Business Financial Highlights Net Sales by Reportable Segment Net Sales ($MM) from continuing operations Adjusted Earnings per Diluted Share3,4 from continuing operations Dividends per Share4 Net Sales Details 2016 2015 Change Change % Net Sales $14,751 $ 14,766 $(15) 0% Income from continuing operations1 $564 $ 1,338 $(774) (58%) Income from discontinued operations2 $313 $68 $245 360% Net income1,2 $877 $ 1,406 $(529) (38%) Earnings per share from continuing operations1 $2.11 $ 4.89 $(2.78) (57%) Earnings per share from discontinued operations2 $1.17 $0.25 $0.92 368% Total earnings per diluted share $3.28 $ 5.14 $(1.86) 36% Adjusted earnings per share from continuing operations3 $5.82 $ 5.43 $0.39 7% Dividends per share $1.56 $ 1.41 $0.15 11% Return on average capital1 7.0% 15.7% (8.7%) (55%) Operating cash flow (from continuing operations)5 $1,241 $ 1,735 $(494) (28%) Capital spending (including business acquisitions) $751 $774 $(23) (3%) Research and Development (from continuing operations) $487 $494 $(7) (1%) Average shares outstanding - assuming dilution 267.4 273.6 (6.2) (2%) Average number of employees 47,000 46,600 400 1% PPG Shareholders equity $4,826 $4,983 $(157) (3%) 1 Net income from continuing operations, earnings per diluted share from continuing operations and return on average capital decreased year-over-year primarily due to pension settlement charges of $616 million (after-tax) or $2.31 per diluted share recorded in conjunction with the transfer of certain U.S. and Canadian pension benefit obligations and assets to several highly rated insurance companies; as well as a net tax charge of $151 million or $0.57 per diluted share associated with the funding of the Pittsburgh Corning asbestos settlement trust. 2 Includes an after tax gain of $267 million or $1.01 per diluted share resulting from the sale of our flat glass business in 2016. 3 Adjusted amounts in 2016, 2015 and 2014 exclude after tax net charges of $3.71, $0.54 and $0.87, respectively, which are included in reported earnings per diluted share. For detailed information regarding these adjustments, see the Regulation G Reconciliation in Item 7 of the Form 10-K. Adjusted amounts in 2013 exclude per diluted share amounts of $0.25 for business restructuring; $0.22 for environmental remediation; $0.08 for transaction-related costs; and $0.04 for legacy pension settlement charges. The adjusted amounts are reduced by $0.03 for the retroactive benefit of a U.S. tax law change. Adjusted amounts in 2012 exclude per diluted share amounts of $0.45 for business restructuring; $0.32 for environmental remediation; and $0.02 for transaction-related costs. 4 On April 16, 2015, the PPG Board of Directors approved a 2-for-1 split of the company's common stock. PPG common stock began trading on a split-adjusted basis on June 15, 2015. All historical per share and share data give retroactive effect to the 2-for-1 stock split. 5 Operating cash flows from continuing operations decreased year-over-year primarily due to the Company fully satisfying its funding obligation to the Pittsburgh Corning asbestos settlement trust of approximately $800 million (pre-tax) or approximately $630 million (after-tax).