PPG Annual Report and 10K 2019

40 2019 PPG ANNUAL REPORT AND 10-K Consolidated Statement of Cash Flows For the Year ($ in millions) 2019 2018 2017 Operating activities Net income attributable to controlling and noncontrolling interests $1,269 $1,358 $1,615 Less: Income from discontinued operations — 18 225 Income from continuing operations $1,269 $1,340 $1,390 Adjustments to reconcile net income to cash from operations: Depreciation and amortization 511 497 460 Pension expense 54 43 65 Pension settlement charge — — 60 Business restructuring, net 176 66 — Environmental remediation charges and other costs, net 61 77 — Stock-based compensation expense 39 37 35 Gain on sale of land — (26) — Net gain, from sale of businesses — — (25) Equity affiliate loss/(income), net of dividends 4 (1) (4) Deferred income taxes (5) 45 38 Cash contributions to pension plans (13) (99) (87) Cash used for restructuring actions (58) (66) (49) Change in certain asset and liability accounts (net of acquisitions): Receivables 121 (69) (76) Inventories 145 (109) (116) Other current assets (95) 5 (43) Accounts payable and accrued liabilities (63) (76) 188 Noncurrent assets and liabilities, net (13) (207) (170) Taxes and interest payable (32) 50 (129) Other (17) (20) 14 Cash from operating activities - continuing operations $2,084 $1,487 $1,551 Cash (used for)/from operating activities - discontinued operations (4) (20) 17 Cash from operating activities $2,080 $1,467 $1,568 Investing activities Capital expenditures ($413) ($411) ($360) Business acquisitions, net of cash balances acquired (643) (378) (225) Payments for acquisition of equity investment — — (100) Net proceeds from the sale of businesses — — 593 Proceeds from sale of land — 27 — Payments for the settlement of cross currency swap contracts (8) (28) (34) Proceeds from the settlement of cross currency swap contracts 28 23 37 Other 27 3 26 Cash used for investing activities - continuing operations ($1,009) ($764) ($63) Cash used for investing activities - discontinued operations — — (4) Cash used for investing activities ($1,009) ($764) ($67) Financing activities Net change in borrowings with maturities of three months or less $6 ($1) ($7) Net proceeds/(payments) on commercial paper and short-term debt 100 (2) (93) Net proceeds from the issuance of long-term debt (net of discount and issuance costs) 595 992 — Repayment of long-term debt (637) (6) (588) Repayment of acquired debt (23) — — Payments related to tax withholding on stock-based compensation awards (20) (15) (28) Purchase of treasury stock (325) (1,721) (813) Issuance of treasury stock 61 15 52 Dividends paid on PPG common stock (468) (453) (434) Purchase of noncontrolling interest (39) — — Other (8) (14) (43) Cash used for financing activities ($758) ($1,205) ($1,954) Effect of currency exchange rate changes on cash and cash equivalents 1 (32) 69 Net increase/(decrease) in cash and cash equivalents $314 ($534) ($384) Cash and cash equivalents, beginning of year $902 $1,436 $1,820 Cash and cash equivalents, end of year $1,216 $902 $1,436 Supplemental disclosures of cash flow information: Interest paid, net of amount capitalized $127 $108 $100 Taxes paid, net of refunds $348 $380 $648 Supplemental disclosure of noncash investing activities: Reissuance of common stock for business acquisition $164 $— $— The accompanying notes to the consolidated financial statements are an integral part of this consolidated statement.

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