PPG Annual Report and 10K 2019

Notes to the Consolidated Financial Statements 50 2019 PPG ANNUAL REPORT AND 10-K 7. Goodwill and Other Identifiable Intangible Assets Goodwill ($ in millions) Performance Coatings Industrial Coatings Total January 1, 2018 $3,104 $838 $3,942 Acquisitions, including purchase accounting adjustments 248 (13) 235 Foreign currency impact (86) (21) (107) December 31, 2018 $3,266 $804 $4,070 Acquisitions, including purchase accounting adjustments 166 230 396 Foreign currency impact 10 (6) 4 December 31, 2019 $3,442 $1,028 $4,470 Identifiable Intangible Assets December 31, 2019 December 31, 2018 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Indefinite-Lived Identifiable Intangible Assets Trademarks $1,167 $— $1,167 $1,140 $— $1,140 Definite-Lived Identifiable Intangible Assets Acquired technology $710 ($549) $161 $648 ($515) $133 Customer-related 1,578 (885) 693 1,396 (798) 598 Trade names 210 (111) 99 190 (96) 94 Other 51 (40) 11 44 (37) 7 Total Definite Lived Intangible Assets $2,549 ($1,585) $964 $2,278 ($1,446) $832 Total Identifiable Intangible Assets $3,716 ($1,585) $2,131 $3,418 ($1,446) $1,972 The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives. Aggregate amortization expense was $136 million, $143 million and $129 million in 2019, 2018 and 2017, respectively. ($ in millions) 2020 2021 2022 2023 2024 Estimated future amortization expense $135 $120 $115 $105 $85 8. Business Restructuring The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance and other cash costs. As a result of these programs, the Company will also incur incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected asset life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 21, “Reportable Business Segment Information” for additional information. 2019 Restructuring Program In June 2019, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program is the result of a comprehensive internal operational assessment to identify further opportunities to improve the profitability of the overall business portfolio. This program includes further manufacturing optimization; targeted pruning of low-profit business in certain regions; exiting certain smaller product lines that are not meeting profitability objectives; reorganization of certain business unit cost structures based on the current economic climate; and certain redundancy actions related to recent acquisitions. A pretax restructuring charge of $184 million was recorded in PPG's second quarter 2019 financial results. In the third quarter of 2019, additional programs were approved by management and charges of $10 million were recorded in PPG's financial results. These charges represent employee severance and certain other cash costs. The majority of restructuring actions are expected to be completed by the end of the fourth quarter 2020 with the remainder of the actions expected to be completed in 2022. 2018 Restructuring Program In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee

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