PPG Annual Report and 10K 2019

Notes to the Consolidated Financial Statements 46 2019 PPG ANNUAL REPORT AND 10-K 2019 Weighted-average remaining lease term (in years) Operating leases 7.4 Finance leases 6.2 Weighted-average discount rate Operating leases 3.0% Finance leases 9.4% As of December 31, 2019, maturities of lease liabilities were as follows: ($ in millions) Operating Leases Finance Leases 2020 $191 $3 2021 150 2 2022 118 2 2023 92 2 2024 72 1 Thereafter 266 3 Total lease payments $889 $13 Less: Interest 97 2 Total lease obligations $792 $11 Disclosures related to periods prior to adoption of ASU 2016-02 PPG adopted ASU 2016-02 using a retrospective adoption method at January 1, 2019 as noted in Note 1, "Summary of Significant Accounting Policies." As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows: ($ in millions) Operating Leases Capital Leases 2019 $207 $3 2020 $157 $3 2021 $116 $1 2022 $93 $1 2023 $76 $1 Beyond 2023 $244 $3 3. Acquisitions and Divestitures Acquisitions Announced Acquisition: Alpha Coating Technologies, LLC In February 2020, PPG announced that it will acquire Alpha Coating Technologies, LLC, a manufacturer of powder coatings for light industrial applications and heat sensitive substrates. The transaction is expected to close in the first quarter of 2020. Completed Acquisitions Industria Chimica Reggiana On January 31, 2020, PPG completed the acquisition of Industria Chimica Reggiana S.p.A, 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.

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