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Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue Disclosure [Abstract]  
Revenue Recognition Revenue Recognition
The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. 
The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.
The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three and nine months ended September 30, 2021 and 2020, service revenue constituted approximately 5% of total revenue.
Net sales by segment and region for the three and nine months ended September 30, 2021 and 2020 were as follows:
Three Months Ended
September 30		Nine Months Ended
September 30
($ in millions)2021202020212020
Performance Coatings
United States and Canada$1,177 $958 $3,374 $2,825 
Europe, Middle East and Africa ("EMEA")965 789 2,746 2,140 
Asia Pacific325 274 913 728 
Latin America291 230 793 635 
Total$2,758 $2,251 $7,826 $6,328 
Industrial Coatings
United States and Canada$579 $526 $1,714 $1,444 
EMEA453 382 1,380 1,018 
Asia Pacific433 398 1,257 969 
Latin America149 128 435 318 
Total$1,614 $1,434 $4,786 $3,749 
Total Net Sales
United States and Canada$1,756 $1,484 $5,088 $4,269 
EMEA1,418 1,171 4,126 3,158 
Asia Pacific758 672 2,170 1,697 
Latin America440 358 1,228 953 
Total PPG$4,372 $3,685 $12,612 $10,077 
Allowance for Credit Losses
All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for credit losses and any charge offs. PPG provides an allowance for credit losses to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers, and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks.
PPG reviews its reserves for credit losses on a quarterly basis to ensure its reserves for credit losses reflect regional risk trends as well as current and future global operating conditions.
The following table summarizes the activity for the allowance for credit losses for the nine months ended September 30, 2021 and 2020:
Trade Receivables Allowance for Credit Losses
($ in millions)20212020
January 1$44 $22 
Current-period provision for credit losses 4 41 
Trade receivables written off as uncollectible, net of recoveries(12)(15)
Foreign currency impact— (1)
September 30$36 $47 
In March 2020, PPG recorded estimated future credit losses for trade receivables of $30 million related to the potential financial impacts of the COVID-19 pandemic. These amounts were estimated based on regional business information, including certain forward-looking information and other considerations. During the second quarter 2021, PPG released $14 million of the previously established reserve due to improvement in economic conditions in certain countries and a slower pattern of bankruptcies than expected.