Item 2.05 Costs Associated with Exit or Disposal Activities.
On June 5, 2020, PPG Industries, Inc. (the "Company") approved a cost savings
program that includes actions to reduce its global cost structure. The program
addresses weakened global economic conditions stemming from the COVID-19
pandemic and related pace of recovery in a few end-use markets along with
further opportunities to optimize supply chain and functional costs. A pretax
restructuring charge of $160 to $180 million, based on current exchange rates,
will be recorded in PPG's second quarter 2020 financial results. Nearly all of
this charge represents employee severance and other cash costs. As a result of
this program, the Company expects to incur over the life of the program
approximately $10 million of incremental non-cash accelerated depreciation
expense for certain assets due to their reduced expected asset life. In
addition, other cash costs of approximately $10 million will be incurred over
the duration of this program, consisting of incremental restructuring-related
cash costs for certain items that are required to be expensed on an as-incurred
basis. The majority of restructuring actions are expected to be completed by the
end of 2020 with the remainder of the actions expected to be completed in 2021.
The Company expects the cash payback of the restructuring program to be
approximately one year and full year run rate savings of about $170 million upon
completion of the program.
Item 7.01 Regulation FD Disclosure.
On June 8, 2020, the Company issued the press release attached hereto as Exhibit
99 and incorporated herein by reference. The information furnished pursuant to
this Item 7.01 shall in no way be deemed to be "filed" for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
otherwise subject to the liability of that section, except if the Company
specifically incorporates it by reference into a filing under the Securities Act
of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number Description
99 Press release of PPG Industries, Inc. dated June 8, 2020.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
Forward-Looking Statements
Statements in this Form 8-K relating to matters that are not historical facts
are forward-looking statements within the meaning of the within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A
of the Securities Act of 1933, as amended, reflecting the Company's current view
with respect to future events or objectives and financial or operational
performance or results. The forward-looking statements contained herein include
statements relating to the timing of and ability to realize the expected cost
savings from the restructuring initiatives, the amount of the expected earnings
charge, the amount of the expected cash and severance costs, the amount of the
incremental non-cash accelerated depreciation expense and the amount of the
expected full year run rate savings. Actual events may differ materially from
current expectations and are subject to a number of risks and uncertainties,
including the actual cost of the restructuring actions, the ability to realize
the expected cost savings, the ability to realize the expected cost savings
within the anticipated time frame, and the other risks and uncertainties
discussed in the Company's periodic reports on Form 10-K and Form 10-Q and its
current reports on Form 8-K filed with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date of their initial issuance,
and the Company does not undertake any obligation to update or revise publicly
any forward-looking statement, whether as a result of new information, future
events or otherwise.
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses
PPG INDUSTRIES, INC. 
