Revenue Recognition Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue Disclosure [Abstract]

Revenue Recognition

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, 2020 and 2019, service revenue constituted approximately 5% of total revenue.

Net sales by segment and region for the three months ended March 31, 2020 and 2019 were as follows:

	Performance Coatings		Industrial Coatings		Total Net Sales
	Three Months Ended March 31		Three Months Ended March 31		Three Months Ended March 31
($ in millions)	2020	2019	2020	2019	2020	2019
United States and Canada	$927	$953	$582	$613	$1,509	$1,566
Europe, Middle East and Africa ("EMEA")	665	688	396	426	1,061	1,114
Asia Pacific	199	243	260	340	459	583
Latin America	217	224	131	137	348	361
Total	$2,008	$2,108	$1,369	$1,516	$3,377	$3,624