PPG INDUSTRIES INC - FORM 8-K - EX-99.2 - EXHIBIT

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file	filename
8-K - 8-K - PPG INDUSTRIES INC	a8-ktransitionssunlens.htm
EX-99.3 - EXHIBIT - PPG INDUSTRIES INC	a2013q1segmentinformation-.htm
EX-99.1 - EXHIBIT - PPG INDUSTRIES INC	proformafinancialstatement.htm

PPG Industries, Inc.

Exhibit 99.2

UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION

The following tables include unaudited, supplemental quarterly financial information showing the impact of the reclassification of the operating results of the Transitions and sunlens businesses into discontinued operations for the previously reported quarterly financial results of 2013.



PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENT OF OPERATIONS (unaudited)
(All amounts in millions except per-share data)
		3 Months Ended March 31, 2013
		As reported			Recast

	Net sales	$	3,331		$	3,108
	Cost of sales, exclusive of depreciation and amortization	1,947			1,856
	Selling, R&D and administrative expenses	912			856
	Depreciation	81			75
	Amortization	26			26
	Interest expense	53			53
	Interest income	(10		)	(10		)
	Asbestos settlement - net	3			3
	Other (income)/charges - net	1			3
	INCOME BEFORE INCOME TAXES	318			246
	Income tax expense	64			46
	Income from continuing operations, net of income taxes	254			200
	Income from discontinued operations, net of income taxes	2,191			2,245
	Net income attributable to the controlling and noncontrolling interests	2,445			2,445
	Less: Net income attributable to noncontrolling interests	(35		)	(35		)
	NET INCOME (ATTRIBUTABLE TO PPG)	$	2,410		$	2,410

	Amounts attributable to PPG:
	Income from continuing operations, net of tax	$	219		$	194
	Income from discontinued operations, net of tax	2,191			2,216
	Net income (attributable to PPG)	$	2,410		$	2,410

	Earnings per common share (attributable to PPG)
	Income from continuing operations, net of tax	$	1.50		$	1.33
	Income from discontinued operations, net of tax	14.99			15.16
	Net income (attributable to PPG)	$	16.49		$	16.49

	Earnings per common share (attributable to PPG) - assuming dilution
	Income from continuing operations, net of tax	$	1.48		$	1.31
	Income from discontinued operations, net of tax	14.83			15.00
	Net income (attributable to PPG)	$	16.31		$	16.31

	Average shares outstanding	146.1			146.1

	Average shares outstanding - assuming dilution	147.7			147.7

PPG Industries, Inc.

UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION



PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENT OF OPERATIONS (unaudited)
(All amounts in millions except per-share data)
		3 Months Ended June 30, 2013
		As reported			Recast

	Net sales	$	4,095		$	3,882
	Cost of sales, exclusive of depreciation and amortization	2,343			2,258
	Selling, R&D and administrative expenses	1,105			1,044
	Depreciation	90			85
	Amortization	34			34
	Interest expense	47			47
	Interest income	(9		)	(9		)
	Asbestos settlement - net	3			3
	Other (income)/charges - net	(7		)	(5		)
	INCOME BEFORE INCOME TAXES	489			425
	Income tax expense	118			99
	Income from continuing operations, net of income taxes	371			326
	Income from discontinued operations, net of income taxes	—			45
	Net income attributable to the controlling and noncontrolling interests	371			371
	Less: Net income attributable to noncontrolling interests	(30		)	(30		)
	NET INCOME (ATTRIBUTABLE TO PPG)	$	341		$	341

	Amounts attributable to PPG:
	Income from continuing operations, net of tax	$	341		$	320
	Income from discontinued operations, net of tax	—			21
	Net income (attributable to PPG)	$	341		$	341

	Earnings per common share (attributable to PPG)
	Income from continuing operations, net of tax	$	2.38		$	2.23
	Income from discontinued operations, net of tax	—			0.15
	Net income (attributable to PPG)	$	2.38		$	2.38

	Earnings per common share (attributable to PPG) - assuming dilution
	Income from continuing operations, net of tax	$	2.35		$	2.21
	Income from discontinued operations, net of tax	—			0.14
	Net income (attributable to PPG)	$	2.35		$	2.35

	Average shares outstanding	143.4			143.4

	Average shares outstanding - assuming dilution	145.0			145.0

PPG Industries, Inc.

UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION



PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENT OF OPERATIONS (unaudited)
(All amounts in millions except per-share data)
		3 Months Ended September 30, 2013
		As reported			Recast

	Net sales	$	3,980		$	3,773
	Cost of sales, exclusive of depreciation and amortization	2,238			2,154
	Selling, R&D and administrative expenses	1,087			1,027
	Depreciation	91			85
	Amortization	28			28
	Interest expense	48			48
	Interest income	(11		)	(11		)
	Asbestos settlement - net	3			3
	Business restructuring	98			98
	Other (income)/charges - net	89			88
	INCOME BEFORE INCOME TAXES	309			253
	Income tax expense	60			42
	Income from continuing operations, net of income taxes	249			211
	Income from discontinued operations, net of income taxes	6			44
	Net income attributable to the controlling and noncontrolling interests	255			255
	Less: Net income attributable to noncontrolling interests	(29		)	(29		)
	NET INCOME (ATTRIBUTABLE TO PPG)	$	226		$	226

	Amounts attributable to PPG:
	Income from continuing operations, net of tax	$	220		$	208
	Income from discontinued operations, net of tax	6			18
	Net income (attributable to PPG)	$	226		$	226

	Earnings per common share (attributable to PPG)
	Income from continuing operations, net of tax	$	1.54		$	1.45
	Income from discontinued operations, net of tax	0.04			0.13
	Net income (attributable to PPG)	$	1.58		$	1.58

	Earnings per common share (attributable to PPG) - assuming dilution
	Income from continuing operations, net of tax	$	1.52		$	1.44
	Income from discontinued operations, net of tax	0.04			0.12
	Net income (attributable to PPG)	$	1.56		$	1.56

	Average shares outstanding	143.2			143.2

	Average shares outstanding - assuming dilution	144.9			144.9

PPG Industries, Inc.

UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION



PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENT OF OPERATIONS (unaudited)
(All amounts in millions except per-share data)
		3 Months Ended December 31, 2013
		As reported			Recast

	Net sales	$	3,702		$	3,500
	Cost of sales, exclusive of depreciation and amortization	2,108			2,023
	Selling, R&D and administrative expenses	1,083			1,025
	Depreciation	94			88
	Amortization	31			31
	Interest expense	48			48
	Interest income	(13		)	(13		)
	Asbestos settlement - net	2			2
	Other (income)/charges - net	(24		)	(24		)
	INCOME BEFORE INCOME TAXES	373			320
	Income tax expense	91			73
	Income from continuing operations, net of income taxes	282			247
	Income from discontinued operations, net of income taxes	—			35
	Net income attributable to the controlling and noncontrolling interests	282			282
	Less: Net income attributable to noncontrolling interests	(28		)	(28		)
	NET INCOME (ATTRIBUTABLE TO PPG)	$	254		$	254

	Amounts attributable to PPG:
	Income from continuing operations, net of tax	$	254		$	239
	Income from discontinued operations, net of tax	—			15
	Net income (attributable to PPG)	$	254		$	254

	Earnings per common share (attributable to PPG)
	Income from continuing operations, net of tax	$	1.80		$	1.69
	Income from discontinued operations, net of tax	—			0.11
	Net income (attributable to PPG)	$	1.80		$	1.80

	Earnings per common share (attributable to PPG) - assuming dilution
	Income from continuing operations, net of tax	$	1.78		$	1.67
	Income from discontinued operations, net of tax	—			0.11
	Net income (attributable to PPG)	$	1.78		$	1.78

	Average shares outstanding	140.8			140.8

	Average shares outstanding - assuming dilution	142.6			142.6

PPG Industries, Inc.

UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION

Regulation G Reconciliation

PPG Industries believes investors' understanding of the company's operating performance is enhanced by the disclosure of net income and earnings per diluted share adjusted for nonrecurring charges. PPG's management considers this information useful in providing insight into the company’s ongoing operating performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis. Net income and earnings per diluted share adjusted for these items are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered a substitute for net income or earnings per diluted share or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income and earnings per diluted share may not be comparable to similarly titled measures as reported by other companies.

The following is a reconciliation of reported to adjusted net income per diluted share for the first, second, third, and fourth quarters of 2013 on both an as reported basis and adjusted for the impact of the Transitions and sunlens business dispositions:



Adjusted EPS - Reconciliation to Reported EPS	As reported						Recast
For the quarter ended March 31, 2013	$			EPS			$			EPS
Income from continuing operations, net of tax	$	219		$	1.48		$	194		$	1.31
Legacy Pension and Environmental Costs	21			0.14			21			0.14
Acquisition-related costs	5			0.03			5			0.03
Retroactive Benefit of U.S. Tax Law Change	(10		)	(0.07		)	(10		)	(0.07		)
Adjusted, excluding nonrecurring items	$	235		$	1.58		$	210		$	1.41



Adjusted EPS - Reconciliation to Reported EPS	As reported				Recast
For the quarter ended June 30, 2013	$		EPS		$		EPS
Income from continuing operations, net of tax	$	341	$	2.35	$	320	$	2.21
Acquisition-related costs	15		0.10		13		0.09
Adjusted, excluding nonrecurring items	$	356	$	2.45	$	333	$	2.30



Adjusted EPS - Reconciliation to Reported EPS	As reported				Recast
For the quarter ended September 30, 2013	$		EPS		$		EPS
Income from continuing operations, net of tax	$	220	$	1.52	$	208	$	1.44
Business restructuring costs	73		0.50		73		0.50
Legacy environmental reserve increase	56		0.39		56		0.39
Acquisition-related costs	4		0.03		3		0.02
Adjusted, excluding nonrecurring items	$	353	$	2.44	$	340	$	2.35



Adjusted EPS - Reconciliation to Reported EPS	As reported				Recast
For the quarter ended December 31, 2013	$		EPS		$		EPS
Income from continuing operations, net of tax	$	254	$	1.78	$	239	$	1.67
Acquisition-related costs	4		0.03		3		0.02
Adjusted, excluding nonrecurring items	$	258	$	1.81	$	242	$	1.69

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