Revenue Recognition Revenue Recognition

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2020 and 2019, service revenue constituted approximately 5% of total revenue.

Net sales by segment and region for the three and nine months ended September 30, 2020 and 2019 were as follows:

	Three Months Ended September 30		Nine Months Ended September 30
($ in millions)	2020	2019	2020	2019
Performance Coatings
United States and Canada	$958	$1,060	$2,825	$3,123
Europe, Middle East and Africa ("EMEA")	789	732	2,140	2,213
Asia Pacific	274	278	728	804
Latin America	230	243	635	711
Total	$2,251	$2,313	$6,328	$6,851
Industrial Coatings
United States and Canada	$526	$605	$1,444	$1,841
EMEA	382	395	1,018	1,283
Asia Pacific	398	366	969	1,066
Latin America	128	147	318	433
Total	$1,434	$1,513	$3,749	$4,623
Total Net Sales
United States and Canada	$1,484	$1,665	$4,269	$4,964
EMEA	1,171	1,127	3,158	3,496
Asia Pacific	672	644	1,697	1,870
Latin America	358	390	953	1,144
Total PPG	$3,685	$3,826	$10,077	$11,474