XML 36 R24.htm IDEA: XBRL DOCUMENT v3.20.2
Reportable Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Reportable Segment Information Reportable Business 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 business 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 business 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 business segment is comprised of the automotive OEM coatings, industrial coatings, packaging coatings, and the specialty coatings and materials operating segments. This reportable business 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 business segment net sales and segment income for the three and six months ended June 30, 2020 and 2019 were as follows: 
Three Months Ended
June 30		Six Months Ended
June 30
($ in millions)2020201920202019
Net sales:
Performance Coatings$2,069  $2,430  $4,077  $4,538  
Industrial Coatings946  1,594  2,315  3,110  
Total $3,015  $4,024  $6,392  $7,648  
Segment income:
Performance Coatings$362  $425  $634  $722  
Industrial Coatings34  235  215  453  
Total$396  $660  $849  $1,175  
Corporate(50) (44) (110) (91) 
Interest expense, net of interest income(36) (28) (59) (53) 
Business restructuring-related costs, net (a)
(173) (182) (186) (185) 
Debt extinguishment charge(7) —  (7) —  
Environmental remediation charges(4) (30) (12) (40) 
Increase in allowance for doubtful accounts related to COVID-19—  —  (30) —  
Costs associated with accounting investigations—  (3) —  (7) 
Acquisition-related costs (b)
—  (10) —  (17) 
Income before income taxes$126  $363  $445  $782  
(a)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.
(b)Acquisition-related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the condensed consolidated statement of income. Acquisition-related costs also include the impact for the step up to fair value of inventory acquired in certain acquisitions which are included in Cost of Sales, exclusive of depreciation and amortization in the condensed consolidated statement of income.