Business Restructuring

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

In July 2013, the Company approved a business restructuring plan that resulted in a pretax charge of $98 million. The approved actions are focused on achieving cost synergies, through improved productivity and efficiency, related to the 2013 North American architectural coatings acquisition, including actions in the acquired business, as well as in PPG's legacy architectural coatings businesses. Additionally, smaller targeted actions were approved for businesses where market conditions remain very challenging, most notably protective and marine coatings and certain European businesses such as architectural coatings and fiber glass. The restructuring actions will impact 1,436 employees.

The charge of $98 million is comprised of employee severance and other costs of approximately $93 million and asset write-offs of approximately $5 million. Cash payouts for certain liabilities were $27 million in 2013 and are expected to approximate $60 million in 2014, with the remainder of the cash spending to occur in 2015. All actions in the restructuring plan are expected to be completed by the end of 2015.

The following table summarizes the 2013 restructuring charge and the activity during the year ended December 31, 2013:



(Millions, except no. of employees)	Severance and Other Costs			Asset Write-offs			Total Reserve			Employees Impacted
Performance Coatings	$	51		$	4		$	55		1,016
Industrial Coatings	14			—			14			165
Architectural Coatings - EMEA	23			1			24			237
Glass	4			—			4			14
Corporate	1			—			1			4
Total	$	93		$	5		$	98		1,436
2013 activity	(27		)	(5		)	(32		)	(645	)
Foreign currency impact	4			—			4			—
Balance as of December 31, 2013	$	70		$	—		$	70		791

In March 2012, the Company approved a business restructuring plan that resulted in a charge of $208 million. The approved actions were taken to reduce the Company's 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 closed several laboratory, warehouse and distribution facilities and small production units and reduced staffing. The restructuring impacted a number of businesses globally, primarily the global architectural businesses and general and administrative functions in Europe.

The charge of $208 million was comprised of employee severance and other cash costs of $160 million, asset write-offs of $53 million, and a net pension curtailment gain of $5 million.

In the fourth quarter of 2012, adjustments of approximately $12 million were recorded to reduce the restructuring reserve established in the first quarter of 2012 to reflect changes in the estimated cost to complete these actions. Also in the fourth quarter of 2012, some additional restructuring actions were approved and charges of approximately $12 million for the cost of these actions were recorded. The additional actions increased the number of employees impacted by 273. As of December 31, 2013, actions in the restructuring plan are substantially complete and are expected to be fully completed in the first half of 2014.

The following table summarizes the 2012 restructuring charge and the activity in the restructuring reserve during the year ended December 31, 2013:



(Millions, except no. of employees)	Severance and Other Costs			Pension Curtailment (Gains)/Losses			Asset Write-offs			Total Reserve			Employees Impacted
Performance Coatings	$	55		$	1		$	12		$	68		867
Industrial Coatings	38			(1		)	8			45			394
Architectural Coatings - EMEA	61			(5		)	3			59			881
Optical & Specialty Materials	2			—			30			32			50
Glass	3			—			—			3			36
Corporate	1			—			—			1			4
Total	$	160		$	(5	)	$	53		$	208		2,232
2012 activity	(83		)	5			(53		)	(131		)	(1,631		)
Foreign currency impact	(2		)	—			—			(2		)	—
Balance as of December 31, 2012	$	75		$	—		$	—		$	75		601
2013 activity	(57		)	—			—			(57		)	(584		)
Foreign currency impact	(3		)	—			—			(3		)	—
Balance as of December 31, 2013	$	15		$	—		$	—		$	15		$	17

- 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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