Spreadsheet: 4ba791fa-256e-4bce-a385-d52967dbb30f
Sheet: Sheet1

 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | CONDENSED STATEMENT OF OPERATIONS (unaudited)
 | (All amounts in millions except per-share data)
 |  |  | 3 Months ended |  | Year ended
 |  |  | Dec. 31 |  | Dec. 31
 |  |  | 2013 | 2012 | 2013 | 2012
 | Net sales |  | 3702 | 3243 | 15108 | 13512
 | Cost of sales, exclusive of depreciation and amortization (Note A) |  | 2108 | 1910 | 8636 | 7905
 | Selling, R&D and administrative expenses (Note B)
 | Depreciation (Note B) |  | 94 | 79 | 356 | 312
 | Amortization (Note B) |  | 31 | 27 | 119 | 109
 | Interest expense |  | 48 | 55 | 196 | 210
 | Interest income |  | -13 | -10 | -43 | -39
 | Asbestos settlement - net |  | 2 | 3 | 11 | 12
 | Business restructuring |  | 0 | 0 | 98 | 208
 | Other (income)/charges - net (Note C) |  | -24 | -21 | 59 | 85
 | INCOME BEFORE INCOME TAXES
 | Income tax expense (Note D) |  | 91 | 62 | 333 | 221
 | Income from continuing operations, net of income taxes
 | Income from discontinued operations, net of income taxes (Note E) |  | 0 | 39 | 2197 | 228
 | Net income attributable to the controlling and noncontrolling interests
 |  | Less: Net income attributable to noncontrolling interests | -28 | -26 | -122 | -123
 | NET INCOME (ATTRIBUTABLE TO PPG)
 | Amounts attributable to PPG:
 |  | Income from continuing operations, net of tax | 254 | 191 | 1034 | 726
 |  | Income from discontinued operations, net of tax | 0 | 36 | 2197 | 215
 | Net income (attributable to PPG)
 | Earnings per common share (attributable to PPG)
 |  | Income from continuing operations, net of tax | 1.8 | 1.24 | 7.21 | 4.73
 |  | Income from discontinued operations, net of tax | 0 | 0.23 | 15.32 | 1.4
 | Net income (attributable to PPG)
 | Earnings per common share (attributable to PPG) - assuming dilution
 |  | Income from continuing operations, net of tax | 1.78 | 1.23 | 7.13 | 4.69
 |  | Income from discontinued operations, net of tax | 0 | 0.23 | 15.14 | 1.37
 | Net income (attributable to PPG)
 | Average shares outstanding |  | 140.8 | 154.1 | 143.4 | 153.4
 | Average shares outstanding - assuming dilution |  | 142.6 | 156.1 | 145.1 | 155.1
 |  | See accompanying notes on page 2
 | CONDENSED STATEMENT OF OPERATIONS (unaudited)
 | Note A:
 |  | Cost of sales, exclusive of depreciation and amortization for the year ended December 31, 2013 includes $16 million for final settlement of certain legacy Canadian pension plans and $16 million of flow-through cost of sales for the inventory step up to fair value related to 2013 acquisitions.  The year ended December 31, 2012 includes $6 million of flow-through cost of sales for the inventory step up to fair value related to 2012 acquisitions.
 | Note B:
 |  | Selling, R&D and administrative expenses includes $7 million of acquisition-related charges for the quarter ended December 31, 2013.  For the year ended December 31, 2013, the caption includes $2 million for final settlement of certain legacy Canadian pension plans and $26 million for acquisition-related charges.  Selling and administrative expenses, depreciation and amortization are higher in 2013 compared to 2012 primarily due to the increased impact from acquisitions.
 | Note C:
 |  | The years ended December 31, 2013 and 2012 include pretax charges of $101 million and $159 million, respectively, for environmental remediation activities.
 | Note D:
 |  | The effective rate on pretax earnings from continuing operations for the quarter ended December 31, 2013 includes tax benefits of $3 million for acquisition-related costs.  The effective tax rate on the remaining pre-tax earnings from continuing operations was 24.6 percent resulting in tax expense of $93 million.  The effective rate on pretax earnings from continuing operations for the quarter ended December 31, 2012 includes tax benefits of $2 million for acquisition-related costs.  The effective tax rate on the remaining pretax earnings from continuing operations was approximately 23 percent resulting in tax expense of $64 million.
 |  | The effective rate on pretax earnings from continuing operations for the year ended December 31, 2013 includes tax benefits of $37 million or approximately 37 percent for estimated environmental remediation costs, $25 million or approximately 25 percent for business restructuring charges, $14 million or approximately 33 percent for acquisition related costs, and $5 million or approximately 27 percent for final settlement of legacy pension plans.  The year also includes an after-tax benefit of $10 million for the retroactive impact of a U.S. tax law change enacted in early 2013 that was not included in previously reported 2012 earnings.  The effective tax rate on the remaining pre-tax earnings from continuing operations was 24.2 percent resulting in tax expense of $424 million.
 |  | The effective rate on pretax earnings from continuing operations for the year ended December 31, 2012 includes tax benefits of $45 million or approximately 22 percent for business restructuring charges, $60 million or approximately 38 percent for estimated environmental remediation costs, and $4 million or approximately 36 percent for acquisition related costs.  The effective tax rate on the remaining pre-tax earnings from continuing operations was approximately 23 percent resulting in tax expense of $330 million.
 | Note E:
 |  | Income from discontinued operations includes the historical operating results of PPG's former Commodity Chemicals business that was separated on January 28, 2013.  For the year ended December 31, 2013 income from discontinued operations includes a net gain on the separation transaction of $2.2 billion.
 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | BALANCE SHEET HIGHLIGHTS (unaudited)
 | (All amounts in millions)
 |  |  |  | Dec. 31 | Dec. 31
 |  |  |  | 2013 | 2012 (b)
 | Current assets:
 |  | Cash and cash equivalents (a) |  | 1116 | 1306
 |  | Short-term investments (a) |  | 629 | 1087
 |  | Receivables - net |  | 2736 | 2813
 |  | Inventories |  | 1824 | 1687
 |  | Other |  | 909 | 822
 |  | Total current assets |  | 7214 | 7715
 | Current liabilities:
 |  | Short-term debt and current portion of long-term debt (a) |  | 34 | 642
 |  | Asbestos settlement |  | 763 | 683
 |  | Accounts payable and accrued liabilities |  | 3338 | 3136
 |  | Total current liabilities |  | 4135 | 4461
 | Long-term debt |  |  | 3372 | 3368
 | PPG OPERATING METRICS  (unaudited)
 | (All amounts in millions)
 |  |  |  |  | Dec. 31
 |  |  |  | 2013 | 2012 (b)
 | Operating Working Capital (c)
 |  | Amount |  | 2678 | 2878
 |  | As a percent of quarter sales, annualized |  | 0.181 | 0.197
 | (a) | The decrease in cash and cash equivalents and short-term investments is primarily a result of the repayment of $600 million of long-term debt in March of 2013.
 | (b) | All 2012 balances include PPG's former Commodity Chemicals business that was separated in January 2013.
 |  | Excluding the Commodity Chemicals business, operating working capital was $2,634 million or 20.3 percent at December 31, 2012.
 | (c) | Operating working capital includes (1) receivables from customers, net of the allowance for doubtful accounts, plus (2) inventories on a first-in, first-out (FIFO) basis, less (3) the trade creditor's liability.
 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | BUSINESS SEGMENT INFORMATION (unaudited)
 | (All amounts in millions) |  | 3 Months ended |  | Year ended
 |  |  | Dec. 31 |  | Dec. 31
 |  |  | 2013 | 2012 | 2013 | 2012
 |  |  | (millions) |  | (millions)
 | Net sales
 |  | Performance Coatings | 1441 | 1151 | 5872 | 4752
 |  | Industrial Coatings | 1222 | 1114 | 4845 | 4379
 |  | Architectural [NAME] | 466 | 465 | 2062 | 2147
 |  | Optical and Specialty Materials | 309 | 272 | 1262 | 1202
 |  | [NAME] | 264 | 241 | 1067 | 1032
 |  | TOTAL
 | Segment income
 |  | Performance Coatings | 179 | 177 | 858 | 744
 |  | Industrial Coatings | 174 | 144 | 724 | 590
 |  | Architectural [NAME] | 22 | 9 | 184 | 145
 |  | Optical and Specialty Materials | 85 | 68 | 368 | 348
 |  | [NAME] | 22 | 8 | 56 | 63
 |  | TOTAL
 | Items not allocated to segments
 |  | Legacy items (Note A) | -9 | -14 | -165
 |  | Business restructuring costs | 0 | 0 | -98 | -208
 |  | Acquisition-related costs | -7 | -5 | -42 | -11
 |  | Interest expense, net of interest income (Note B) | -35 | -45 | -153 | -171
 |  | Other corporate expense | -58 | -66 | -243 | -226
 | INCOME BEFORE INCOME TAXES
 | Note 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 charges that are considered to be unusual or nonrecurring including the earnings impact of the proposed asbestos settlement. Legacy items also include equity earnings from PPG's approximately 40 percent investment in the former automotive glass and services business.
 |  | The year ended December 31, 2013 includes pretax charges of $18 million for final settlement of certain legacy Canadian pension plans.  In addition, the years ended December 31, 2013 and 2012 include pretax charges for environmental remediation activities of $101 million and $159 million, respectively.  These charges primarily relate to environmental remediation activities at the Company's former Jersey City, N.J., manufacturing plant and associated sites.
 | Note B:
 |  | Interest expense, net of interest income, is lower for the both the three months ended and the year ended December 31, 2013 compared to the same periods a year ago primarily as a result of the repayment of the $600 million 5.75% notes in March 2013.