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Pennsylvania
|
|
25-0730780
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
One PPG Place, Pittsburgh, Pennsylvania
|
|
15272
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
ý
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
|
|
|
PAGE
|
|
||
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales
|
$
|
3,789
|
|
|
$
|
3,725
|
|
|
$
|
11,254
|
|
|
$
|
11,214
|
|
Cost of sales, exclusive of depreciation and amortization
|
2,081
|
|
|
2,049
|
|
|
6,095
|
|
|
6,209
|
|
||||
Selling, general and administrative
|
899
|
|
|
875
|
|
|
2,746
|
|
|
2,715
|
|
||||
Depreciation
|
88
|
|
|
87
|
|
|
258
|
|
|
253
|
|
||||
Amortization
|
31
|
|
|
33
|
|
|
91
|
|
|
99
|
|
||||
Research and development, net
|
117
|
|
|
117
|
|
|
350
|
|
|
354
|
|
||||
Interest expense
|
34
|
|
|
31
|
|
|
96
|
|
|
94
|
|
||||
Interest income
|
(6
|
)
|
|
(10
|
)
|
|
(20
|
)
|
|
(31
|
)
|
||||
Pension settlement charges
|
968
|
|
|
—
|
|
|
968
|
|
|
—
|
|
||||
Business restructuring
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
||||
Asbestos settlement, net
|
—
|
|
|
3
|
|
|
5
|
|
|
9
|
|
||||
Other charges
|
13
|
|
|
21
|
|
|
66
|
|
|
71
|
|
||||
Other income
|
(23
|
)
|
|
(35
|
)
|
|
(88
|
)
|
|
(92
|
)
|
||||
(Loss) income from continuing operations before income taxes
|
(413
|
)
|
|
554
|
|
|
687
|
|
|
1,393
|
|
||||
Income tax (benefit) expense
|
(217
|
)
|
|
133
|
|
|
182
|
|
|
333
|
|
||||
(Loss) income from continuing operations
|
(196
|
)
|
|
421
|
|
|
505
|
|
|
1,060
|
|
||||
Income from discontinued operations, net of tax
|
17
|
|
|
18
|
|
|
46
|
|
|
49
|
|
||||
Net (loss) income attributable to the controlling and noncontrolling interests
|
(179
|
)
|
|
439
|
|
|
551
|
|
|
1,109
|
|
||||
Less: Net income attributable to noncontrolling interests
|
(5
|
)
|
|
(6
|
)
|
|
(18
|
)
|
|
(17
|
)
|
||||
Net (loss) income (attributable to PPG)
|
$
|
(184
|
)
|
|
$
|
433
|
|
|
$
|
533
|
|
|
$
|
1,092
|
|
Amounts attributable to PPG:
|
|
|
|
|
|
|
|
||||||||
(Loss) income from continuing operations, net of tax
|
$
|
(201
|
)
|
|
$
|
415
|
|
|
$
|
487
|
|
|
$
|
1,043
|
|
Income from discontinued operations, net of tax
|
17
|
|
|
18
|
|
|
46
|
|
|
49
|
|
||||
Net (loss) income (attributable to PPG)
|
$
|
(184
|
)
|
|
$
|
433
|
|
|
$
|
533
|
|
|
$
|
1,092
|
|
|
|
|
|
|
|
|
|
||||||||
(Loss) Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
(Loss) income from continuing operations, net of tax
|
$
|
(0.75
|
)
|
|
$
|
1.53
|
|
|
$
|
1.83
|
|
|
$
|
3.83
|
|
Income from discontinued operations, net of tax
|
0.06
|
|
|
0.07
|
|
|
0.17
|
|
|
0.18
|
|
||||
Net (loss) income (attributable to PPG)
|
$
|
(0.69
|
)
|
|
$
|
1.60
|
|
|
$
|
2.00
|
|
|
$
|
4.01
|
|
(Loss) Earnings per common share – assuming dilution:
|
|
|
|
|
|
|
|
||||||||
(Loss) income from continuing operations, net of tax
|
$
|
(0.75
|
)
|
|
$
|
1.52
|
|
|
$
|
1.81
|
|
|
$
|
3.80
|
|
Income from discontinued operations, net of tax
|
0.06
|
|
|
0.07
|
|
|
0.17
|
|
|
0.18
|
|
||||
Net (loss) income (attributable to PPG)
|
$
|
(0.69
|
)
|
|
$
|
1.59
|
|
|
$
|
1.98
|
|
|
$
|
3.98
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends per common share
|
$
|
0.40
|
|
|
$
|
0.36
|
|
|
$
|
1.16
|
|
|
$
|
1.05
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net (loss) income attributable to the controlling and noncontrolling interests
|
$
|
(179
|
)
|
|
$
|
439
|
|
|
$
|
551
|
|
|
$
|
1,109
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Defined benefit pension and other postretirement benefits, net
|
348
|
|
|
35
|
|
|
391
|
|
|
109
|
|
||||
Unrealized foreign currency translation adjustments
|
(147
|
)
|
|
(300
|
)
|
|
(231
|
)
|
|
(599
|
)
|
||||
Derivative financial instruments, net
|
8
|
|
|
2
|
|
|
—
|
|
|
6
|
|
||||
Other comprehensive income (loss), net of tax
|
209
|
|
|
(263
|
)
|
|
160
|
|
|
(484
|
)
|
||||
Total comprehensive income
|
$
|
30
|
|
|
$
|
176
|
|
|
$
|
711
|
|
|
$
|
625
|
|
Less: amounts attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
||||||||
Net income
|
(5
|
)
|
|
(6
|
)
|
|
(18
|
)
|
|
(17
|
)
|
||||
Unrealized foreign currency translation adjustments
|
(1
|
)
|
|
3
|
|
|
1
|
|
|
8
|
|
||||
Comprehensive income attributable to PPG
|
$
|
24
|
|
|
$
|
173
|
|
|
$
|
694
|
|
|
$
|
616
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
929
|
|
|
$
|
1,311
|
|
Short-term investments
|
46
|
|
|
144
|
|
||
Receivables (less allowance for doubtful accounts of
$46 in each period)
|
2,962
|
|
|
2,709
|
|
||
Inventories
|
1,676
|
|
|
1,659
|
|
||
Assets held for sale
|
443
|
|
|
285
|
|
||
Other
|
361
|
|
|
604
|
|
||
Total current assets
|
6,417
|
|
|
6,712
|
|
||
Property, plant and equipment (net of accumulated depreciation of $3,921 and $3,927)
|
2,863
|
|
|
2,822
|
|
||
Goodwill
|
3,701
|
|
|
3,669
|
|
||
Identifiable intangible assets, net
|
2,073
|
|
|
2,178
|
|
||
Deferred income taxes
|
516
|
|
|
711
|
|
||
Investments
|
328
|
|
|
367
|
|
||
Other assets
|
592
|
|
|
617
|
|
||
Total
|
$
|
16,490
|
|
|
$
|
17,076
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
3,567
|
|
|
$
|
3,419
|
|
Asbestos settlement
|
—
|
|
|
796
|
|
||
Restructuring reserves
|
42
|
|
|
87
|
|
||
Short-term debt and current portion of long-term debt
|
652
|
|
|
281
|
|
||
Liabilities held for sale
|
199
|
|
|
112
|
|
||
Total current liabilities
|
4,460
|
|
|
4,695
|
|
||
Long-term debt
|
3,752
|
|
|
4,026
|
|
||
Accrued pensions
|
1,001
|
|
|
695
|
|
||
Other postretirement benefits
|
811
|
|
|
1,015
|
|
||
Asbestos settlement
|
—
|
|
|
252
|
|
||
Deferred income taxes
|
521
|
|
|
460
|
|
||
Other liabilities
|
824
|
|
|
864
|
|
||
Total liabilities
|
11,369
|
|
|
12,007
|
|
||
Commitments and contingent liabilities (Note 15)
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock
|
969
|
|
|
969
|
|
||
Additional paid-in capital
|
683
|
|
|
635
|
|
||
Retained earnings
|
15,744
|
|
|
15,521
|
|
||
Treasury stock, at cost
|
(9,824
|
)
|
|
(9,440
|
)
|
||
Accumulated other comprehensive loss
|
(2,541
|
)
|
|
(2,702
|
)
|
||
Total PPG shareholders’ equity
|
5,031
|
|
|
4,983
|
|
||
Noncontrolling interests
|
90
|
|
|
86
|
|
||
Total shareholders’ equity
|
5,121
|
|
|
5,069
|
|
||
Total
|
$
|
16,490
|
|
|
$
|
17,076
|
|
|
Nine Months Ended
September 30 |
||||||
|
2016
|
|
2015
|
||||
Operating activities:
|
|
|
|
||||
Net income attributable to controlling and noncontrolling interests
|
$
|
551
|
|
|
$
|
1,109
|
|
Less: Income from discontinued operations
|
(46
|
)
|
|
(49
|
)
|
||
Income from continuing operations
|
505
|
|
|
1,060
|
|
||
Adjustments to reconcile net income to cash from operations:
|
|
|
|
||||
Depreciation and amortization
|
349
|
|
|
352
|
|
||
Pension expense
|
60
|
|
|
74
|
|
||
Pension Settlement
|
968
|
|
|
—
|
|
||
Stock-based compensation expense
|
38
|
|
|
42
|
|
||
Business restructuring
|
—
|
|
|
140
|
|
||
Gain on sale of equity affiliate
|
(20
|
)
|
|
—
|
|
||
Equity affiliate earnings, net of distributions received
|
(8
|
)
|
|
(20
|
)
|
||
Deferred income tax benefit
|
(56
|
)
|
|
(42
|
)
|
||
Cash contributions to pension plans
|
(78
|
)
|
|
(270
|
)
|
||
Cash paid for restructuring actions
|
(40
|
)
|
|
(31
|
)
|
||
Cash paid for asbestos settlement funding
|
(813
|
)
|
|
—
|
|
||
Change in certain asset and liability accounts:
|
|
|
|
||||
Receivables
|
(250
|
)
|
|
(413
|
)
|
||
Inventories
|
(31
|
)
|
|
(89
|
)
|
||
Other current assets
|
(11
|
)
|
|
(97
|
)
|
||
Accounts payable and accrued liabilities
|
135
|
|
|
184
|
|
||
Taxes and interest payable
|
(127
|
)
|
|
127
|
|
||
Noncurrent assets and liabilities, net
|
46
|
|
|
(67
|
)
|
||
Other
|
—
|
|
|
(17
|
)
|
||
Cash from operating activities - continuing operations
|
667
|
|
|
933
|
|
||
Cash from operating activities - discontinued operations
|
84
|
|
|
53
|
|
||
Cash from operating activities
|
751
|
|
|
986
|
|
||
Investing activities:
|
|
|
|
||||
Capital expenditures
|
(258
|
)
|
|
(262
|
)
|
||
Business acquisitions, net of cash balances acquired
|
(321
|
)
|
|
(248
|
)
|
||
Proceeds from the disposition of PPG's interest in the Transitions Optical joint venture and sunlens business
|
—
|
|
|
47
|
|
||
Proceeds from sale of equity affiliate
|
41
|
|
|
—
|
|
||
Purchase of short-term investments
|
—
|
|
|
(97
|
)
|
||
Proceeds from maturity of short-term investments
|
92
|
|
|
171
|
|
||
Payments for the settlement of cross currency swap contracts
|
(36
|
)
|
|
(34
|
)
|
||
Proceeds from cross currency swap and foreign currency contracts
|
37
|
|
|
37
|
|
||
Other
|
14
|
|
|
39
|
|
||
Cash used for investing activities - continuing operations
|
(431
|
)
|
|
(347
|
)
|
||
Cash used for investing activities - discontinued operations
|
(14
|
)
|
|
(4
|
)
|
||
Cash used for investing activities
|
(445
|
)
|
|
(351
|
)
|
||
Financing activities:
|
|
|
|
||||
Net change in borrowing with maturities of three months or less
|
(22
|
)
|
|
(18
|
)
|
||
Net proceeds (payments) on commercial paper and short-term debt
|
297
|
|
|
(392
|
)
|
||
Proceeds from the issuance of debt
|
1
|
|
|
1,242
|
|
||
Repayment of long-term debt
|
(254
|
)
|
|
(339
|
)
|
||
Purchase of treasury stock
|
(400
|
)
|
|
(501
|
)
|
||
Issuance of treasury stock
|
29
|
|
|
51
|
|
||
Dividends paid
|
(309
|
)
|
|
(287
|
)
|
||
Other
|
(9
|
)
|
|
(24
|
)
|
||
Cash used for financing activities - continuing operations
|
(667
|
)
|
|
(268
|
)
|
||
Cash used for financing activities - discontinued operations
|
—
|
|
|
—
|
|
||
Cash used for financing activities
|
(667
|
)
|
|
(268
|
)
|
||
Effect of currency exchange rate changes on cash and cash equivalents
|
(21
|
)
|
|
(38
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(382
|
)
|
|
329
|
|
||
Cash and cash equivalents, beginning of period
|
1,311
|
|
|
686
|
|
||
Cash and cash equivalents, end of period
|
$
|
929
|
|
|
$
|
1,015
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Interest paid, net of amount capitalized
|
$
|
80
|
|
|
$
|
78
|
|
Taxes paid, net of refunds
|
$
|
276
|
|
|
$
|
291
|
|
1
.
|
Basis of Presentation
|
2
.
|
New Accounting Standards
|
3
.
|
Acquisitions and Dispositions
|
($ in millions)
|
September 30, 2016
|
||
Receivables
|
$
|
30
|
|
Inventory
|
4
|
|
|
Property, plant, and equipment
|
96
|
|
|
Identifiable intangible assets
|
83
|
|
|
Goodwill
|
129
|
|
|
Total Assets
|
$
|
342
|
|
Accounts payable and accrued liabilities
|
10
|
|
|
Other current liabilities
|
10
|
|
|
Other long-term liabilities
|
16
|
|
|
Total Liabilities
|
$
|
36
|
|
Total purchase price, net of cash acquired
|
$
|
306
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales
|
$
|
156
|
|
|
$
|
147
|
|
|
$
|
427
|
|
|
$
|
421
|
|
|
|
|
|
|
|
|
|
||||||||
Income from operations
|
26
|
|
|
27
|
|
|
70
|
|
|
70
|
|
||||
Income tax expense
|
9
|
|
|
9
|
|
|
24
|
|
|
23
|
|
||||
Income from discontinued operations, net of tax
|
$
|
17
|
|
|
$
|
18
|
|
|
$
|
46
|
|
|
$
|
47
|
|
($ in millions)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Receivables
|
$
|
83
|
|
|
$
|
79
|
|
Inventory
|
66
|
|
|
47
|
|
||
Property, plant, and equipment
|
190
|
|
|
196
|
|
||
Deferred income taxes (a)
|
(37
|
)
|
|
(37
|
)
|
||
Assets held for sale
|
$
|
302
|
|
|
$
|
285
|
|
Short-term debt and current portion of long-term debt
|
1
|
|
|
1
|
|
||
Accounts payable and accrued liabilities
|
67
|
|
|
72
|
|
||
Long-term debt
|
15
|
|
|
16
|
|
||
Accrued pensions
|
21
|
|
|
16
|
|
||
Other postretirement benefits
|
4
|
|
|
6
|
|
||
Other long-term liabilities
|
3
|
|
|
1
|
|
||
Liabilities held for sale
|
$
|
111
|
|
|
$
|
112
|
|
|
|
|
|
||||
(a) The net deferred income tax liability is included in assets held for sale due to the Company's tax jurisdictional netting.
|
($ in millions)
|
September 30, 2016
|
||
Receivables
|
$
|
24
|
|
Inventory
|
18
|
|
|
Property, plant, and equipment
|
55
|
|
|
Goodwill
|
44
|
|
|
Assets held for sale
|
$
|
141
|
|
Accounts payable and accrued liabilities
|
34
|
|
|
Accrued pensions
|
67
|
|
|
Deferred income taxes (a)
|
(13
|
)
|
|
Other long-term liabilities
|
—
|
|
|
Liabilities held for sale
|
$
|
88
|
|
|
|
||
(a) The net deferred income tax asset is included in liabilities held for sale due to the Company's tax jurisdictional netting.
|
4
.
|
Inventories
|
($ in millions)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Finished products
|
$
|
1,063
|
|
|
$
|
1,055
|
|
Work in process
|
178
|
|
|
161
|
|
||
Raw materials
|
398
|
|
|
402
|
|
||
Supplies
|
37
|
|
|
41
|
|
||
Total Inventories
|
$
|
1,676
|
|
|
$
|
1,659
|
|
5
.
|
Goodwill and Other Identifiable Intangible Assets
|
($ in millions)
|
Performance
Coatings
|
|
Industrial
Coatings
|
|
Glass
|
|
Total
|
||||||||
Balance, December 31, 2015
|
$
|
3,073
|
|
|
$
|
552
|
|
|
$
|
44
|
|
|
$
|
3,669
|
|
Acquisitions
|
2
|
|
|
130
|
|
|
—
|
|
|
132
|
|
||||
Reclassifications to Assets held for sale
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
(44
|
)
|
||||
Currency
|
(67
|
)
|
|
11
|
|
|
—
|
|
|
(56
|
)
|
||||
Balance, September 30, 2016
|
$
|
3,008
|
|
|
$
|
693
|
|
|
$
|
—
|
|
|
$
|
3,701
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
($ in millions)
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Acquired technology
|
$
|
577
|
|
|
$
|
(444
|
)
|
|
$
|
133
|
|
|
$
|
572
|
|
|
$
|
(421
|
)
|
|
$
|
151
|
|
Customer-related intangibles
|
1,334
|
|
|
(641
|
)
|
|
693
|
|
|
1,267
|
|
|
(574
|
)
|
|
693
|
|
||||||
Trade names
|
144
|
|
|
(72
|
)
|
|
72
|
|
|
132
|
|
|
(61
|
)
|
|
71
|
|
||||||
Other
|
41
|
|
|
(29
|
)
|
|
12
|
|
|
39
|
|
|
(26
|
)
|
|
13
|
|
||||||
Balance
|
$
|
2,096
|
|
|
$
|
(1,186
|
)
|
|
$
|
910
|
|
|
$
|
2,010
|
|
|
$
|
(1,082
|
)
|
|
$
|
928
|
|
($ in millions)
|
Future Amortization Expense
|
||
Remaining three months of 2016
|
$
|
31
|
|
2017
|
135
|
|
|
2018
|
130
|
|
|
2019
|
120
|
|
|
2020
|
105
|
|
|
2021
|
105
|
|
|
Thereafter
|
284
|
|
6
.
|
Business Restructuring
|
($ in millions, except for employees impacted)
|
Severance
and Other
Costs
|
|
Asset
Write-offs
|
|
Total
Reserve
|
|
Employees
Impacted
|
|||||||
Performance Coatings
|
$
|
71
|
|
|
$
|
6
|
|
|
$
|
77
|
|
|
1,259
|
|
Industrial Coatings
|
42
|
|
|
13
|
|
|
55
|
|
|
534
|
|
|||
Glass
|
4
|
|
|
—
|
|
|
4
|
|
|
33
|
|
|||
Corporate
|
4
|
|
|
—
|
|
|
4
|
|
|
27
|
|
|||
Total second quarter 2015 restructuring charge
|
$
|
121
|
|
|
$
|
19
|
|
|
$
|
140
|
|
|
1,853
|
|
2015 Activity
|
(32
|
)
|
|
(19
|
)
|
|
(51
|
)
|
|
(1,047
|
)
|
|||
Foreign currency impact
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||
Balance as of December 31, 2015
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
806
|
|
2016 Activity, net
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
|
(447
|
)
|
|||
Foreign currency impact
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance as of September 30, 2016
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
359
|
|
7
.
|
Borrowings
|
8
.
|
Earnings Per Share
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||
(number of shares in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Weighted average common shares outstanding
|
266.3
|
|
|
271.1
|
|
|
267.0
|
|
|
272.2
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||
Stock options
|
—
|
|
|
0.9
|
|
|
0.8
|
|
|
1.0
|
|
Other stock compensation awards
|
—
|
|
|
1.1
|
|
|
1.0
|
|
|
1.2
|
|
Potentially dilutive common shares
|
—
|
|
|
2.0
|
|
|
1.8
|
|
|
2.2
|
|
Adjusted weighted average common shares outstanding
|
266.3
|
|
|
273.1
|
|
|
268.8
|
|
|
274.4
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||
(number of shares in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Effect of anti-dilutive securities:
|
|
|
|
|
|
|
|
||||
Stock options
|
0.6
|
|
|
0.6
|
|
|
0.6
|
|
|
0.6
|
|
Other stock compensation awards
|
1.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Potentially anti-dilutive common shares
|
2.4
|
|
|
0.6
|
|
|
0.6
|
|
|
0.6
|
|
9
.
|
Income Taxes
|
|
Nine Months Ended
September 30 |
||||
|
2016
|
|
2015
|
||
Effective tax rate on pre-tax income from continuing operations
|
26.5
|
%
|
|
23.9
|
%
|
10
.
|
Pensions and Other Postretirement Benefits
|
|
Pensions
|
||||||||||||||
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Service cost
|
$
|
11
|
|
|
$
|
14
|
|
|
$
|
38
|
|
|
$
|
42
|
|
Interest cost
|
21
|
|
|
48
|
|
|
108
|
|
|
150
|
|
||||
Expected return on plan assets
|
(31
|
)
|
|
(76
|
)
|
|
(169
|
)
|
|
(209
|
)
|
||||
Amortization of actuarial losses
|
24
|
|
|
34
|
|
|
85
|
|
|
84
|
|
||||
Amortization of prior service credit
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Pension settlement charges
|
968
|
|
|
7
|
|
|
968
|
|
|
7
|
|
||||
Curtailments and special termination benefits
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Net periodic benefit cost
|
$
|
992
|
|
|
$
|
27
|
|
|
$
|
1,028
|
|
|
$
|
74
|
|
|
Other Postretirement Benefits
|
||||||||||||||
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Service cost
|
$
|
8
|
|
|
$
|
4
|
|
|
$
|
14
|
|
|
$
|
13
|
|
Interest cost
|
12
|
|
|
11
|
|
|
30
|
|
|
35
|
|
||||
Amortization of actuarial losses
|
10
|
|
|
7
|
|
|
20
|
|
|
23
|
|
||||
Amortization of prior service credit
|
(28
|
)
|
|
(2
|
)
|
|
(32
|
)
|
|
(7
|
)
|
||||
Net periodic benefit cost
|
$
|
2
|
|
|
$
|
20
|
|
|
$
|
32
|
|
|
$
|
64
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
U.S. defined benefit pension contributions
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
250
|
|
Non-U.S. defined benefit pension voluntary contributions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21
|
|
Non-U.S. defined benefit pension mandatory contributions
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
15
|
|
11
.
|
Shareholders' Equity
|
($ in millions)
|
Total PPG
Shareholders’
Equity
|
|
Non-
controlling
Interests
|
|
Total
|
||||||
Balance, January 1, 2016
|
$
|
4,983
|
|
|
$
|
86
|
|
|
$
|
5,069
|
|
Net income
|
533
|
|
|
18
|
|
|
551
|
|
|||
Other comprehensive income, net of tax
|
161
|
|
|
(1
|
)
|
|
160
|
|
|||
Cash dividends
|
(309
|
)
|
|
—
|
|
|
(309
|
)
|
|||
Issuance of treasury stock
|
51
|
|
|
—
|
|
|
51
|
|
|||
Stock repurchase program
|
(400
|
)
|
|
—
|
|
|
(400
|
)
|
|||
Stock-based compensation activity
|
12
|
|
|
—
|
|
|
12
|
|
|||
Dividends paid on subsidiary common stock to noncontrolling interests
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||
Other
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
|||
Balance, September 30, 2016
|
$
|
5,031
|
|
|
$
|
90
|
|
|
$
|
5,121
|
|
($ in millions)
|
Total PPG
Shareholders’
Equity
|
|
Non-
controlling
Interests
|
|
Total
|
||||||
Balance, January 1, 2015
|
$
|
5,180
|
|
|
$
|
85
|
|
|
$
|
5,265
|
|
Net income
|
1,092
|
|
|
17
|
|
|
1,109
|
|
|||
Other comprehensive income, net of tax
|
(476
|
)
|
|
(8
|
)
|
|
(484
|
)
|
|||
Cash dividends
|
(287
|
)
|
|
—
|
|
|
(287
|
)
|
|||
Issuance of treasury stock
|
69
|
|
|
—
|
|
|
69
|
|
|||
Stock repurchase program
|
(501
|
)
|
|
—
|
|
|
(501
|
)
|
|||
Stock-based compensation activity
|
34
|
|
|
—
|
|
|
34
|
|
|||
Dividends paid on subsidiary common stock to noncontrolling interests
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
Other
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|||
Balance, September 30, 2015
|
$
|
5,111
|
|
|
$
|
85
|
|
|
$
|
5,196
|
|
12
.
|
Accumulated Other Comprehensive Loss
|
($ in millions)
|
Unrealized Foreign
Currency
Translation Adjustments
|
|
Pension and Other Postretirement Benefit Adjustments, net of tax
|
|
Unrealized Gain (Loss) on Derivatives, net of tax
|
|
Accumulated
Other Comprehensive
(Loss) Income
|
||||||||||||||||||||
Balance, January 1, 2016
|
|
|
$
|
(1,332
|
)
|
|
|
|
$
|
(1,379
|
)
|
|
|
|
$
|
9
|
|
|
|
|
$
|
(2,702
|
)
|
||||
Current year deferrals to AOCI
|
(157
|
)
|
(a)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(157
|
)
|
|
|
||||||||
Current year deferrals to AOCI, tax effected
|
(73
|
)
|
(b)
|
|
|
(267
|
)
|
(c)
|
|
|
(6
|
)
|
(d)
|
|
|
(346
|
)
|
|
|
||||||||
Reclassifications from AOCI to net income
|
—
|
|
|
|
|
658
|
|
(c)
|
|
|
6
|
|
(d)
|
|
|
664
|
|
|
|
||||||||
Net change
|
|
|
$
|
(230
|
)
|
|
|
|
$
|
391
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
161
|
|
||||
Balance, September 30, 2016
|
|
|
$
|
(1,562
|
)
|
|
|
|
$
|
(988
|
)
|
|
|
|
$
|
9
|
|
|
|
|
$
|
(2,541
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, January 1, 2015
|
|
|
$
|
(628
|
)
|
|
|
|
$
|
(1,492
|
)
|
|
|
|
$
|
4
|
|
|
|
|
$
|
(2,116
|
)
|
||||
Current year deferrals to AOCI
|
(679
|
)
|
(a)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(679
|
)
|
|
|
||||||||
Current year deferrals to AOCI, tax effected
|
88
|
|
(b)
|
|
|
40
|
|
(c)
|
|
|
(36
|
)
|
(d)
|
|
|
92
|
|
|
|
||||||||
Reclassifications from AOCI to net income
|
—
|
|
|
|
|
69
|
|
(c)
|
|
|
42
|
|
(d)
|
|
|
111
|
|
|
|
||||||||
Net change
|
|
|
$
|
(591
|
)
|
|
|
|
$
|
109
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
(476
|
)
|
||||
Balance, September 30, 2015
|
|
|
$
|
(1,219
|
)
|
|
|
|
$
|
(1,383
|
)
|
|
|
|
$
|
10
|
|
|
|
|
$
|
(2,592
|
)
|
13
.
|
Financial Instruments, Hedging Activities and Fair Value Measurements
|
($ in millions)
|
September 30, 2016
|
||||||||
Hedge Type
|
Gain (Loss)
Deferred in
OCI
|
|
Gain Recognized
|
||||||
Amount
|
|
Caption
|
|||||||
Cash Flow
|
|
|
|
|
|
||||
Foreign currency forward contracts
(a)
|
$
|
7
|
|
|
$
|
8
|
|
|
Other charges
|
Total Cash Flow
|
$
|
7
|
|
|
$
|
8
|
|
|
|
Net Investment
|
|
|
|
|
|
||||
Cross currency swaps
|
$
|
(13
|
)
|
|
|
|
|
|
|
Foreign denominated debt
|
(67
|
)
|
|
|
|
|
|||
Total Net Investment
|
$
|
(80
|
)
|
|
|
|
|
|
($ in millions)
|
September 30, 2015
|
||||||||
Hedge Type
|
Gain
Deferred in OCI
|
|
(Loss) Gain Recognized
|
||||||
Amount
|
|
Caption
|
|||||||
Fair Value
|
|
|
|
|
|
||||
Equity forward arrangements
|
Not applicable
|
|
(76
|
)
|
|
Asbestos settlement - net
|
|||
Total Fair Value
|
|
|
$
|
(76
|
)
|
|
|
||
Cash Flow
|
|
|
|
|
|
||||
Foreign currency forward contracts
(a)
|
59
|
|
|
53
|
|
|
Other charges
|
||
Total Cash Flow
|
$
|
59
|
|
|
$
|
53
|
|
|
|
Net Investment
|
|
|
|
|
|
||||
Cross currency swaps
|
$
|
64
|
|
|
|
|
|
|
|
Foreign currency forward contracts
|
19
|
|
|
|
|
|
|||
Foreign denominated debt
|
28
|
|
|
|
|
|
|||
Total Net Investment
|
$
|
111
|
|
|
|
|
|
|
|
Economic
|
|
|
|
|
|
||||
Foreign currency forward contracts
|
|
|
$
|
19
|
|
|
Other charges
|
|
September 30, 2016
|
||||||||||
($ in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
Assets:
|
|
|
|
|
|
||||||
Other current assets:
|
|
|
|
|
|
||||||
Marketable equity securities
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency forward contracts
|
—
|
|
|
15
|
|
|
—
|
|
|||
Investments:
|
|
|
|
|
|
||||||
Marketable equity securities
|
79
|
|
|
—
|
|
|
—
|
|
|||
Other Assets:
|
|
|
|
|
|
||||||
Cross currency swaps
|
—
|
|
|
27
|
|
|
—
|
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Accounts payable and accrued liabilities:
|
|
|
|
|
|
||||||
Foreign currency forward contracts
|
—
|
|
|
5
|
|
|
—
|
|
|||
|
|
||||||||||
|
December 31, 2015
|
||||||||||
($ in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
Assets:
|
|
|
|
|
|
||||||
Other current assets:
|
|
|
|
|
|
||||||
Marketable equity securities
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency forward contracts
|
—
|
|
|
47
|
|
|
—
|
|
|||
Equity forward arrangement
|
—
|
|
|
223
|
|
|
—
|
|
|||
Investments:
|
|
|
|
|
|
||||||
Marketable equity securities
|
77
|
|
|
—
|
|
|
—
|
|
|||
Other assets:
|
|
|
|
|
|
||||||
Cross currency swaps
|
—
|
|
|
41
|
|
|
—
|
|
|||
Liabilities:
|
|
|
|
|
|
||||||
Accounts payable and accrued liabilities:
|
|
|
|
|
|
||||||
Foreign currency forward contracts
|
—
|
|
|
4
|
|
|
—
|
|
($ in millions)
|
September 30, 2016
(a)
|
|
December 31, 2015
(b)
|
||||
Long-term debt - carrying value
|
$
|
3,738
|
|
|
$
|
4,265
|
|
Long-term debt - fair value
|
$
|
4,057
|
|
|
$
|
4,367
|
|
14
.
|
Stock-Based Compensation
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Stock-based compensation
|
$
|
12
|
|
|
$
|
2
|
|
|
$
|
38
|
|
|
$
|
42
|
|
Income tax benefit recognized
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
13
|
|
|
$
|
14
|
|
|
Nine Months Ended
September 30 |
||||||||||||
|
2016
|
|
2015
|
||||||||||
Grant Details
|
Shares
|
|
Fair Value
|
|
Shares
|
|
Fair Value
|
||||||
Stock options
|
705,334
|
|
|
$
|
17.94
|
|
|
569,650
|
|
|
$
|
26.94
|
|
Restricted stock units
|
251,824
|
|
|
$
|
91.55
|
|
|
190,921
|
|
|
$
|
113.75
|
|
Contingent shares (a)
|
62,116
|
|
|
$
|
95.46
|
|
|
63,062
|
|
|
$
|
117.91
|
|
Weighted average exercise price
|
$
|
95.29
|
|
Risk-free interest rate
|
1.6
|
%
|
|
Expected life of option in years
|
6.5
|
|
|
Expected dividend yield
|
2.1
|
%
|
|
Expected volatility
|
22.8
|
%
|
15
.
|
Commitments and Contingent Liabilities
|
|
Consolidated Balance Sheet
|
|
|
|
|
||||||||||||||
|
Asbestos Settlement
Liability
|
|
Equity Forward (Asset) Liability
|
|
Pre-tax
Charge (Income) |
|
Cash Outflow
|
||||||||||||
($ in millions)
|
Current
|
|
Long-term
|
|
|
|
|||||||||||||
Balances as of December 31, 2015
|
$
|
796
|
|
|
252
|
|
|
(223
|
)
|
|
—
|
|
|
|
|||||
2016 Activity
|
|
|
|
|
|
|
|
|
|
||||||||||
Change in fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
PPG stock
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|||||
Equity forward instrument
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
(35
|
)
|
|
—
|
|
|||||
Accretion of asbestos liability
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Settlement of equity forward instrument with counterparty
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
(49
|
)
|
|||||
Contribution of PCE shares and relinquishment of PC investment
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Contribution of 2,777,778 shares of PPG stock to the PC Trust
|
(308
|
)
|
|
—
|
|
|
308
|
|
|
—
|
|
|
—
|
|
|||||
Contribution of cash to the PC Trust
|
(506
|
)
|
|
(258
|
)
|
|
—
|
|
|
—
|
|
|
(764
|
)
|
|||||
Reclassifications
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Balance as of and Activity for the nine months ended September 30, 2016
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
(813
|
)
|
Environmental Reserves
|
|||||||
($ in millions)
|
September 30, 2016
|
|
December 31, 2015
|
||||
New Jersey Chrome
|
$
|
112
|
|
|
$
|
133
|
|
Other
|
97
|
|
|
100
|
|
||
Total
|
$
|
209
|
|
|
$
|
233
|
|
Current portion
|
$
|
57
|
|
|
$
|
51
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Environmental remediation pre-tax charges
|
$
|
3
|
|
|
$
|
3
|
|
|
11
|
|
|
9
|
|
Cash outlays for environmental remediation activities
|
$
|
12
|
|
|
$
|
18
|
|
|
35
|
|
|
84
|
|
16
.
|
Reportable Business Segment Information
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
||||||||
Performance Coatings
|
$
|
2,223
|
|
|
$
|
2,240
|
|
|
$
|
6,600
|
|
|
$
|
6,705
|
|
Industrial Coatings
|
1,437
|
|
|
1,354
|
|
|
4,253
|
|
|
4,105
|
|
||||
Glass
|
129
|
|
|
131
|
|
|
401
|
|
|
404
|
|
||||
Total
|
$
|
3,789
|
|
|
$
|
3,725
|
|
|
$
|
11,254
|
|
|
$
|
11,214
|
|
Segment income:
|
|
|
|
|
|
|
|
||||||||
Performance Coatings
|
$
|
368
|
|
|
$
|
379
|
|
|
$
|
1,075
|
|
|
$
|
1,052
|
|
Industrial Coatings
|
249
|
|
|
241
|
|
|
806
|
|
|
745
|
|
||||
Glass
|
12
|
|
|
6
|
|
|
41
|
|
|
27
|
|
||||
Total
|
629
|
|
|
626
|
|
|
1,922
|
|
|
1,824
|
|
||||
Corporate
|
(42
|
)
|
|
(34
|
)
|
|
(162
|
)
|
|
(164
|
)
|
||||
Interest expense, net of interest income
|
(28
|
)
|
|
(21
|
)
|
|
(76
|
)
|
|
(63
|
)
|
||||
Legacy items
(a)
|
(4
|
)
|
|
(9
|
)
|
|
(26
|
)
|
|
(30
|
)
|
||||
Asset write-downs
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
||||
Gain from sale of equity affiliate
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||
Pension settlement charges
|
(968
|
)
|
|
(7
|
)
|
|
(968
|
)
|
|
(7
|
)
|
||||
Transaction-related costs
(b)
|
—
|
|
|
(1
|
)
|
|
(9
|
)
|
|
(27
|
)
|
||||
Business restructuring
|
—
|
|
|
—
|
|
|
—
|
|
|
(140
|
)
|
||||
(Loss) Income from continuing operations before income taxes
|
$
|
(413
|
)
|
|
$
|
554
|
|
|
$
|
687
|
|
|
$
|
1,393
|
|
(a)
|
Legacy items include current costs related to former operations of the Company, including pension and other postretirement benefit costs, certain charges for legal matters and environmental remediation costs, and certain other charges which are not associated with PPG's current business portfolio, including the impact of the asbestos settlement. Until April 2016, legacy items also include equity earnings from PPG’s minority investment in Pittsburgh Glass Works, LLC.
|
(b)
|
Transaction-related costs include advisory, legal, accounting, valuation and other professional or consulting fees incurred to effect significant acquisitions, as well as similar fees and other costs to effect disposals not classified as discontinued operations. These costs also include the flow-through cost of sales for the step up to fair value of inventories acquired in acquisitions. These costs also include certain severance costs and charges associated with the Company's recent business portfolio transformation.
|
•
|
Net sales for the three months ended were
$3.8 billion
, up nearly two percent compared to the prior year, primarily due to higher sales volumes (+2%) and sales from acquired businesses (+2%), partially offset by unfavorable foreign currency translation (-2%).
|
•
|
Net sales for the nine months ended were
$11.3 billion
, consistent with the prior year, primarily due to sales from acquired businesses (+2%) and higher sales volumes (+1%), offset by unfavorable foreign currency translation (-3%).
|
•
|
Cost of sales, exclusive of depreciation and amortization was
$2.1 billion
, up
1.6%
for the three months ended September 30, 2016 and was
$6.1 billion
, down
1.8%
for the nine months ended September 30, 2016.
|
•
|
Selling, general and administrative ("SG&A") expense was
$0.9 billion
, up
2.7%
for the three months ended September 30, 2016 and was
$2.7 billion
, up
1.1%
for the nine months ended September 30, 2016. As a percentage of sales, SG&A increased
0.2%
for the three and nine months ended September 30, 2016, respectively.
|
•
|
(Loss) income before income taxes was
$(413) million
and
$687 million
for the three and nine months ended September 30, 2016, respectively.
|
•
|
The effective tax rate for the three months and nine months ended
September 30, 2016
was
52.5%
and
26.5%
, respectively.
|
•
|
Net (loss) income from continuing operations was
$(201) million
and
$487 million
for the three and nine months ended September 30, 2016, respectively.
|
•
|
(Loss) earnings per diluted share from continuing operations was
$(0.75)
and
$1.81
for the three and nine months ended September 30, 2016, respectively.
|
•
|
Cash flows from operating activities - continuing operations decreased
$266 million
year over year for the nine months ended September 30, 2016. Operating cash flow decreased primarily due to funding of the asbestos settlement trust ($813 million) partially offset by lower cash tax payments ($15 million), lower working capital ($258 million) and lower pension contributions ($192 million).
|
•
|
Capital expenditures, including acquisitions (net of cash acquired), was
$579 million
for the nine months ended September 30, 2016.
|
•
|
During the nine months ended
September 30, 2016
, the Company paid
$309 million
in dividends and also repurchased approximately
$400 million
of its outstanding common stock. On April 21, 2016, the Company raised the per-share dividend by 11% to $0.40 per share.
|
|
Three Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
The Americas
|
|
|
|
|
|
|||||
United States and Canada
|
$
|
1,716
|
|
|
$
|
1,677
|
|
|
2.3
|
%
|
Latin America
|
359
|
|
|
355
|
|
|
1.1
|
%
|
||
Europe, Middle East and Africa (EMEA)
|
1,094
|
|
|
1,098
|
|
|
(0.4
|
)%
|
||
Asia-Pacific
|
620
|
|
|
595
|
|
|
4.2
|
%
|
||
Total
|
$
|
3,789
|
|
|
$
|
3,725
|
|
|
1.7
|
%
|
2016 vs. 2015
|
Net sales increased $64 million due to the following:
|
● Net sales attributable acquired businesses (+2%)
|
● Sales volumes (+2%)
|
Partially offset by:
|
● Foreign currency translation (-2%)
|
Acquired businesses added approximately $90 million of sales in 2016, primarily MetoKote, supplemented by several other acquisitions made in 2015.
|
In the U.S. and Canada region, sales volumes declined modestly, with flat coatings volumes and lower fiber glass volumes. Results were mixed by business unit with growth in aerospace and automotive refinish coatings. Architectural coatings sales volumes grew year-over-year versus a weak comparable period that included sales volume declines in the prior year. Above market growth continued in packaging coatings, due to continued customer conversions to PPG's new interior can coatings technologies. General industrial coatings, fiber glass and automotive OEM coatings declined due in part to soft industrial production in the region.
|
In Latin America, sales volumes grew in aggregate by a mid-single-digit percentage led by architectural, packaging, general industrial, and automotive OEM coatings. Within the region, sales volumes continued to grow in Mexico and Central America and declined in Brazil due to weak overall economic conditions there.
|
Modest sales volume growth occurred in Europe, Middle East, Africa (EMEA), aided by fiber glass. Our coatings segment sales volumes were flat in the EMEA region after expanding for the prior six quarters. PPG’s above market regional growth in our automotive OEM and general industrial coatings and specialty coatings and materials businesses was offset by modest declines (in line with overall industry demand patterns) in architectural coatings, packaging and automotive refinish coatings.
|
Year-over-year sales volume growth in Asia-Pacific accelerated versus the first and second quarters of 2016 increasing by a mid-to-high single digit percentage, with solid volume gains in automotive OEM, general industrial and refinish coatings. From a country and sub-region perspective, sales volumes grew in China, India and southeast Asia versus the prior year and Korean volumes declined primarily due to lower marine shipbuilding activity.
|
Foreign currency translation reduced net sales by about $65 million as the U.S. dollar strengthened against most foreign currencies versus the prior year, notably the Mexican peso, British pound and Chinese yuan.
|
|
Three Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
Cost of sales, exclusive of depreciation and amortization
|
$
|
2,081
|
|
|
$
|
2,049
|
|
|
1.6
|
%
|
Cost of sales as a percentage of net sales
|
54.9
|
%
|
|
55.0
|
%
|
|
(0.1
|
)%
|
2016 vs. 2015
|
Cost of sales, exclusive of depreciation and amortization, increased $32 million (+1.6%) including the following:
|
● Higher sales volumes
|
● Cost of sales attributable to acquired businesses
|
Partially offset by:
|
● Lower manufacturing costs
|
● Foreign currency translation
|
● Restructuring cost savings
|
|
Three Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
Selling, general and administrative expenses (SG&A)
|
$
|
899
|
|
|
$
|
875
|
|
|
2.7
|
%
|
Selling, general and administrative expenses as a percentage of net sales
|
23.7
|
%
|
|
23.5
|
%
|
|
0.2
|
%
|
2016 vs. 2015
|
SG&A increased $24 million (+2.7%) due to the following:
|
● Growth-related spending, including support for the launch of new architectural coatings retail products
|
● Overhead cost inflation
|
● SG&A expenses attributable to acquired businesses
|
Partially offset by:
|
● Foreign currency translation
|
● Restructuring cost savings
|
|
Three Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
Interest expense, net of Interest income
|
$
|
28
|
|
|
$
|
21
|
|
|
33.3
|
%
|
Other charges
|
$
|
13
|
|
|
$
|
21
|
|
|
(38.1
|
)%
|
Other income
|
$
|
(23
|
)
|
|
$
|
(35
|
)
|
|
(34.3
|
)%
|
|
Three Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
Income tax (benefit) expense
|
$
|
(217
|
)
|
|
$
|
133
|
|
|
(263.2
|
)%
|
Effective tax rate
|
52.5
|
%
|
|
24.0
|
%
|
|
28.5
|
%
|
||
Adjusted effective tax rate, continuing operations*
|
24.4
|
%
|
|
24.0
|
%
|
|
0.4
|
%
|
||
|
|
|
|
|
|
|||||
(Loss) earnings per diluted share, continuing operations
|
$
|
(0.75
|
)
|
|
$
|
1.52
|
|
|
(149.3
|
)%
|
Adjusted earnings per diluted share*
|
$
|
1.56
|
|
|
$
|
1.54
|
|
|
1.3
|
%
|
*See Regulation G Reconciliation.
|
|
Three months ended September 30, 2016
|
|||||||||||||||||
($ in millions, except percentages and per share amounts)
|
(Loss) Income Before Income Taxes
|
|
Tax (Benefit) Expense
|
|
Effective Tax Rate
|
|
Net (loss) income from continuing operations (attributable to PPG)
|
|
Earnings per diluted share
|
|||||||||
As reported, continuing operations
|
$
|
(413
|
)
|
|
$
|
(217
|
)
|
|
52.5
|
%
|
|
$
|
(201
|
)
|
|
$
|
(0.75
|
)
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|||||||||
Pension settlement charges
|
968
|
|
|
352
|
|
|
36.4
|
%
|
|
616
|
|
|
2.31
|
|
||||
Adjusted, continuing operations, excluding certain charges
|
$
|
555
|
|
|
$
|
135
|
|
|
24.4
|
%
|
|
$
|
415
|
|
|
$
|
1.56
|
|
|
Three months ended September 30, 2015
|
|||||||||||||||||
($ in millions, except percentages and per share amounts)
|
Income Before Income Taxes
|
|
Tax Expense
|
|
Effective Tax Rate
|
|
Net income from continuing operations (attributable to PPG)
|
|
Earnings per diluted share
|
|||||||||
As reported, continuing operations
|
$
|
554
|
|
|
$
|
133
|
|
|
24.0
|
%
|
|
$
|
415
|
|
|
$
|
1.52
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction-related costs
(1)
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Pension settlement charge
|
7
|
|
|
2
|
|
|
26.7
|
%
|
|
5
|
|
|
0.02
|
|
||||
Adjusted, continuing operations, excluding certain charges
|
$
|
562
|
|
|
$
|
135
|
|
|
24.0
|
%
|
|
$
|
421
|
|
|
$
|
1.54
|
|
|
Three Months Ended
September 30 |
|
$ Change
|
|
% Change
|
|||||||||
($ in millions, except per share amounts)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016 vs. 2015
|
|||||||
Net sales
|
$
|
2,223
|
|
|
$
|
2,240
|
|
|
$
|
(17
|
)
|
|
(0.8
|
)%
|
Segment income
|
$
|
368
|
|
|
$
|
379
|
|
|
$
|
(11
|
)
|
|
(2.9
|
)%
|
2016 vs. 2015
|
Performance Coatings net sales decreased $17 million (-1%) due to the following:
|
● Unfavorable foreign currency translation of approximately $45 million (-2%)
|
Partially offset by:
|
● Higher sales volumes (+0.6%)
|
● Net sales from acquisitions (+0.6%)
|
Architectural coatings - EMEA sales volumes declined by a low-single-digit percentage year-over-year, however, the rate of decline was modestly higher than the prior sequential quarter. Sales volumes flattened in western Europe, remaining mixed by country and declined in central Europe versus the prior year.
|
Architectural coatings - Americas and Asia-Pacific sales volumes increased a low-to-mid-single-digit percentage in the third quarter versus a weak comparable prior year period. Sales volumes stabilized in China during the third quarter and were consistent with prior year. Brazilian sales volumes declined a double-digit percentage year-over-year due to ongoing weakness in overall economic activity, continuing the declining sales volume trend from recent quarters. In the U.S. and Canada, sales volumes in the company-owned store channel improved year-over-year for the third consecutive quarter, mainly due to recent growth-related investments and initiatives. Sales volumes in the national retail accounts ("do-it-yourself" or DIY) channel improved a mid-single-digit percentage compared to volume declines in the prior year period, which included higher sales of certain new PPG DIY products, supported by traditional new product marketing and promotional campaigns. Sales volumes were flat year-over-year in the U.S. independent dealer channel, an improvement versus prior year results. In Mexico, local currency architectural coatings sales grew a mid-to-high single-digit percentage, more than double the Mexican GDP growth rate. Robust sales growth also continued in Central America year-over-year, building on the 2015 acquisition of Consorcio LatinAmericano which provided an initial sales presence in the region. The Company's retail distribution network has grown to include approximately 300 points of sale across Central America.
|
Protective and marine coatings sales volumes declined by a mid-single-digit percentage year-over-year, primarily driven by lower shipbuilding activity in Asia-Pacific and decreased demand for marine aftermarket products. The declines more than offset protective coatings sales volumes improvements versus prior year, led by gains in the U.S .and Canada.
|
Aerospace coatings sales volumes growth continued, increasing by a low-single digit percentage versus the prior year, consistent with the industry and second quarter 2016 growth rates. Regionally, sales volume growth was led by the U.S. and Canada, with modest demand in other regions.
|
Automotive refinish coatings organic sales grew at a low-to-mid-single-digit percentage year-over-year, reflecting higher end-market demand in Asia-Pacific partially offset by modest declines in Europe due to demand weakness in central Europe.
|
Segment income decreased $11 million (-3%) year-over-year primarily due to unfavorable foreign currency translation, which reduced segment income by $10 million (Mexican peso, British pound) and about $15 million of incremental growth-related spending for new architectural products, partially offset by lower manufacturing costs, including business restructuring benefits, acquisition-related income and income from higher sales volumes.
|
|
Three Months Ended
September 30 |
|
$ Change
|
|
% Change
|
|||||||||
($ in millions, except per share amounts)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016 vs. 2015
|
|||||||
Net sales
|
$
|
1,437
|
|
|
$
|
1,354
|
|
|
$
|
83
|
|
|
6.1
|
%
|
Segment income
|
$
|
249
|
|
|
$
|
241
|
|
|
$
|
8
|
|
|
3.3
|
%
|
2016 vs. 2015
|
Industrial Coatings segment net sales increased (+6%) due to the following:
|
● Net sales attributable to acquired businesses (+5%)
|
● Higher sales volumes (+4%), led by growth in Asia Pacific and Europe.
|
Partially offset by:
|
● Unfavorable foreign currency translation of approximately $15 million (-1%)
|
● Lower selling prices
|
PPG’s global automotive OEM coatings sales volumes increased by a low-to-mid-single digit percentage, generally consistent with global industry growth rates. Year-over-year growth rates were highest in Asia partially due to a weak comparable period in the prior year. Regional sales volume growth continued in Europe and expanded in Latin America, but volumes declined in the U.S. and Canada versus prior year.
|
Global general industrial coatings and specialty coatings and materials sales volumes, in aggregate, grew a low-to-mid-single-digit percentage year-over-year outpacing global industrial production, similar to previous quarters. Demand levels remained mixed by end-use market and geography, with strong year-over-growth in Asia-Pacific partially offset by continued softness in certain U.S. and Canada industrial end-use markets. Overall, volume growth continued in automotive parts and accessories, coil and extrusion, and electronics materials.
|
Packaging coatings sales volumes were up a low-to-mid single-digit percentage year-over-year, driven by continued strong sales growth momentum in the U.S. and Asia-Pacific regions related to the adoption of PPG's new interior can coatings technologies.
|
Segment income increased $8 million (+3%) year-over-year primarily due to lower manufacturing costs including business restructuring benefits and income from higher sales volumes, partially offset by lower selling prices, overhead cost inflation and unfavorable foreign currency translation ($5 million). Acquisition-related income contributed to income growth but at margins which are currently below the segment average.
|
|
Three Months Ended
September 30 |
|
$ Change
|
|
% Change
|
|||||||||
($ in millions, except per share amounts)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016 vs. 2015
|
|||||||
Net sales
|
$
|
129
|
|
|
$
|
131
|
|
|
$
|
(2
|
)
|
|
(1.5
|
)%
|
Segment income
|
$
|
12
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
100.0
|
%
|
2016 vs. 2015
|
Glass segment net sales decreased (-1.5%) due to the following:
|
● Unfavorable foreign currency translation (-2%)
|
Partially offset by:
|
● Slightly higher sales volumes (0.5%)
|
Fiber glass sales volumes increased slightly year-over-year, with growth in Europe, across most end-use markets, partially offset by declines in the U.S. and Canada region.
|
Segment income increased $6 million (100%) year-over-year, primarily due to aggressive cost management, including business restructuring benefits.
|
|
Nine Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
The Americas
|
|
|
|
|
|
|||||
United States and Canada
|
$
|
5,089
|
|
|
$
|
5,062
|
|
|
0.5
|
%
|
Latin America
|
1,019
|
|
|
1,080
|
|
|
(5.6
|
)%
|
||
Europe, Middle East and Africa (EMEA)
|
3,357
|
|
|
3,266
|
|
|
2.8
|
%
|
||
Asia Pacific
|
1,789
|
|
|
1,806
|
|
|
(0.9
|
)%
|
||
Total
|
$
|
11,254
|
|
|
$
|
11,214
|
|
|
0.4
|
%
|
2016 vs. 2015
|
Net sales increased $40 million due to the following:
|
● Unfavorable foreign currency translation (-3%)
|
Partially offset by:
|
● Net sales attributable to acquired businesses (+2%)
|
● Higher sales volumes (+1%)
|
Foreign currency translation reduced net sales by $290 million as the U.S. dollar strengthened against most foreign currencies versus the prior year, notably the Mexican peso, Chinese yuan and British pound. These were partially offset by modest strengthening of the Euro versus the U.S. dollar.
|
Acquired businesses added approximately $260 million of sales in 2016, primarily Revocoat, IVC, LJF, MetoKote and several other acquisitions made in 2015.
|
Sales volume growth occurred across all regions, except the U.S. and Canada, where sales volumes declined.
|
|
Nine Months Ended
September 30 |
|
Percent Change
|
|||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||
Cost of sales, exclusive of depreciation and amortization
|
6,095
|
|
|
6,209
|
|
|
(1.8
|
)%
|
Cost of sales as a percentage of net sales
|
54.2
|
%
|
|
55.4
|
%
|
|
(1.2
|
)%
|
2016 vs. 2015
|
Cost of sales, exclusive of depreciation and amortization, decreased $114 million (-1.8%) due to the following:
|
● Lower manufacturing costs
|
● Foreign currency translation
|
● Restructuring cost savings
|
Partially offset by:
|
● Cost of sales attributable to acquired businesses
|
● Higher sales volumes
|
|
Nine Months Ended
September 30 |
|
Percent Change
|
|||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||
Selling, general and administrative expenses (SG&A)
|
2,746
|
|
|
2,715
|
|
|
1.1
|
%
|
Selling, general and administrative expenses as a percentage of net sales
|
24.4
|
%
|
|
24.2
|
%
|
|
0.2
|
%
|
2016 vs. 2015
|
SG&A expenses increased $31 million (+1.1%) due to the following:
|
● Overhead cost inflation
|
● Increased architectural coatings U.S. and Canada business spending of approximately $30 million on new product launches and other growth-related initiatives at major national accounts.
|
● Higher variable compensation costs, professional services and marketing costs
|
● SG&A expenses attributable to acquired businesses
|
Partially offset by:
|
● Foreign currency translation
|
● Restructuring cost savings
|
|
Nine Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
Interest expense, net of Interest income
|
$
|
76
|
|
|
$
|
63
|
|
|
20.6
|
%
|
Other charges
|
$
|
66
|
|
|
$
|
71
|
|
|
(7.0
|
)%
|
Other income
|
$
|
(88
|
)
|
|
$
|
(92
|
)
|
|
(4.3
|
)%
|
|
Nine Months Ended
September 30 |
|
Percent Change
|
|||||||
($ in millions, except percentages)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||
Income tax expense
|
182
|
|
|
333
|
|
|
(45.3
|
)%
|
||
Effective tax rate
|
26.5
|
%
|
|
23.9
|
%
|
|
2.6
|
%
|
||
Adjusted effective tax rate, continuing operations*
|
24.4
|
%
|
|
24.1
|
%
|
|
0.3
|
%
|
||
Earnings per diluted share, continuing operations
|
$
|
1.81
|
|
|
$
|
3.80
|
|
|
(52.4
|
)%
|
Adjusted earnings per diluted share*
|
$
|
4.62
|
|
|
$
|
4.27
|
|
|
8.2
|
%
|
*See Regulation G Reconciliation.
|
|
Nine months ended September 30, 2016
|
|||||||||||||||||
($ in millions, except percentages and per share amounts)
|
Income Before Income Taxes
|
|
Tax Expense
|
|
Effective Tax Rate
|
|
Net income from continuing operations (attributable to PPG)
|
|
Earnings per diluted share
|
|||||||||
As reported, continuing operations
|
687
|
|
|
182
|
|
|
26.5
|
%
|
|
$
|
487
|
|
|
$
|
1.81
|
|
||
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|||||||||
Gain from sale of equity investment
|
(20
|
)
|
|
(7
|
)
|
|
37.6
|
%
|
|
(13
|
)
|
|
(0.05
|
)
|
||||
Transaction-related costs
(1)
|
9
|
|
|
3
|
|
|
37.6
|
%
|
|
6
|
|
|
0.03
|
|
||||
Net tax effect of asbestos settlement funding
|
—
|
|
|
(128
|
)
|
|
—
|
|
|
128
|
|
|
0.48
|
|
||||
Asset write-downs
|
14
|
|
|
4
|
|
|
28.6
|
%
|
|
11
|
|
|
0.04
|
|
||||
Pension settlement charges
|
968
|
|
|
352
|
|
|
36.4
|
%
|
|
616
|
|
|
2.31
|
|
||||
Adjusted, continuing operations, excluding certain charges
|
$
|
1,658
|
|
|
$
|
406
|
|
|
24.4
|
%
|
|
$
|
1,235
|
|
|
$
|
4.62
|
|
|
Nine months ended September 30, 2015
|
|||||||||||||||||
($ in millions, except percentages and per share amounts)
|
Income Before Income Taxes
|
|
Tax Expense
|
|
Effective Tax Rate
|
|
Net income from continuing operations (attributable to PPG)
|
|
Earnings per diluted share
|
|||||||||
As reported, continuing operations
|
1,393
|
|
|
333
|
|
|
23.9
|
%
|
|
$
|
1,043
|
|
|
$
|
3.80
|
|
||
Includes:
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction-related costs
(1)
|
27
|
|
|
8
|
|
|
29.6
|
%
|
|
19
|
|
|
0.06
|
|
||||
Business restructuring
|
140
|
|
|
34
|
|
|
24.3
|
%
|
|
106
|
|
|
0.39
|
|
||||
Pension settlement charge
|
7
|
|
|
2
|
|
|
26.7
|
%
|
|
5
|
|
|
0.02
|
|
||||
Adjusted, continuing operations, excluding certain charges
|
$
|
1,567
|
|
|
$
|
377
|
|
|
24.1
|
%
|
|
$
|
1,173
|
|
|
$
|
4.27
|
|
|
Nine Months Ended
September 30 |
|
$ Change
|
|
% Change
|
|||||||
($ in millions, except per share amounts)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016 vs. 2015
|
|||||
Net sales
|
6,600
|
|
|
6,705
|
|
|
$
|
(105
|
)
|
|
(1.6
|
)%
|
Segment income
|
1,075
|
|
|
1,052
|
|
|
$
|
23
|
|
|
2.2
|
%
|
2016 vs. 2015
|
Performance Coatings net sales decreased (-2%) due to the following:
|
● Unfavorable foreign currency translation of approximately $190 million (-3%)
|
Partially offset by:
|
● Net sales attributable to acquired businesses (+1%)
|
● Slightly higher selling prices
|
Architectural coatings - EMEA sales volumes were flat year-over-year as growth in western Europe early in the year was mitigated by demand weakness in the second and third quarters, including a sales volume decline in central Europe and flattening sales volumes in western Europe.
|
Architectural coatings - Americas and Asia Pacific organic sales were flat versus the prior year. In the U.S. and Canada, sales volumes advanced in the company-owned store channel versus the prior year, mainly due to recent growth-related investments and initiatives. The increase in the company-owned stores channel was more than offset by sales volume declines in the national retail (DIY) accounts channel and U.S. independent dealer channel year-over-year, despite DIY channel strengthening in the third quarter. Latin America organic sales were up year-over-year, led by Mexico which grew at more than double the Mexican GDP growth rate due to continued market penetration from more than 150 new store openings year-to-date.
|
Protective and marine coatings net sales volumes declined a low-single-digit-percentage year-over-year as growth in protective coatings was offset by declines in marine coatings, primarily due to lower shipbuilding activity in Asia-Pacific, decreased demand for marine aftermarket products and the ongoing impact of decreased capital investment and maintenance in the oil and gas sector. Protective coatings sales volumes grew versus the prior year, led by the U.S. and Latin America, including benefits from expanded distribution through the Comex concessionaire network.
|
Aerospace coatings sales volumes increased modestly versus the prior year despite lower commercial demand stemming from customer inventory management early in the year. Sales growth occurred in all major regions, led by Asia Pacific.
|
Automotive refinish coatings organic sales grew at a mid-single-digit percentage rate year-over-year, outperforming end-use market demand levels in the U.S. and Canada and Asia-Pacific.
|
Segment income increased $23 million (+2%) year-over-year, primarily due to continued strong cost management, including business restructuring benefits, slightly higher selling prices and acquisition-related income, partially offset by the impact of approximately $30 million of planned incremental costs for new product launches and other growth-related initiatives in major U.S. architectural coatings national accounts and unfavorable foreign currency translation ($30 million).
|
|
Nine Months Ended
September 30 |
|
$ Change
|
|
% Change
|
|||||||
($ in millions, except per share amounts)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016 vs. 2015
|
|||||
Net sales
|
4,253
|
|
|
4,105
|
|
|
$
|
148
|
|
|
3.6
|
%
|
Segment income
|
806
|
|
|
745
|
|
|
$
|
61
|
|
|
8.2
|
%
|
2016 vs. 2015
|
Industrial Coatings segment net sales increased (+4%) due to the following:
|
● Net sales attributable to acquired businesses (+5%)
|
● Higher sales volumes (+2%), led by growth in Europe.
|
Partially offset by:
|
● Unfavorable foreign currency translation of approximately $100 million (-2%)
|
● Lower selling prices (-1%)
|
PPG’s global automotive OEM coatings business sales volumes increased a low-single-digit-percentage over the prior year, consistent with modest global automotive industry production growth. PPG's sales volumes differed by region, led by year-over-year growth in Europe and Asia-Pacific, while U.S. and Canada sales volumes declined.
|
Global general industrial coatings and specialty coatings and materials sales volumes, in aggregate, increased a low-to-mid-single-digit percentage year-over-year, as growth momentum continued. Sales volumes remained uneven by end-use market and geography. Regionally, European sales volumes continued to expand, Asia-Pacific sales volumes increased, while sales volumes declined in the U.S. and Canada. Sales volumes in Latin America advanced moderately.
|
Global packaging coatings sales volumes were up a mid-to-high single-digit percentage year-over-year, driven primarily by continued strong sales growth momentum related to the adoption of PPG's new interior can coatings technologies.
|
Segment income increased $61 million (+8%) year-over-year primarily due to lower manufacturing costs, including business restructuring benefits, income from higher sales volumes and acquisition-related income, partially offset by lower selling prices and unfavorable foreign currency translation ($15 million).
|
|
Nine Months Ended
September 30 |
|
$ Change
|
|
% Change
|
|||||||
($ in millions, except per share amounts)
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016 vs. 2015
|
|||||
Net sales
|
401
|
|
|
404
|
|
|
$
|
(3
|
)
|
|
(0.7
|
)%
|
Segment income
|
41
|
|
|
27
|
|
|
$
|
14
|
|
|
51.9
|
%
|
2016 vs. 2015
|
Glass segment net sales decreased (-0.7%) due to the following:
|
● Unfavorable foreign currency translation (-1.2%)
|
Partially offset by:
|
● Higher sales volumes (+0.6%)
|
Fiber glass sales volumes increased modestly year-over-year, as higher demand for automotive and wind energy components in Europe was offset by lower demand in certain U.S. energy-related end-use markets. Selling prices were flat year over year.
|
Segment income increased $14 million (52%) primarily due to disciplined cost management, including business restructuring benefits, partially offset by unfavorable product mix in third quarter and lower equity earnings, driven by weaker consumer electronics demand in Asia in the first half of 2016.
|
•
|
Capital expenditures, excluding acquisitions, of
$258 million
, or about
2%
of sales.
|
•
|
Voluntary contributions to PPG's U.S. pension plans of $50 million.
|
•
|
Mandatory contributions to PPG's non-U.S. pension plans of $28 million.
|
•
|
Cash dividends paid totaled
$309 million
.
|
•
|
Cash spent on share repurchases totaled
$400 million
.
|
($ in millions, except percentages)
|
September 30, 2016 (a) (b)
|
|
December 31, 2015 (b)
|
|
September 30, 2015 (b)
|
||||||
Trade Receivables, Net
|
$
|
2,635
|
|
|
$
|
2,343
|
|
|
$
|
2,635
|
|
Inventories, FIFO
|
1,811
|
|
|
1,803
|
|
|
1,942
|
|
|||
Trade Creditors’ Liabilities
|
1,996
|
|
|
1,886
|
|
|
2,006
|
|
|||
Operating Working Capital
|
$
|
2,450
|
|
|
$
|
2,260
|
|
|
$
|
2,571
|
|
Operating Working Capital as a % of Sales
|
16.2
|
%
|
|
15.9
|
%
|
|
17.3
|
%
|
|||
Days sales outstanding
|
55
|
|
|
54
|
|
|
55
|
|
|||
|
|
|
|
|
|
||||||
(a) Reclassifications for Assets and Liabilities held for sale related to the European fiber glass business reduced Operating Working Capital by $14 million as of September 30, 2016.
|
|||||||||||
|
|
|
|
|
|
||||||
(b) Reclassifications for Assets and Liabilities held for sale related to the flat glass business for all periods presented.
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Cash outlays for environmental remediation activities
|
$
|
12
|
|
|
$
|
18
|
|
|
$
|
35
|
|
|
$
|
84
|
|
($ in millions)
|
Remainder
of 2016
|
|
2017
|
|
Annually
2018 - 2020
|
Projected future cash outlays for environmental remediation activities
|
$10 - $20
|
|
$50 - $70
|
|
$25 - $45
|
Month
|
Total Number
of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number
of Shares Purchased as Part of Publicly Announced Programs (1) |
|
Maximum
Number of Shares That May Yet Be Purchased Under the Programs (1), (2) |
|||||
July 2016
|
|
|
|
|
|
|
|
|||||
Repurchase program
|
240,824
|
|
|
$
|
105.91
|
|
|
240,824
|
|
|
7,109,273
|
|
August 2016
|
|
|
|
|
|
|
|
|||||
Repurchase program
|
1,117,106
|
|
|
$
|
105.02
|
|
|
1,117,106
|
|
|
5,922,421
|
|
September 2016
|
|
|
|
|
|
|
|
|||||
Repurchase program
|
1,039,282
|
|
|
$
|
103.09
|
|
|
1,039,282
|
|
|
5,030,023
|
|
Total quarter ended September 30, 2016
|
|
|
|
|
|
|
|
|||||
Repurchase program
|
2,397,212
|
|
|
$
|
104.28
|
|
|
2,397,212
|
|
|
5,030,023
|
|
(1)
|
These shares were repurchased under a $2 billion share repurchase program approved in April 2014. The remaining shares that may be repurchased under the $2 billion repurchase program have been calculated based upon PPG's closing stock price on the last business day of the respective month. This repurchase program has no expiration date.
|
(2)
|
On October 7, 2016, PPG's board of directors approved a $2 billion share repurchase program. This repurchase program has no expiration date.
|
|
|
|
|
PPG INDUSTRIES, INC.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
October 21, 2016
|
By:
|
|
/S/ Frank S. Sklarsky
|
|
|
|
|
Frank S. Sklarsky
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer and Duly Authorized Officer)
|
††12
|
|
Computation of Ratio of Earnings to Fixed Charges for the Nine Months Ended September 30, 2016 and for the Five Years Ended December 31, 2015.
|
††31.1
|
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
††31.2
|
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
†††32.1
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
†††32.2
|
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS*
|
|
XBRL Instance Document
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
||
† Filed herewith. Confidential treatment has been requested for portions of this agreement. Schedules and exhibits to this agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the Securities and Exchange Commission on request.
|
||
†† Filed herewith.
|
||
††† Furnished herewith.
|
||
* Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2016 and 2015, (ii) the Condensed Consolidated Balance Sheet at September 30, 2016 and December 31, 2015, (iii) the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2016 and 2015, and (iv) Notes to Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2016.
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|