Business Restructuring

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

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.

In December 2016, PPG’s Board of Directors approved a business restructuring program which includes actions necessary to reduce its global cost structure. The program is focused on certain regions and end-use markets where business conditions are the weakest, as well as reductions in production capacity and various global functional and administrative costs. In addition to the pre-tax charge and cash costs, approximately $15 million of incremental restructuring-related cash costs are expected during 2017 for certain items that are required to be expensed on an as-incurred basis. The restructuring actions will result in the net reduction of approximately 1,700 positions, with substantially all actions to be completed by the first quarter of 2018.

The following table summarizes the 2016 restructuring charge, the reserve activity for 2016, and the reserve activity for the three months ended March 31, 2017:



($ in millions, except for employees impacted)	Severance and Other Costs			Asset Write-offs			Total Reserve			Employees Impacted
Performance Coatings	$	77		$	45		$	122		1,069
Industrial Coatings	52			14			66			804
Glass	2			—			2			153
Corporate	7			—			7			85
Total 2016 restructuring charge	$	138		$	59		$	197		2,111
2016 Activity	(6		)	(59		)	(65		)	(40	)
Balance as of December 31, 2016	$	132		$	—		$	132		2,071
2017 Activity	(7		)	—			(7		)	(364	)
Foreign currency	2			—			2			—
Balance as of March 31, 2017	$	127		$	—		$	127		1,707