Spreadsheet: 7ccebc89-9080-4a70-b57d-a63ac9e99444
Sheet: Sheet1

 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | CONDENSED STATEMENTS OF OPERATIONS (unaudited)
 | (All amounts in millions except per-share data)
 |  |  | 3 Months ended |  | 6 Months ended
 |  |  | June 30 |  | June 30
 |  |  | 2014 | 2013 | 2014 | 2013
 | Net sales |  | 4082 | 3883 | 7718 | 6991
 | Cost of sales, exclusive of depreciation and amortization |  | 2306 | 2263 | 4397 | 4125
 | Selling, R&D and administrative expenses |  | 1111 | 1043 | 2131 | 1898
 | Depreciation |  | 84 | 85 | 173 | 160
 | Amortization |  | 31 | 34 | 61 | 60
 | Interest expense |  | 48 | 47 | 95 | 100
 | Interest income |  | -13 | -9 | -25 | -19
 | Asbestos settlement - net |  | 3 | 3 | 6 | 6
 | Other (income)/charges - net (Note A) |  | -12 | -5 | -16 | -2
 | INCOME BEFORE INCOME TAXES |  | 524 | 422 | 896 | 663
 | Income tax expense |  | 125 | 98 | 214 | 142
 | Income from continuing operations, net of income taxes |  | 399 | 324 | 682 | 521
 | Income/(loss) from discontinued operations, net of income taxes |  | -7 | 47 | 1011 | 2295
 | Net income attributable to the controlling and noncontrolling interests |  | 392 | 371 | 1693 | 2816
 |  | Less: Net income attributable to noncontrolling interests | -6 | -30 | -45 | -65
 | NET INCOME (ATTRIBUTABLE TO PPG) |  | 386 | 341 | 1648 | 2751
 | Amounts attributable to PPG:
 |  | Income from continuing operations, net of tax | 393 | 318 | 670 | 509
 |  | Income/(loss) from discontinued operations, net of tax (Note B) | -7 | 23 | 978 | 2242
 | Net income (attributable to PPG) |  | 386 | 341 | 1648 | 2751
 | Earnings per common share (attributable to PPG)
 |  | Income from continuing operations, net of tax | 2.83 | 2.22 | 4.82 | 3.51
 |  | Income/(loss) from discontinued operations, net of tax | -0.05 | 0.16 | 7.04 | 15.46
 | Net income (attributable to PPG) |  | 2.78 | 2.38 | 11.86 | 18.97
 | Earnings per common share (attributable to PPG) - assuming dilution
 |  | Income from continuing operations, net of tax | 2.8 | 2.19 | 4.77 | 3.47
 |  | Income/(loss) from discontinued operations, net of tax | -0.05 | 0.16 | 6.97 | 15.29
 | Net income (attributable to PPG) |  | 2.75 | 2.35 | 11.74 | 18.76
 | Average shares outstanding |  | 138.6 | 143.4 | 138.9 | 145
 | Average shares outstanding - assuming dilution |  | 140.1 | 145 | 140.4 | 146.7
 | Note A:
 |  | Other (income)/charges - net is favorable for the three months ended June 30, 2014 compared to the same period a year ago,
 |  | as the prior year figure included higher foreign currency transaction related losses.
 | Note B:
 |  | Income from discontinued operations includes the historical operating results of PPG's former interest in the Transitions Optical joint venture and sunlens business that were sold on March 31, 2014. The loss from discontinued operations of $7 million for the three months ended June 30, 2014 is due to a current quarter change to estimated tax liabilities related to the divestiture.
 |  | The three and six months ended June 30, 2013 includes the historical operating results of PPG's former interest in the Transitions Optical joint venture and sunlens business as well as PPG's former commodity chemicals business that was separated on January 28, 2013.
 |  | See additional information on page 2
 | CONDENSED STATEMENTS OF OPERATIONS (unaudited)
 | The condensed statements of operations include the impact of items that are not expected to recur ("non-recurring items") on a
 | quarterly basis. The impact of these non-recurring items and the relevant captions on the condensed statements of operations are
 | as follows:
 |  |  | 3 Months ended |  | 6 Months ended
 |  |  | June 30 |  | June 30
 |  |  | 2014 | 2013 | 2014 | 2013
 | ($ in millions)
 | Cost of sales, exclusive of depreciation and amortization includes the following:
 |  | Canadian pension plan settlement charge | 0 | 0 | 0 | 16
 |  | Flow-through cost of sales of the step-up to fair value of inventory acquired | 0 | 13 | 0 | 16
 | Selling, R&D and administrative expenses includes the following:
 |  | Acquisition-related costs | 3 | 6 | 6 | 9
 |  | U.S. pension plan settlement charge | 5 | 0 | 5 | 0
 |  | Canadian pension plan settlement charge | 0 | 0 | 0 | 2
 | Other (income)/charges - net includes the following:
 |  | Legacy environmental remediation charge | 0 | 0 | 0 | 12
 | Tax expense on pre-tax earnings from continuing operations includes tax benefits related to the following:
 |  | U.S. pension plan settlement charge | 2 | 0 | 2 | 0
 |  | Canadian pension plan settlement charge | 0 | 0 | 0 | 5
 |  | Acquisition-related costs (including flow-through cost of sales from step-up to fair value) | 1 | 6 | 2 | 7
 |  | Legacy environmental remediation charge | 0 | 0 | 0 | 4
 |  | U.S. tax law change enacted in 2013 | 0 | 0 | 0 | 10
 | Income from discontinued operations, net of income tax includes the following:
 |  | Net first quarter gain on divestiture of Transitions Optical ("TOI") and sunlens businesses | 0 | 0 | 946 | 0
 |  | Net gain on separation of commodity chemicals business | 0 | 0 | 0 | 2191
 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | BALANCE SHEET HIGHLIGHTS (unaudited)
 | (All amounts in millions)
 |  |  | June 30 | June 30 | Dec. 31
 |  |  | 2014 | 2013 (c) | 2013 (c)
 | Current assets:
 |  | Cash and cash equivalents (a) | 1986 | 1243 | 1116
 |  | Short-term investments (a) | 927 | 538 | 629
 |  | Receivables - net | 3184 | 3223 | 2736
 |  | Inventories | 1964 | 1862 | 1824
 |  | Other | 974 | 844 | 909
 |  | Total current assets | 9035 | 7710 | 7214
 | Current liabilities:
 |  | Short-term debt and current portion of long-term debt | 425 | 24 | 34
 |  | Asbestos settlement | 792 | 703 | 763
 |  | Accounts payable and accrued liabilities | 3745 | 3379 | 3338
 |  | Total current liabilities | 4962 | 4106 | 4135
 | Long-term debt |  | 2958 | 3355 | 3372
 | PPG OPERATING METRICS  (unaudited)
 | (All amounts in millions)
 |  |  |  |  | Dec. 31
 |  |  | 2014 | 2013 (c) | 2013 (c)
 | Operating Working Capital (b)
 |  | Amount | 2949 | 3126 | 2643
 |  | As a percent of quarter sales, annualized | 0.181 | 0.191 | 0.178
 | (a) | The increase in cash and cash equivalents and short-term investments since December 31, 2013 is primarily a result of gross proceeds of $1.735 billion received on March 31, 2014 for the divestiture of PPG's former interest in the Transitions Optical joint venture and sunlens business.
 | (b) | Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) inventories and (3) trade liabilities.
 | (c) | All 2013 balances include PPG's former interest in the Transitions Optical joint venture and sunlens business which were sold on March 31, 2014.
 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | BUSINESS SEGMENT INFORMATION (unaudited)
 | (All amounts in millions) |  | 3 Months ended |  | 6 Months ended
 |  |  | June 30 |  | June 30
 |  |  | 2014 | 2013 | 2014 | 2013
 | Net sales
 |  | Performance Coatings | 2343 | 2259 | 4350 | 3837
 |  | Industrial Coatings | 1450 | 1355 | 2813 | 2629
 |  | [NAME] | 289 | 269 | 555 | 525
 |  | TOTAL | 4082 | 3883 | 7718 | 6991
 | Segment income
 |  | Performance Coatings | 373 | 324 | 621 | 516
 |  | Industrial Coatings | 257 | 218 | 488 | 416
 |  | [NAME] | 11 | 8 | 15 | 13
 |  | TOTAL | 641 | 550 | 1124 | 945
 | Items not allocated to segments
 |  | Legacy items (Note A) | -11 | -11 | -21 | -57
 |  | Acquisition-related costs | -3 | -19 | -6 | -25
 |  | Interest expense, net of interest income | -35 | -38 | -70 | -81
 |  | Other corporate expense (Note B) | -68 | -60 | -131 | -119
 | INCOME BEFORE INCOME TAXES |  | 524 | 422 | 896 | 663
 | Note A:
 |  | The six months ended June 30, 2013 includes pre-tax charges of $18 million for final settlement of certain legacy Canadian pension plans and $12 million for environmental remediation activities at a legacy operating plant site.
 |  | 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.
 | Note B:
 |  | The three and six months ended June 30, 2014 includes a pre-tax charge of $5 million for the settlement of a U.S. defined benefit pension plan.