Business Restructuring

9 Months Ended

Sep. 30, 2012

Restructuring and Related Activities [Abstract]

In March 2012, the Company finalized a restructuring plan to reduce its cost structure, primarily due to continuing weak economic conditions in Europe and in the commercial and residential construction markets in the U.S. and Europe. As part of this restructuring plan, PPG will close several laboratory, warehouse and distribution facilities and small production units and will reduce staffing. The restructuring will impact a number of businesses globally, primarily the global architectural businesses and general and administrative functions in Europe.

As a result of this restructuring plan, in March 2012 the Company recorded a charge of $208 million for business restructuring, including severance and other costs of $160 million, asset write-offs of $53 million, and a net pension curtailment gain of $5 million. The Company expects to incur additional costs of approximately $7 million directly associated with the restructuring actions for demolition, dismantling, relocation and training that will be charged to expense as incurred. To date, approximately $2 million of these expenses have been recognized. The Company expects to incur these additional expenses in the last quarter of 2012 and in the first half of 2013.

The following table summarizes the restructuring plan and the activity in the restructuring reserve during the nine months ended September 30, 2012:



(Millions, except no. of employees)	Severance and Other Costs			Pension Curtailment (Gains)/Losses			Asset Write-offs			Total Reserve			Employees Impacted
Performance Coatings	$	52		$	1		$	12		$	65		740
Industrial Coatings	39			(1		)	8			46			348
Architectural Coatings - EMEA	65			(5		)	3			63			795
Optical & Specialty Materials	2			—			30			32			50
Commodity Chemicals	1			—			—			1			22
Corporate	1			—			—			1			4
Total	$	160		$	(5	)	$	53		$	208		1,959
Activity to date	(59		)	5			(53		)	(107		)	(1,225	)
Currency Impact	(3		)	—			—			(3		)	—
Balance as of September 30, 2012	$	98		$	—		$	—		$	98		734

Amounts related to the 2012 restructuring reserve totaling $3 million that are expected to be paid out after September 30, 2013 are classified as Other liabilities in the accompanying condensed consolidated balance sheet as of September 30, 2012. In addition to the amounts related to the 2012 restructuring reserve, there were also cash payments of approximately $4 million and $15 million related to prior restructuring programs made in the nine months ended September 30, 2012 and 2011, respectively.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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