Business Restructuring

3 Months Ended

Mar. 31, 2019

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.

2018 Restructuring Program

In April 2018, the Company approved a business restructuring plan which included actions to reduce its global cost structure. The program was in response to the impacts of customer assortment changes in our U.S. architectural coatings business during the first quarter 2018 and sustained, elevated raw material inflation. The program aims to further right-size employee headcount and production capacity in certain businesses based on current product demand, as well as reductions in various global functional and administrative costs. Substantially all actions from this business restructuring plan are expected to be complete by the end of the first quarter of 2020.

2016 Restructuring Program

In December 2016, PPG’s Board of Directors approved a business restructuring program which includes actions necessary to reduce the Company's 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. Substantially all actions from this business restructuring plan are expected to be complete by the end of the third quarter of 2019.

The following table summarizes the reserve activity for the three months ended March 31, 2019:

($ in millions)	Total Reserve
December 31, 2018		$110
Cash payments	(15		)
Release of prior reserves	(3		)
Foreign currency impact	(1		)
March 31, 2019		$91

During the first quarter, adjustments of approximately $3 million were recorded to reduce the remaining restructuring reserves to reflect the current estimate of the costs to complete these actions.