

2.1 The Parties have entered into this Agreement to record and implement the terms upon which Employee's employment relationship with the Company terminates and to release the Company or any other entity of the Group, on the one hand, and the Employee, on the other hand, from any and all claims that the other may have for any reason whatsoever. The terms set out

in this Agreement constitute the entire agreement between the Parties and are without admission of any liability on the part of each party. Both Parties acknowledge and agree that they do not hold any outstanding or other claim against each other and, in the case of the Employee, against any other entity of the Group.

2.2 The Company is entering into this Agreement for itself and as agent for and trustee of all Group companies and is duly authorized to do so. The Company guarantees, as obligor, the fulfilment by all Group companies of the obligations contained in this Agreement.

Clause 3

Remuneration

3.1 The Employee will be paid his salary (the "Current Salary") less any deductions necessary to comply with or to meet any liability of the Company to pay or withhold taxes pursuant to applicable regulations and to pay or withhold all applicable social charges in the normal course up to and including the Effective Termination Date.

3.2 In addition to his Current Salary, the Employee will be paid the following along with his final salary:

-    prorated 13^th salary for 2019 (equal to an amount of CHF 15’000.01 if the employment relationship ends on the Planned Termination Date);

-    outstanding holiday days for 2019 (equal to an amount of CHF 12’461.55 if the employment relationship ends on the Planned Termination Date);

-    pro-rated target bonus for 2019 (equal to an amount of CHF 108’000.00 if the employment relationship ends on the Planned Termination Date).

The Employee’s 2018 bonus resulting on an amount of CHF 127’008.00 shall be paid in March 2019 in accordance with the Company’s existing policies.

All of these amounts are subject to usual tax and social charges within the limits of all applicable statutory and contractual regulations, including, but not limited to, the pensions fund regulation.

3.3 The Employee will be paid the indemnity foreseen under the Employment Agreement in the amount of EUR 1'604'666.-. This amount is subject to usual tax and social charges within the limits of all applicable statutory and contractual regulations, including, but not limited to, the pension fund regulation.

The exchange rate to be used to calculate the social charges withheld from the above-mentioned amount in Euro will be the exchange rate of Euro to Swiss Franc (CHF) as on the date for processing the payment.

The payment of this amount is conditional upon receipt by the Company of the waiver provided to the Employee and attached hereto under Appendix A. The Employee must sign such

2

a waiver and deliver it to the Company no earlier than one month after the Effective Termination Date in order to receive such payment, which will be made within 10 business days of the Company’s receipt of the signed waiver.

3.4 The Company will reimburse the Employee for his final reasonable travel and other work-related expenses, in accordance with the Employment Agreement and the Company's internal regulations, incurred up to the Termination Date within twenty-one (21) days of receipt of satisfactory evidence of expenditure in accordance with the Company's current expense policy. Such evidence and claims for reimbursement must be made before the Planned Termination Date.

3.5 Solely and strictly for the purposes of the awards issued to the Employee under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (the “LTI Agreements”), the termination of the Employee’s employment shall be deemed to be due to a job elimination for the purposes of and according to the above-mentioned LTI Agreements. The terms and conditions of such awards are as provided in the applicable Restricted Stock Unit Award Agreements, Nonqualified Stock Option Award Agreements, and TSR Share Agreements between employee and PPG Industries, Inc.

Clause 4

Work Certificate

The Company will provide the Employee with the work certificate attached hereto as Appendix B within 5 days following the Effective Termination Date.

Clause 5

Prohibition to compete and to solicit and non-disparagement

5.1 The Employee had free access to the clients and to the manufacturing and business secrets of the Company and the Group and he agrees to refrain from any activity in EMEA that competes with the business of the Company and/or the Group, not to disparage the Company and/or the Group and not to solicit employees of the Company and/or the Group.

For the purposes of this Agreement, competing activity shall mean manufacturing, distributing and/or selling coatings in the EMEA region, it being understood that the Employee has been employed in said field and in said geographical area immediately prior to the Termination Date (the "Competing Activity"). The prohibition to compete and to solicit will last until the first anniversary of the Effective Termination Date (the “Protected Period”).

5.2 Under the prohibition to compete and to solicit, the Employee agrees, in particular:

– not to participate, directly or indirectly, financially or otherwise, in any Competing Activity or in any enterprise or business which develops, manufactures, offers, or distributes products, or provides services similar to those of the Competing Activity;

– not to be active, fully or partially, for the benefit of such an enterprise, be it as an employee, consultant, representative, adviser or otherwise;

3

–not to directly or indirectly establish such an enterprise;

–not to solicit directly or indirectly the Company's and/or the Group's customers;

– not to directly or indirectly solicit or employ employees of the Company and/or of the Group or in any other way enter into an agreement with such employees for the benefit of himself or any third party in order to exercise any Competing Activity.

5.3 The Employee is aware and acknowledges that a violation of the obligations set out in this clause may seriously damage the Company and/or the Group.

If the Employee violates the obligations not to disparage, compete or solicit, in addition to seeking monetary damages or relief, the Company has the right to seek an injunction or other equitable relief issued by a court of law prohibiting activities which are contrary to his non-disparagement, non-competition and non-solicitation obligations.

5.4 As compensation for the Employee's obligations not to disparage, compete or solicit set forth in the present clause, the Company shall provide for the continued vesting of Employee’s awards under the LTI Agreements (i.e. nonqualified stock options, restricted stock units [RSU], total shareholder return [TSR]) in accordance with the terms of such LTI Agreements and in accordance with clause 3.5, including after the expiry of the abovementioned period of prohibition to compete and to solicit (the "Compensation"). For the sake of clarity and provided that the Employee fully complies with the provisions set out in this clause 5, the Compensation to be received by the Employee after having vested all of employee’s awards shall amount to no less than USD 438’145.91.

5.5 The Employee agrees that he will not make any disparaging statements about the Company or any Group company. A disparaging statement is any communication which, if publicized to another, would be reasonably expected to cause or tend to cause the recipient of the communication to question the business condition, integrity, competence, good character or product quality of the person or entity to whom or to which the communication relates.

5.6 The Company agrees that it will not make any disparaging statements about the Employee. A disparaging statement is any communication which, if publicized to another, would reasonably be expected to cause or tend to cause the recipient of the communication to question the integrity, competence, performance, ethics, quality or good character of the person.

In the event of violation of this non-disparagement clause, the Company will be required to pay a contractual penalty in the amount of CHF 45’000.00 for each case of breach with a maximum amount equal to CHF 120’000.00, without prejudice to the Employee's right to claim further damages.

Clause 6

Insurances

6.1 Professional and non-professional accident insurance coverage provided by the Company and/or the Group will end 31 days after the Termination Date. At the Employee’s expenses, the Employee can extend the non-professional insurance coverage for a maximum of 180 days after the Termination Date.

4

6.2 The loss of earnings insurance in case of illness provided by the Company and/or the Group will cease on the Termination Date. Under certain conditions and within a period of 90 days after the Termination Date, Employee has the possibility to extend the coverage of said insurance by signing an individual agreement with the Company’s insurance company.

Clause 7

Communication related to the end of the Employment Agreement and employment relationship

The Employee acknowledges and agrees that for legal reasons, this Agreement and the termination of his employment relationship from the Company and the Group will be disclosed by the Company. The Company shall provide Employee notice of and a copy of any such disclosure prior to such release. Except as set forth in the preceding sentence and except as required by law or applicable stock exchange regulation, the Parties shall not disclose any other details of the Employee’s departure from the Company.

Clause 8

Return of Property

8.1 The Employee undertakes to return to the Company, on the Execution Date, the credit cards, keys, all computer disks, laptop computer, all documents and copies together with all other property belonging to the Company or the Group or relating to their business in his control, except for such property as the Parties agree in writing that the Employee may retain.

8.2 The Company agrees that the Employee retains the mobile telephone put at his disposal and promises to assist the Employee with the transfer of the phone line and number from the current operator engaged by the Company to the operator of the choice of the Employee.

8.3 The Company shall not oppose to the Employee acquiring the Company car attributed to him on or shortly after the Effective Termination Date.

Clause 9

Additional benefits to the Employee by virtue of this Agreement

9.1 The Company will pay the registration fees and tuition costs related to the enrolling of the Employee in the INSEAD In-Board training course for an amount equal to EUR 17’950.00 ex VAT. The Employee will send the invoice to the Company.

9.2 The Company will reimburse the fees arising from the professional tax consultancy services in Switzerland for the fiscal years 2018 and 2019.

9.3 The Company shall reimburse the Employee for all Legal Expenses incurred by his Swiss counsels directly relating to their advice, negotiation and drafting of this Agreement. The Legal Expenses incurred by Swiss Counsels are estimated to be of 25’000.00 CHF.

5

9.4 All amounts referred above shall be respectively paid and reimbursed promptly by the Company to the Employee upon receipt of the corresponding invoices and proof of services justification, when required.

Clause 10

Intellectual Property Rights

All intellectual property rights, especially copyright in work results, which the Employee created solely or jointly with others while performing his tasks and activities as Employee of the Company and/or the Group and fulfilling his duties under the Employment Agreement belong exclusively to the Company and/or the Group and are entirely assigned by the Employee to the Company or the appropriate Group company, as the case may be, upon signature of this Agreement to the extent they have not already been otherwise so assigned. To the extent that such an assignment is not possible by law, the Employee waives his rights to exercise any remaining intellectual property rights, especially the right to claim possible moral rights ("Urheberpersönlichkeitsrechte"). All possible entitlements of the Employee to compensation for the intellectual property rights assigned to the Company and/or the Group are fully covered by the Company’s payments under this Agreement.

Clause 11

Confidentiality

11.1 The Employee accepts and agrees that all of the express and implied contractual duties relating to confidential information and business secrecy continue after the end of the employment relationship into perpetuity.

11.2 The Employee agrees that he remains bound by a duty not to, and hereby undertakes not to, divulge to any person, firm or company or use for his own benefit or the benefit of any person, firm or company any trade secret or information of a private, secret or confidential nature concerning the business, finances or affairs of the Company or any Group company or any of their respective customers, clients or suppliers (including but not limited to terms of contracts or arrangements, existing and potential projects, accounts and all non-public financial information, information regarding customers, clients or suppliers, disputes, business development, technology or product development, strategies and/or marketing programs and plans) which have or may have come to his knowledge during the time of his employment with the Company or any Group company.

Clause 12

Trading of shares and exercise of stock options

12.1 The Employee is entirely free to trade shares of any Group company on the market.

12.2 The Employee is entirely free to exercise nonqualified stock options already vested at the Execution Date.

Clause 13

Change of address

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The Employee must inform the Company of his changes of address during a two-year period. In case of departure from Switzerland, the Employee must inform the Company accordingly.

Clause 14

Full and Final Settlement / No Knowledge of Others Claims

14.1 This agreement has effect for the purpose of settling and compromising without any admission of liability on the part of the Company or any Group company by means of full and final settlement of all claims in all jurisdictions under contract, tort, statute or otherwise which the Employee has or may have at the Execution Date or which may arise in the future, and whether known or not, against the Company or any Group company and their officers, shareholders, and/or employees arising out of, in connection with or as a consequence of his employment and/or its termination.

14.2 The Employee confirms that he is aware of no other claim or grounds to make a claim against the Company or any Group company or companies in relation to any other matters howsoever arising.

Clause 15

Compliance with Statutory Provisions; Amendments

15.1 This Agreement satisfies the conditions regulating termination and settlement agreements under Swiss law as are relevant.

15.2 Any amendments or additions to this Agreement must be in writing and signed by both parties.

Clause 16

Governing Law and Jurisdiction

This Agreement is governed by the law of Switzerland. Any dispute is subject to the exclusive jurisdiction of the courts and tribunals of Rolle.

Clause 17

Severability

If any clause or provision of this Agreement is held invalid, void or unenforceable, such determination shall not affect, in any respect, the validity of any other clause or provision of this Agreement.

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SIGNED by Jonathan Edwards

Duly authorised for and on behalf of PPG Industries Europe Sàrl:

/s/ Jonathan Edwards

Rolle, 28/3/2019    (date)                 

Name

Position

Jean-Marie Greindl

/s/ Jean-Marie Greindl

Rolle, 28/3/2019    (date)

Referenced Appendix

8

EX-31.1

Exhibit 31.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

I, Michael H. McGarry, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PPG Industries, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 19, 2019	/s/ Michael H. McGarry
		Michael H. McGarry Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

I, Vincent J. Morales, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PPG Industries, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 19, 2019	/s/ Vincent J. Morales
		Vincent J. Morales Senior Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of PPG Industries, Inc. for the period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael H. McGarry, Chairman and Chief Executive Officer of PPG Industries, Inc., certify to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PPG Industries, Inc.

/s/ Michael H. McGarry

Michael H. McGarry
Chairman and Chief Executive Officer

April 19, 2019

A signed original of this written statement required by Section 906 has been provided to PPG Industries, Inc. and will be retained by PPG Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of PPG Industries, Inc. for the period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Vincent J. Morales, Senior Vice President and Chief Financial Officer of PPG Industries, Inc., certify to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PPG Industries, Inc.

/s/ Vincent J. Morales

Vincent J. Morales

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

April 19, 2019

A signed original of this written statement required by Section 906 has been provided to PPG Industries, Inc. and will be retained by PPG Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2019 shares
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	PPG
Entity Registrant Name	PPG INDUSTRIES INC
Entity Central Index Key	0000079879
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding	236,059,963

XML

Condensed Consolidated Statement of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net sales	$ 3,624	$ 3,781
Cost of Goods and Services Sold	2,073	2,181
Selling, general and administrative	889	906
Depreciation	86	87
Amortization	32	36
Research and development, net	105	112
Interest expense	31	26
Interest income	(6)	(5)
Business restructuring charge	(3)	0
Other charges	14	41
Other income	(16)	(24)
Income before income taxes	419	421
Income tax expense	102	87
Income from continuing operations	317	334
Income from discontinued operations, net of tax	0	6
Net income attributable to controlling and noncontrolling interests	317	340
Less: Net income attributable to noncontrolling interests	5	6
Net income (attributable to PPG)	312	334
Income from continuing operations, net of tax	312	328
Income from discontinued operations, net of tax	$ 0	$ 6
Income from continuing operations, net of tax (in usd per share)	$ 1.32	$ 1.32
Income from discontinued operations, net of tax (in usd per share)	0.00	0.02
Net income (attributable to PPG) (in usd per share)	1.32	1.34
Income from continuing operations, net of tax (in usd per share)	1.31	1.31
Income from discontinued operations, net of tax (in usd per share)	0.00	0.02
Net income (attributable to PPG) (in usd per share)	$ 1.31	$ 1.33

XML

Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income attributable to controlling and noncontrolling interests	$ 317	$ 340
Other comprehensive (loss) income, net of tax:
Defined benefit pension and other postretirement benefits	(6)	17
Unrealized foreign currency translation adjustments	81	146
Derivative financial instruments	0	(2)
Other comprehensive income, net of tax	75	161
Total comprehensive income	392	501
Less: amounts attributable to noncontrolling interests:
Net income	(5)	(6)
Unrealized foreign currency translation adjustments	1	(2)
Comprehensive income attributable to PPG	$ 388	$ 493

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Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 784	$ 902
Short-term investments	55	61
Receivables (less allowance for doubtful accounts of $26 and $24)	3,197	2,845
Inventories	1,965	1,783
Other	408	370
Total current assets	6,409	5,961
Property, plant and equipment (net of accumulated depreciation of $3,897 and $3,828)	2,866	2,805
Goodwill	4,103	4,070
Identifiable intangible assets, net	2,020	1,972
Deferred income taxes	242	229
Investments	261	251
Operating	726	0
Other assets	744	727
Total	17,371	16,015
Current liabilities:
Accounts payable and accrued liabilities	3,684	3,623
Restructuring reserves	83	99
Short-term debt and current portion of long-term debt	653	651
Operating	168	0
Total current liabilities	4,588	4,373
Long-term debt	4,626	4,365
Operating	566	0
Accrued pensions	646	645
Other postretirement benefits	623	629
Deferred income taxes	447	429
Other liabilities	865	842
Total liabilities	12,361	11,283
Shareholders’ equity:
Common stock	969
Additional paid-in capital	899
Retained earnings	18,330
Treasury stock, at cost	(13,070)
Accumulated other comprehensive loss	(2,224)	(2,300)
Total PPG shareholders’ equity	4,904	4,630
Noncontrolling interests	106
Total shareholders’ equity	5,010	4,732
Total	$ 17,371	$ 16,015

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Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 26	$ 24
Property, accumulated depreciation	$ 3,897	$ 3,828

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Condensed Consolidated Statement of Cash Flows - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net income attributable to controlling and noncontrolling interests	$ 317	$ 340
Less: Income from discontinued operations	0	(6)
Income from continuing operations	317	334
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization	118	123
Pension expense	12	10
Environmental remediation charges	10	34
Release of business restructuring reserves	(3)	0
Stock-based compensation expense	9	9
Equity affiliate earnings, net of dividends	4	4
Deferred income tax benefit	(32)	(5)
Cash contributions to pension plans	(3)	(30)
Cash used for restructuring actions	(15)	(17)
Change in certain asset and liability accounts:
Receivables	(299)	(373)
Inventories	(152)	(202)
Other current assets	(56)	(46)
Accounts payable and accrued liabilities	(24)	74
Taxes and interest payable	42	(45)
Noncurrent assets and liabilities, net	(22)	(75)
Other	36	(15)
Cash used for operating activities	(66)	(228)
Investing activities:
Capital expenditures	(47)	(75)
Business acquisitions, net of cash balances acquired	(57)	(96)
Payments for the settlement of cross currency swap contracts	(6)	(13)
Proceeds from the settlement of cross currency swap	16	0
Other	8	6
Cash used for investing activities	(86)	(178)
Financing activities:
Net change in borrowing with maturities of three months or less	9	7
Proceeds from commercial paper	300	0
Proceeds from the issuance of debt, net of discounts and fees	0	992
Repayment of long-term debt	(1)	(1)
Purchase of treasury stock	(175)	(600)
Issuance of treasury stock	7	9
Payments related to tax withholding on stock-based compensation awards	(8)	(13)
Other	13	13
Cash from financing activities	32	295
Effect of currency exchange rate changes on cash and cash equivalents	2	21
Net decrease in cash and cash equivalents	(118)	(90)
Cash and cash equivalents, beginning of period	902	1,436
Cash and cash equivalents, end of period	784	1,346
Interest paid, net of amount capitalized	40	24
Taxes paid, net of refunds	$ 94	$ 118
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued	164	0
Dividends, Common Stock, Cash	$ 113	$ 112

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Condensed Consolidated Statement of Shareholders' Equity (Unaudited) Statement - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive (Loss)/Income	Total PPG	Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to retained earnings - Adoption of ASU 2016-16	$ (4)			$ (4)			$ (4)
Beginning balance at Dec. 31, 2017	5,672	$ 969	$ 756	17,140	$ (11,251)	$ (2,057)	5,557	$ 115
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	340			334			334	6
Other comprehensive income/(loss), net of tax	161					159	159	2
Cash dividends	(112)			(112)			(112)
Purchase of treasury stock	(600)				(600)		(600)
Issuance of treasury stock	31		24		7		31
Stock-based compensation activity	(19)		(19)				(19)
Reductions in noncontrolling interests	(2)							(2)
Reclassification from other comprehensive income to retained earnings - Adoption of ASU 2018-02				107		(107)
Ending balance at Mar. 31, 2018	5,467	969	761	17,465	(11,844)	(2,005)	5,346	121
Beginning balance at Dec. 31, 2018	4,732	969	788	18,131	(12,958)	(2,300)	4,630	102
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	317			312			312	5
Other comprehensive income/(loss), net of tax	75					76	76	(1)
Cash dividends	(113)			(113)			(113)
Purchase of treasury stock	(175)				(175)		(175)
Issuance of treasury stock	184		121		63		184
Stock-based compensation activity	(10)		(10)				(10)
Ending balance at Mar. 31, 2019	$ 5,010	$ 969	$ 899	$ 18,330	$ (13,070)	$ (2,224)	$ 4,904	$ 106

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Basis of Presentation

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the financial position and shareholders' equity of PPG as of March 31, 2019, and the results of its operations and cash flows for the three months ended March 31, 2019 and 2018. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2018 Annual Report on Form 10-K (the "2018 Form 10-K").

Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three months ended March 31, 2019 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year.

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New Accounting Standards

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

New Accounting Standards

New Accounting Standards

Accounting Standards Adopted in 2019

Effective January 1, 2019, PPG adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases." This ASU requires substantially all leases be recorded on the balance sheet as right of use assets and lease obligations. The Company adopted the ASU using a retrospective adoption method at January 1, 2019, as outlined in ASU No. 2018-11, "Leases - Targeted Improvements." Under this method of adoption, there is no impact to the comparative condensed consolidated statement of income and condensed consolidated balance sheet. PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. PPG will continue to report periods prior to January 1, 2019 in its financial statements under prior guidance as outlined in Accounting Standards Codification Topic 840, "Leases". In addition, PPG elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications.

Adoption of this standard did not materially impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 3, “Leases” for further details.

Accounting Standards to be Adopted in Future Years

In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software." This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses.” This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Entities may choose to adopt the new ASU as of its fiscal year beginning after December 15, 2018. PPG did not early adopt this standard. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows.

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Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

Leases

PPG leases certain retail paint stores, warehouses, distribution facilities, office space and equipment, including fleet vehicles. PPG determines if a contract is a lease at the inception of the arrangement. PPG reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component.

Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

The components of lease expense were as follows:

($ in millions)	Classification in the Condensed Consolidated Statement of Income	Three Months Ended March 31, 2019
Operating lease cost (a)	Cost of sales, exclusive of depreciation and amortization		$9
Operating lease cost (a)	Selling, general and administrative	48
Total operating lease cost			$57
Finance lease cost:
Amortization of right-of-use assets	Depreciation		$1
Interest on lease liabilities	Interest Expense	—
Total finance lease cost			$1
Total lease cost			$58

(a) Includes variable lease costs of $4 million. Short-term lease costs were $1 million during the period.

Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying.

($ in millions)	Classification on the Condensed Consolidated Balance Sheet	March 31, 2019
Assets:
Operating	Other assets		$726
Finance (a)	Property, plant, and equipment	14
Total leased assets			$740
Liabilities:
Current
Operating	Current portion of operating lease liabilities		$168
Finance	Short-term debt and current portion of long-term debt	3
Noncurrent
Operating	Operating lease liabilities	566
Finance	Long-term debt	9
Total lease liabilities			$746

(a) Net of accumulated depreciation of $15 million.

($ in millions)	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$52
Operating cash flows from finance leases		$—
Financing cash flows from finance leases		$1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$34
Finance leases		$—

	As of March 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.4
Finance leases	6.2
Weighted-average discount rate
Operating leases	3.2	%
Finance leases	9.5	%

Nearly all of PPG’s lease contracts do not provide a readily determinable implicit rate. For these contracts, PPG’s estimated incremental borrowing rate is based on information available at the inception of the lease.

As of March 31, 2019, maturities of lease liabilities were as follows:

($ in millions)	Operating Leases		Finance Leases
Remaining nine months of 2019		$142		$3
2020	155		3
2021	116		3
2022	89		2
2023	70		2
Thereafter	255		4
Total lease payments		$827		$17
Less: Interest	93		5
Total lease obligations		$734		$12

Disclosures related to periods prior to adoption of ASU 2016-02

The Company adopted ASU 2016-02 using a retrospective adoption method at January 1, 2019 as noted in Note 2. "New Accounting Standards." As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows:

($ in millions)	Operating Leases		Capital Leases
2019		$207		$3
2020	157		3
2021	116		1
2022	93		1
2023	76		1
Beyond 2023		$244		$3

Leases

Leases

PPG leases certain retail paint stores, warehouses, distribution facilities, office space and equipment, including fleet vehicles. PPG determines if a contract is a lease at the inception of the arrangement. PPG reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component.

Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

The components of lease expense were as follows:

($ in millions)	Classification in the Condensed Consolidated Statement of Income	Three Months Ended March 31, 2019
Operating lease cost (a)	Cost of sales, exclusive of depreciation and amortization		$9
Operating lease cost (a)	Selling, general and administrative	48
Total operating lease cost			$57
Finance lease cost:
Amortization of right-of-use assets	Depreciation		$1
Interest on lease liabilities	Interest Expense	—
Total finance lease cost			$1
Total lease cost			$58

(a) Includes variable lease costs of $4 million. Short-term lease costs were $1 million during the period.

Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying.

($ in millions)	Classification on the Condensed Consolidated Balance Sheet	March 31, 2019
Assets:
Operating	Other assets		$726
Finance (a)	Property, plant, and equipment	14
Total leased assets			$740
Liabilities:
Current
Operating	Current portion of operating lease liabilities		$168
Finance	Short-term debt and current portion of long-term debt	3
Noncurrent
Operating	Operating lease liabilities	566
Finance	Long-term debt	9
Total lease liabilities			$746

(a) Net of accumulated depreciation of $15 million.

($ in millions)	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$52
Operating cash flows from finance leases		$—
Financing cash flows from finance leases		$1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$34
Finance leases		$—

	As of March 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.4
Finance leases	6.2
Weighted-average discount rate
Operating leases	3.2	%
Finance leases	9.5	%

Nearly all of PPG’s lease contracts do not provide a readily determinable implicit rate. For these contracts, PPG’s estimated incremental borrowing rate is based on information available at the inception of the lease.

As of March 31, 2019, maturities of lease liabilities were as follows:

($ in millions)	Operating Leases		Finance Leases
Remaining nine months of 2019		$142		$3
2020	155		3
2021	116		3
2022	89		2
2023	70		2
Thereafter	255		4
Total lease payments		$827		$17
Less: Interest	93		5
Total lease obligations		$734		$12

Disclosures related to periods prior to adoption of ASU 2016-02

The Company adopted ASU 2016-02 using a retrospective adoption method at January 1, 2019 as noted in Note 2. "New Accounting Standards." As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows:

($ in millions)	Operating Leases		Capital Leases
2019		$207		$3
2020	157		3
2021	116		1
2022	93		1
2023	76		1
Beyond 2023		$244		$3

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Revenue Recognition Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue Disclosure [Abstract]

Revenue Recognition

The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. 

The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.

The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three months ended March 31, 2019 and 2018, service revenue constituted approximately 5% of total revenue.

Net sales by segment and region for the three months ended March 31, 2019 and 2018 were as follows:

($ in millions)	Performance Coatings				Industrial Coatings				Total Net Sales
	Three Months Ended March 31				Three Months Ended March 31				Three Months Ended March 31
	2019		2018		2019		2018		2019		2018
United States and Canada		$953		$974		$613		$611		$1,566		$1,585
EMEA	688		707		426		473		1,114		1,180
Asia-Pacific	243		242		340		388		583		630
Latin America	224		237		137		149		361		386
Total		$2,108		$2,160		$1,516		$1,621		$3,624		$3,781

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Acquisitions and Divestitures

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Acquisitions

On April 16, 2019, PPG completed the acquisition of Hemmelrath, an automotive coatings manufacturer. Headquartered in Klingenberg, Germany, Hemmelrath is a global manufacturer of coatings for automotive original equipment manufacturers ("OEMs"). The pro-forma impact on PPG's sales and results of operations, including the pro forma effect of events that are directly attributable to the acquisition, are not anticipated to be significant. The results of this business will be reported within the automotive original equipment manufacturer ("OEM") coatings business within the Industrial Coatings reportable segment.

On March 1, 2019, PPG completed the acquisition of Whitford Worldwide Company ("Whitford"), a global manufacturer that specializes in low-friction and nonstick coatings for industrial applications and consumer products. Whitford employs more than 700 people and operates 10 manufacturing facilities globally. The pro-forma impact on PPG's sales and results of operations, including the pro forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable segment.

In January 2018, PPG acquired ProCoatings, a leading architectural paint and coatings wholesaler located in The Netherlands. ProCoatings, established in 2001, distributes a large portfolio of well-known professional paint brands through its network of 23 multi-brand stores. The company employs nearly 100 people. The pro-forma impact on PPG's sales and results of operations, including the pro forma effect of events that are directly attributable to the acquisition, was not significant.The results of this business since the date of acquisition have been reported within the architectural coatings - Europe, Middle East and Africa (EMEA) business within the Performance Coatings reportable segment.

Divestitures

Glass Segment

The Net sales and Income from discontinued operations, net of tax related to the former Glass reportable business segment for the three months ended March 31, 2018 were as follows:

($ in millions)	Three Months Ended March 31, 2018
Income from operations		$8
Income tax expense	2
Income from discontinued operations, net of tax		$6

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Inventories

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories

($ in millions)	March 31, 2019		December 31, 2018
Finished products		$1,234		$1,105
Work in process	211		193
Raw materials	486		452
Supplies	34		33
Total Inventories		$1,965		$1,783

Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 34% and 36% of total inventories at March 31, 2019 and December 31, 2018, respectively. If the first-in, first-out method of inventory valuation had been used, inventories would have been $126 million and $113 million higher as of March 31, 2019 and December 31, 2018, respectively.

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Goodwill and Other Identifiable Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

Goodwill and Other Identifiable Intangible Assets

The change in the carrying amount of goodwill attributable to each reportable segment for the three months ended March 31, 2019 was as follows:

($ in millions)	Performance Coatings			Industrial Coatings			Total
January 1, 2019		$3,266			$804			$4,070
Acquisitions, including purchase accounting adjustments	2			46			48
Foreign currency impact	(11		)	(4		)	(15		)
March 31, 2019		$3,257			$846			$4,103

A summary of the carrying value of the Company's identifiable intangible assets is as follows:

	March 31, 2019							December 31, 2018
($ in millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks		$1,155	N/A				$1,155		$1,140	N/A				$1,140
Definite-Lived Identifiable Intangible Assets
Acquired technology		$673		($522	)		$151		$648		($515	)		$133
Customer-related	1,422		(822		)	600		1,396		(798		)	598
Trade names	205		(98		)	107		190		(96		)	94
Other	45		(38		)	7		44		(37		)	7
Total Definite Lived Intangible Assets		$2,345		($1,480	)		$865		$2,278		($1,446	)		$832
Total Identifiable Intangible Assets		$3,500		($1,480	)		$2,020		$3,418		($1,446	)		$1,972

The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives.

As of March 31, 2019, estimated future amortization expense of identifiable intangible assets is as follows:

($ in millions)	Future Amortization Expense
Remaining nine months of 2019		$88
2020	100
2021	95
2022	85
2023	75
2024	65
Thereafter	357

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Business Restructuring

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Business Restructuring

Business Restructuring

The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and asset write-downs.

2018 Restructuring Program

In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee headcount and production capacity in certain businesses based on current product demand, as well as reductions in various global functional and administrative costs. Substantially all actions from this business restructuring plan are expected to be complete by the end of the first quarter of 2020.

2016 Restructuring Program

In December 2016, PPG’s Board of Directors approved a business restructuring program which includes actions necessary to reduce the Company's global cost structure. The program is focused on certain regions and end-use markets where business conditions are the weakest, as well as reductions in production capacity and various global functional and administrative costs. Substantially all actions from this business restructuring plan are expected to be complete by the end of the third quarter of 2019.

The following table summarizes the reserve activity for the three months ended March 31, 2019:

($ in millions)	Total Reserve
December 31, 2018		$110
Cash payments	(15		)
Release of prior reserves	(3		)
Foreign currency impact	(1		)
March 31, 2019		$91

During the first quarter, adjustments of approximately $3 million were recorded to reduce the remaining restructuring reserves to reflect the current estimate of the costs to complete these actions.

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Borrowings

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Borrowings

Borrowings

During the first quarter of 2019, PPG issued $300 million of commercial paper. The Company's commercial paper borrowings are supported by the five-year credit agreement (the "Credit Agreement") entered into in 2015. As a result, the commercial paper borrowings as of March 31, 2019 are classified as long-term debt based on PPG's intent and ability to refinance these borrowings on a long-term basis.

In February 2018, PPG completed a public offering of $300 million aggregate principal amount of 3.2% notes due 2023 and $700 million aggregate principal amount of 3.75% notes due 2028. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented. The Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture.

The aggregate cash proceeds from the notes, net of discounts and fees, was $992 million. A portion of the notes were converted from a fixed interest rate to a floating interest rate using interest rate swap contracts. For more information, refer to Note 13, “Financial Instruments, Hedging Activities and Fair Value Measurements.”

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
(number of shares in millions)	2019		2018
Weighted average common shares outstanding	236.7		249.8
Effect of dilutive securities:
Stock options	0.7		0.9
Other stock compensation plans	0.6		0.7
Potentially dilutive common shares	1.3		1.6
Adjusted weighted average common shares outstanding	238.0		251.4
Dividends per common share		$0.48		$0.45

Excluded from the computation of earnings per diluted share due to their antidilutive effect were 1.6 million and 1.1 million outstanding stock options for the three months ended March 31, 2019 and 2018, respectively.

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Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

	Three Months Ended March 31
	2019		2018
Effective tax rate on pre-tax income from continuing operations	24.3	%	20.7	%

Income tax expense for the three months ended March 31, 2019 reflects $2 million for discrete items associated with PPG's U.S. and foreign locations and implementation of updated regulations associated with the 2017 Tax Cuts and Jobs Act for Global Intangible Low Taxed Income. For the three months ended March 31, 2018, discrete items of $15 million reduced Income tax expense. Income tax expense for the first three months of 2019 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss.

During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which we operate based on changes in factors such as prices, shipments, product mix, and raw material inflation and manufacturing operations. To the extent that actual 2019 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2019 could be different from the forecasted amount used to estimate the Income tax expense for the three months ended March 31, 2019.

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Pensions and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefits

Pensions and Other Postretirement Benefits

Service cost for net periodic pension and other postretirement benefit costs is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statements of income. All other components of net periodic benefit cost are now recorded in Other charges, except for pension settlement charges, in the accompanying condensed consolidated statements of income.

The net periodic pension and other postretirement benefit costs for the three months ended March 31, 2019 and 2018 were as follows:

	Pension						Other Postretirement Benefits
	Three Months Ended March 31						Three Months Ended March 31
($ in millions)	2019			2018			2019			2018
Service cost		$6			$8			$2			$2
Interest cost	26			24			6			6
Expected return on plan assets	(35		)	(38		)	—			—
Amortization of actuarial losses	15			16			2			5
Amortization of prior service credit	—			—			(14		)	(15		)
Net periodic benefit cost		$12			$10			($4	)		($2	)

PPG expects its 2019 net periodic pension and other postretirement benefit cost to be approximately $30 million, with pension expense representing approximately $45 million and other postretirement benefit cost representing a benefit of approximately $15 million.

Contributions to Defined Benefit Pension Plans

	Three Months Ended March 31
($ in millions)	2019		2018
U.S. defined benefit pension contributions		$—		$25
Non-U.S. defined benefit pension mandatory contributions		$3		$5

PPG made a voluntary contribution of $25 million to its U.S. defined benefit pension plans in January 2018. PPG expects to make mandatory contributions to its non-U.S. pension plans in the range of $15 million to $25 million during the remaining nine months of 2019. PPG may make voluntary contributions to its defined benefit pension plans in 2019 and beyond.

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Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Loss

($ in millions)	Unrealized Foreign Currency Translation Adjustments					Pension and Other Postretirement Benefit Adjustments, net of tax (c)					Unrealized Gain (Loss) on Derivatives, net of tax (d)					Accumulated Other Comprehensive Loss
January 1, 2019				($1,734	)				($568	)				$2					($2,300	)
Current year deferrals to AOCI (a)	31					—					—					31
Current year deferrals to AOCI, net of tax (b)	51					(8	)				—					43
Reclassifications from AOCI to net income	—					2					—					2
Period change				$82					($6	)				$—					$76
March 31, 2019				($1,652	)				($574	)				$2					($2,224	)
January 1, 2018				($1,567	)				($493	)				$3					($2,057	)
Current year deferrals to AOCI	189					—					—					189
Current year deferrals to AOCI, net of tax (b)	(45	)				14					(5	)				(36	)
Reclassifications from AOCI to net income	—					3					3					6
Period change				$144					$17					($2	)				$159
Reclassification from AOCI to Retained earnings - Adoption ASU 2018-02			(23		)			(84		)			—					(107		)
March 31, 2018				($1,446	)				($560	)				$1					($2,005	)

(a) Except for income taxes of $6 million related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time.

(b) The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges for the three months ended March 31, 2019 and 2018 was $17 million and $21 million, respectively.

(c) The tax cost (benefit) related to the adjustment for pension and other postretirement benefits for the three months ended March 31, 2019 and 2018 was $1 million and ($1) million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 11, "Pensions and Other Postretirement Benefits").

(d) The tax cost (benefit) related to the changes in the unrealized gain (loss) on derivatives was insignificant for the three months ended March 31, 2019, and was ($1) million for the three months ended March 31, 2018. Reclassifications from AOCI are included in the gain recognized on cash flow hedges (See Note 13, "Financial Instruments, Hedging Activities and Fair Value Measurements").

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Financial Instruments, Hedging Activities and Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments, Hedging Activities and Fair Value Measurements

Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at March 31, 2019 and December 31, 2018, in the aggregate, except for long-term debt instruments.

Hedging Activities

The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge these underlying economic exposures. Certain of these instruments qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred.

PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the three month periods ended March 31, 2019 and 2018.

All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement.

There were no derivative instruments de-designated or discontinued as hedging instruments during the three month periods ended March 31, 2019 and 2018 and there were no gains or losses deferred in Accumulated other comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated income statement in the three month periods ended March 31, 2019 and 2018 related to hedges of anticipated transactions that were no longer expected to occur.

Fair Value Hedges

The Company uses interest rate swaps from time to time to manage it’s exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value.

In February of 2018, PPG entered into interest rate swaps which converted $525 million of fixed rate debt to variable rate debt. The swaps are designated as fair value hedges and are carried at fair value. Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in Interest expense in the accompanying condensed consolidated statement of income.

Cash Flow Hedges

PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. Underlying notional amounts related to these foreign currency forward contracts were $69 million at March 31, 2019 and $50 million at December 31, 2018.

Net Investment Hedges

PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a significant portion of its net investment in its European operations, as follows:

In February 2018, PPG entered into U.S. dollar to euro cross currency swap contracts with a total notional amount of $575 million and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payments in U.S. dollars and make payments in euros to the counterparties. Also in February 2018, the Company settled outstanding U.S. dollar to euro cross currency swap contracts with a total notional amount of $560 million.

As of March 31, 2019 and December 31, 2018, PPG had designated €2.3 billion of euro-denominated borrowings as hedges of a portion of its net investment in the Company's European operations. The carrying value of these instruments as of March 31, 2019 and December 31, 2018 was $2.6 billion and $2.7 billion, respectively.

Other Financial Instruments

PPG uses foreign currency forward contracts to manage net transaction exposures that do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other charges in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $2.5 billion at both March 31, 2019 and December 31, 2018.

Gains/Losses Deferred in Accumulated Other Comprehensive Loss

As of March 31, 2019, the Company had accumulated pre-tax unrealized translation gains in Accumulated other comprehensive loss on the condensed consolidated balance sheet related to the euro-denominated borrowings, foreign currency forward contracts and the cross currency swaps of $231 million. As of December 31, 2018, the Company had accumulated pre-tax unrealized translation gains of $161 million.

The following table summarizes the location within the condensed consolidated financial statements and amount of gains (losses) related to derivative financial instruments activity for the three months ended March 31, 2019 and 2018. All dollar amounts are shown on a pre-tax basis.

	March 31, 2019					March 31, 2018
($ in millions)	Gain Deferred in OCI		Gain (Loss) Recognized			Loss Deferred in OCI			Gain (Loss) Recognized			Caption In Condensed Consolidated Statement of Income
Economic
Foreign currency forward contracts		$—		$6			$—			$4		Other charges
Fair Value
Interest rate swaps	—		—			—			1			Interest expense
Cash Flow
Foreign currency forward contracts(1)	—		(1		)	(6		)	(3		)	Other charges and Cost of sales
Total Cash Flow		$—		$5			($6	)		$2
Net Investment
Cross currency swaps		$13		$4			($26	)		$1		Interest expense
Foreign denominated debt	57		—			(68		)	—
Total Net Investment		$70		$4			($94	)		$1

(1) For the period ended March 31, 2019, the amounts excluded from effectiveness testing recognized in earnings based on an amortized approach was expense of $1 million.

Fair Value Measurements

The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of March 31, 2019 and December 31, 2018, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 13, "Employee Benefit Plans" under Item 8 in the 2018 Form 10-K for further details). The Company's financial assets and liabilities are measured using inputs from the following three levels:

Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges.

Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments' contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves.

Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company does not have any recurring financial assets or liabilities that are recorded in its consolidated balance sheets as of March 31, 2019 and December 31, 2018 that are classified as Level 3 inputs.

Assets and liabilities reported at fair value on a recurring basis:

	March 31, 2019						December 31, 2018
($ in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Other current assets:
Marketable equity securities		$4		$—		$—		$4		$—		$—
Foreign currency forward contracts (a)	—		1		—		—		—		—
Foreign currency forward contracts (b)	—		29		—		—		45		—
Investments:
Marketable equity securities	78		—		—		69		—		—
Other assets:
Cross currency swaps (c)	—		48		—		—		35		—
Interest rate swaps (d)	—		18		—		—		8		—
Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)	—		1		—		—		1		—
Foreign currency forward contracts (b)	—		15		—		—		9		—

(a) Cash flow hedges	(c) Net investment hedges
(b) Derivatives not designated as hedging instruments	(d) Fair value hedges

Long-Term Debt

($ in millions)	March 31, 2019 (a)		December 31, 2018 (b)
Long-term debt - carrying value		$5,254		$5,000
Long-term debt - fair value		$5,447		$5,101

(a) Excluding finance lease obligations of $12 million and short term borrowings of $13 million as of March 31, 2019.

(b) Excluding capital lease obligations of $12 million and short term borrowings of $4 million as of December 31, 2018.

The fair values of the debt instruments were based on discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities and were measured using level 2 inputs.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. Shares available for future grants under the PPG Amended Omnibus Plan were 7.4 million as of March 31, 2019.

Stock-based compensation and the income tax benefit recognized during the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
($ in millions)	2019		2018
Stock-based compensation		$9		$9
Income tax benefit recognized		$2		$2

Grants of stock-based compensation during the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
	2019			2018
Grant Details	Shares	Fair Value		Shares	Fair Value
Stock options	588,870		$22.50	517,433		$25.38
Restricted stock units	179,564		$103.35	168,432		$110.28
Contingent shares (a)	51,850		$109.74	49,278		$116.32

(a) The number of contingent shares represents the target value of the award.

Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock option grants issued during the three months ended March 31, 2019 was calculated with the following weighted average assumptions:

Weighted average exercise price		$109.74
Risk-free interest rate	2.6		%
Expected life of option in years	6.5
Expected dividend yield	1.6		%
Expected volatility	20.0		%

The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected life of options is calculated using the average of the vesting term and the maximum term, as prescribed by accounting guidance on the use of the simplified method for determining the expected term of an employee share option. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options.

Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period. Performance-based RSUs vest based on achieving specific annual performance targets for earnings per share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets.

The amount paid upon vesting of performance-based RSUs may range from 0% to 180% of the original grant, based upon the frequency with which the annual earnings per share growth and cash flow return on capital performance targets are met over the three calendar year periods comprising the vesting period.

Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three-year period following the date of grant based on PPG's performance. Performance is measured by determining the percentile rank of the total shareholder return of PPG common stock in relation to the total shareholder return of the S&P 500 as it existed at the beginning of the three-year performance period excluding any companies that have been removed from the index because they ceased to be publicly traded during the performance period. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both at the Company's discretion. The TSR awards qualify as liability awards, and compensation expense is recognized over the three-year award period based on the fair value of the awards (giving consideration to the Company’s percentile rank of total shareholder return) remeasured in each reporting period until settlement of the awards.

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, antitrust, employment and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury and property damage, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers, as they had prior to the asbestos settlement described below, may contest coverage with respect to some of the asbestos claims if the settlement is not implemented. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters.

The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

Asbestos Matters

Prior to 2000, the Company had been named as a defendant in numerous claims alleging bodily injury from (i) exposure to asbestos-containing products allegedly manufactured, sold or distributed by the Company, its subsidiaries, or for which they are otherwise alleged to be liable; (ii) exposure to asbestos allegedly present at a facility owned or leased by the Company; or (iii) exposure to asbestos-containing products of Pittsburgh Corning Corporation (“PC”) for which the Company was alleged to be liable under a variety of legal theories (the Company and Corning Incorporated were each 50% shareholders in PC).

Pittsburgh Corning Corporation asbestos bankruptcy

In 2000, PC filed for Chapter 11 in the U.S. Bankruptcy Court for the Western District of Pennsylvania in an effort to permanently and comprehensively resolve all of its pending and future asbestos-related liability claims. At the time of the bankruptcy filing, the Company had been named as one of many defendants in approximately 114,000 open claims. The Bankruptcy Court subsequently entered a series of orders preliminarily enjoining the prosecution of asbestos litigation against PPG until after the effective date of a confirmed PC plan of reorganization. During the pendency of this preliminary injunction staying asbestos litigation against PPG, PPG and certain of its historical liability insurers negotiated a settlement with representatives of present and future asbestos claimants. That settlement was incorporated into a PC plan of reorganization that was confirmed by the Bankruptcy Court on May 24, 2013 and ultimately became effective on April 27, 2016. With the effectiveness of the plan, the preliminary injunction staying the prosecution of asbestos litigation against PPG expired by its own terms on May 27, 2016. In accordance with the settlement, the Bankruptcy Court issued a permanent channeling injunction under Section 524(g) of the Bankruptcy Code that prohibits present and future claimants from asserting claims against PPG that arise, in whole or in part, out of exposure to asbestos or asbestos-containing products manufactured, sold and/or distributed by PC or asbestos on or emanating from any PC premises. The channeling injunction, by its terms, also prohibits codefendants in cases that are subject to the channeling injunction from asserting claims against PPG for contribution, indemnification or other recovery. The channeling injunction also precludes the prosecution of claims against PPG arising from alleged exposure to asbestos or asbestos-containing products to the extent that a claimant is alleging or seeking to impose liability, directly or indirectly, for the conduct of, claims against, or demands on PC by reason of PPG’s: (i) ownership of a financial interest in PC; (ii) involvement in the management of PC, or service as an officer, director or employee of PC or a related party; (iii) provision of insurance to PC or a related party; or (iv) involvement in a financial transaction affecting the financial condition of PC or a related party. The foregoing PC related claims are referred to as “PC Relationship Claims.”

The channeling injunction channels the Company’s liability for PC Relationship Claims to a trust funded in part by PPG and its participating insurers for the benefit of current and future PC asbestos claimants (the “Trust”). The Trust is the sole recourse for holders of PC Relationship Claims. PPG and its affiliates have no further liability or responsibility for, and will be permanently protected from, pending and future PC Relationship Claims. The channeling injunction does not extend to present and future claims against PPG that arise out of alleged exposure to asbestos or asbestos-containing products historically manufactured, sold and/or distributed by PPG or its subsidiaries or for which they are alleged to be liable that are not PC Relationship Claims, and does not extend to claims against PPG alleging personal injury allegedly caused by asbestos on premises presently or formerly owned, leased or occupied by PPG. These claims are referred to as non-PC Relationship Claims.

In accordance with the PC plan of reorganization, PPG's equity interest in PC was canceled. PPG satisfied its funding obligations to the Trust on June 9, 2016, when it conveyed to the Trust the stock it owned in Pittsburgh Corning Europe and 2,777,778 shares of PPG’s common stock and made a cash payment to the Trust in the amount of $764 million. PPG’s historical insurance carriers participating in the PC plan of reorganization are required to make cash payments to the Trust of approximately $1.7 billion, subject to a right of prepayment at a 5.5% discount rate.

On October 13, 2016, the Bankruptcy Court issued an order entering a final decree and closing the Chapter 11 case. That order provided that the Bankruptcy Court retained jurisdiction to enforce any order issued in the case and any agreements approved by the court, enforce the terms and conditions of the modified third amended Plan, and consider any requests to reopen the case.

Non-PC relationship asbestos claims

At the time PC filed for bankruptcy, PPG had been named as one of many defendants in one or more of the categories of asbestos-related claims identified above. Over the course of the 16 years during which the PC bankruptcy proceedings, and corresponding preliminary injunction staying the prosecution of asbestos-related claims against PPG, were pending, certain plaintiffs alleging premises claims filed motions seeking to lift the stay with respect to more than 1,000 individually-identified premises claims. The Bankruptcy Court granted motions to lift the stay in respect to certain of these premises claims and directed PPG to engage in a process to address any additional premises claims that were the subject of pending or anticipated lift-stay motions. As a result of the overall process as directed by the Bankruptcy Court involving more than 1,000 premises claims between 2006 and May 27, 2016, hundreds of these claims were withdrawn or dismissed without payment and approximately 650 premises claims were dismissed upon agreements by PPG and its insurers to resolve such claims in exchange for monetary payments.

With respect to the remaining claims still reportable within the inventory of 114,000 asbestos-related claims at the time PC filed for bankruptcy, the Company considers such claims to fall within one or more of the following categories: (1) claims that have been closed or dismissed as a result of processes undertaken during the bankruptcy; (2) claims that may have been previously filed on the dockets of state and federal courts in various jurisdictions, but are inactive as to the Company; and (3) claims that are subject, in whole or in part, to the channeling injunction and thus will be resolved, in whole or in part, in accordance with the Trust procedures established under the PC bankruptcy reorganization plan. As a result of the foregoing, the Company does not consider these three categories of claims to be open or active litigation against it, although the Company cannot now determine whether, or the extent to which, any of these claims may in the future be reinstituted, reinstated, or revived such that they may become open and active asbestos-related claims against it.

Current open and active claims post-Pittsburgh Corning bankruptcy

As of March 31, 2019, the Company was aware of approximately 460 open and active asbestos-related claims pending against the Company and certain of its subsidiaries. These claims consist primarily of non-PC Relationship Claims and claims against a subsidiary of PPG. The Company is defending the remaining open and active claims vigorously.

Since April 1, 2013, a subsidiary of PPG has been implicated in claims alleging death or injury caused by asbestos-containing products manufactured, distributed or sold by a North American architectural coatings business or its predecessors which was acquired by PPG. All such claims have been either served upon or tendered to the seller for defense and indemnity pursuant to obligations undertaken by the seller in connection with the Company’s purchase of the North American architectural coatings business. The seller has accepted the defense of these claims subject to the terms of various agreements between the Company and the seller. The seller’s defense and indemnity obligations in connection with newly filed claims ceased with respect to claims filed after April 1, 2018.

PPG has established reserves totaling approximately $180 million for asbestos-related claims that would not be channeled to the Trust which, based on presently available information, we believe will be sufficient to encompass all of PPG’s current and potential future asbestos liabilities.  These reserves include a $162 million reserve established in 2009 in connection with an amendment to the PC plan of reorganization.  These reserves, which are included within Other liabilities on the accompanying condensed consolidated balance sheets, represent PPG’s best estimate of its liability for these claims. PPG does not have sufficient current claim information or settlement history on which to base a better estimate of this liability in light of the fact that the Bankruptcy Court’s injunction staying most asbestos claims against the Company was in effect from April 2000 through May 2016. PPG will monitor the activity associated with its remaining asbestos claims and evaluate, on a periodic basis, its estimated liability for such claims, its insurance assets then available, and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required.

The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) the amounts required to resolve both currently known and future unknown claims; (iii) the amount of insurance, if any, available to cover such claims; (iv) the unpredictable aspects of the litigation process, including a changing trial docket and the jurisdictions in which trials are scheduled; (v) the outcome of any trials, including potential judgments or jury verdicts; (vi) the lack of specific information in many cases concerning exposure for which PPG is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (vii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. As a potential offset to any future asbestos financial exposure, under the PC plan of reorganization PPG retained, for its own account, the right to pursue insurance coverage from certain of its historical insurers that did not participate in the PC plan of reorganization. While the ultimate outcome of PPG’s asbestos litigation cannot be predicted with certainty, PPG believes that any financial exposure resulting from its asbestos-related claims will not have a material adverse effect on PPG’s consolidated financial position, liquidity or results of operations.

Environmental Matters

It is PPG’s policy to accrue expenses for environmental contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time. See Note 14, "Commitments and Contingent Liabilities," under Item 8 of the 2018 Form 10-K for additional descriptions of the following environmental matters.

As of March 31, 2019 and December 31, 2018, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, N.J. (“New Jersey Chrome”) and for other environmental contingencies, including National Priority List sites and legacy glass and chemical manufacturing sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying condensed consolidated balance sheet.

Environmental Reserves
($ in millions)	March 31, 2019		December 31, 2018
New Jersey Chrome		$137		$151
Glass and chemical	68		90
Other	61		50
Total		$266		$291
Current portion		$109		$105

Pre-tax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pre-tax charges and cash outlays related to such environmental remediation for the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
($ in millions)	2019		2018
Environmental remediation pre-tax charges		$16		$34
Cash outlays for environmental remediation activities		$16		$17

In the first quarter of 2019, a one-time charge was taken to increase an existing legacy reserve classified within "Other" sites above by $10 million. In the first quarter of 2018, charges were taken to increase the existing reserves for the New Jersey Chrome and glass and chemical sites by $26 million and $8 million, respectively.

Remediation: New Jersey Chrome

In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and 19 additional sites. The principal contaminant of concern is hexavalent chromium. The JCO also provided for the appointment of a court-approved Site Administrator who is responsible for establishing a master schedule for the remediation of the 20 PPG sites which existed at that time. One site was subsequently removed from the JCO process during 2014 and will be remediated separately at a future date. A total of 19 sites remain subject to the JCO process.

The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites are those related to the extent and concentration of chromium impacts in the soil, as these determine the quantity of soil that must be treated in place, the quantity that will have to be excavated and transported for offsite disposal, and the nature of disposal required. In 2018 and 2016, PPG completed updated assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non-hazardous soils, daily soil excavation rates, and engineering, administrative and other associated costs. Based on these assessments, the reserve has been adjusted accordingly as noted in the table above. Principal factors affecting costs included refinements in the estimate of the mix of hazardous to non-hazardous soils to be excavated, an overall increase in soil volumes to be excavated, enhanced water management requirements, decreased daily soil excavation rates due to site conditions, initial estimates for remedial actions related to groundwater, and increased oversight and management costs. The reserve adjustments for the estimated costs to remediate all New Jersey Chrome sites are exclusive of any third party indemnification, as the recovery of any such amounts is uncertain.

Groundwater remediation at the former Garfield Avenue chromium manufacturing site and five adjacent sites is expected to occur over several years after NJDEP's approval of the work plan. Ongoing groundwater monitoring will be utilized to develop a final groundwater remedial action work plan which is currently expected to be submitted to NJDEP in 2021.

PPG’s financial reserve for remediation of all New Jersey Chrome sites is $137 million at March 31, 2019. The major cost components of this liability continue to be related to excavation, transportation and disposal of impacted soil, as well as construction services. These components each account for approximately 19%, 17% and 31% of the accrued amount, respectively.

There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Final resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will be adjusted.

Remediation: Other Sites

Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a legacy chemical manufacturing site in Barberton, Ohio, where PPG has completed a Facility Investigation and Corrective Measure Study under USEPA’s Resource Conservation and Recovery Act (“RCRA”) Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations.

With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites.

Remediation: Reasonably Possible Matters

In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million. Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them.

The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments.

Other Matters

The Company had outstanding letters of credit and surety bonds of $143 million and guarantees of $14 million as of March 31, 2019. The Company does not believe any loss related to such guarantees is likely.

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Reportable Segment Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Reportable Segment Information

PPG is a multinational manufacturer with 9 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution.

The Performance Coatings reportable segment is comprised of the automotive refinish coatings, aerospace coatings, 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, and other specialty materials.

Reportable segment net sales and segment income for the three months ended March 31, 2019 and 2018 were as follows: 

	Three Months Ended March 31
($ in millions)	2019			2018
Net sales:
Performance Coatings		$2,108			$2,160
Industrial Coatings	1,516			1,621
Total		$3,624			$3,781
Segment income:
Performance Coatings		$297			$280
Industrial Coatings	218			239
Total		$515			$519
Corporate	(45		)	(43		)
Interest expense, net of interest income	(25		)	(21		)
Legacy items (a)	(2		)	4
Environmental remediation charges	(10		)	(34		)
Release of business restructuring reserves	3			—
Accelerated depreciation and other costs from restructuring actions	(6		)	—
Acquisition-related costs (b)	(7		)	—
Costs associated with ongoing accounting investigations	(4		)	—
Costs related to customer assortment change	—			(4		)
Income before income taxes		$419			$421

(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 certain recurring environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio.

(b) Acquisition-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.

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New Accounting Standards (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

New Accounting Standards

Accounting Standards Adopted in 2019

Effective January 1, 2019, PPG adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases." This ASU requires substantially all leases be recorded on the balance sheet as right of use assets and lease obligations. The Company adopted the ASU using a retrospective adoption method at January 1, 2019, as outlined in ASU No. 2018-11, "Leases - Targeted Improvements." Under this method of adoption, there is no impact to the comparative condensed consolidated statement of income and condensed consolidated balance sheet. PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. PPG will continue to report periods prior to January 1, 2019 in its financial statements under prior guidance as outlined in Accounting Standards Codification Topic 840, "Leases". In addition, PPG elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications.

Adoption of this standard did not materially impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 3, “Leases” for further details.

Accounting Standards to be Adopted in Future Years

In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software." This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses.” This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Entities may choose to adopt the new ASU as of its fiscal year beginning after December 15, 2018. PPG did not early adopt this standard. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows.

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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense were as follows:

($ in millions)	Classification in the Condensed Consolidated Statement of Income	Three Months Ended March 31, 2019
Operating lease cost (a)	Cost of sales, exclusive of depreciation and amortization		$9
Operating lease cost (a)	Selling, general and administrative	48
Total operating lease cost			$57
Finance lease cost:
Amortization of right-of-use assets	Depreciation		$1
Interest on lease liabilities	Interest Expense	—
Total finance lease cost			$1
Total lease cost			$58

(a) Includes variable lease costs of $4 million. Short-term lease costs were $1 million during the period.

Schedule of Classification on the Condensed Consolidated Balance Sheet

($ in millions)	Classification on the Condensed Consolidated Balance Sheet	March 31, 2019
Assets:
Operating	Other assets		$726
Finance (a)	Property, plant, and equipment	14
Total leased assets			$740
Liabilities:
Current
Operating	Current portion of operating lease liabilities		$168
Finance	Short-term debt and current portion of long-term debt	3
Noncurrent
Operating	Operating lease liabilities	566
Finance	Long-term debt	9
Total lease liabilities			$746

(a) Net of accumulated depreciation of $15 million.

Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations

($ in millions)	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$52
Operating cash flows from finance leases		$—
Financing cash flows from finance leases		$1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$34
Finance leases		$—

Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate

	As of March 31, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.4
Finance leases	6.2
Weighted-average discount rate
Operating leases	3.2	%
Finance leases	9.5	%

Schedule of Maturities of Lease Liabilities, Operating Lease

As of March 31, 2019, maturities of lease liabilities were as follows:

($ in millions)	Operating Leases		Finance Leases
Remaining nine months of 2019		$142		$3
2020	155		3
2021	116		3
2022	89		2
2023	70		2
Thereafter	255		4
Total lease payments		$827		$17
Less: Interest	93		5
Total lease obligations		$734		$12

Schedule of Maturities of Lease Liabilities, Finance Lease

As of March 31, 2019, maturities of lease liabilities were as follows:

($ in millions)	Operating Leases		Finance Leases
Remaining nine months of 2019		$142		$3
2020	155		3
2021	116		3
2022	89		2
2023	70		2
Thereafter	255		4
Total lease payments		$827		$17
Less: Interest	93		5
Total lease obligations		$734		$12

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows:

($ in millions)	Operating Leases		Capital Leases
2019		$207		$3
2020	157		3
2021	116		1
2022	93		1
2023	76		1
Beyond 2023		$244		$3

Schedule of Future Minimum Lease Payments for Capital Leases

As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows:

($ in millions)	Operating Leases		Capital Leases
2019		$207		$3
2020	157		3
2021	116		1
2022	93		1
2023	76		1
Beyond 2023		$244		$3

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

Revenue Disclosure [Abstract]

Revenue from External Customers by Geographic Areas

Net sales by segment and region for the three months ended March 31, 2019 and 2018 were as follows:

($ in millions)	Performance Coatings				Industrial Coatings				Total Net Sales
	Three Months Ended March 31				Three Months Ended March 31				Three Months Ended March 31
	2019		2018		2019		2018		2019		2018
United States and Canada		$953		$974		$613		$611		$1,566		$1,585
EMEA	688		707		426		473		1,114		1,180
Asia-Pacific	243		242		340		388		583		630
Latin America	224		237		137		149		361		386
Total		$2,108		$2,160		$1,516		$1,621		$3,624		$3,781

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Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

Glass Segment

The Net sales and Income from discontinued operations, net of tax related to the former Glass reportable business segment for the three months ended March 31, 2018 were as follows:

($ in millions)	Three Months Ended March 31, 2018
Income from operations		$8
Income tax expense	2
Income from discontinued operations, net of tax		$6

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Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Inventories

($ in millions)	March 31, 2019		December 31, 2018
Finished products		$1,234		$1,105
Work in process	211		193
Raw materials	486		452
Supplies	34		33
Total Inventories		$1,965		$1,783

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Goodwill and Other Identifiable Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill Attributable to Each Reportable Segment

The change in the carrying amount of goodwill attributable to each reportable segment for the three months ended March 31, 2019 was as follows:

($ in millions)	Performance Coatings			Industrial Coatings			Total
January 1, 2019		$3,266			$804			$4,070
Acquisitions, including purchase accounting adjustments	2			46			48
Foreign currency impact	(11		)	(4		)	(15		)
March 31, 2019		$3,257			$846			$4,103

Identifiable Intangible Assets with Finite Lives

A summary of the carrying value of the Company's identifiable intangible assets is as follows:

	March 31, 2019							December 31, 2018
($ in millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks		$1,155	N/A				$1,155		$1,140	N/A				$1,140
Definite-Lived Identifiable Intangible Assets
Acquired technology		$673		($522	)		$151		$648		($515	)		$133
Customer-related	1,422		(822		)	600		1,396		(798		)	598
Trade names	205		(98		)	107		190		(96		)	94
Other	45		(38		)	7		44		(37		)	7
Total Definite Lived Intangible Assets		$2,345		($1,480	)		$865		$2,278		($1,446	)		$832
Total Identifiable Intangible Assets		$3,500		($1,480	)		$2,020		$3,418		($1,446	)		$1,972

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

As of March 31, 2019, estimated future amortization expense of identifiable intangible assets is as follows:

($ in millions)	Future Amortization Expense
Remaining nine months of 2019		$88
2020	100
2021	95
2022	85
2023	75
2024	65
Thereafter	357

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Business Restructuring (Tables)

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table summarizes the reserve activity for the three months ended March 31, 2019:

($ in millions)	Total Reserve
December 31, 2018		$110
Cash payments	(15		)
Release of prior reserves	(3		)
Foreign currency impact	(1		)
March 31, 2019		$91

The following table summarizes the reserve activity for the three months ended March 31, 2019:

($ in millions)	Total Reserve
December 31, 2018		$110
Cash payments	(15		)
Release of prior reserves	(3		)
Foreign currency impact	(1		)
March 31, 2019		$91

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
(number of shares in millions)	2019		2018
Weighted average common shares outstanding	236.7		249.8
Effect of dilutive securities:
Stock options	0.7		0.9
Other stock compensation plans	0.6		0.7
Potentially dilutive common shares	1.3		1.6
Adjusted weighted average common shares outstanding	238.0		251.4
Dividends per common share		$0.48		$0.45

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Three Months Ended March 31
	2019		2018
Effective tax rate on pre-tax income from continuing operations	24.3	%	20.7	%

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Pensions and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2019

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Net Periodic Benefit Cost

The net periodic pension and other postretirement benefit costs for the three months ended March 31, 2019 and 2018 were as follows:

	Pension						Other Postretirement Benefits
	Three Months Ended March 31						Three Months Ended March 31
($ in millions)	2019			2018			2019			2018
Service cost		$6			$8			$2			$2
Interest cost	26			24			6			6
Expected return on plan assets	(35		)	(38		)	—			—
Amortization of actuarial losses	15			16			2			5
Amortization of prior service credit	—			—			(14		)	(15		)
Net periodic benefit cost		$12			$10			($4	)		($2	)

Defined Contribution Plan Disclosures

	Three Months Ended March 31
($ in millions)	2019		2018
U.S. defined benefit pension contributions		$—		$25
Non-U.S. defined benefit pension mandatory contributions		$3		$5

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

($ in millions)	Unrealized Foreign Currency Translation Adjustments					Pension and Other Postretirement Benefit Adjustments, net of tax (c)					Unrealized Gain (Loss) on Derivatives, net of tax (d)					Accumulated Other Comprehensive Loss
January 1, 2019				($1,734	)				($568	)				$2					($2,300	)
Current year deferrals to AOCI (a)	31					—					—					31
Current year deferrals to AOCI, net of tax (b)	51					(8	)				—					43
Reclassifications from AOCI to net income	—					2					—					2
Period change				$82					($6	)				$—					$76
March 31, 2019				($1,652	)				($574	)				$2					($2,224	)
January 1, 2018				($1,567	)				($493	)				$3					($2,057	)
Current year deferrals to AOCI	189					—					—					189
Current year deferrals to AOCI, net of tax (b)	(45	)				14					(5	)				(36	)
Reclassifications from AOCI to net income	—					3					3					6
Period change				$144					$17					($2	)				$159
Reclassification from AOCI to Retained earnings - Adoption ASU 2018-02			(23		)			(84		)			—					(107		)
March 31, 2018				($1,446	)				($560	)				$1					($2,005	)

(a) Except for income taxes of $6 million related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time.

(b) The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges for the three months ended March 31, 2019 and 2018 was $17 million and $21 million, respectively.

(c) The tax cost (benefit) related to the adjustment for pension and other postretirement benefits for the three months ended March 31, 2019 and 2018 was $1 million and ($1) million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 11, "Pensions and Other Postretirement Benefits").

(d) The tax cost (benefit) related to the changes in the unrealized gain (loss) on derivatives was insignificant for the three months ended March 31, 2019, and was ($1) million for the three months ended March 31, 2018. Reclassifications from AOCI are included in the gain recognized on cash flow hedges (See Note 13, "Financial Instruments, Hedging Activities and Fair Value Measurements").

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Financial Instruments, Hedging Activities and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value, Cash Flow and Net Investment Hedges

following table summarizes the location within the condensed consolidated financial statements and amount of gains (losses) related to derivative financial instruments activity for the three months ended March 31, 2019 and 2018. All dollar amounts are shown on a pre-tax basis.

	March 31, 2019					March 31, 2018
($ in millions)	Gain Deferred in OCI		Gain (Loss) Recognized			Loss Deferred in OCI			Gain (Loss) Recognized			Caption In Condensed Consolidated Statement of Income
Economic
Foreign currency forward contracts		$—		$6			$—			$4		Other charges
Fair Value
Interest rate swaps	—		—			—			1			Interest expense
Cash Flow
Foreign currency forward contracts(1)	—		(1		)	(6		)	(3		)	Other charges and Cost of sales
Total Cash Flow		$—		$5			($6	)		$2
Net Investment
Cross currency swaps		$13		$4			($26	)		$1		Interest expense
Foreign denominated debt	57		—			(68		)	—
Total Net Investment		$70		$4			($94	)		$1

Assets and Liabilities Reported at Fair Value on a Recurring Basis

Assets and liabilities reported at fair value on a recurring basis:

	March 31, 2019						December 31, 2018
($ in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Other current assets:
Marketable equity securities		$4		$—		$—		$4		$—		$—
Foreign currency forward contracts (a)	—		1		—		—		—		—
Foreign currency forward contracts (b)	—		29		—		—		45		—
Investments:
Marketable equity securities	78		—		—		69		—		—
Other assets:
Cross currency swaps (c)	—		48		—		—		35		—
Interest rate swaps (d)	—		18		—		—		8		—
Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)	—		1		—		—		1		—
Foreign currency forward contracts (b)	—		15		—		—		9		—

(a) Cash flow hedges	(c) Net investment hedges
(b) Derivatives not designated as hedging instruments	(d) Fair value hedges

Long-term Debt [Text Block]

($ in millions)	March 31, 2019 (a)		December 31, 2018 (b)
Long-term debt - carrying value		$5,254		$5,000
Long-term debt - fair value		$5,447		$5,101

(a) Excluding finance lease obligations of $12 million and short term borrowings of $13 million as of March 31, 2019.

(b) Excluding capital lease obligations of $12 million and short term borrowings of $4 million as of December 31, 2018.

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation, Activity [Table Text Block]

Stock-based compensation and the income tax benefit recognized during the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
($ in millions)	2019		2018
Stock-based compensation		$9		$9
Income tax benefit recognized		$2		$2

Details of Grants of Stock-based Compensation

Grants of stock-based compensation during the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
	2019			2018
Grant Details	Shares	Fair Value		Shares	Fair Value
Stock options	588,870		$22.50	517,433		$25.38
Restricted stock units	179,564		$103.35	168,432		$110.28
Contingent shares (a)	51,850		$109.74	49,278		$116.32

(a) The number of contingent shares represents the target value of the award.

Weighted Average Assumptions Used in Calculating the Fair Value of Stock Option

The fair value of the stock option grants issued during the three months ended March 31, 2019 was calculated with the following weighted average assumptions:

Weighted average exercise price		$109.74
Risk-free interest rate	2.6		%
Expected life of option in years	6.5
Expected dividend yield	1.6		%
Expected volatility	20.0		%

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Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Environmental Liabilities [Table Text Block]

Environmental Reserves
($ in millions)	March 31, 2019		December 31, 2018
New Jersey Chrome		$137		$151
Glass and chemical	68		90
Other	61		50
Total		$266		$291
Current portion		$109		$105

Environmental Costs [Table Text Block]

Pre-tax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pre-tax charges and cash outlays related to such environmental remediation for the three months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended March 31
($ in millions)	2019		2018
Environmental remediation pre-tax charges		$16		$34
Cash outlays for environmental remediation activities		$16		$17

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Reportable Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Reconciliation Of Revenue And Operating Income From Segments To Consolidated [Text Block]

Reportable segment net sales and segment income for the three months ended March 31, 2019 and 2018 were as follows: 

	Three Months Ended March 31
($ in millions)	2019			2018
Net sales:
Performance Coatings		$2,108			$2,160
Industrial Coatings	1,516			1,621
Total		$3,624			$3,781
Segment income:
Performance Coatings		$297			$280
Industrial Coatings	218			239
Total		$515			$519
Corporate	(45		)	(43		)
Interest expense, net of interest income	(25		)	(21		)
Legacy items (a)	(2		)	4
Environmental remediation charges	(10		)	(34		)
Release of business restructuring reserves	3			—
Accelerated depreciation and other costs from restructuring actions	(6		)	—
Acquisition-related costs (b)	(7		)	—
Costs associated with ongoing accounting investigations	(4		)	—
Costs related to customer assortment change	—			(4		)
Income before income taxes		$419			$421

(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 certain recurring environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio.

(b) Acquisition-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.

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Leases - Schedule of Components of Lease Expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Total operating lease cost	$ 57
Finance lease cost:
Interest on lease liabilities	0
Amortization of right-of-use assets	1
Total finance lease cost	1
Total lease cost	58
Variable lease costs	4
Cost of sales, exclusive of depreciation and amortization
Lessee, Lease, Description [Line Items]
Total operating lease cost	9
Selling, general and administrative
Lessee, Lease, Description [Line Items]
Total operating lease cost	$ 48

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Leases - Schedule of Classification on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Assets:
Operating	$ 726	$ 0
Finance	14
Total leased assets	740
Current
Operating	168	0
Finance	3
Noncurrent
Operating	566	$ 0
Finance	9
Total lease liabilities	746
Accumulated depreciation	$ 15

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Leases - Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 52
Operating cash flows from finance leases	0
Financing cash flows from finance leases	1
Operating leases	34
Finance leases	$ 0

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Leases - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details)	Mar. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term, operating leases	7 years 5 months
Weighted-average remaining lease term, finance leases	6 years 2 months
Weighted-average discount rate, operating leases	3.20%
Weighted-average discount rate, finance leases	9.50%

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Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Operating Leases
Remaining nine months of 2019	$ 142
2020	155
2021	116
2022	89
2023	70
Thereafter	255
Total lease payments	827
Less: Interest	93
Total lease obligations	734
Finance Leases
Remaining nine months of 2019	3
2020	3
2021	3
2022	2
2023	2
Total lease payments	17
Less: Interest	5
Thereafter	4
Total lease obligations	$ 12
Operating Leases
2019		$ 207
2020		157
2021		116
2022		93
2023		76
Thereafter		244
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019		3
2020		3
2021		1
2022		1
2023		1
Beyond 2023		$ 3

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Revenue Recognition - Schedule Of Revenue By Revenue Source (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 3,624	$ 3,781
Performance Coatings
Disaggregation of Revenue [Line Items]
Net sales	2,108	2,160
Industrial Coatings
Disaggregation of Revenue [Line Items]
Net sales	1,516	1,621
United States and Canada
Disaggregation of Revenue [Line Items]
Net sales	1,566	1,585
United States and Canada | Performance Coatings
Disaggregation of Revenue [Line Items]
Net sales	953	974
United States and Canada | Industrial Coatings
Disaggregation of Revenue [Line Items]
Net sales	613	611
EMEA
Disaggregation of Revenue [Line Items]
Net sales	1,114	1,180
EMEA | Performance Coatings
Disaggregation of Revenue [Line Items]
Net sales	688	707
EMEA | Industrial Coatings
Disaggregation of Revenue [Line Items]
Net sales	426	473
Asia-Pacific
Disaggregation of Revenue [Line Items]
Net sales	583	630
Asia-Pacific | Performance Coatings
Disaggregation of Revenue [Line Items]
Net sales	243	242
Asia-Pacific | Industrial Coatings
Disaggregation of Revenue [Line Items]
Net sales	340	388
Latin America
Disaggregation of Revenue [Line Items]
Net sales	361	386
Latin America | Performance Coatings
Disaggregation of Revenue [Line Items]
Net sales	224	237
Latin America | Industrial Coatings
Disaggregation of Revenue [Line Items]
Net sales	$ 137	$ 149
Revenue from Contract with Customer | Service
Disaggregation of Revenue [Line Items]
Service revenue, percentage of total revenue	5.00%

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Acquisitions and Divestitures Acquisitions (Details)	Mar. 31, 2019
ProCoatings [Member]
Business Acquisition [Line Items]
Number of Stores	23

XML

Acquisitions and Divestitures Divestitures (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense	$ 102	$ 87
Income from discontinued operations, net of tax	$ 0	6
Glass Segment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income from operations		8
Income tax expense		2
Income from discontinued operations, net of tax		$ 6

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Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished products	$ 1,234	$ 1,105
Work in process	211	193
Raw materials	486	452
Supplies	34	33
Total	$ 1,965	$ 1,783

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Inventories (Additional Information) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Line Items]
First-in, first-out method of inventory valuation, amount of increase in inventory value	$ 126	$ 113
UNITED STATES
Inventory Disclosure [Line Items]
U.S. inventories as a percentage of total inventories	34.00%	36.00%

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Goodwill and Other Identifiable Intangible Assets (Carrying Amount of Goodwill) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 4,070
Acquisitions	48
Currency	(15)
Ending Balance	4,103
Performance Coatings [Member]
Goodwill [Roll Forward]
Beginning Balance	3,266
Acquisitions	2
Currency	(11)
Ending Balance	3,257
Industrial Coatings [Member]
Goodwill [Roll Forward]
Beginning Balance	804
Acquisitions	46
Currency	(4)
Ending Balance	$ 846

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Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets with Finite Lives) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Trademarks	$ 1,155	$ 1,140
Gross Carrying Amount	3,500	3,418
Accumulated Amortization	(1,480)	(1,446)
Net	2,020	1,972
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	88
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	100
Finite-Lived Intangible Assets, Amortization Expense, Year Two	95
Finite-Lived Intangible Assets, Amortization Expense, Year Three	85
Finite-Lived Intangible Assets, Amortization Expense, Year Four	75
Finite-Lived Intangible Assets, Amortization Expense, Year Five	65
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	357
Acquired technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	673	648
Accumulated Amortization	(522)	(515)
Net	151	133
Customer-related intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,422	1,396
Accumulated Amortization	(822)	(798)
Net	600	598
Tradenames [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	205	190
Accumulated Amortization	(98)	(96)
Net	107	94
Other [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	45	44
Accumulated Amortization	(38)	(37)
Net	$ 7	$ 7

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Business Restructuring (Schedule of Restructuring Activity) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Restructuring and Related Activities [Abstract]
Restructuring Reserve	$ 91		$ 110
Payments for Restructuring	15	$ 17
Release of business restructuring reserves	(3)	$ 0
Restructuring Reserve, Translation Adjustment	$ (1)

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Borrowings (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Long-term Commercial Paper, Noncurrent		$ 300
Proceeds from Issuance of Debt	$ 992
3.2% Notes due 2023 [Member]
Schedule of Held-to-maturity Securities [Line Items]
Long-term Debt	$ 300
Stated interest rate	3.20%
3.75% Notes due 2028 [Member]
Schedule of Held-to-maturity Securities [Line Items]
Long-term Debt	$ 700
Stated interest rate	3.75%

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Earnings Per Common Share (Calculations) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share, Diluted [Abstract]
Weighted average common shares outstanding	236,700,000	249,800,000
Effect of dilutive securities:
Stock options	700,000	900,000
Other stock compensation plans	600,000	700,000
Potentially dilutive common shares	1,300,000	1,600,000
Adjusted weighted average common shares outstanding	238,000,000	251,400,000
Outstanding stock options excluded from the computation of diluted earnings per share due to their antidilutive effect	1,600,000.0	1,100,000.0
Common Stock, Dividends, Per Share, Cash Paid	$ 0.0048	$ 0.0045

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Income Taxes (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	24.30%	20.70%

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Pensions and Other Postretirement Benefits (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 6	$ 8
Interest cost	26	24
Expected return on plan assets	(35)	(38)
Defined Benefit Plan, Amortization of Gain (Loss)	15	16
Amortization of prior service credit	0	0
Net periodic benefit cost	12	10
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	2
Interest cost	6	6
Expected return on plan assets	0	0
Defined Benefit Plan, Amortization of Gain (Loss)	2	5
Amortization of prior service credit	(14)	(15)
Net periodic benefit cost	$ (4)	$ (2)

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Pensions and Other Postretirement Benefits (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected future employer contributions, excluding settlment losses	$ 30
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected future employer contributions, excluding settlment losses	45
Other Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected future employer contributions, excluding settlment losses	15
UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions to defined benefit pension plans	0	$ 25
Foreign Plan | Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected employer mandatory contributions	15
Foreign Plan | Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected employer mandatory contributions	25
Voluntary Contribution | UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions to defined benefit pension plans		25
Mandatory Contribution | Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions to defined benefit pension plans	$ 3	$ 5

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	$ (2,224)	$ (2,005)	$ (2,300)	$ (2,057)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	31	189
Other Comprehensive Income (Loss), Before Reclassifications, Tax	43	(36)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	2	6
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	76	159
Translation Adjustments Other Than Translation Of Balance Sheet Tax Benefit Expense	17	21
Pension and other postretirement benefit adjustments, tax cost	1	(1)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax		(1)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	(1,652)	(1,446)	(1,734)	(1,567)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	31	189
Other Comprehensive Income (Loss), Before Reclassifications, Tax	51	(45)
Reclassifications of Temporary to Permanent Equity		23
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	82	144
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	(574)	(560)	(568)	(493)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Before Reclassifications, Tax	(8)	14
Reclassifications of Temporary to Permanent Equity		84
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	2	3
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(6)	17
AOCI Attributable to Parent
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassifications of Temporary to Permanent Equity		107
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	2	1	$ 2	$ 3
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Before Reclassifications, Tax	0	(5)
Reclassifications of Temporary to Permanent Equity		0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	3
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 0	$ (2)

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Financial Instruments, Hedging Activities and Fair Value Measurements (Additional Information) (Details) € in Billions	3 Months Ended	12 Months Ended
	Mar. 31, 2019 EUR (€)	Dec. 31, 2018 EUR (€)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Mar. 31, 2018 USD ($)	Feb. 28, 2018 USD ($)	Dec. 31, 2017 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Notional amount			$ 560,000,000
Fair Value of Debt Instrument Designated as a Hedge of Net Investment in Foreign Operations			2,600,000,000	$ 2,700,000,000
Accumulated pretax unrealized translation gains (losses) in AOCI, related to both the euro-denominated borrowings and the cross currency swaps that have been designated as hedges of net investments			5,010,000,000	4,732,000,000	$ 5,467,000,000		$ 5,672,000,000
Capital Lease Obligations			12,000,000	12,000,000
Short-term Debt			13,000,000	4,000,000
Long-term Debt			5,254,000,000	5,000,000,000
Long-lived assets fair value amount			5,447,000,000	5,101,000,000
Interest Rate Swap [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Notional amount						$ 525,000,000
Currency Swap [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Notional amount						$ 575,000,000
Net Investment Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Long-term Debt | €	€ 2.3	€ 2.3
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Accumulated pretax unrealized translation gains (losses) in AOCI, related to both the euro-denominated borrowings and the cross currency swaps that have been designated as hedges of net investments			$ 231,000,000	$ 161,000,000

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Financial Instruments, Hedging Activities and Fair Value Measurements (Cash Flow and Net Investment Hedges) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Feb. 28, 2018
Derivatives, Fair Value [Line Items]
Notional amount	$ 560,000,000
Ineffective portion of expense	1,000,000
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Notional amount				$ 525,000,000
Currency Swap [Member]
Derivatives, Fair Value [Line Items]
Notional amount				$ 575,000,000
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized Amount	0
Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Deferred in OCI	0	$ (6,000,000)
Gain (Loss) Recognized Amount	5,000,000	2,000,000
Cash Flow Hedging [Member] | Foreign currency contracts [Member]
Derivatives, Fair Value [Line Items]
Notional amount	69,000,000		$ 50,000,000
Cash Flow Hedging [Member] | Foreign currency contracts [Member] | Other Expense
Derivatives, Fair Value [Line Items]
Gain (Loss) Deferred in OCI	0	(6,000,000)
Gain (Loss) Recognized Amount	(1,000,000)	(3,000,000)
Net Investment Hedging [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Deferred in OCI	70,000,000	(94,000,000)
Gain (Loss) Recognized Amount	4,000,000	1,000,000
Net Investment Hedging [Member] | Currency Swap [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Deferred in OCI	13,000,000	(26,000,000)
Gain (Loss) Recognized Amount	4,000,000	1,000,000
Net Investment Hedging [Member] | Other Foreign Currency Denominated Debt [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Deferred in OCI	57,000,000	(68,000,000)
Not Designated as Hedging Instrument | Foreign currency contracts [Member] | Other Expense
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized Amount	$ 6,000,000	$ 4,000,000

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Financial Instruments, Hedging Activities and Fair Value Measurements (Assets and liabilities reported at fair value on a recurring basis) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Marketable equity securities [Member] | Other current assets [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 4	$ 4
Marketable equity securities [Member] | Other current assets [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Marketable equity securities [Member] | Other current assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Marketable equity securities [Member] | Investments [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	78	69
Marketable equity securities [Member] | Investments [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Marketable equity securities [Member] | Investments [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Foreign currency contracts [Member] | Other current assets [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Foreign currency contracts [Member] | Other current assets [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1	0
Foreign currency contracts [Member] | Other current assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Foreign currency contracts [Member] | Accounts payable and accrued liabilities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Foreign currency contracts [Member] | Accounts payable and accrued liabilities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	1	1
Foreign currency contracts [Member] | Accounts payable and accrued liabilities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Other current assets [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Other current assets [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	29	45
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Other current assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	15	9
Foreign currency contracts [Member] | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Cross currency swaps [Member] | Other assets [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Cross currency swaps [Member] | Other assets [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	48	35
Cross currency swaps [Member] | Other assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Interest Rate Swap [Member] | Other assets [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Interest Rate Swap [Member] | Other assets [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	18	8
Interest Rate Swap [Member] | Other assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 0	$ 0

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Stock-Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants under the PPG Omnibus Plan	7,400,000
Stock-based compensation expense	$ 9	$ 9
Total income tax benefit recognized related to the stock-based compensation	$ 2	$ 2
Stock options granted from the PPG Omnibus Plan	588,870	517,433
Stock options granted from the PPG Omnibus Plan, weighted average fair value per share (in usd per share)	$ 22.50	$ 25.38
Maximum term of the outstanding stock options for the PPG Omnibus Plan and the PPG Stock Plan for certain employees	10 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted	179,564	168,432
RSUs granted, weighted average fair value per share (in usd per share)	$ 103.35	$ 110.28
Award vesting period (in years)	3 years
Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted	51,850	49,278
RSUs granted, weighted average fair value per share (in usd per share)	$ 109.74	$ 116.32
Executive Officer Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognizing compensation costs (in years)	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable period	36 months

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Stock-Based Compensation (Weighted Average Assumptions Used in Calculating Fair Value of Stock Option) (Details)	3 Months Ended
	Mar. 31, 2019 $ / shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average exercise price (in usd per share)	$ 109.74
Risk free interest rate	2.60%
Expected life of option in years	6 years 6 months
Expected dividend yield	1.60%
Expected volatility	20.00%

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Commitments and Contingent Liabilities Asbestos Information (Details) $ in Millions	1 Months Ended
	May 14, 2002 shares	Mar. 31, 2019 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2008 USD ($)
Prepayment of future pre-tax cash payments to the trust			$ 764
Other Reserves		$ 180
Asbestos Issue [Member]
Loss Contingency, Pending Claims, Number		460
Other Reserves		$ 162
Pittsburgh Corning Corporation [Member] | Asbestos Issue [Member]
Settlement Payables Shares | shares	2,777,778
Insurance Settlements Receivable				$ 1,700
Settlement Prepayment Discount Rate	5.50%

XML

Commitments and Contingent Liabilities (Additional Information) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) Location	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2011 Location
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation charges	$ 10	$ 34
Reserves for environmental contingencies	266		$ 291
Reserves for environmental contingencies classified as current liabilities	109		105
Environmental remediation charge	16	34
Payments for Environmental Liabilities	16	$ 17
Guarantees	14
Outstanding letters of credit	143
Minimum
Commitments and Contingencies Disclosure [Line Items]
Unreserved loss contingencies related to environmental matters	100
Maximum
Commitments and Contingencies Disclosure [Line Items]
Unreserved loss contingencies related to environmental matters	200
Jersey City Manufacturing Plant [Member]
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation charges	26
Reserves for environmental contingencies	137		151
Legacy Glass and Chemical Sites [Member]
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation charges	8
Reserves for environmental contingencies	68		90
Other Environmental Contingencies [Member]
Commitments and Contingencies Disclosure [Line Items]
Reserves for environmental contingencies	$ 61		$ 50
Judicial Consent Order [Member]
Commitments and Contingencies Disclosure [Line Items]
Total number of sites to be remediated | Location	19			20
Excavation of Soil [Member]
Commitments and Contingencies Disclosure [Line Items]
Percentage of the total remaining reserve	19.00%
Soil Treatment, Transportation And Disposal Of Excavated Soil [Member]
Commitments and Contingencies Disclosure [Line Items]
Percentage of the total remaining reserve	17.00%
Construction Services (Related To Soil Excavation, Groundwater Management And Site Security) [Member]
Commitments and Contingencies Disclosure [Line Items]
Percentage of the total remaining reserve	31.00%

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Reportable Segment Information (Additional Information) (Details)	3 Months Ended
	Mar. 31, 2019 Segment
Segment Reporting [Abstract]
Number of Reportable Segments	2
Number of Operating Segments	9

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Reportable Segment Information (Segment Net Sales and Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	$ 3,624	$ 3,781
Segment income (loss)	515	519
Corporate	(45)	(43)
Interest expense, net of interest income	(25)	(21)
Legacy items	(2)	4
Business restructuring charge	3	0
Restructuring and related cost, accelerated depreciation	(6)	0
Costs associated with ongoing accounting investigations	(4)	0
Costs related to customer assortment change	0	(4)
Environmental remediation charges	(10)	(34)
Transaction-related (costs) gain, net	(7)	0
Income before income taxes	419	421
Performance Coatings [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	2,108	2,160
Segment income (loss)	297	280
Industrial Coatings [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	1,516	1,621
Segment income (loss)	$ 218	$ 239