PPG Annual Report and 10K 2019

Notes to the Consolidated Financial Statements 76 2019 PPG ANNUAL REPORT AND 10-K 19. Quarterly Financial Information (unaudited) 2019 Quarter Ended Full Year 2019 (1) ($ in millions, except per share amounts) March 31 June 30 September 30 December 31 Net sales $3,624 $4,024 $3,826 $3,672 $15,146 Cost of sales (2) 2,073 2,288 2,181 2,111 8,653 Net income (attributable to PPG) Income from continuing operations, net of tax $312 $270 $366 $295 $1,243 Income/(Loss) from discontinued operations, net of tax — 2 1 (3) — Net income (attributable to PPG) $312 $272 $367 $292 $1,243 Earnings per common share Income from continuing operations, net of tax $1.32 $1.14 $1.55 $1.24 $5.25 Income/(Loss) from discontinued operations, net of tax — 0.01 — (0.01) — Earnings per common share $1.32 $1.15 $1.55 $1.23 $5.25 Earnings per common share - assuming dilution Income from continuing operations, net of tax $1.31 $1.13 $1.54 $1.23 $5.22 Income/(Loss) from discontinued operations, net of tax — 0.01 — (0.01) — Earnings per common share – assuming dilution $1.31 $1.14 $1.54 $1.22 $5.22 2018 Quarter Ended Full Year 2018 (1) ($ in millions except per share amounts) March 31 June 30 September 30 December 31 Net sales $3,781 $4,131 $3,817 $3,645 $15,374 Cost of sales (2) 2,181 2,379 2,253 2,188 9,001 Net income (attributable to PPG) Income from continuing operations, net of tax $328 $371 $368 $256 $1,323 Income from discontinued operations, net of tax 6 — 10 2 18 Net income (attributable to PPG) $334 $371 $378 $258 $1,341 Earnings per common share Income from continuing operations, net of tax $1.32 $1.51 $1.52 $1.07 $5.43 Income from discontinued operations, net of tax 0.02 — 0.04 0.01 0.07 Earnings per common share $1.34 $1.51 $1.56 $1.08 $5.50 Earnings per common share - assuming dilution Income from continuing operations, net of tax $1.31 $1.51 $1.51 $1.07 $5.40 Income from discontinued operations, net of tax 0.02 — 0.04 0.01 0.07 Earnings per common share – assuming dilution $1.33 $1.51 $1.55 $1.08 $5.47 (1) Full year earnings-per-share was calculated using the full year weighted average shares outstanding. As such, the sum of the quarters may not equal the total earnings-per-share for the year. (2) Exclusive of depreciation and amortization. 20. Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations. The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones

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