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Reportable Segment Information
 9 Months Ended
Sep. 30, 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 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 and nine months ended September 30, 2019 and 2018 were as follows: 
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
($ in millions)
2019
 
2018
 
2019
 
2018
Net sales:
 
 
 
 
 
 
 
Performance Coatings

$2,313

 

$2,289

 

$6,851

 

$6,947

Industrial Coatings
1,513

 
1,528

 
4,623

 
4,782

Total

$3,826

 

$3,817

 

$11,474

 

$11,729

Segment income:
 
 
 
 
 
 
 
Performance Coatings

$380

 

$331

 

$1,102

 

$1,039

Industrial Coatings
206

 
169

 
659

 
631

Total

$586

 

$500

 

$1,761

 

$1,670

Corporate
(43
)
 
(26
)
 
(133
)
 
(92
)
Interest expense, net of interest income
(23
)
 
(25
)
 
(76
)

(70
)
Legacy items (a)
—

 
—

 
(1
)
 
5

Environmental remediation charges, net
(21
)
 
—

 
(61
)
 
(34
)
Business restructuring-related costs, net (b)
(18
)
 
8

 
(203
)
 
(80
)
Costs associated with accounting investigations
—

 
(2
)
 
(7
)
 
(11
)
Acquisition-related costs (c)
—

 
—

 
(17
)
 
—

Impairment of a non-manufacturing asset
—

 
—

 
—

 
(9
)
Legacy legal settlement
—

 
—

 
—

 
(10
)
Costs related to customer assortment changes
—

 
(4
)
 
—

 
(18
)
Income before income taxes

$481

 

$451

 

$1,263

 

$1,351

(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 environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio.
(b)
Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs.
(c)
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.