Reportable Segment Information
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Reportable Segment Information
is a multinational manufacturer with 11 operating segments that are organized based on the Company’s major product lines. These operating segments are also the Company’s reporting units for purposes of testing goodwill for impairment. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution into three reportable business segments.
The Performance Coatings reportable segment is comprised of the refinish, aerospace, architectural coatings – Americas and Asia Pacific, architectural coatings - EMEA, and protective and marine coatings operating segments. This reportable 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 segment is comprised of the automotive original equipment manufacturer (“OEM”) coatings, industrial coatings, packaging coatings, coatings services and the specialty coatings and materials operating segments. This reportable 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, Teslin® and other specialty materials.
The Glass reportable segment is comprised of the fiber glass operating segment. This reportable segment primarily supplies continuous-strand fiber glass products. The Glass segment historically included the results of the flat glass business, which was sold October 1, 2016. The results of operations and cash flows for this business have been recast as discontinued operations for all periods presented. The results of the European fiber glass business which was also sold October 1, 2016, have not been reclassified as discontinued operations, as the divestiture of the European fiber glass business did not have a major impact on PPG's ongoing results of operations.
Reportable segment net sales and segment income for the three and nine months ended September 30, 2016 and 2015 were as follows: 
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
($ in millions)
2016
 
2015
 
2016
 
2015
Net sales:
 
 
 
 
 
 
 
Performance Coatings
$
2,223

 
$
2,240

 
$
6,600

 
$
6,705

Industrial Coatings
1,437

 
1,354

 
4,253

 
4,105

Glass
129

 
131

 
401

 
404

Total
$
3,789

 
$
3,725

 
$
11,254

 
$
11,214

Segment income:
 
 
 
 
 
 
 
Performance Coatings
$
368

 
$
379

 
$
1,075

 
$
1,052

Industrial Coatings
249

 
241

 
806

 
745

Glass
12

 
6

 
41

 
27

Total
629

 
626

 
1,922

 
1,824

Corporate
(42
)
 
(34
)
 
(162
)
 
(164
)
Interest expense, net of interest income
(28
)
 
(21
)
 
(76
)
 
(63
)
Legacy items (a)
(4
)
 
(9
)
 
(26
)
 
(30
)
Asset write-downs
—

 
—

 
(14
)
 
—

Gain from sale of equity affiliate
—

 
—

 
20

 
—

Pension settlement charges
(968
)
 
(7
)
 
(968
)
 
(7
)
Transaction-related costs (b)
—

 
(1
)
 
(9
)
 
(27
)
Business restructuring
—

 
—

 
—

 
(140
)
(Loss) Income from continuing operations before income taxes
$
(413
)
 
$
554

 
$
687

 
$
1,393

(a)
Legacy items include current costs related to former operations of the Company, including pension and other postretirement benefit costs, certain charges for legal matters and environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio, including the impact of the asbestos settlement. Until April 2016, legacy items also include equity earnings from PPG’s minority investment in Pittsburgh Glass Works, LLC.
(b)
Transaction-related costs include advisory, legal, accounting, valuation and other professional or consulting fees incurred to effect significant acquisitions, as well as similar fees and other costs to effect disposals not classified as discontinued operations. These costs also include the flow-through cost of sales for the step up to fair value of inventories acquired in acquisitions. These costs also include certain severance costs and charges associated with the Company's recent business portfolio transformation.