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Financial Instruments, Hedging Activities and Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value, Cash Flow and Net Investment Hedges
The following table summarizes the location within the consolidated financial statements and amount of gains/(losses) related to derivative and debt financial instruments for the years ended December 31, 2020, 2019 and 2018. All dollar amounts are shown on a pretax basis.
202020192018Caption in Consolidated Statement of Income
($ in millions)Loss Deferred in AOCLGain RecognizedGain Deferred in AOCLGain/(Loss) Recognized(Loss)/Gain Deferred in AOCLGain/(Loss) Recognized
Fair Value
Interest rate Swaps$12 $3 $3 Interest expense
Total Fair Value$12 $3 $3 
Cash Flow
Foreign currency forward contracts $— $— $2 ($3)($9)($8)Other charges and Cost of sales
Total Cash Flow$— $— $2 ($3)($9)($8)
Net Investment       
Cross currency swaps($57)$16 $13 $18 $21 $13 Interest expense
Foreign denominated debt(200)— 61 — 124 — 
Total Net Investment($257)$16 $74 $18 $145 $13 
Economic   
Foreign currency forward contracts$30 $55 $55 Other charges
Schedule of Derivative Liabilities at Fair Value
Assets and liabilities reported at fair value on a recurring basis
December 31, 2020December 31, 2019
($ in millions)Level 1Level 2Level 3Level 1Level 2Level 3
Assets:
Other current assets:   
Marketable equity securities$6 $— $— $5 $— $— 
Foreign currency forward contracts(a)
— 8 — — 14 — 
Other assets:
Cross currency swaps(b)
$— $13 $— $— $52 $— 
Interest rate swaps(c)
— 67 — — 35 — 
Investments:   
Marketable equity securities$97 $— $— $80 $— $— 
Liabilities:
Accounts payable and accrued liabilities:   
Foreign currency forward contracts(a)
$— $6 $— $— $20 $— 
Cross currency swaps(b)
— 8 — — — — 
Foreign currency forward contracts(d)
— — — — 1 — 
Other liabilities:   
Cross currency swap(b)
$— $13 $— $— $4 $— 
Schedule of Long-term Debt Instruments
Long-term Debt Obligations
($ in millions)Maturity Date20202019
3.6% notes ($500)2020— 499 
9% non-callable debentures ($134)(1)
2021134 134 
0.875% notes (€600)2022732 671 
3.2% notes ($300)(2)
2023299 298 
2.4% notes ($300)2024298 297 
0.875% note (€600)2025727 665 
1.4% notes (€600)2027726 665 
3.75% notes ($800)(3)
2028813 695 
2.5% note (€80)202994 88 
2.8% notes ($300)2029299 297 
2.55% notes ($300)2030296 — 
7.70% notes ($176)2038174 174 
5.5% notes ($250)2040247 247 
3% note (€120)2044139 127 
Commercial paperVarious250 100 
Various other non-U.S. debt(4)
Various38 38 
Finance lease obligationsVarious12 11 
Impact of derivatives on debt(1)(5)
N/A68 36 
Total$5,346 $5,042 
Less payments due within one yearN/A175 503 
Long-term debt$5,171 $4,539 
(1)PPG entered into several interest rate swaps, which were subsequently settled in prior periods. The impact of these settlements are being amortized over the remaining life of the debentures as a reduction to interest expense. The weighted average interest rate for these borrowings was 8.4% for the years ended December 31, 2020 and 2019.
(2)In February 2018, PPG entered into interest rate swaps which converted $150 million of the notes from a fixed interest rate to a floating interest rate based on the three month London Interbank Offered Rate (LIBOR). The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 1.2% and 2.9% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information.
(3)In February 2018, PPG entered into interest rate swaps which converted $375 million of the notes from a fixed interest rate to a floating interest rate based on the three month LIBOR. The impact of the derivative on the notes represents the fair value adjustment of the debt. The average effective interest rate for the portion of the notes impacted by the swaps was 1.6% and 3.3% as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information.
(4)Weighted average interest rate of 3.8% and 3.7% as of December 31, 2020 and 2019, respectively.
(5)Fair value adjustment of the 3.2% $300 million notes and 3.75% $700 million notes as a result of fair value hedge accounting treatment related to the outstanding interest rate swaps as of December 31, 2020 and 2019, respectively. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information.
Long-Term Debt
($ in millions)
December 31, 2020(a)
December 31, 2019(b)
Long-term debt - carrying value$5,296$5,031
Long-term debt - fair value$5,875$5,363
(a)    Excluding finance lease obligations of $12 million and short term borrowings of $403 million as of December 31, 2020.
(b)    Excluding finance lease obligations of $11 million and short term borrowings of $10 million as of December 31, 2019.