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Acquisitions | 9 Months Ended
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Sep. 30, 2021
Business Combinations [Abstract] |
Acquisitions | Acquisitions and Divestitures Acquisitions The pro-forma impact on PPG's sales and results of operations, including the pro-forma effect of events that are directly attributable to the following acquisitions, was not significant. Tikkurila On June 10, 2021, PPG completed its tender offer for all of the outstanding shares of Tikkurila Ojy ("Tikkurila"). Tikkurila is a leading Nordic producer and distributor of decorative paint and coatings, including an industrial paint business that produces paints and coatings for the wood and metal industries, among others. As of September 30, 2021, PPG had purchased approximately 97.9% of Tikkurila's issued and outstanding shares. All remaining outstanding shares will be acquired through a squeeze out process. As of March 31, 2021, PPG owned 9.32% of the outstanding shares. As of September 30, 2021, the minority interest is classified as Noncontrolling interests on the condensed consolidated balance sheet. The company paid an aggregate purchase price of $1.7 billion, net of cash acquired. The purchase price was allocated based on information available at the acquisition date and is subject to customary post-closing adjustments. The estimated fair value of assets acquired and liabilities assumed as reflected in the preliminary purchase price allocation included goodwill and identifiable intangible assets of $1.1 billion and $601 million, respectively. The acquired identifiable intangible assets consist of indefinite-lived trademarks of $405 million and other intangible assets with finite lives of $196 million, which consist primarily of customer relationships, trade names, and acquired technology, subject to amortization over a weighted average period of 15 years. The fair values assigned to assets acquired and liabilities assumed are based on management's best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of the valuation of deferred tax assets, tax liabilities, and payroll tax liabilities. See Note 5 “Goodwill and Other Identifiable Intangible Assets” for additional information. The results of this business since the date of acquisition have been reported within two operating segments: the architectural coatings – EMEA business and the industrial coatings business. The architectural coatings – EMEA business is included within the Performance Coatings reportable business segment and the industrial coatings business is included within the Industrial Coatings reportable business segment. Other Acquisitions On May 14, 2021, PPG completed the acquisition of Wörwag, a global manufacturer of coatings for industrial and automotive applications. The company specializes in developing sustainable liquid, powder and film coatings. The results of this business since the date of acquisition have been reported within the automotive original equipment manufacturer ("OEM") coatings business within the Industrial Coatings reportable business segment. On April 19, 2021, PPG announced that it had acquired Cetelon Lackfabrik GmbH, a manufacturer of coatings for automotive and light truck wheel applications. The results of this business since the date of acquisition have been reported within the automotive OEM coatings business within the Industrial Coatings reportable business segment. On February 22, 2021, PPG completed the acquisition of VersaFlex, a manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and waste water infrastructure, flooring, transportation infrastructure, and industrial applications. The results of this business since the date of acquisition have been reported within the protective and marine coatings business within the Performance Coatings reportable business segment. Divestitures In December 2020, PPG committed to a plan to sell certain entities in smaller, non-strategic countries. The planned sale is expected to occur in 2021. In the third quarter 2021, an incremental impairment charge of $21 million was recorded in the condensed consolidated statement of income, representing the excess net book value of the net assets over the anticipated sales proceeds less costs to sell these entities. The assets and liabilities of these entities are reported as held for sale in Other current assets and Accounts payable and accrued liabilities, respectively, on the accompanying condensed consolidated balance sheet as of September 30, 2021 and December 31, 2020. The results of these entities are reported within the Performance Coatings reportable business segment. The major classes of assets and liabilities of these entities included in the PPG consolidated balance sheet are as as follows:
($ in millions) | September 30, 2021 |  | December 31, 2020
Cash and cash equivalents | $14 |  |  | $20 |
Receivables | — |  |  | 5 |
Inventories | — |  |  | 5 |
Assets held for sale | $14 |  |  | $30 |
Accounts payable and accrued liabilities | $14 |  |  | $14 |
Operating lease liabilities | 6 |  |  | 6 |
Deferred income taxes | 3 |  |  | 3 |
Other liabilities | 1 |  |  | 1 |
Liabilities held for sale | $24 |  |  | $24 |

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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