PPG Annual Report and 10K 2019

Notes to the Consolidated Financial Statements 2019 PPG ANNUAL REPORT AND FORM 10-K 49 4. Working Capital Detail ($ in millions) 2019 2018 Receivables Trade - net (1) $2,479 $2,505 Equity affiliates 3 4 Other - net 274 336 Total $2,756 $2,845 Inventories (2) Finished products $1,047 $1,105 Work in process 197 193 Raw materials 431 452 Supplies 35 33 Total $1,710 $1,783 Accounts payable and accrued liabilities Trade $2,098 $2,177 Accrued payroll 455 424 Customer rebates 280 283 Other postretirement and pension benefits 85 80 Income taxes 46 112 Other 532 547 Total $3,496 $3,623 (1) Allowance for doubtful accounts was $22 million and $24 million as of December 31, 2019 and 2018, respectively. (2) Inventories valued using the LIFO method of inventory valuation comprised 34% and 36% of total gross inventory values as of December 31, 2019 and 2018, respectively. If the FIFO method of inventory valuation had been used, inventories would have been $124 million and $113 million higher as of December 31, 2019 and 2018, respectively. During the years ended December 31, 2019 and 2018, certain inventories accounted for on the LIFO method of accounting were reduced, which resulted in the liquidation of certain quantities carried at costs prevailing in prior years. The effect on Income before income taxes was income of $1 million and $2 million for the years ended December 31, 2019 and 2018, respectively. 5. Property, Plant and Equipment ($ in millions) Useful Lives (years) 2019 2018 Land and land improvements 1-30 $511 $489 Buildings 20-40 1,573 1,472 Machinery and equipment 5-25 3,575 3,387 Other 3-20 1,092 989 Construction in progress 314 296 Total (1) $7,065 $6,633 Less: accumulated depreciation 4,082 3,828 Net $2,983 $2,805 (1) Interest capitalized in 2019, 2018 and 2017 was $6 million, $4 million and $7 million, respectively. 6. Investments ($ in millions) 2019 2018 Investments in equity affiliates $129 $132 Marketable equity securities (See Note 10) 80 69 Other 49 50 Total $258 $251 Investments in equity affiliates represent PPG’s ownership interests in entities between 20% and 50% that manufacture and sell coatings and certain chemicals. In 2017, PPG purchased a 40% ownership interest in TCI. Refer to Note 3, “Acquisitions and Divestitures” for additional information. PPG’s share of undistributed net earnings of equity affiliates was $11 million as of December 31, 2019 and December 31, 2018. Dividends received fromequity affiliateswere $15million, $15million and $8million in 2019, 2018 and 2017, respectively.

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