PPG Annual Report and 10K 2019

2019 PPG ANNUAL REPORT AND FORM 10-K 37 Consolidated Statement of Income For the Year ($ in millions, except per share amounts) 2019 2018 2017 Net sales $15,146 $15,374 $14,748 Cost of sales, exclusive of depreciation and amortization 8,653 9,001 8,209 Selling, general and administrative 3,604 3,573 3,554 Depreciation 375 354 331 Amortization 136 143 129 Research and development, net 432 441 451 Interest expense 132 118 105 Interest income (32) (23) (20) Business restructuring, net 176 66 — Pension settlement charges — — 60 Other charges 98 122 74 Other income (89) (114) (150) Income before income taxes $1,661 $1,693 $2,005 Income tax expense 392 353 615 Income from continuing operations $1,269 $1,340 $1,390 Income from discontinued operations, net of tax — 18 225 Net income attributable to the controlling and noncontrolling interests $1,269 $1,358 $1,615 Less: Net income attributable to noncontrolling interests 26 17 21 Net income (attributable to PPG) $1,243 $1,341 $1,594 Amounts attributable to PPG Income from continuing operations, net of tax $1,243 $1,323 $1,369 Income from discontinued operations, net of tax — 18 225 Net income (attributable to PPG) $1,243 $1,341 $1,594 Earnings per common share Income from continuing operations, net of tax $5.25 $5.43 $5.34 Income from discontinued operations, net of tax — 0.07 0.88 Net income (attributable to PPG) $5.25 $5.50 $6.22 Earnings per common share - assuming dilution Income from continuing operations, net of tax $5.22 $5.40 $5.31 Income from discontinued operations, net of tax — 0.07 0.87 Net income (attributable to PPG) $5.22 $5.47 $6.18 Consolidated Statement of Comprehensive Income For the Year ($ in millions) 2019 2018 2017 Net income attributable to the controlling and noncontrolling interests $1,269 $1,358 $1,615 Other comprehensive (loss)/income, net of tax Defined benefit pension and other postretirement benefits (156) 9 78 Unrealized foreign currency translation adjustments 106 (155) 248 Derivative financial instruments (1) (1) (10) Other comprehensive (loss)/income, net of tax (51) (147) 316 Total comprehensive income $1,218 $1,211 $1,931 Less: amounts attributable to noncontrolling interests: Net income (26) (17) (21) Unrealized foreign currency translation adjustments 1 11 (17) Comprehensive income attributable to PPG $1,193 $1,205 $1,893 The accompanying notes to the consolidated financial statements are an integral part of these consolidated statements.

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