Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leases

PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment.

The components of lease expense for the year ended December 31, 2019 were as follows:

($ in millions)	Classification in the Consolidated Statement of Income	2019
Operating lease cost	Cost of sales, exclusive of depreciation and amortization		$34
Operating lease cost	Selling, general and administrative	198
Total operating lease cost			$232
Finance lease cost:
Amortization of right-of-use assets	Depreciation		$2
Interest on lease liabilities	Interest expense	1
Total finance lease cost			$3
Total lease cost			$235

Lease expense for operating leases was $289 million and $288 million in 2018 and 2017, respectively.

Total operating lease cost for the year ended December 31, 2019 is inclusive of the following:

($ in millions)	2019
Variable lease costs		$15
Short-term lease costs		$5

($ in millions)	Classification on the Consolidated Balance Sheet	2019
Assets:
Operating	Operating lease right-of-use assets		$782
Finance(a)	Property, plant, and equipment, net	17
Total leased assets			$799
Liabilities:
Current
Operating	Current portion of operating lease liabilities		$170
Finance	Short-term debt and current portion of long-term debt	3
Noncurrent
Operating	Operating lease liabilities		$622
Finance	Long-term debt	8
Total lease liabilities			$803

(a) Net of accumulated depreciation of $11 million.

($ in millions)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases		$210
Operating cash flows paid for finance leases		$1
Financing cash flows paid for finance leases		$4
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$219
Finance leases		$1

	2019
Weighted-average remaining lease term (in years)
Operating leases	7.4
Finance leases	6.2
Weighted-average discount rate
Operating leases	3.0	%
Finance leases	9.4	%

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

($ in millions)	Operating Leases		Finance Leases
2020		$191		$3
2021	150		2
2022	118		2
2023	92		2
2024	72		1
Thereafter	266		3
Total lease payments		$889		$13
Less: Interest	97		2
Total lease obligations		$792		$11

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

PPG adopted ASU 2016-02 using a retrospective adoption method at January 1, 2019 as noted in Note 1, "Summary of Significant Accounting Policies." 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