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Item
2.05
Costs Associated with Exit or Disposal Activities.
On December 8, 2016, the Board of Directors of the Company approved a business restructuring plan which includes actions 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. A pretax restructuring charge of $190 million to $200 million will be recorded in PPG's fourth quarter 2016 financial results, of which about $140 million represents employee severance and other cash costs and $50 million to $60
million is related to the write-down of certain assets held for sale and other non-cash costs. In addition to the aforementioned pretax 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 complete by the first quarter 2018.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
