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.