Cover
Cover | 6 Months Ended |
Jun. 30, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2020 |
Document Transition Report | false |
Entity File Number | 1-1687 |
Entity Registrant Name | PPG INDUSTRIES INC |
Entity Tax Identification Number | 25-0730780 |
Entity Incorporation, State or Country Code | PA |
Entity Address, Address Line One | One PPG Place |
Entity Address, City or Town | Pittsburgh |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 15272 |
City Area Code | 412 |
Local Phone Number | 434-3131 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 235,977,363 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000079879 |
Current Fiscal Year End Date | --12-31 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $1.66 2/3 |
Trading Symbol | PPG |
Security Exchange Name | NYSE |
0.875% Notes Due 2022 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2022 |
Trading Symbol | PPG 22 |
Security Exchange Name | NYSE |
0.875% Notes Due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2025 |
Trading Symbol | PPG 25 |
Security Exchange Name | NYSE |
1.400% Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.400% Notes due 2027 |
Trading Symbol | PPG 27 |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,015 | $ 4,024 | $ 6,392 | $ 7,648 |
Cost of sales, exclusive of depreciation and amortization | 1,703 | 2,288 | 3,611 | 4,361 |
Selling, general and administrative | 766 | 934 | 1,671 | 1,823 |
Depreciation | 91 | 91 | 184 | 177 |
Amortization | 32 | 35 | 68 | 67 |
Research and development, net | 86 | 111 | 187 | 216 |
Interest expense | 41 | 35 | 73 | 66 |
Interest income | (5) | (7) | (14) | (13) |
Business restructuring, net | 165 | 176 | 172 | 173 |
Other charges | 21 | 29 | 24 | 43 |
Other income | (11) | (31) | (29) | (47) |
Income before income taxes | 126 | 363 | 445 | 782 |
Income tax expense | 29 | 86 | 100 | 188 |
Income from continuing operations | 97 | 277 | 345 | 594 |
Income from discontinued operations, net of tax | 3 | 2 | 3 | 2 |
Net income attributable to controlling and noncontrolling interests | 100 | 279 | 348 | 596 |
Net loss/(income) attributable to noncontrolling interests | (2) | 7 | 3 | 12 |
Net income (attributable to PPG) | 102 | 272 | 345 | 584 |
Income from continuing operations, net of tax | 99 | 270 | 342 | 582 |
Income from discontinued operations, net of tax | $ 3 | $ 2 | $ 3 | $ 2 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.42 | $ 1.14 | $ 1.45 | $ 2.46 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0.01 | 0.01 | 0.01 | 0.01 |
Earnings Per Share, Basic | 0.43 | 1.15 | 1.46 | 2.47 |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.42 | 1.13 | 1.44 | 2.44 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0.01 | 0.01 | 0.01 | 0.01 |
Earnings Per Share, Diluted | $ 0.43 | $ 1.14 | $ 1.45 | $ 2.45 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to controlling and noncontrolling interests | $ 100 | $ 279 | $ 348 | $ 596 |
Other comprehensive income/(loss), net of tax: | ||||
Defined benefit pension and other postretirement benefits | 5 | 12 | 6 | 6 |
Unrealized foreign currency translation adjustments | 117 | (15) | (589) | 66 |
Derivative financial instruments | (3) | (1) | 0 | (1) |
Other comprehensive income/(loss), net of tax | 119 | (4) | (583) | 71 |
Total comprehensive income/(loss) | 219 | 275 | (235) | 667 |
Less: amounts attributable to noncontrolling interests: | ||||
Net loss/(income) | 2 | (7) | (3) | (12) |
Unrealized foreign currency translation adjustments | (2) | (2) | 8 | (1) |
Comprehensive income/(loss) attributable to PPG | $ 219 | $ 266 | $ (230) | $ 654 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 2,252 | $ 1,216 |
Short-term investments | 45 | 57 |
Receivables, net | 2,673 | 2,756 |
Inventories | 1,706 | 1,710 |
Other current assets | 401 | 431 |
Total current assets | 7,077 | 6,170 |
Property, plant and equipment (net of accumulated depreciation of $4,176 and $4,082) | 2,865 | 2,983 |
Goodwill | 4,307 | 4,470 |
Identifiable intangible assets, net | 1,916 | 2,131 |
Deferred income taxes | 188 | 220 |
Investments | 251 | 258 |
Operating Lease, Right-of-Use Asset | 826 | 782 |
Other assets | 740 | 694 |
Total | 18,170 | 17,708 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 3,055 | 3,496 |
Restructuring reserves | 320 | 196 |
Short-term debt and current portion of long-term debt | 1,688 | 513 |
Operating Lease, Liability, Current | 171 | 170 |
Total current liabilities | 5,234 | 4,375 |
Long-term debt | 4,613 | 4,539 |
Operating Lease, Liability, Noncurrent | 669 | 622 |
Accrued pensions | 727 | 745 |
Other postretirement benefits | 656 | 661 |
Deferred income taxes | 397 | 452 |
Other liabilities | 936 | 911 |
Total liabilities | 13,232 | 12,305 |
Shareholders’ equity: | ||
Common stock | 969 | 969 |
Additional paid-in capital | 962 | 950 |
Retained earnings | 19,010 | 18,906 |
Treasury stock, at cost | (13,184) | (13,191) |
Accumulated other comprehensive loss | (2,925) | (2,350) |
Total PPG shareholders’ equity | 4,832 | 5,284 |
Noncontrolling interests | 106 | 119 |
Total shareholders’ equity | 4,938 | 5,403 |
Total | $ 18,170 | $ 17,708 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Property, accumulated depreciation | $ 4,176 | $ 4,082 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) Statement - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss)/Income | Total PPG | Non-controlling Interests |
Beginning balance at Dec. 31, 2018 | $ 4,732 | $ 969 | $ 788 | $ 18,131 | $ (12,958) | $ (2,300) | $ 4,630 | $ 102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 317 | 312 | 312 | 5 | ||||
Other comprehensive loss, net of tax | 75 | 76 | 76 | (1) | ||||
Cash dividends | (113) | (113) | (113) | |||||
Purchase of treasury stock | (175) | (175) | (175) | |||||
Issuance of treasury stock | 184 | 121 | 63 | 184 | ||||
Stock-based compensation activity | (10) | (10) | (10) | |||||
Ending balance at Mar. 31, 2019 | 5,010 | 969 | 899 | 18,330 | (13,070) | (2,224) | 4,904 | 106 |
Beginning balance at Dec. 31, 2018 | 4,732 | 969 | 788 | 18,131 | (12,958) | (2,300) | 4,630 | 102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 596 | |||||||
Other comprehensive loss, net of tax | 71 | |||||||
Ending balance at Jun. 30, 2019 | 5,187 | 969 | 913 | 18,488 | (13,061) | (2,230) | 5,079 | 108 |
Beginning balance at Mar. 31, 2019 | 5,010 | 969 | 899 | 18,330 | (13,070) | (2,224) | 4,904 | 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 279 | 272 | 272 | 7 | ||||
Other comprehensive loss, net of tax | (4) | (6) | (6) | 2 | ||||
Cash dividends | (114) | (114) | (114) | |||||
Issuance of treasury stock | 16 | 7 | 9 | 16 | ||||
Stock-based compensation activity | 7 | 7 | 7 | |||||
Ending balance at Jun. 30, 2019 | 5,187 | 969 | 913 | 18,488 | (13,061) | (2,230) | 5,079 | 108 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends paid on subsidiary common stock to noncontrolling interests | (5) | (5) | ||||||
Reductions in noncontrolling interests | (2) | (2) | ||||||
Beginning balance at Dec. 31, 2019 | 5,403 | 969 | 950 | 18,906 | (13,191) | (2,350) | 5,284 | 119 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 248 | 243 | 243 | 5 | ||||
Other comprehensive loss, net of tax | (702) | (692) | (692) | (10) | ||||
Cash dividends | (120) | (120) | (120) | |||||
Issuance of treasury stock | 16 | 12 | 4 | 16 | ||||
Stock-based compensation activity | (8) | (8) | (8) | |||||
Ending balance at Mar. 31, 2020 | 4,837 | 969 | 954 | 19,029 | (13,187) | (3,042) | 4,723 | 114 |
Beginning balance at Dec. 31, 2019 | 5,403 | 969 | 950 | 18,906 | (13,191) | (2,350) | 5,284 | 119 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 348 | |||||||
Other comprehensive loss, net of tax | (583) | |||||||
Ending balance at Jun. 30, 2020 | 4,938 | 969 | 962 | 19,010 | (13,184) | (2,925) | 4,832 | 106 |
Beginning balance at Mar. 31, 2020 | 4,837 | 969 | 954 | 19,029 | (13,187) | (3,042) | 4,723 | 114 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to the controlling and noncontrolling interests | 100 | 102 | 102 | (2) | ||||
Other comprehensive loss, net of tax | 119 | 117 | 117 | 2 | ||||
Cash dividends | (121) | (121) | (121) | |||||
Issuance of treasury stock | 5 | 2 | 3 | 5 | ||||
Stock-based compensation activity | 6 | 6 | 6 | |||||
Ending balance at Jun. 30, 2020 | 4,938 | $ 969 | $ 962 | $ 19,010 | $ (13,184) | $ (2,925) | $ 4,832 | 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends paid on subsidiary common stock to noncontrolling interests | (3) | (3) | ||||||
Reductions in noncontrolling interests | $ (5) | $ (5) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities: | ||
Net income attributable to the controlling and noncontrolling interests | $ 348 | $ 596 |
Less: Income from discontinued operations | (3) | (2) |
Income from continuing operations | 345 | 594 |
Adjustments to reconcile net income to cash from operations: | ||
Depreciation and amortization | 252 | 244 |
Pension expense | 20 | 25 |
Debt extinguishment charge | 7 | 0 |
Environmental remediation charges | 12 | 40 |
Business restructuring, net | 172 | 173 |
Stock-based compensation expense | 15 | 19 |
Equity affiliate income, net of dividends | (4) | (6) |
Deferred income taxes | (8) | (7) |
Cash contributions to pension plans | (5) | (6) |
Cash used for restructuring actions | (34) | (23) |
Change in certain asset and liability accounts (net of acquisitions): | ||
Receivables | 92 | (431) |
Inventories | (29) | (97) |
Other current assets | 18 | (70) |
Accounts payable and accrued liabilities | (347) | 60 |
Taxes and interest payable | (58) | (21) |
Noncurrent assets and liabilities, net | 5 | (10) |
Other | (140) | (10) |
Cash from operating activities - continuing operations | 321 | 486 |
Cash from/(used for) operating activities - discontinued operations | 1 | (4) |
Cash from operating activities | 322 | 482 |
Investing activities: | ||
Capital expenditures | (92) | (133) |
Business acquisitions, net of cash balances acquired | (45) | (361) |
Payments for the settlement of cross currency swap contracts | (3) | (6) |
Proceeds from the settlement of cross currency swap contracts | 12 | 19 |
Other | 17 | 24 |
Cash used for investing activities | (111) | (457) |
Financing activities: | ||
Net change in borrowing with maturities of three months or less | (7) | 6 |
Proceeds on commercial paper and short-term debt, net of payments | 1,434 | 470 |
Proceeds from revolving credit facility | 800 | 0 |
Repayments of Lines of Credit | (800) | 0 |
Proceeds from the issuance of debt, net of discounts and fees | 296 | 0 |
Repayment of long-term debt | (506) | (2) |
Repayment of acquired debt | 9 | 23 |
Purchase of treasury stock | 0 | (175) |
Issuance of treasury stock | 6 | 22 |
Payments related to tax withholding on stock-based compensation awards | (8) | (12) |
Dividends paid on PPG common stock | (241) | (227) |
Other | (38) | (27) |
Cash from financing activities | 927 | 32 |
Effect of currency exchange rate changes on cash and cash equivalents | (102) | 4 |
Net increase in cash and cash equivalents | 1,036 | 61 |
Cash and cash equivalents, beginning of period | 1,216 | 902 |
Cash and cash equivalents, end of period | 2,252 | 963 |
Interest paid, net of amount capitalized | 82 | 68 |
Taxes paid, net of refunds | $ 187 | $ 194 |
Reissuance of common stock for business acquisition | 0 | 164 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the financial position and shareholders' equity of PPG as of June 30, 2020, and the results of its operations and cash flows for the three and six months ended June 30, 2020 and 2019. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2019 Annual Report on Form 10-K (the "2019 Form 10-K"). Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three and six months ended June 30, 2020 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Adopted in 2020 Effective January 1, 2020, PPG adopted Accounting Standards Update (“ASU”) No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable information. Organizations will now use forward-looking information to better estimate their credit losses. PPG adopted this ASU using a modified retrospective approach. Under this method of adoption, PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. Adoption of this standard did not impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 3, “Allowance for Credit Losses” for further details. Effective January 1, 2020, PPG adopted ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). PPG adopted this ASU prospectively. Under this method of adoption, PPG determined there was not a material impact to the condensed consolidated balance sheet, Income before income taxes or the condensed consolidated statement of cash flows. Accounting Standards to be Adopted in Future Years In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform." This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in this ASU are effective through December 31, 2022. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." This ASU is intended to simplify various aspects related to accounting for income taxes by eliminating certain exceptions within Accounting Standards Codification Topic 740, "Income Taxes" and clarifies certain aspects of the current accounting guidance. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for credit losses and any charge offs. PPG provides an allowance for credit losses to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers, and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks. PPG reviews its reserves for credit losses on a quarterly basis to ensure its reserves for credit losses reflect regional risk trends as well as current and future global operating conditions. In March 2020, PPG recorded estimated future credit losses for trade receivables of $30 million related to the potential financial impacts of the COVID-19 pandemic. These amounts were estimated based on regional business information, including certain forward-looking information and other considerations. PPG will monitor the adequacy of this reserve as new information becomes available. The following table summarizes the activity for the allowance for credit losses for the six months ended June 30, 2020: ($ in millions) Trade Receivables Allowance for Credit Losses January 1, 2020 $22 Current-period provision for credit losses (a) 39 Trade receivables written off as uncollectible, net of recoveries (8) Foreign currency impact (1) June 30, 2020 $52 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On March 2, 2020, PPG completed the acquisition of Alpha Coating Technologies, LLC, a manufacturer of powder coatings for light industrial applications and heat sensitive substrates. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable business segment. On January 31, 2020, PPG completed the acquisition of Industria Chimica Reggiana S.p.A ("ICR"), an Italian manufacturer of automotive refinish products. The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the automotive refinish coatings business within the Performance Coatings reportable business segment. On April 16, 2019, PPG completed the acquisition of Hemmelrath, a global manufacturer of coatings for automotive original equipment manufacturers ("OEMs"). The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the automotive OEM coatings business within the Industrial Coatings reportable business segment. On March 1, 2019, PPG completed the acquisition of Whitford Worldwide Company ("Whitford"), a global manufacturer that specializes in low-friction and nonstick coatings for industrial applications and consumer products. Whitford operates 10 manufacturing facilities globally. The pro-forma impact on PPG's sales and results of operations, including the proforma effect of events that are directly attributable to the acquisition, was not significant. The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable business segment. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories ($ in millions) June 30, 2020 December 31, 2019 Finished products $1,012 $1,047 Work in process 192 197 Raw materials 466 431 Supplies 36 35 Total Inventories $1,706 $1,710 Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 35% and 34% of total inventories at June 30, 2020 and December 31, 2019, respectively. If the first-in, first-out method of inventory valuation had been used, inventories would have been $119 million and $124 million higher as of June 30, 2020 and December 31, 2019, respectively. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The Company tests indefinite-lived intangible assets and goodwill for impairment by either performing a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount. During the second quarter, the Company evaluated the effects of the COVID-19 pandemic and its negative impact on the global economy on each of the Company’s reporting units and indefinite-lived intangible assets. Management reviewed key assumptions, including revisions of projected future revenues for reporting units and the results of the previous annual impairment testing performed during the fourth quarter of 2019. The Company did not identify an indication of impairment for each of its reporting units and indefinite-lived intangible assets. Although it was determined that a triggering event had not occurred as of June 30, 2020, we will continue to monitor the impacts of the COVID-19 pandemic on the Company and significant changes in key assumptions that could result in future period impairment charges. The change in the carrying amount of goodwill attributable to each reportable segment for the six months ended June 30, 2020 was as follows: ($ in millions) Performance Industrial Total January 1, 2020 $3,442 $1,028 $4,470 Acquisitions, including purchase accounting adjustments 4 16 20 Foreign currency impact (164) (19) (183) June 30, 2020 $3,282 $1,025 $4,307 A summary of the carrying value of the Company's identifiable intangible assets is as follows: June 30, 2020 December 31, 2019 ($ in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,034 N/A $1,034 $1,167 N/A $1,167 Definite-Lived Identifiable Intangible Assets Acquired technology $712 ($560) $152 $710 ($549) $161 Customer-related 1,527 (899) 628 1,578 (885) 693 Trade names 208 (114) 94 210 (111) 99 Other 48 (40) 8 51 (40) 11 Total Definite Lived Intangible Assets $2,495 ($1,613) $882 $2,549 ($1,585) $964 Total Identifiable Intangible Assets $3,529 ($1,613) $1,916 $3,716 ($1,585) $2,131 The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives. As of June 30, 2020, estimated future amortization expense of identifiable intangible assets is as follows: ($ in millions) Future Amortization Expense Remaining six months of 2020 $65 2021 $125 2022 $125 2023 $110 2024 $90 2025 $85 Thereafter $282 |
Business Restructuring
Business Restructuring | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Business Restructuring | Business Restructuring The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company will also incur incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected asset life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 17 Reportable Business Segment Information for additional information. 2020 Restructuring Program In June 2020, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program addresses weakened global economic conditions stemming from the COVID-19 pandemic and related pace of recovery in a few end-use markets along with further opportunities to optimize supply chain and functional costs. The plan includes a voluntary separation program that was offered in the U.S. and Canada. A pretax restructuring charge of $176 million was recorded in PPG's second quarter 2020 financial results. This charge represents employee severance and other cash costs. The majority of restructuring actions are expected to be completed by the end of 2020 with the remainder of the actions expected to be completed in 2021. 2019 and 2018 Restructuring Programs As a result of the COVID-19 pandemic, the Company expects delays in the timing of certain previously recorded restructuring actions. Program completion dates may differ from the originally targeted timeline, as noted below. In June 2019, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program is the result of a comprehensive internal operational assessment to identify further opportunities to improve the profitability of the overall business portfolio. This program includes further manufacturing optimization; targeted pruning of low-profit business in certain regions; exiting certain smaller product lines that are not meeting profitability objectives; reorganization of certain business unit cost structures based on the current economic climate; and certain redundancy actions related to recent acquisitions. The majority of restructuring actions are now expected to be completed by the end of the fourth quarter 2020 with the remainder of the actions expected to be completed in 2022. In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee headcount and production capacity in certain businesses based on product demand, as well as reductions in various global functional and administrative costs. The majority of restructuring actions are now expected to be completed by the end of the third quarter of 2020. The following table summarizes the reserve activity for the six months ended June 30, 2020 and 2019: Total Reserve ($ in millions) 2020 2019 January 1 $224 $110 Approved restructuring actions (a) 198 184 Release of prior reserves (26) (11) Cash payments (34) (23) Foreign currency impact (2) 1 June 30 $360 $261 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings In June 2020, PPG completed an early redemption of the $500 million 3.6% notes due November 2020 using proceeds from the May 2020 public offering and cash on hand. The Company recorded a charge of $7 million in the second quarter for the debt redemption which consists of the aggregate make-whole cash premium of $6 million and a balance of unamortized fees and discounts of $1 million related to the debt redeemed. In May 2020, PPG completed a public offering of $300 million aggregate principal amount of 2.55% notes due 2030. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "Indenture"). The Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase the notes upon a Change of Control Triggering Event (as defined in the Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $296 million. In April 2020, PPG entered into a $1.5 billion 364-Day Term Loan Credit Agreement (the “Term Loan”). The Term Loan contains covenants that are consistent with those in the Credit Agreement and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan terminates and all amounts outstanding are payable on April 13, 2021. In August 2019, PPG amended and restated its five The Term Loan and Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan and Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of June 30, 2020, Total Indebtedness to Total Capitalization as defined under the Credit Agreement and Term Loan was 53%. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (number of shares in millions) 2020 2019 2020 2019 Weighted average common shares outstanding 236.6 236.9 236.6 236.8 Effect of dilutive securities: Stock options 0.3 0.7 0.4 0.7 Other stock compensation plans 0.7 0.7 0.6 0.6 Potentially dilutive common shares 1.0 1.4 1.0 1.3 Adjusted weighted average common shares outstanding 237.6 238.3 237.6 238.1 Dividends per common share $0.51 $0.48 $1.02 $0.96 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Six Months Ended 2020 2019 Effective tax rate on pretax income 22.5 % 24.0 % The effective tax rate of 22.5% for the six months ended June 30, 2020 reflects a benefit of $14 million of discrete items associated with PPG's U.S. and foreign jurisdictions. Income tax expense for the first six months of 2020 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss. Income tax expense for the six months ended June 30, 2019 reflects $3 million for discrete items associated with PPG's U.S. and foreign locations and implementation of updated regulations associated with the 2017 Tax Cuts and Jobs Act for Global Intangible Low Taxed Income. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits Service cost for net periodic pension and other postretirement benefit costs is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statements of income. All other components of net periodic benefit cost are recorded in Other charges in the accompanying condensed consolidated statements of income. The net periodic pension and other postretirement benefit costs for the three and six months ended June 30, 2020 and 2019 were as follows: Pension Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Service cost $6 $5 $12 $11 Interest cost 21 27 43 53 Expected return on plan assets (36) (35) (72) (70) Amortization of actuarial losses 18 16 36 31 Curtailments 1 — 1 — Net periodic benefit cost $10 $13 $20 $25 Other Postretirement Benefits Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Service cost $3 $2 $5 $4 Interest cost 5 7 10 13 Amortization of actuarial losses 4 2 8 4 Amortization of prior service credit (15) (15) (30) (29) Net periodic benefit cost ($3) ($4) ($7) ($8) PPG expects its 2020 net periodic pension and other postretirement benefit cost will be approximately $25 million, with pension expense representing approximately $40 million and other postretirement benefit cost representing a benefit of approximately $15 million. Contributions to Defined Benefit Pension Plans Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Non-U.S. defined benefit pension mandatory contributions $3 $3 $5 $6 PPG expects to make mandatory contributions to its non-U.S. pension plans in the range of $5 million to $10 million during the remaining six months of 2020. PPG may make voluntary contributions to its defined benefit pension plans in 2020 and beyond. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | ($ in millions) Unrealized Foreign Currency Translation Adjustments Pension and Other Postretirement Benefit Adjustments, net of tax (c) Unrealized Gain on Derivatives, net of tax Accumulated Other Comprehensive Loss January 1, 2020 ($1,627) ($724) $1 ($2,350) Current year deferrals to AOCI (a) (600) — — (600) Current year deferrals to AOCI, net of tax (b) 19 (5) — 14 Reclassifications from AOCI to net income — 11 — 11 Period change ($581) $6 $— ($575) June 30, 2020 ($2,208) ($718) $1 ($2,925) January 1, 2019 ($1,734) ($568) $2 ($2,300) Current year deferrals to AOCI (a) 44 — — 44 Current year deferrals to AOCI, net of tax (b) 21 (1) (2) 18 Reclassifications from AOCI to net income — 7 1 8 Period change $65 $6 ($1) $70 June 30, 2019 ($1,669) ($562) $1 ($2,230) (a) Except for income taxes of $8 million and $9 million as of June 30, 2020 and 2019, respectively, related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time. (b) The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges as of June 30, 2020 and 2019 was $5 million and $7 million, respectively. (c) The tax cost related to the adjustment for pension and other postretirement benefits as of June 30, 2020 and 2019 was $3 million and $2 million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 11, "Pensions and Other Postretirement Benefits"). |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments, Hedging Activities and Fair Value Measurements | Financial Instruments, Hedging Activities and Fair Value Measurements Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at June 30, 2020 and December 31, 2019, in the aggregate, except for long-term debt instruments. Hedging Activities The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge a portion of these underlying economic exposures. Certain of these instruments qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred. PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the three and six month periods ended June 30, 2020 and 2019. All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement. There were no derivative instruments de-designated or discontinued as hedging instruments during the three and six month periods ended June 30, 2020 and 2019 and there were no gains or losses deferred in Accumulated other comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated statement of income in the six month periods ended June 30, 2020 and 2019 related to hedges of anticipated transactions that were no longer expected to occur. Fair Value Hedges The Company uses interest rate swaps from time to time to manage its exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value. PPG has interest rate swaps which converted $525 million of fixed rate debt to variable rate debt. These swaps are designated as fair value hedges and are carried at fair value. Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in interest expense in the accompanying condensed consolidated statement of income. The fair value of these interest rate swaps was $78 million and $35 million at June 30, 2020 and December 31, 2019, respectively. Cash Flow Hedges PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. There were no outstanding cash flow hedges at June 30, 2020. The underlying notional amounts relating to foreign currency forward contracts were $43 million at December 31, 2019. As of December 31, 2019, the fair value of all foreign currency forward contracts designated as cash flow hedges was a liability of $1 million. Net Investment Hedges PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a significant portion of its net investment in its European operations, as follows: As of June 30, 2020 and December 31, 2019, PPG had U.S. dollar to euro cross currency swap contracts with a total notional amount of $875 million and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payment in U.S. dollars and make payments in euros to the counterparties. As of June 30, 2020 and December 31, 2019, the fair value of the U.S. dollar to euro cross currency swap contracts was an asset of $73 million and a net asset of $48 million, respectively. As of June 30, 2020 and December 31, 2019, PPG had designated €2.0 billion of euro-denominated borrowings as hedges of a portion of its net investment in the Company's European operations. The carrying value of these instruments as of June 30, 2020 and December 31, 2019 was $2.2 billion for both periods. Other Financial Instruments PPG uses foreign currency forward contracts to manage net transaction exposures that do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other charges in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $1.3 billion and $2.8 billion at June 30, 2020 and December 31, 2019, respectively. As of June 30, 2020 and December 31, 2019 the fair value of these contracts was a net asset and a net liability of $7 million and $6 million, respectively. Gains/Losses Deferred in Accumulated Other Comprehensive Loss As of June 30, 2020, the Company had accumulated pretax unrealized translation gains in Accumulated other comprehensive loss on the condensed consolidated balance sheet related to the euro-denominated borrowings, foreign currency forward contracts and the cross currency swaps of $256 million . As of December 31, 2019, the Company had accumulated pretax unrealized translation gains of $235 million. The following table summarizes the location within the condensed consolidated financial statements and amount of gains/(losses) related to derivative and debt financial instruments for the six months ended June 30, 2020 and 2019. All dollar amounts are shown on a pretax basis. June 30, 2020 June 30, 2019 ($ in millions) (Loss)Gain Deferred in OCI Gain Recognized (Loss)Gain Deferred in OCI Gain/(Loss) Recognized Caption In Condensed Consolidated Statement of Income Economic Foreign currency forward contracts $— $26 $— $32 Other charges Fair Value Interest rate swaps — 5 — 1 Interest expense Cash Flow Foreign currency forward contracts — — (3) (4) Other charges and Cost of sales Total Cash Flow $— $31 ($3) $29 Net Investment Cross currency swaps ($4) $9 $6 $8 Interest expense Foreign denominated debt 25 — 22 — Total Net Investment $21 $9 $28 $8 Fair Value Measurements The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of June 30, 2020 and December 31, 2019, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 13, "Employee Benefit Plans" under Item 8 in the 2019 Form 10-K for further details). The Company's financial assets and liabilities are measured using inputs from the following three levels: Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges. Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments' contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves. Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company does not have any recurring financial assets or liabilities that are recorded in its condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019 that are classified as Level 3 inputs. Assets and liabilities reported at fair value on a recurring basis: June 30, 2020 December 31, 2019 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $5 $— $— $5 $— $— Foreign currency forward contracts (a) — 15 — — 14 — Investments: Marketable equity securities $83 $— $— $80 $— $— Other assets: Cross currency swaps (b) $— $73 $— $— $52 $— Interest rate swaps (c) — 78 — — 35 — Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (d) $— $— $— $— $1 $— Foreign currency forward contracts (a) — 8 — — 20 — Other liabilities: Cross currency swap (b) $— $— $— $— $4 $— (a) Derivatives not designated as hedging instruments (c) Fair value hedges (b) Net investment hedges (d) Cash flow hedges Long-Term Debt ($ in millions) June 30, 2020 (a) December 31, 2019 (b) Long-term debt - carrying value $4,776 $5,031 Long-term debt - fair value $5,221 $5,363 (a) Excluding finance lease obligations of $8 million and short-term borrowings of $1.5 billion as of June 30, 2020. (b) Excluding finance lease obligations of $11 million and short-term borrowings of $10 million as of December 31, 2019. The fair values of the debt instruments were based on discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities and were measured using level 2 inputs. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016. Shares available for future grants under the PPG Amended Omnibus Plan were 6.4 million as of June 30, 2020. Stock-based compensation and the income tax benefit recognized during the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Stock-based compensation $8 $10 $15 $19 Income tax benefit recognized $2 $2 $4 $4 Grants of stock-based compensation during the six months ended June 30, 2020 and 2019 were as follows: Six Months Ended 2020 2019 Grant Details Shares Fair Value Shares Fair Value Stock options 663,485 $21.93 588,870 $22.50 Restricted stock units 203,239 $110.00 208,602 $104.46 Contingent shares (a) 55,319 $119.52 51,850 $109.74 (a) The number of contingent shares represents the target value of the award. Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock option grants issued during the six months ended June 30, 2020 was calculated with the following weighted average assumptions: Weighted average exercise price $119.52 Risk free interest rate 1.6 % Expected life of option in years 6.5 Expected dividend yield 1.5 % Expected volatility 20.0 % The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected life of options is calculated using the average of the vesting term and the maximum term, as prescribed by accounting guidance on the use of the simplified method for determining the expected term of an employee share option. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options. Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period. Performance-based RSUs vest based on achieving specific annual performance targets for earnings per share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets. For awards granted in 2020, the amount paid upon vesting of performance-based RSUs may range from 0% to 200% of the original grant, based upon the level of earnings per share growth achieved and frequency with which the annual cash flow return on capital performance target is met over the three calendar year periods comprising the vesting period. For awards granted in 2019 and 2018, the amount paid upon vesting of performance-based RSUs may range from 0% to 180% of the original grant. Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three-year period following the date of grant based on PPG's performance. Performance is measured by determining the percentile rank of the total shareholder return of PPG common stock in relation to the total shareholder return of the S&P 500 as it existed at the beginning of the three-year performance period excluding any companies that have been removed from the index because they ceased to be publicly traded during the performance period. For awards granted in 2020, the payment of awards following the three-year award period will be based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 200% of the initial grant. For awards granted in 2019 and 2018, the amount paid following the three-year award period may range from 0% to 220% of the initial grant. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both at the Company's discretion. The TSR awards qualify as liability awards, and compensation expense is recognized over the three-year award period based on the fair value of the awards (giving consideration to the Company’s percentile rank of total shareholder return) remeasured in each reporting period until settlement of the awards. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury, property damage, and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers, as they had prior to the asbestos settlement described below, may contest coverage with respect to some of the asbestos claims. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters. The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Shareholder Class Action On May 20, 2018, a putative securities class action lawsuit was filed in the U.S. District Court for the Central District of California against the Company and three of its current and former officers. On September 21, 2018, an Amended Class Action Complaint was filed in the lawsuit. The Amended Complaint, captioned Trevor Mild v. PPG Industries, Inc., Michael H. McGarry, Vincent J. Morales, and Mark C. Kelly, asserted securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of persons who purchased or otherwise acquired stock of the Company between January 19, 2017 and May 10, 2018. The allegations related to, among other things, allegedly false and misleading statements and/or failures to disclose information about the Company’s business, operations and prospects. The parties reached a settlement in principal on May 1, 2019. On June 2, 2019, the plaintiff filed with the Court a Petition for Preliminary Approval of the proposed settlement, including the proposed settlement amount of $25 million. On November 22, 2019, the Court entered final judgment approving the settlement. PPG’s insurance carriers confirmed to the Company insurance coverage for the full amount of the settlement. Settlement payments are expected to occur in 2020. Asbestos Matters Prior to 2000, the Company had been named as a defendant in numerous claims alleging bodily injury from (i) exposure to asbestos-containing products allegedly manufactured, sold or distributed by the Company, its subsidiaries, or for which they are otherwise alleged to be liable; (ii) exposure to asbestos allegedly present at a facility owned or leased by the Company; or (iii) exposure to asbestos-containing products of Pittsburgh Corning Corporation (“PC”) for which the Company was alleged to be liable under a variety of legal theories (the Company and Corning Incorporated were each 50% shareholders in PC prior to April 27, 2016). Pittsburgh Corning Corporation asbestos bankruptcy In 2000, PC filed for Chapter 11 in the U.S. Bankruptcy Court for the Western District of Pennsylvania in an effort to permanently and comprehensively resolve all of its pending and future asbestos-related liability claims. The Bankruptcy Court subsequently entered a series of orders preliminarily enjoining the prosecution of asbestos litigation against PPG until after the effective date of a confirmed PC plan of reorganization. During the pendency of this preliminary injunction staying asbestos litigation against PPG, PPG and certain of its historical liability insurers negotiated a settlement with representatives of present and future asbestos claimants. That settlement was incorporated into a PC plan of reorganization that was confirmed by the Bankruptcy Court on May 24, 2013 and ultimately became effective on April 27, 2016. With the effectiveness of the plan, the preliminary injunction staying the prosecution of asbestos litigation against PPG expired by its own terms on May 27, 2016. In accordance with the settlement, the Bankruptcy Court issued a permanent channeling injunction under Section 524(g) of the Bankruptcy Code that prohibits present and future claimants from asserting claims against PPG that arise, in whole or in part, out of exposure to asbestos or asbestos-containing products manufactured, sold and/or distributed by PC or asbestos on or emanating from any PC premises. The channeling injunction, by its terms, also prohibits codefendants in cases that are subject to the channeling injunction from asserting claims against PPG for contribution, indemnification or other recovery. The channeling injunction also precludes the prosecution of claims against PPG arising from alleged exposure to asbestos or asbestos-containing products to the extent that a claimant is alleging or seeking to impose liability, directly or indirectly, for the conduct of, claims against, or demands on PC by reason of PPG’s prior: (i) ownership of a financial interest in PC; (ii) involvement in the management of PC, or service as an officer, director or employee of PC or a related party; (iii) provision of insurance to PC or a related party; or (iv) involvement in a financial transaction affecting the financial condition of PC or a related party. The foregoing PC related claims are referred to as “PC Relationship Claims.” The Bankruptcy Court's channeling injunction channels the Company’s liability for PC Relationship Claims to a trust funded in part by PPG and its participating insurers for the benefit of current and future PC asbestos claimants (the “Trust”). The Trust is the sole recourse for holders of PC Relationship Claims. PPG and its affiliates have no further liability or responsibility for, and are permanently protected from, pending and future PC Relationship Claims. The channeling injunction does not extend to present and future claims against PPG that arise out of alleged exposure to asbestos or asbestos-containing products historically manufactured, sold and/or distributed by PPG or its subsidiaries or for which they are alleged to be liable that are not PC Relationship Claims, and does not extend to claims against PPG alleging personal injury allegedly caused by asbestos on premises presently or formerly owned, leased or occupied by PPG. These claims are referred to as "non-PC Relationship Claims". Non-PC relationship claims With respect to the asbestos-related claims pending against the Company at the time PC filed for bankruptcy, the Company considers such claims to fall within one or more of the following categories: (1) claims that have been closed or dismissed as a result of processes undertaken during the bankruptcy; (2) claims that may have been previously filed on the dockets of state and federal courts in various jurisdictions, but are inactive as to the Company; and (3) claims that are subject, in whole or in part, to the channeling injunction and thus will be resolved, in whole or in part, in accordance with the Trust procedures established under the PC bankruptcy reorganization plan. As a result of the foregoing, the Company does not consider these three categories of claims to be open or active litigation against it, although the Company cannot now determine whether, or the extent to which, any of these claims may in the future be reinstituted, reinstated, or revived such that they may become open and active non-PC Relationship Claims against it. Current open and active claims post-Pittsburgh Corning bankruptcy As of June 30, 2020, the Company was aware of approximately 500 open and active asbestos-related claims pending against the Company and certain of its subsidiaries. These claims consist of non-PC Relationship Claims against PPG and claims against a PPG subsidiary the Company acquired on April 1, 2013. The Company is defending these open and active claims vigorously. PPG has established reserves totaling approximately $190 million for asbestos-related claims that would not be channeled to the Trust which, based on presently available information, we believe will be sufficient to encompass all of PPG’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying condensed consolidated balance sheets, represent PPG’s best estimate of its liability for these claims. These reserves include a $162 million reserve established in 2009 in connection with an amendment to the PC plan of reorganization for non-PC Relationship Claims other than claims arising from premises-related exposures. PPG does not have sufficient current claim information or settlement history on which to base a better estimate of this liability in light of the fact that the Bankruptcy Court’s injunction staying most asbestos claims against the Company was in effect from April 2000 through May 2016. These reserves also include PPG’s best estimate, following an analysis performed in 2019 of its claims history and discussions with consultants and its counsel, of the value of the Company’s potential liability for premises-related non-PC Relationship Claims against it and claims against PPG’s subsidiary acquired on April 1, 2013 that are presently pending, and that are projected to be asserted through December 31, 2028. PPG monitors the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims, its insurance assets then available, and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) the amounts required to resolve both currently known and future unknown claims; (iii) the amount of insurance, if any, available to cover such claims; (iv) the unpredictable aspects of the litigation process, including a changing trial docket and the jurisdictions in which trials are scheduled; (v) the outcome of any trials, including potential judgments or jury verdicts; (vi) the lack of specific information in many cases concerning exposure for which PPG is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (vii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. As a potential offset to any future asbestos financial exposure, under the PC plan of reorganization PPG retained, for its own account, the right to pursue insurance coverage from certain of its historical insurers that did not participate in the PC plan of reorganization. While the ultimate outcome of PPG’s asbestos litigation cannot be predicted with certainty, PPG believes that any financial exposure resulting from its asbestos-related claims will not have a material adverse effect on PPG’s consolidated financial position, liquidity or results of operations. Environmental Matters It is PPG’s policy to accrue expenses for environmental contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time. See Note 14, "Commitments and Contingent Liabilities," under Item 8 of the 2019 Form 10-K for additional descriptions of the following environmental matters. As remediation at certain legacy environmental sites progresses, PPG continues to refine its assumptions underlying the estimates of the expected future costs of its remediation programs. PPG’s ongoing evaluation may result in additional charges against income to increase the reserves for these sites. Remediation activities at our legacy sites are not related to the ongoing operations of PPG. In 2020 and 2019, certain charges have been recorded based on updated estimates to increase existing reserves for these sites. Certain other charges related to environmental remediation actions are also expensed as incurred. As of June 30, 2020 and December 31, 2019, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, New Jersey (“New Jersey Chrome”), glass and chemical manufacturing sites, and for other environmental contingencies, including current manufacturing locations and National Priority List sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying condensed consolidated balance sheet. Environmental Reserves ($ in millions) June 30, 2020 December 31, 2019 New Jersey Chrome $108 $134 Glass and chemical 99 96 Other 84 74 Total $291 $304 Current portion $85 $62 Pretax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Environmental remediation pretax charges $4 $35 $15 $51 Cash outlays for environmental remediation activities $12 $20 $37 $36 Remediation: New Jersey Chrome In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and 19 additional sites. The principal contaminant of concern is hexavalent chromium. The JCO also provided for the appointment of a court-approved Site Administrator who is responsible for establishing a master schedule for the remediation of the 20 PPG sites which existed at that time. One site was subsequently removed from the JCO process during 2014 and will be remediated separately at a future date. A total of 19 sites remain subject to the JCO process. The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites are those related to the extent and concentration of chromium impacts in the soil, as these determine the quantity of soil that must be treated in place, the quantity that will have to be excavated and transported for offsite disposal, and the nature of disposal required. PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non-hazardous soils, daily soil excavation rates, and engineering, administrative and other associated costs. Based on these assessments, the reserve is adjusted accordingly. Principal factors affecting costs include refinements in the estimate of the mix of hazardous to non-hazardous soils to be excavated, an overall increase in soil volumes to be excavated, enhanced water management requirements, decreased daily soil excavation rates due to site conditions, initial estimates for remedial actions related to groundwater, and oversight and management costs. The reserve adjustments for the estimated costs to remediate all New Jersey Chrome sites are exclusive of any third party indemnification, as the recovery of any such amounts is uncertain. Groundwater remediation at the former Garfield Avenue chromium manufacturing site and five adjacent sites is expected to occur over several years. Ongoing groundwater monitoring will be utilized to develop a final groundwater remedial action work plan which is currently expected to be submitted to NJDEP in 2020. PPG’s financial reserve for remediation of all New Jersey Chrome sites was $108 million at June 30, 2020. The major cost components of this liability continue to be related to excavation, transportation and disposal of impacted soil, as well as construction services. These components each account for approximately 18%, 14% and 34% of the accrued amount, respectively. There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Further resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will continue to be adjusted. Remediation: Glass, Chemicals and Other Sites Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a chemical manufacturing site in Barberton, Ohio, where PPG has completed a Facility Investigation and Corrective Measure Study under the United States Environmental Protection Agency's Resource Conservation and Recovery Act Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations. With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites. Remediation: Reasonably Possible Matters In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million. Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them. The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments. Other Matters The Company had outstanding letters of credit and surety bonds of $134 million and guarantees of $9 million as of June 30, 2020. The Company does not believe any loss related to such guarantees is likely. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Disclosure [Abstract] | |
Revenue Recognition | Revenue Recognition various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations. The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three and six months ended June 30, 2020 and 2019, service revenue constituted approximately 5% of total revenue. Net sales by segment and region for the three and six months ended June 30, 2020 and 2019 were as follows: Performance Coatings Industrial Coatings Total Net Sales Three Months Ended Three Months Ended Three Months Ended ($ in millions) 2020 2019 2020 2019 2020 2019 United States and Canada $940 $1,110 $336 $623 $1,276 $1,733 Europe, Middle East and Africa ("EMEA") 686 793 240 462 926 1,255 Asia Pacific 255 283 311 360 566 643 Latin America 188 244 59 149 247 393 Total $2,069 $2,430 $946 $1,594 $3,015 $4,024 |
Reportable Segment Information
Reportable Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable Business Segment Information PPG is a multinational manufacturer with 9 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution. The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, architectural coatings – Americas and Asia Pacific, architectural coatings - EMEA, and protective and marine coatings operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings, sealants and finishes along with paint strippers, stains and related chemicals, as well as transparencies and transparent armor. The Industrial Coatings reportable business segment is comprised of the automotive OEM coatings, industrial coatings, packaging coatings, and the specialty coatings and materials operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings and finishes along with adhesives, sealants, metal pretreatment products, optical monomers and coatings, precipitated silicas, and other specialty materials. Reportable business segment net sales and segment income for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Net sales: Performance Coatings $2,069 $2,430 $4,077 $4,538 Industrial Coatings 946 1,594 2,315 3,110 Total $3,015 $4,024 $6,392 $7,648 Segment income: Performance Coatings $362 $425 $634 $722 Industrial Coatings 34 235 215 453 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. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Standards | Accounting Standards Adopted in 2020 Effective January 1, 2020, PPG adopted Accounting Standards Update (“ASU”) No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable information. Organizations will now use forward-looking information to better estimate their credit losses. PPG adopted this ASU using a modified retrospective approach. Under this method of adoption, PPG determined that there was no cumulative-effect adjustment to beginning Retained earnings on the condensed consolidated balance sheet. Adoption of this standard did not impact PPG’s Income before income taxes and had no impact on the condensed consolidated statement of cash flows. See Note 3, “Allowance for Credit Losses” for further details. Effective January 1, 2020, PPG adopted ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). PPG adopted this ASU prospectively. Under this method of adoption, PPG determined there was not a material impact to the condensed consolidated balance sheet, Income before income taxes or the condensed consolidated statement of cash flows. Accounting Standards to be Adopted in Future Years In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform." This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in this ASU are effective through December 31, 2022. PPG is currently assessing the potential impacts this ASU may have on its consolidated financial position, results of operations and cash flows. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." This ASU is intended to simplify various aspects related to accounting for income taxes by eliminating certain exceptions within Accounting Standards Codification Topic 740, "Income Taxes" and clarifies certain aspects of the current accounting guidance. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020 and for interim periods therein with early adoption permitted. PPG does not believe this ASU will have a material impact on its consolidated financial position, results of operations or cash flows. |
Credit Losses (Tables)
Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the allowance for credit losses for the six months ended June 30, 2020: ($ in millions) Trade Receivables Allowance for Credit Losses January 1, 2020 $22 Current-period provision for credit losses (a) 39 Trade receivables written off as uncollectible, net of recoveries (8) Foreign currency impact (1) June 30, 2020 $52 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | ($ in millions) June 30, 2020 December 31, 2019 Finished products $1,012 $1,047 Work in process 192 197 Raw materials 466 431 Supplies 36 35 Total Inventories $1,706 $1,710 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill Attributable to Each Reportable Segment | The change in the carrying amount of goodwill attributable to each reportable segment for the six months ended June 30, 2020 was as follows: ($ in millions) Performance Industrial Total January 1, 2020 $3,442 $1,028 $4,470 Acquisitions, including purchase accounting adjustments 4 16 20 Foreign currency impact (164) (19) (183) June 30, 2020 $3,282 $1,025 $4,307 |
Identifiable Intangible Assets with Finite Lives | A summary of the carrying value of the Company's identifiable intangible assets is as follows: June 30, 2020 December 31, 2019 ($ in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,034 N/A $1,034 $1,167 N/A $1,167 Definite-Lived Identifiable Intangible Assets Acquired technology $712 ($560) $152 $710 ($549) $161 Customer-related 1,527 (899) 628 1,578 (885) 693 Trade names 208 (114) 94 210 (111) 99 Other 48 (40) 8 51 (40) 11 Total Definite Lived Intangible Assets $2,495 ($1,613) $882 $2,549 ($1,585) $964 Total Identifiable Intangible Assets $3,529 ($1,613) $1,916 $3,716 ($1,585) $2,131 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of June 30, 2020, estimated future amortization expense of identifiable intangible assets is as follows: ($ in millions) Future Amortization Expense Remaining six months of 2020 $65 2021 $125 2022 $125 2023 $110 2024 $90 2025 $85 Thereafter $282 |
Business Restructuring (Tables)
Business Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the reserve activity for the six months ended June 30, 2020 and 2019: Total Reserve ($ in millions) 2020 2019 January 1 $224 $110 Approved restructuring actions (a) 198 184 Release of prior reserves (26) (11) Cash payments (34) (23) Foreign currency impact (2) 1 June 30 $360 $261 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (number of shares in millions) 2020 2019 2020 2019 Weighted average common shares outstanding 236.6 236.9 236.6 236.8 Effect of dilutive securities: Stock options 0.3 0.7 0.4 0.7 Other stock compensation plans 0.7 0.7 0.6 0.6 Potentially dilutive common shares 1.0 1.4 1.0 1.3 Adjusted weighted average common shares outstanding 237.6 238.3 237.6 238.1 Dividends per common share $0.51 $0.48 $1.02 $0.96 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Six Months Ended 2020 2019 Effective tax rate on pretax income 22.5 % 24.0 % |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net Periodic Benefit Cost | The net periodic pension and other postretirement benefit costs for the three and six months ended June 30, 2020 and 2019 were as follows: Pension Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Service cost $6 $5 $12 $11 Interest cost 21 27 43 53 Expected return on plan assets (36) (35) (72) (70) Amortization of actuarial losses 18 16 36 31 Curtailments 1 — 1 — Net periodic benefit cost $10 $13 $20 $25 |
Defined Contribution Plan Disclosures | Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Non-U.S. defined benefit pension mandatory contributions $3 $3 $5 $6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ($ in millions) Unrealized Foreign Currency Translation Adjustments Pension and Other Postretirement Benefit Adjustments, net of tax (c) Unrealized Gain on Derivatives, net of tax Accumulated Other Comprehensive Loss January 1, 2020 ($1,627) ($724) $1 ($2,350) Current year deferrals to AOCI (a) (600) — — (600) Current year deferrals to AOCI, net of tax (b) 19 (5) — 14 Reclassifications from AOCI to net income — 11 — 11 Period change ($581) $6 $— ($575) June 30, 2020 ($2,208) ($718) $1 ($2,925) January 1, 2019 ($1,734) ($568) $2 ($2,300) Current year deferrals to AOCI (a) 44 — — 44 Current year deferrals to AOCI, net of tax (b) 21 (1) (2) 18 Reclassifications from AOCI to net income — 7 1 8 Period change $65 $6 ($1) $70 June 30, 2019 ($1,669) ($562) $1 ($2,230) (a) Except for income taxes of $8 million and $9 million as of June 30, 2020 and 2019, respectively, related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time. (b) The tax cost related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges as of June 30, 2020 and 2019 was $5 million and $7 million, respectively. (c) The tax cost related to the adjustment for pension and other postretirement benefits as of June 30, 2020 and 2019 was $3 million and $2 million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 11, "Pensions and Other Postretirement Benefits"). |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value, Cash Flow and Net Investment Hedges | The following table summarizes the location within the condensed consolidated financial statements and amount of gains/(losses) related to derivative and debt financial instruments for the six months ended June 30, 2020 and 2019. All dollar amounts are shown on a pretax basis. June 30, 2020 June 30, 2019 ($ in millions) (Loss)Gain Deferred in OCI Gain Recognized (Loss)Gain Deferred in OCI Gain/(Loss) Recognized Caption In Condensed Consolidated Statement of Income Economic Foreign currency forward contracts $— $26 $— $32 Other charges Fair Value Interest rate swaps — 5 — 1 Interest expense Cash Flow Foreign currency forward contracts — — (3) (4) Other charges and Cost of sales Total Cash Flow $— $31 ($3) $29 Net Investment Cross currency swaps ($4) $9 $6 $8 Interest expense Foreign denominated debt 25 — 22 — Total Net Investment $21 $9 $28 $8 |
Assets and Liabilities Reported at Fair Value on a Recurring Basis | Assets and liabilities reported at fair value on a recurring basis: June 30, 2020 December 31, 2019 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Other current assets: Marketable equity securities $5 $— $— $5 $— $— Foreign currency forward contracts (a) — 15 — — 14 — Investments: Marketable equity securities $83 $— $— $80 $— $— Other assets: Cross currency swaps (b) $— $73 $— $— $52 $— Interest rate swaps (c) — 78 — — 35 — Liabilities: Accounts payable and accrued liabilities: Foreign currency forward contracts (d) $— $— $— $— $1 $— Foreign currency forward contracts (a) — 8 — — 20 — Other liabilities: Cross currency swap (b) $— $— $— $— $4 $— (a) Derivatives not designated as hedging instruments (c) Fair value hedges (b) Net investment hedges (d) Cash flow hedges |
Schedule of Long-term Debt Instruments | ($ in millions) June 30, 2020 (a) December 31, 2019 (b) Long-term debt - carrying value $4,776 $5,031 Long-term debt - fair value $5,221 $5,363 (a) Excluding finance lease obligations of $8 million and short-term borrowings of $1.5 billion as of June 30, 2020. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Activity [Table Text Block] | Stock-based compensation and the income tax benefit recognized during the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Stock-based compensation $8 $10 $15 $19 Income tax benefit recognized $2 $2 $4 $4 |
Details of Grants of Stock-based Compensation | Grants of stock-based compensation during the six months ended June 30, 2020 and 2019 were as follows: Six Months Ended 2020 2019 Grant Details Shares Fair Value Shares Fair Value Stock options 663,485 $21.93 588,870 $22.50 Restricted stock units 203,239 $110.00 208,602 $104.46 Contingent shares (a) 55,319 $119.52 51,850 $109.74 (a) The number of contingent shares represents the target value of the award. |
Weighted Average Assumptions Used in Calculating the Fair Value of Stock Option | The fair value of the stock option grants issued during the six months ended June 30, 2020 was calculated with the following weighted average assumptions: Weighted average exercise price $119.52 Risk free interest rate 1.6 % Expected life of option in years 6.5 Expected dividend yield 1.5 % Expected volatility 20.0 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Liabilities [Table Text Block] | Environmental Reserves ($ in millions) June 30, 2020 December 31, 2019 New Jersey Chrome $108 $134 Glass and chemical 99 96 Other 84 74 Total $291 $304 Current portion $85 $62 |
Environmental Costs [Table Text Block] | Pretax charges against income for environmental remediation costs are included in Other charges in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Environmental remediation pretax charges $4 $35 $15 $51 Cash outlays for environmental remediation activities $12 $20 $37 $36 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Disclosure [Abstract] | |
Revenue from External Customers by Geographic Areas | Net sales by segment and region for the three and six months ended June 30, 2020 and 2019 were as follows: Performance Coatings Industrial Coatings Total Net Sales Three Months Ended Three Months Ended Three Months Ended ($ in millions) 2020 2019 2020 2019 2020 2019 United States and Canada $940 $1,110 $336 $623 $1,276 $1,733 Europe, Middle East and Africa ("EMEA") 686 793 240 462 926 1,255 Asia Pacific 255 283 311 360 566 643 Latin America 188 244 59 149 247 393 Total $2,069 $2,430 $946 $1,594 $3,015 $4,024 Performance Coatings Industrial Coatings Total Net Sales Six Months Ended Six Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 2020 2019 United States and Canada $1,867 $2,063 $918 $1,236 $2,785 $3,299 EMEA 1,351 1,481 636 888 1,987 2,369 Asia Pacific 454 526 571 700 1,025 1,226 Latin America 405 468 190 286 595 754 Total $4,077 $4,538 $2,315 $3,110 $6,392 $7,648 |
Reportable Segment Information
Reportable Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation Of Revenue And Operating Income From Segments To Consolidated [Text Block] | Reportable business segment net sales and segment income for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Net sales: Performance Coatings $2,069 $2,430 $4,077 $4,538 Industrial Coatings 946 1,594 2,315 3,110 Total $3,015 $4,024 $6,392 $7,648 Segment income: Performance Coatings $362 $425 $634 $722 Industrial Coatings 34 235 215 453 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 $782 (a) Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs. (b) Acquisition-related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the condensed consolidated statement of income. Acquisition-related costs also include the impact for the step up to fair value of inventory acquired in certain acquisitions which are included in Cost of Sales, exclusive of depreciation and amortization in the condensed consolidated statement of income. |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Credit Loss [Abstract] | |||||
Increase in allowance for doubtful accounts related to COVID-19 | $ 0 | $ 30 | $ 0 | $ 30 | $ 0 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
January 1, 2020 | $ 22 | 22 | |||
Current-period provision for credit losses (a) | 39 | ||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 8 | ||||
Foreign currency impact | (1) | ||||
June 30, 2020 | $ 52 | $ 52 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,012 | $ 1,047 |
Work in process | 192 | 197 |
Raw materials | 466 | 431 |
Supplies | 36 | 35 |
Total | $ 1,706 | $ 1,710 |
Inventories (Additional Informa
Inventories (Additional Information) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Line Items] | ||
First-in, first-out method of inventory valuation, amount of increase in inventory value | $ 119 | $ 124 |
UNITED STATES | ||
Inventory Disclosure [Line Items] | ||
U.S. inventories as a percentage of total inventories | 35.00% | 34.00% |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets (Carrying Amount of Goodwill) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 4,470 |
Acquisitions | (20) |
Currency | (183) |
Ending Balance | 4,307 |
Performance Coatings [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 3,442 |
Acquisitions | (4) |
Currency | (164) |
Ending Balance | 3,282 |
Industrial Coatings [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,028 |
Acquisitions | (16) |
Currency | (19) |
Ending Balance | $ 1,025 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets with Finite Lives) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Trademarks | $ 1,034 | $ 1,167 |
Gross Carrying Amount | 2,495 | 2,549 |
Accumulated Amortization | (1,613) | (1,585) |
Net | 882 | 964 |
Intangible assets, gross (excluding goodwill) | 3,529 | 3,716 |
Total Identifiable Intangible Assets | 1,916 | 2,131 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 65 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 125 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 125 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 110 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 90 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 85 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 282 | |
Acquired technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 712 | 710 |
Accumulated Amortization | (560) | (549) |
Net | 152 | 161 |
Customer-related intangibles [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,527 | 1,578 |
Accumulated Amortization | (899) | (885) |
Net | 628 | 693 |
Tradenames [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 208 | 210 |
Accumulated Amortization | (114) | (111) |
Net | 94 | 99 |
Other [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 48 | 51 |
Accumulated Amortization | (40) | (40) |
Net | $ 8 | $ 11 |
Business Restructuring (Schedul
Business Restructuring (Schedule of Restructuring Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | $ 360 | $ 261 | $ 360 | $ 261 | $ 224 | $ 110 | |
Business restructuring, net | 165 | $ 176 | 172 | 173 | |||
Restructuring Reserve, Accrual Adjustment | 26 | 11 | |||||
Payments for Restructuring | 34 | 23 | |||||
Restructuring Reserve, Translation Adjustment | (2) | 1 | |||||
2019 Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges, pretax | $ 176 | ||||||
Business restructuring, net | $ 22 | $ 198 | $ 184 |
Borrowings (Details)
Borrowings (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020USD ($) | May 30, 2020USD ($) | Apr. 30, 2020USD ($) | Aug. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||||||
Stated interest percentage | 2.55% | ||||||||
Redemption charge | $ 7,000,000 | $ 0 | $ (7,000,000) | $ 0 | |||||
Aggregate principal amount | $ 300,000,000 | ||||||||
Redemption price, percentage | 101.00% | ||||||||
Proceeds from issuance of notes | $ 296,000,000 | ||||||||
Proceeds from revolving credit facility | $ 800,000,000 | $ 0 | |||||||
Debt covenant, total indebtedness to total capitalization ratio, maximum | 0.60 | ||||||||
Debt covenant, acquisition for consideration, minimum threshold | $ 1,000,000,000 | ||||||||
Debt covenant, total indebtedness to total capitalization ratio, maximum when acquisition for consideration threshold is met, percentage | 0.65 | ||||||||
Debt instrument, total indebtedness to total capitalization, percentage | 0.53 | ||||||||
Long-term commercial paper | $ 0 | 0 | $ 0 | $ 100,000,000 | |||||
Revolving Credit Facility | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument term | 5 years | ||||||||
Revolving credit facility outstanding | $ 2,200,000,000 | ||||||||
Line of credit facility, additional borrowing capacity available to lender conditions | $ 750,000,000 | ||||||||
Proceeds from revolving credit facility | $ 800,000,000 | ||||||||
Notes Payable, Other Payables | |||||||||
Debt Instrument [Line Items] | |||||||||
Early redemption of notes | $ 500,000,000 | ||||||||
Stated interest percentage | 3.60% | 3.60% | 3.60% | ||||||
Redemption charge | $ 7,000,000 | ||||||||
Redemption charge, make-whole cash premium | 6,000,000 | ||||||||
Unamortized fees and discounts related to the debt redeemed | $ 1,000,000 | ||||||||
Short-term Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 1,500,000,000 | ||||||||
Debt instrument term | 364 days |
Earnings Per Common Share (Calc
Earnings Per Common Share (Calculations) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share, Diluted [Abstract] | ||||
Weighted average common shares outstanding | 236,600,000 | 236,900,000 | 236,600,000 | 236,800,000 |
Effect of dilutive securities: | ||||
Stock options | 300,000 | 700,000 | 400,000 | 700,000 |
Other stock compensation plans | 700,000 | 700,000 | 600,000 | 600,000 |
Potentially dilutive common shares | 1,000,000 | 1,400,000 | 1,000,000 | 1,300,000 |
Adjusted weighted average common shares outstanding | 237,600,000 | 238,300,000 | 237,600,000 | 238,100,000 |
Dividends per common share (in dollars per share) | $ 0.0051 | $ 0.0048 | $ 0.0102 | $ 0.0096 |
Outstanding stock options excluded from the computation of diluted earnings per share due to their antidilutive effect | 2,700,000 | 2,100,000 | 1,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.50% | 24.00% | ||
Other Tax Expense (Benefit) | $ 14 | $ 3 | ||
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 3 | $ 2 | 5 | 4 |
Interest cost | 5 | 7 | 10 | 13 |
Amortization of actuarial losses | 4 | 2 | 8 | 4 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (15) | (15) | (30) | (29) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (3) | (4) | (7) | (8) |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 6 | 5 | 12 | 11 |
Interest cost | 21 | 27 | 43 | 53 |
Amortization of actuarial losses | 18 | 16 | 36 | 31 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 10 | $ 13 | $ 20 | $ 25 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 1 | $ 0 | $ 1 | $ 0 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3 | 2 | 5 | 4 |
Interest cost | 5 | 7 | 10 | 13 |
Amortization of actuarial losses | 4 | 2 | 8 | 4 |
Amortization of prior service credit | 15 | 15 | 30 | 29 |
Net periodic benefit cost | (3) | (4) | (7) | (8) |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 5 | 12 | 11 |
Interest cost | 21 | 27 | 43 | 53 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 36 | 35 | 72 | 70 |
Amortization of actuarial losses | 18 | 16 | 36 | 31 |
Net periodic benefit cost | $ 10 | $ 13 | $ 20 | $ 25 |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefits (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | |
Pension | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net periodic benefit cost | $ 10 | $ 13 | $ 20 | $ 25 | |
Other Postretirement Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net periodic benefit cost | (3) | (4) | (7) | (8) | |
Foreign Plan | Minimum [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected employer mandatory contributions | 5 | 5 | |||
Foreign Plan | Maximum [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected employer mandatory contributions | 10 | 10 | |||
Mandatory Contribution | Foreign Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Contributions to defined benefit pension plans | $ 3 | $ 3 | $ 5 | $ 6 | |
Scenario, Forecast | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net periodic benefit cost | $ 25 | ||||
Scenario, Forecast | Pension | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net periodic benefit cost | 40 | ||||
Scenario, Forecast | Other Postretirement Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net periodic benefit cost | $ 15 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | $ (2,925) | $ (2,230) | $ (2,350) | $ (2,300) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (600) | 44 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 14 | 18 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 11 | 8 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (575) | 70 | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 8 | 9 | ||
Tax cost related to unrealized currency translation adjustments other than translation of foreign denominated balance sheets | 5 | 7 | ||
Pension and other postretirement benefit adjustments, tax cost | 3 | 2 | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | (2,208) | (1,669) | (1,627) | (1,734) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (600) | 44 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 19 | 21 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (581) | 65 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | (718) | (562) | (724) | (568) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | (5) | (1) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 11 | 7 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 6 | 6 | ||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive loss | 1 | 1 | $ 1 | $ 2 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | (2) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 1 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 0 | $ (1) |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements (Additional Information) (Details) $ in Millions, € in Billions | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2020EUR (€) | Jun. 30, 2020EUR (€) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 1 | |||||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | $ 73 | 48 | ||||||
Fair Value of Debt Instrument Designated as a Hedge of Net Investment in Foreign Operations | 2,200 | 2,200 | ||||||
Accumulated pretax unrealized translation gains (losses) in AOCI, related to both the euro-denominated borrowings and the cross currency swaps that have been designated as hedges of net investments | 4,938 | $ 4,837 | 5,403 | $ 5,187 | $ 5,010 | $ 4,732 | ||
Long-term Debt | 4,776 | 5,031 | ||||||
Long-lived assets fair value amount | 5,221 | 5,363 | ||||||
Finance Lease, Liability | 8 | |||||||
Short-term debt | 1,500 | 10 | ||||||
Capital Lease Obligations | 11 | |||||||
Interest rate swaps | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | 525 | |||||||
Interest Rate Derivatives, at Fair Value, Net | 35 | $ 78 | ||||||
Cross currency swaps | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | 875 | 875 | ||||||
Foreign currency forward contracts | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | 1,300 | 2,800 | ||||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 7 | 6 | ||||||
Cash Flow Hedging | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | 43 | |||||||
Net Investment Hedging | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Long-term Debt | € | € 2 | € 2 | ||||||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Accumulated pretax unrealized translation gains (losses) in AOCI, related to both the euro-denominated borrowings and the cross currency swaps that have been designated as hedges of net investments | $ 256 | $ 235 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements (Cash Flow and Net Investment Hedges) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value Hedging | Interest rate swaps | Interest expense | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Recognized Amount | $ 5 | $ 1 |
Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Deferred in OCI | 0 | (3) |
Gain (Loss) Recognized Amount | 31 | 29 |
Cash Flow Hedging | Foreign currency forward contracts | Other charges and Cost of sales | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Deferred in OCI | 0 | (3) |
Gain (Loss) Recognized Amount | 0 | (4) |
Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Deferred in OCI | 21 | 28 |
Gain (Loss) Recognized Amount | 9 | 8 |
Net Investment Hedging | Cross currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Deferred in OCI | (4) | 6 |
Gain (Loss) Recognized Amount | 9 | 8 |
Net Investment Hedging | Foreign denominated debt | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Deferred in OCI | 25 | 22 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other charges and Cost of sales | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Recognized Amount | $ 26 | $ 32 |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements (Assets and liabilities reported at fair value on a recurring basis) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Marketable equity securities | Other current assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 5 | $ 5 |
Marketable equity securities | Other current assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Marketable equity securities | Other current assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Marketable equity securities | Investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 83 | 80 |
Marketable equity securities | Investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Marketable equity securities | Investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Foreign currency forward contracts | Accounts payable and accrued liabilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Accounts payable and accrued liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 1 |
Foreign currency forward contracts | Accounts payable and accrued liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Other liabilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Other liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 4 |
Foreign currency forward contracts | Other liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other current assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other current assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 15 | 14 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other current assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 8 | 20 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Cross currency swaps | Other assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Cross currency swaps | Other assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 73 | 52 |
Cross currency swaps | Other assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate swaps | Other assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate swaps | Other assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 78 | 35 |
Interest rate swaps | Other assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grants under the PPG Omnibus Plan | 6,400,000 | 6,400,000 | ||
Stock-based compensation expense | $ 8 | $ 10 | $ 15 | $ 19 |
Total income tax benefit recognized related to the stock-based compensation | $ 2 | $ 2 | $ 4 | $ 4 |
Stock options granted from the PPG Omnibus Plan | 663,485 | 588,870 | ||
Stock options granted from the PPG Omnibus Plan, weighted average fair value per share (in usd per share) | $ 21.93 | $ 22.50 | ||
Maximum term of the outstanding stock options for the PPG Omnibus Plan and the PPG Stock Plan for certain employees | 10 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted | 203,239 | 208,602 | ||
RSUs granted, weighted average fair value per share (in usd per share) | $ 110 | $ 104.46 | ||
Award vesting period (in years) | 3 years | |||
Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted | 55,319 | 51,850 | ||
RSUs granted, weighted average fair value per share (in usd per share) | $ 119.52 | $ 109.74 | ||
Executive Officer Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognizing compensation costs (in years) | 3 years | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable period | 36 months |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions Used in Calculating Fair Value of Stock Option) (Details) | 6 Months Ended |
Jun. 30, 2020$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Weighted average exercise price (in usd per share) | $ 119.52 |
Risk free interest rate | 1.60% |
Expected life of option in years | 6 years 6 months |
Expected dividend yield | 1.50% |
Expected volatility | 20.00% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities Asbestos Information (Details) $ in Millions | Jun. 30, 2020USD ($) |
Other Reserves | $ 190 |
Asbestos Issue [Member] | |
Loss Contingency, Pending Claims, Number | 500 |
Other Reserves | $ 162 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Additional Information) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)Location | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Location | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2010Location | |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Litigation Settlement, Amount Awarded to Other Party | $ 25 | |||||
Reserves for environmental contingencies | $ 291 | 291 | $ 304 | |||
Reserves for environmental contingencies classified as current liabilities | 85 | 85 | 62 | |||
Environmental remediation charge | 4 | $ 35 | 15 | $ 51 | ||
Payments for Environmental Liabilities | 12 | 20 | 37 | 36 | ||
Environmental remediation charges | 4 | $ 30 | 12 | $ 40 | ||
Outstanding letters of credit | 134 | 134 | ||||
Guarantees | 9 | 9 | ||||
Minimum [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Unreserved loss contingencies related to environmental matters | 100 | |||||
Maximum [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Unreserved loss contingencies related to environmental matters | 200 | |||||
Jersey City Manufacturing Plant [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Reserves for environmental contingencies | 108 | 108 | 134 | |||
Legacy Glass and Chemical Sites [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Reserves for environmental contingencies | 99 | 99 | 96 | |||
Other Environmental Contingencies [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Reserves for environmental contingencies | $ 84 | $ 84 | $ 74 | |||
Judicial Consent Order [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Total number of sites to be remediated | Location | 19 | 19 | 20 | |||
Excavation of Soil [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Percentage of the total remaining reserve | 18.00% | 18.00% | ||||
Soil Treatment, Transportation And Disposal Of Excavated Soil [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Percentage of the total remaining reserve | 14.00% | 14.00% | ||||
Construction Services (Related To Soil Excavation, Groundwater Management And Site Security) [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Percentage of the total remaining reserve | 34.00% | 34.00% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule Of Revenue By Revenue Source (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,015 | $ 4,024 | $ 6,392 | $ 7,648 |
Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,069 | 2,430 | 4,077 | 4,538 |
Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 946 | 1,594 | 2,315 | 3,110 |
United States and Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,276 | 1,733 | 2,785 | 3,299 |
United States and Canada | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 940 | 1,110 | 1,867 | 2,063 |
United States and Canada | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 336 | 623 | 918 | 1,236 |
Europe, Middle East and Africa ("EMEA") | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 926 | 1,255 | 1,987 | 2,369 |
Europe, Middle East and Africa ("EMEA") | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 686 | 793 | 1,351 | 1,481 |
Europe, Middle East and Africa ("EMEA") | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 240 | 462 | 636 | 888 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 566 | 643 | 1,025 | 1,226 |
Asia Pacific | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 255 | 283 | 454 | 526 |
Asia Pacific | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 311 | 360 | 571 | 700 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 247 | 393 | 595 | 754 |
Latin America | Performance Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 188 | 244 | 405 | 468 |
Latin America | Industrial Coatings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 59 | $ 149 | $ 190 | $ 286 |
Revenue from Contract with Customer | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Service revenue, percentage of total revenue | 5.00% |
Reportable Segment Informatio_2
Reportable Segment Information (Additional Information) (Details) | 6 Months Ended |
Jun. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 9 |
Number of Reportable Segments | 2 |
Reportable Segment Informatio_3
Reportable Segment Information (Segment Net Sales and Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | $ 3,015 | $ 4,024 | $ 6,392 | $ 7,648 | |
Segment income (loss) | 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 | 173 | 182 | 186 | 185 | |
Debt extinguishment charge | 7 | 0 | (7) | 0 | |
Environmental remediation charges | (4) | (30) | (12) | (40) | |
Increase in allowance for doubtful accounts related to COVID-19 | 0 | $ 30 | 0 | 30 | 0 |
Costs associated with accounting investigations | 0 | (3) | 0 | (7) | |
Acquisition-related costs | 0 | (10) | 0 | (17) | |
Income before income taxes | 126 | 363 | 445 | 782 | |
Performance Coatings [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 2,069 | 2,430 | 4,077 | 4,538 | |
Segment income (loss) | 362 | 425 | 634 | 722 | |
Industrial Coatings [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 946 | 1,594 | 2,315 | 3,110 | |
Segment income (loss) | $ 34 | $ 235 | $ 215 | $ 453 |