Part II Item 5.
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The information required by Item 5 regarding market information, including stock exchange listings and quarterly stock market prices, dividends and holders of common stock is included in Exhibit 13.1 filed with this Form 10-K and is incorporated herein by reference.
This information is also included in the PPG Shareholder Information on page 5 of the Annual Report to shareholders.
Directors who are not also officers of the Company receive common stock equivalents pursuant to the PPG Industries, Inc. , Deferred Compensation Plan for Directors (“PPG Deferred Compensation Plan for Directors”).
Common stock equivalents are hypothetical shares of common stock having a value on any given date equal to the value of a share of common stock.
Common stock equivalents earn dividend equivalents that are converted into additional common stock equivalents but carry no voting rights or other rights afforded to a holder of common stock.
The common stock equivalents credited to directors under this plan are exempt from registration under Section 4(a)(2) of the Securities Act of 1933 as private offerings made only to directors of the Company in accordance with the provisions of the plan.
Under the PPG Deferred Compensation Plan for Directors, each director may elect to defer the receipt of all or any portion of the compensation paid to such director for serving as a PPG director.
All deferred payments are held in the form of common stock equivalents.
Payments out of the deferred accounts are made in the form of common stock of the Company (and cash as to any fractional common stock equivalent).
The directors, as a group, were credited with 15,445; 25,724; and 33,540 common stock equivalents in 2015, 2014 and 2013, respectively, under this plan.
The values of the common stock equivalents, when credited, ranged from $90.13 to $98.73 in 2015, $95.59 to $109.91 in 2014, and $69.28 to $91.96 in 2013.
Issuer Purchases of Equity Securities
## Table 0 ##
(1)In April 2014, PPG’s board of directors authorized a $2 billion repurchase program.
The remaining shares that may yet to be purchased 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.
These repurchase programs have no expiration date.
No shares were withheld in satisfaction of the exercise price and/or tax withholding obligation by holders of employee stock options who exercised options granted under the Company’s equity compensation plans in the fourth quarter of 2015.
Item 6.
Selected Financial Data The information required by Item 6 regarding the selected financial data for the five years ended December 31, 2015 is included in Exhibit 13.2 filed with this Form 10-K and is incorporated herein by reference.
This information is also reported in the Five-Year Digest on page 84 of the Annual Report to shareholders.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Executive Overview Below are our key financial results for the fiscal year ended December 31, 2015: ?
Net sales were $15.3 billion, consistent with the prior year, primarily due to unfavorable foreign currency translation (7%) offset by sales from acquired businesses (6%) and higher volumes (1%).  ?
Cost of sales, exclusive of depreciation and amortization decreased 2% to $8.6 billion.  ?
Selling, general and administrative expenses decreased 2% to $3.7 billion.  ?
In April 2015, PPG approved a business restructuring program and recorded a $140 million charge.
Partial year savings in 2015 totaled approximately $20 million.  ?
Income before income taxes was $1.9 billion.  ?
The effective tax rate for 2015 was 24.2%.  ?
Net income from continuing operations was $1.4 billion and earnings per diluted share was $5.14.  ?
Operating cash flow was $1.8 billion.  ?
Capital expenditures, including acquisitions (net of cash acquired), was $796 million.  ?
In April 2015, the Company raised the per-share dividend by 7%.
In 2015, the Company paid $383 million in dividends and also repurchased approximately $750 million of its outstanding common stock.
Notes to the Consolidated Financial Statements 1.
Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of PPG Industries, Inc.  (“PPG” or the “Company”) and all subsidiaries, both U. S.  and non-U.
S. , that it controls.
PPG owns more than 50% of the voting stock of most of the subsidiaries that it controls.
For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests.
Investments in companies in which PPG owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting.
As a result, PPG’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statement of income and PPG’s share of these companies’ shareholders’ equity is included in “Investments” in the accompanying consolidated balance sheet.
Transactions between PPG and its subsidiaries are eliminated in consolidation.
Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U. S.  generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period.
Such estimates also include the fair value of assets acquired and liabilities assumed resulting from the allocation of the purchase price related to business combinations consummated.
Actual outcomes could differ from those estimates.
Revenue Recognition The Company recognizes revenue when the earnings process is complete.
Revenue is recognized by all operating segments when goods are shipped and title to inventory and risk of loss passes to the customer or when services have been rendered.
Shipping and Handling Costs Amounts billed to customers for shipping and handling are reported in “Net sales” in the accompanying consolidated statement of income.
Shipping and handling costs incurred by the Company for the delivery of goods to customers are included in “Cost of sales, exclusive of depreciation and amortization” in the accompanying consolidated statement of income.
Selling, General and Administrative Costs Amounts presented as “Selling, general and administrative” in the accompanying consolidated statement of income are comprised of selling, customer service, distribution and advertising costs, as well as the costs of providing corporatewide functional support in such areas as finance, law, human resources and planning.
Distribution costs pertain to the movement and storage of finished goods inventory at companyowned and leased warehouses and other distribution facilities.
Advertising Costs Advertising costs are expensed as incurred and totaled $322 million, $324 million and $297 million in 2016, 2015 and 2014, respectively.
Research and Development Research and development costs, which consist primarily of employee related costs, are charged to expense as incurred.
## Table 1 ##
Legal Costs Legal costs, primarily include costs associated with acquisition and divestiture transactions, general litigation, environmental regulation compliance, patent and trademark protection and other general corporate purposes, are charged to expense as incurred.
Foreign Currency Translation The functional currency of most significant non-U.
S.  operations is their local currency.
Assets and liabilities of those operations are translated into U. S.  dollars using year-end exchange rates; income and expenses are translated using the average exchange rates for the reporting period.
Unrealized foreign currency translation adjustments are deferred in accumulated other comprehensive loss, a separate component of shareholders’ equity.
Cash Equivalents Cash equivalents are highly liquid investments (valued at cost, which approximates fair value) acquired with an original maturity of three months or less.
Short-term Investments Short-term investments are highly liquid, high credit quality investments (valued at cost plus accrued interest) that have stated maturities of greater than three months to one year.
The purchases and sales of these investments are classified as investing activities in the consolidated statement of cash flows.
Marketable Equity Securities The Company’s investment in marketable equity securities is recorded at fair market value and reported in “Other current assets” and “Investments” in the accompanying consolidated balance sheet with changes in fair market value recorded in income for those securities designated as trading securities and in other comprehensive income, net of tax, for those designated as available for sale securities.
Notes to the Consolidated Financial Statements loans will bear interest at rates based, at the Company’s option, on one of two specified base rates plus a margin based on certain formulas defined in the Credit Agreement.
Additionally, the Credit Agreement contains a Commitment Fee, as defined in the Credit Agreement, on the amount of unused commitments under the Credit Agreement ranging from 0.080% to 0.225% per annum.
The average Commitment Fee in 2016 was 0.09%, and PPG is committed to pay 0.09% in 2017.
The Credit Agreement also supports the Company’s commercial paper borrowings.
As a result, the commercial paper borrowings as of December 31, 2015 were classified as longterm debt based on PPG’s intent and ability to refinance these borrowings on a long-term basis.
There were no commercial paper borrowings outstanding as of December 31, 2016.
The Credit Agreement contains usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets.
The Credit Agreement maintains the same restrictive covenant as the prior credit agreement whereby the Company must maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Credit Agreement, of 60% or less.
As of December 31, 2016, total indebtedness was 45% of the Company’s total capitalization.
The Credit Agreement also contains customary events of default, including the failure to make timely payments when due under the Credit Agreement or other material indebtedness, the failure to satisfy covenants contained in the Credit Agreement, a change in control of the Company and specified events of bankruptcy and insolvency that would permit the lenders to accelerate the repayment of any loans.
Notes to the Consolidated Financial Statements loans will bear interest at rates based, at the Company¡¯s option, on one of two specified base rates plus a margin based on certain formulas defined in the Credit Agreement.
Additionally, the Credit Agreement contains a Commitment Fee, as defined in the Credit Agreement, on the amount of unused commitments under the Credit Agreement ranging from 0.080% to 0.225% per annum.
The average Commitment Fee in 2016 was 0.09%, and PPG is committed to pay 0.09% in 2017.
The Credit Agreement also supports the Company¡¯s commercial paper borrowings.
As a result, the commercial paper borrowings as of December 31, 2015 were classified as longterm debt based on PPG¡¯s intent and ability to refinance these borrowings on a long-term basis.
There were no commercial paper borrowings outstanding as of December 31, 2016.
The Credit Agreement contains usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company¡¯s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets.
The Credit Agreement maintains the same restrictive covenant as the prior credit agreement whereby the Company must maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Credit Agreement, of 60% or less.
As of December 31, 2016, total indebtedness was 45% of the Company¡¯s total capitalization.
The Credit Agreement also contains customary events of default, including the failure to make timely payments when due under the Credit Agreement or other material indebtedness, the failure to satisfy covenants contained in the Credit Agreement, a change in control of the Company and specified events of bankruptcy and insolvency that would permit the lenders to accelerate the repayment of any loans.
In June 2015, PPG¡¯s €300 million 3.875% notes matured, upon which the Company paid $336 million to settle these obligations.
In March 2015, PPG completed a public offering of €600 million 0.875% notes due 2022 and €600 million 1.400% Notes due 2027, or €1.2 billion ($1.26 billion) in aggregate principal amount.
These notes were issued pursuant to PPG¡¯s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N. A. , as trustee, as supplemented.
The Indenture governing these notes contains covenants that limit the Company¡¯s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company¡¯s assets.
The terms of these notes also require the Company to make an offer to repurchase notes upon a Change of Control Triggering Event (as defined in the Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest.
The Company may issue additional debt from time to time pursuant to the Indenture.
The aggregate cash proceeds from the notes, net of discounts and fees, was $1.24 billion.
The notes are denominated in euro and have been designated as hedges of net investments in the Company¡¯s European operations.
For more information, refer to Note 9 ¡°Financial Instruments, Hedging Activities and Fair Value Measurements.
¡± 2014 Activities In November 2014, PPG completed a public offering of $300 million in aggregate principal amount of its 2.3% Notes due 2019.
These notes were issued pursuant to its existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N. A. , as trustee, as supplemented.
The Company may issue additional debt from time to time pursuant to the Indenture.
The Indenture governing these notes contains covenants that limit the Company¡¯s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company¡¯s assets.
The terms of these notes also require the Company to make an offer to repurchase notes upon a Change of Control Triggering Event (as defined in the Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest.
Also in November 2014, the Company entered into three euro-denominated borrowings as follows.3-year €500 million bank loan Interest on this loan is variable and is based on changes to the EURIBOR interest rate.
This loan contains covenants materially consistent with the five-year credit agreement.
At December 31, 2016, the average interest rate on this borrowing was 0.31%.15-year €80 million 2.5% fixed interest and 30-year €120 million 3.0% fixed interest notes PPG privately placed a 15-year €80 million 2.5% fixed interest note and a 30-year €120 million 3.0% fixed interest note.
These notes contain covenants materially consistent with the 2.3% Notes discussed above.
The cash proceeds related to these borrowings net of discounts and fees were as follows:
## Table 2 ##
(1) These debt arrangements are denominated in euro and have been designated as net investment hedges of the Company¡¯s european operations.
For more information refer to Note 9 ¡°Financial Instruments, Hedging Activities and Fair Value Measurements.
¡± In December 2014, PPG completed a debt refinancing which included redeeming approximately $1.5 billion of public notes and a tender offer for any and all of its outstanding 9% debentures, due 2021 and the 7.70% notes, due 2038 (together, the ¡°Offers¡±).
The consideration for each $1,000 principal amount of the 2021 debentures was $1,334 and was $1,506 for the 2038 notes.
After the expiration of the Offers, PPG accepted for purchase all of the securities that were validly tendered.
An aggregate principal amount of $90 million was redeemed
Notes to the Consolidated Financial Statements The fair values of the Company’s pension plan assets at December 31, 2015, by asset category, are as follows:
## Table 3 ##
(1) These levels refer to the accounting guidance on fair value measurement described in Note 9, “Financial Instruments, Hedging Activities and Fair Value Measurements.
” (2) These amounts represent holdings in investment grade debt or equity securities of issuers in both developed markets and emerging economies.
(3) This category represents investment grade debt securities from a diverse set of industry issuers.
(4) These investments are primarily long duration fixed income securities.
(5) This category represents commingled funds invested in diverse portfolios of debt securities.
(6) This category includes mortgage-backed and asset backed debt securities, municipal bonds and other debt securities including derivatives.
The change in the fair value of the Company’s Level 3 pension assets for the years ended December 31, 2016 and 2015 was as follows:
## Table 4 ##
Real Estate properties are externally appraised at least annually by reputable, independent appraisal firms.
Property valuations are also reviewed on a regular basis and are adjusted if there has been a significant change in circumstances related to the property since the last valuation.
Other debt securities consist of insurance contracts, which are externally valued by insurance companies based on the present value of the expected future cash flows.
Hedge funds consist of a wide range of investments which target a relatively stable investment return.
The underlying funds are valued at different frequencies, some monthly and some quarterly, based on the value of the underlying investments.
Other assets consist primarily of small investments in private equity funds and senior secured debt obligations of non-investment grade borrowers.
Retained liabilities and legacy settlement charges PPG has retained certain liabilities for pension and postemployment benefits earned for service up to the date of sale of its former automotive glass and service business, totaling $342 million and $867 million at December 31, 2016 and 2015, respectively, for employees who were active as of the divestiture date and for individuals who were retirees of the business as of the divestiture date.
PPG recognized expense of $20 million, $17 million and $19 million related to these obligations in 2016, 2015, and 2014, respectively.
PPG has retained certain liabilities for defined benefit pension and post-retirement benefits earned for service up to the date of sale of its former automotive glass and service business for employees who were active as of the divestiture date and for individuals who were retirees of the business as of the divestiture date.
There have been multiple PPG facilities closures in Canada related to the former automotive glass and services business as well as other PPG businesses.
These various plant closures have resulted in partial and full windups, and related settlement charges, of pension plans for various hourly and salary employees employed by these locations.
The charges are recorded for the individual plans when a particular windup is approved by the Canadian pension authorities, the Company has made all contributions to the individual plan and has discharged

Tables referenced above, in order (Table 0 first):
<table><tr><td>Month</td><td>Total Number of Shares Purchased</td><td>Avg. Price Paid per Share</td><td>Total Number of Shares Purchased as Part of Publicly Announced Programs<sup></sup></td><td>Max. Number of Shares That May Yet Be Purchased Under the Programs<sup>-1,(2)</sup></td></tr><tr><td>October 2016</td><td></td><td></td><td></td><td></td></tr><tr><td>Repurchase program</td><td>1,043,300</td><td>$92.71</td><td>1,043,300</td><td>26,019,358</td></tr><tr><td>November 2016</td><td></td><td></td><td></td><td></td></tr><tr><td>Repurchase program</td><td>2,893,131</td><td>$95.70</td><td>2,893,131</td><td>22,373,733</td></tr><tr><td>December 2016</td><td></td><td></td><td></td><td></td></tr><tr><td>Repurchase program</td><td>2,876,564</td><td>$96.20</td><td>2,876,564</td><td>19,729,601</td></tr><tr><td>Total quarter ended December 31, 2016</td><td></td><td></td><td></td><td></td></tr><tr><td>Repurchase program</td><td>6,812,995</td><td>$95.45</td><td>6,812,995</td><td>19,729,601</td></tr></table>
<table><tr><td>($ in millions)</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Research and development – total</td><td>$487</td><td>$494</td><td>$499</td></tr><tr><td>Less depreciation on research facilities</td><td>21</td><td>18</td><td>16</td></tr><tr><td>Research and development, net</td><td>$466</td><td>$476</td><td>$483</td></tr></table>
<table><tr><td>($ in millions)</td><td>Proceeds</td></tr><tr><td>3-year variable rate bank loan<sup>-1</sup></td><td>$620</td></tr><tr><td>2.30% notes, due 2019</td><td>297</td></tr><tr><td>15-year 2.5% fixed rate note<sup>-1</sup></td><td>99</td></tr><tr><td>30-year 3.0% fixed rate note<sup>-1</sup></td><td>142</td></tr><tr><td>Total cash proceeds</td><td>$1,158</td></tr></table>
<table><tr><td>($ in millions)</td><td>Level 1<sup>-1</sup></td><td>Level 2<sup>-1</sup></td><td>Level 3<sup>-1</sup></td><td>Total</td></tr><tr><td>Asset Category</td><td></td><td></td><td></td><td></td></tr><tr><td>Equity securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>U.S.</td><td></td><td></td><td></td><td></td></tr><tr><td>Large cap</td><td>$—</td><td>$336</td><td>$—</td><td>$336</td></tr><tr><td>Small cap</td><td>—</td><td>104</td><td>—</td><td>104</td></tr><tr><td>PPG common stock</td><td>87</td><td>—</td><td>—</td><td>87</td></tr><tr><td>Non-U.S.</td><td></td><td></td><td></td><td></td></tr><tr><td>Developed and emerging markets<sup>-2</sup></td><td>91</td><td>690</td><td>—</td><td>781</td></tr><tr><td>Debt securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>—</td><td>51</td><td>—</td><td>51</td></tr><tr><td>Corporate<sup>-3</sup></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S.<sup>-4</sup></td><td>—</td><td>1,016</td><td>125</td><td>1,141</td></tr><tr><td>Developed and emerging markets<sup>-2</sup></td><td>—</td><td>146</td><td>—</td><td>146</td></tr><tr><td>Diversified<sup>-5</sup></td><td>—</td><td>581</td><td>—</td><td>581</td></tr><tr><td>Government</td><td></td><td></td><td></td><td></td></tr><tr><td>U.S.<sup>-4</sup></td><td>173</td><td>65</td><td>—</td><td>238</td></tr><tr><td>Developed markets</td><td>—</td><td>383</td><td>—</td><td>383</td></tr><tr><td>Other<sup>-6</sup></td><td>—</td><td>159</td><td>21</td><td>180</td></tr><tr><td>Real estate, hedge funds, and other</td><td>—</td><td>110</td><td>489</td><td>599</td></tr><tr><td>Total</td><td>$351</td><td>$3,641</td><td>$635</td><td>$4,627</td></tr></table>
<table><tr><td>($ in millions)</td><td>RealEstate</td><td>OtherDebt Securities</td><td>HedgeFunds &OtherAssets</td><td>Total</td></tr><tr><td>Balance, January 1, 2015</td><td>$210</td><td>$23</td><td>$379</td><td>$612</td></tr><tr><td>Realized gain</td><td>15</td><td>1</td><td>—</td><td>16</td></tr><tr><td>Unrealized gain/(loss) for positions still held</td><td>12</td><td>—</td><td>-4</td><td>8</td></tr><tr><td>Transfers in/(out)</td><td>-24</td><td>-1</td><td>38</td><td>13</td></tr><tr><td>Foreign currency loss</td><td>-4</td><td>-2</td><td>-8</td><td>-14</td></tr><tr><td>Balance, December 31, 2015</td><td>$209</td><td>$21</td><td>$405</td><td>$635</td></tr><tr><td>Realized gain</td><td>28</td><td>1</td><td>—</td><td>29</td></tr><tr><td>Unrealized loss for positions still held</td><td>-15</td><td>—</td><td>-1</td><td>-16</td></tr><tr><td>Transfers (out)/in</td><td>-88</td><td>-5</td><td>16</td><td>-77</td></tr><tr><td>Foreign currency loss</td><td>-5</td><td>-1</td><td>-50</td><td>-56</td></tr><tr><td>Balance, December 31, 2016</td><td>$129</td><td>$16</td><td>$370</td><td>$515</td></tr></table>

Question: What was the average value of the Foreign currency loss in the year where Balance, January 1, 2015 is positive? (in million)
Answer: -14.0