Business Restructuring

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Business Restructuring

Business Restructurings

In July 2013, the Company approved a business restructuring plan that resulted in a pre-tax charge of $98 million. The approved actions were 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, most notably protective and marine coatings and certain European businesses such as architectural coatings and fiber glass. The restructuring actions impacted approximately 1,400 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 $46 million in 2014, with the remainder of the cash spending to occur in 2015. Substantially all actions in the restructuring plan were completed as of December 31, 2014, with the few remaining actions expected to be completed during the first half of 2015.

The following table summarizes the 2013 restructuring charge and the reserve activity since inception and through the year ended December 31, 2014:

($ in millions, except no. of employees)	Severance and Other Costs			Asset Write-offs			Total Reserve			Employees Impacted
Performance Coatings	$	74		$	5		$	79		1,253
Industrial Coatings	14			—			14			165
Glass	4			—			4			14
Corporate	1			—			1			4
Total third quarter 2013 restructuring charge	$	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
2014 activity	(46		)	—			(46		)	(768	)
Foreign currency impact	4			—			4			—
Balance as of December 31, 2014	$	24		$	—		$	24		23

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. As of December 31, 2014, all actions related to the 2012 restructuring plan were completed.