Business Restructuring

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Business Restructuring

Business Restructuring

The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and asset write-downs.

On April 15, 2015, the Company approved a business restructuring plan which includes actions necessary to achieve cost synergies related to recent acquisitions. In addition, the program aims to further align employee levels and production capacity in certain businesses and regions with current product demand, as well as reductions in various global administrative functions. A pre-tax restructuring charge of $140 million was recorded in PPG’s second quarter 2015 financial results, of which about 85% represents employee severance and other cash costs. The restructuring actions are expected to be substantially completed during 2016.

The following table summarizes the 2015 restructuring charges and the reserve activity since inception and through the year ended December 31, 2015:

($ in millions, except no. of employees)	Severance and Other Costs			Asset Write-offs			Total Reserve			Employees Impacted
Performance Coatings	$	71		$	6		$	77		1,259
Industrial Coatings	42			13			55			534
Glass	4			—			4			33
Corporate	4			—			4			27
Total 2015 restructuring charge	$	121		$	19		$	140		1,853
Activity to date	(32		)	(19		)	(51		)	(1,047	)
Foreign currency impact	(2		)	—			(2		)	—
Balance as of December 31, 2015	$	87		$	—		$	87		806

In July 2013, the Company approved a business restructuring plan that resulted in a pre-tax charge of $98 million, which included asset write-offs of approximately $5 million. The restructuring actions impacted approximately 1,400 employees. As of March 31, 2015, all actions related to the 2013 restructuring plan were completed.