Spreadsheet: 03a36e9e-bbfc-4d02-8dcc-a7595bceee8e
Sheet: Sheet1

 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | CONDENSED STATEMENT OF OPERATIONS (unaudited)
 | (All amounts in millions except per-share data)
 |  |  | 3 Months Ended |  | 9 Months Ended
 |  |  | Sept. 30 |  | Sept. 30
 |  |  | 2013 | 2012 | 2013 | 2012
 | Net sales |  | 3980 | 3408 | 11406 | 10269
 | Cost of sales, exclusive of depreciation and amortization (Note A) |  | 2238 | 1983 | 6528 | 5995
 | Selling, R&D and administrative expenses (Note B) |  | 1087 | 891 | 3104 | 2729
 | Depreciation (Note B) |  | 91 | 78 | 262 | 233
 | Amortization (Note B) |  | 28 | 27 | 88 | 82
 | Interest expense |  | 48 | 54 | 148 | 155
 | Interest income |  | -11 | -10 | -30 | -29
 | Asbestos settlement - net |  | 3 | 3 | 9 | 9
 | Business restructuring |  | 98 | 0 | 98 | 208
 | Other (income)/charges - net (Note C) |  | 89 | -20 | 83 | 106
 | INCOME BEFORE INCOME TAXES |  | 309 | 402 | 1116 | 781
 | Income tax expense (Note D) |  | 60 | 92 | 242 | 159
 | Income from continuing operations, net of income taxes |  | 249 | 310 | 874 | 622
 | Income from discontinued operations, net of income taxes (Note E) |  | 6 | 54 | 2197 | 189
 | Net income attributable to the controlling and noncontrolling interests |  | 255 | 364 | 3071 | 811
 |  | Less: Net income attributable to noncontrolling interests | -29 | -25 | -94 | -97
 | NET INCOME (ATTRIBUTABLE TO PPG) |  | 226 | 339 | 2977 | 714
 | Amounts attributable to PPG:
 |  | Income from continuing operations, net of tax | 220 | 288 | 780 | 535
 |  | Income from discontinued operations, net of tax | 6 | 51 | 2197 | 179
 | Net income (attributable to PPG) |  | 226 | 339 | 2977 | 714
 | Earnings per common share (attributable to PPG)
 |  | Income from continuing operations, net of tax | 1.54 | 1.88 | 5.4 | 3.49
 |  | Income from discontinued operations, net of tax | 0.04 | 0.33 | 15.21 | 1.17
 | Net income (attributable to PPG) |  | 1.58 | 2.21 | 20.61 | 4.66
 | Earnings per common share (attributable to PPG) - assuming dilution
 |  | Income from continuing operations, net of tax | 1.52 | 1.86 | 5.34 | 3.46
 |  | Income from discontinued operations, net of tax | 0.04 | 0.32 | 15.05 | 1.15
 | Net income (attributable to PPG) |  | 1.56 | 2.18 | 20.39 | 4.61
 | Average shares outstanding |  | 143.2 | 153.7 | 144.4 | 153.2
 | Average shares outstanding - assuming dilution |  | 144.9 | 155.5 | 146 | 154.8
 |  | See accompanying notes on page 2
 | CONDENSED STATEMENT OF OPERATIONS (unaudited)
 | Note A:
 |  | Cost of sales, exclusive of depreciation and amortization for the nine months ended September 30, 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 nine months ended September 30, 2012 includes $6 million of flow-through cost of sales for the inventory step up to fair value related to the [NAME] and Colpisa acquisitions.
 | Note B:
 |  | Selling, R&D and administrative expenses includes $7 million of acquisition related charges for the quarter ended September 30, 2013.  For the nine months ended September 30, 2013, the caption includes $2 million for final settlement of certain legacy Canadian pension plans and $19 million for acquisition related charges.  Selling and administrative expenses, depreciation and amortization are higher in the three and nine-month periods of 2013 compared to 2012 primarily due to the acquisition of AkzoNobel's North American architectural coatings business in the second quarter of 2013.
 | Note C:
 |  | The three months ended September 30, 2013 includes a pretax charge of $89 million related to environmental remediation activities at PPG's former Jersey City, N.J., manufacturing plant and associated sites, as well as, lower income from equity investments and royalties.  The nine months ended September 30, 2013 includes a pretax charge of $101 million for environmental remediation activities, which includes the $89 million charge in the third quarter and a first quarter, $12 million charge related to a legacy manufacturing site.  The nine months ended September 30, 2012 includes a pretax charge of $159 million, relating primarily to environmental remediation activities at PPG’s former Jersey City, N.J., manufacturing plant and associated sites.
 | Note D:
 |  | The effective rate on pretax earnings from continuing operations for the quarter ended September 30, 2013 includes tax benefits of $33 million or approximately 37 percent for estimated environmental remediation costs at sites in New Jersey, $25 million or approximately 25 percent for business restructuring charges, and $3 million for acquisition related costs.  The effective tax rate on the remaining pre-tax earnings from continuing operations was approximately 24 percent resulting in tax expense of $121 million.
 |  | The effective rate on pretax earnings from continuing operations for the nine months ended September 30, 2013 includes tax benefits of $37 million or approximately 37 percent for estimated environmental remediation costs primarily at sites in New Jersey, $25 million or approximately 25 percent for business restructuring charges, $11 million or approximately 31 percent for acquisition related costs, and $5 million or approximately 27 percent for final settlement of legacy pension plans.  The nine-month period also includes an after-tax benefit of $10 million for the retroactive impact of a US 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 approximately 24 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 nine months ended September 30, 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)
 |  |  | Sept. 30 | Sept. 30 | Dec 31
 |  |  | 2013 | 2012 (b) | 2012 (b)
 | Current assets:
 |  | Cash and cash equivalents (a) | 1562 | 1392 | 1306
 |  | Short-term investments (a) | 687 | 619 | 1087
 |  | Receivables - net | 3122 | 3190 | 2813
 |  | Inventories | 1878 | 1777 | 1687
 |  | Other | 874 | 799 | 822
 |  | Total current assets | 8123 | 7777 | 7715
 | Current liabilities:
 |  | Short-term debt and current portion of long-term debt (a) | 27 | 636 | 642
 |  | Asbestos settlement | 732 | 654 | 683
 |  | Accounts payable and accrued liabilities | 3605 | 3200 | 3136
 |  | Total current liabilities | 4364 | 4490 | 4461
 | Long-term debt |  | 3368 | 3365 | 3368
 | PPG OPERATING METRICS  (unaudited)
 | (All amounts in millions)
 |  |  |  |  | Dec. 31
 |  |  | 2013 | 2012 (b) | 2012 (b)
 | Operating Working Capital (c )
 |  | Amount | 3012 | 3247 | 2878
 |  | As a percent of quarter sales, annualized | 0.189 | 0.211 | 0.197
 | (a) | The decrease in combined cash and cash equivalents and short-term investments from December 2012 to September 2013 is the net result of cash inflows and outflows which include the cash deployed for the acquisition of the AkzoNobel North American architectural coatings business of $957, the repayment of long-term debt of $604, the cash proceeds from the separation and merger of the commodity chemicals business of $940, cash generated from operations and other investing and financing activities.
 | (b) | Inclusive of PPG's former Commodity Chemicals business that was separated in January 2013.
 |  | Excluding the Commodity Chemicals business, operating working capital was $2,992 million or 22.0 percent at September 30, 2012 and $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 |  | 9 Months Ended
 |  |  | Sept. 30 |  | Sept. 30
 |  |  | 2013 | 2012 | 2013 | 2012
 |  |  | (millions) |  | (millions)
 | Net sales
 |  | Performance Coatings | 1619 | 1210 | 4431 | 3601
 |  | Industrial Coatings | 1199 | 1090 | 3623 | 3265
 |  | Architectural [NAME] | 571 | 564 | 1596 | 1682
 |  | Optical and Specialty Materials | 313 | 282 | 953 | 930
 |  | [NAME] | 278 | 262 | 803 | 791
 |  | TOTAL | 3980 | 3408
 | Segment income
 |  | Performance Coatings | 252 | 203 | 679 | 567
 |  | Industrial Coatings | 181 | 153 | 550 | 446
 |  | Architectural [NAME] | 73 | 56 | 162 | 136
 |  | Optical and Specialty Materials | 88 | 76 | 283 | 280
 |  | [NAME] | 21 | 24 | 34 | 55
 |  | TOTAL | 615 | 512 | 1708 | 1484
 | Legacy items (Note A) |  | -99 | -14 | -156 | -203
 | Business restructuring (Note B) |  | -98 | 0 | -98 | -208
 | Acquisition-related costs (Note C) |  | -7 | 0 | -35 | -6
 | Interest expense, net of interest income |  | -37 | -44 | -118 | -126
 | Other unallocated corporate expense |  | -65 | -52 | -185 | -160
 | INCOME BEFORE INCOME TAXES |  | 309 | 402 | 1116 | 781
 | 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 three months ended September 30, 2013 includes a pretax charge of $89 million. This charge primarily relates to environmental remediation activities at PPG’s former Jersey City, N.J., manufacturing plant and associated sites.  The nine months ended September 30, 2013 includes pretax charges of $18 million charge for final settlement of certain legacy Canadian pension plans and $101 million for environmental remediation activities at a legacy operating plant site and the Company's former Jersey City, N.J., manufacturing plant and associated sites.  The nine months ended September 30, 2012 includes a pretax charge of $159 million related primarily to environmental remediation activities at PPG’s former Jersey City, N.J., manufacturing plant and associated sites.
 | Note B:
 |  | The three and nine months ended September 30, 2013, includes business restructuring charges of $55 million for the Performance Coatings segment, $14 million for the Industrial Coatings segment, $24 million for the Architectural Coatings - EMEA segment, $4 million for the [NAME] segment and $1 million for Corporate. These costs are considered to be unusual and nonrecurring and will not reduce the segment earnings used to evaluate the performance of the operating segments.
 | Note C:
 |  | The three and nine months ended September 30, 2013 include $7 million and $19 million of certain acquisition-related costs, respectively.  In addition, the nine months ended September 30, 2013 includes $16 million of flow-through cost of sales for the inventory step up to fair value related principally to the Akzo Nobel architectural coatings business.  The nine months ended September 30, 2012 includes $6 million of flow-through cost of sales for the inventory step up to fair value related to the [NAME] and Colpisa acquisitions.  These costs are considered to be unusual and non-recurring and will not reduce the segment earnings used to evaluate the performance of the operating segments.