PPG Annual Report and 10K 2019

Notes to the Consolidated Financial Statements 2019 PPG ANNUAL REPORT AND FORM 10-K 73 16. Accumulated Other Comprehensive Loss ($ in millions) Unrealized Foreign Currency Translation Adjustments Pension and Other Postretirement Benefit Adjustments, net of tax (c) Unrealized Gain/(Loss) on Derivatives, net of tax (d) Accumulated Other Comprehensive Loss January 1, 2017 ($1,798) ($571) $13 ($2,356) Current year deferrals to AOCI 542 — — 542 Current year deferrals to AOCI, net of tax (b) (311) 20 (4) (295) Reclassifications from AOCI to net income — 58 (6) 52 Period change $231 $78 ($10) $299 December 31, 2017 ($1,567) ($493) $3 ($2,057) Current year deferrals to AOCI (a) (292) — — (292) Current year deferrals to AOCI, net of tax (b) 148 (12) (7) 129 Reclassifications from AOCI to net income — 21 6 27 Period change ($144) $9 ($1) ($136) Reclassification from AOCI to Retained earnings - Adoption of ASU 2018-02 (23) (84) — (107) December 31, 2018 ($1,734) ($568) $2 ($2,300) Current year deferrals to AOCI (a) 71 — — 71 Current year deferrals to AOCI, net of tax (b) 36 (167) 1 (130) Reclassifications from AOCI to net income — 11 (2) 9 Period change $107 ($156) ($1) ($50) December 31, 2019 ($1,627) ($724) $1 ($2,350) (a) Except for income taxes of $7 million and $9 million as of December 31, 2019 and 2018, respectively, related to foreign currency impacts of certain unasserted earnings, unrealized foreign currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries because they are deemed to be reinvested for an indefinite period of time. (b) The tax (cost)/benefit related to unrealized foreign currency translation adjustments on tax inter-branch transactions and net investment hedges as of December 31, 2019, 2018 and 2017 was $(19) million, $4 million and $141 million, respectively. (c) The tax benefit/(cost) related to the adjustment for pension and other postretirement benefits as of December 31, 2019, 2018 and 2017 was $57 million, $(34) million and $(33) million, respectively. Reclassifications from AOCI are included in the computation of net periodic benefit costs (See Note 13, “Employee Benefit Plans”). The cumulative tax benefit related to the adjustment for pension and other postretirement benefits as of December 31, 2019 and 2018 was $266 million and $209 million, respectively. (d) The tax cost related to the change in the unrealized loss on derivatives as of December 31, 2019, 2018 and 2017 was $1 million, $2 million, and $5 million, respectively. Reclassifications fromAOCI are included in the gain or loss recognized on cash flow hedges (See Note 10 “Financial Instruments, Hedging Activities and Fair Value Measurements”). 17. Other Income ($ in millions) 2019 2018 2017 Gain on sale of assets (1) $7 $33 $28 Royalty income 8 10 11 Share of net earnings of equity affiliates (See Note 6) 11 16 12 Gain on disposal of ownership interest in business affiliate — — 25 Income from a legal settlement — — 18 Other 63 55 56 Total $89 $114 $150 (1) In 2018, PPG had a $26 million gain on the sale of land near a facility of the Company’s former commodity chemicals business. 18. Stock-Based Compensation The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return. All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effectiveApril 21, 2016. Shares available for future grants under the PPG Amended Omnibus Plan were 6.7 million as of December 31, 2019.

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