Revenue Recognition Revenue Recognition

3 Months Ended

Mar. 31, 2019

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