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Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities | 12 Months Ended
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Dec. 31, 2014
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities |
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities | 9. Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities The Company continually reviews its manufacturing footprint and operating cost structure and may decide to close operations or reduce headcount to gain efficiencies, integrate acquired operations and reduce future expenses. The Company incurs costs associated with these actions including employee severance and benefits, other exit costs such as those related to contract terminations, and asset impairment charges. The Company also may incur other costs related to closed facilities including environmental remediation, clean up, dismantling and preparation for sale or other disposition. The Company accounts for restructuring and other costs under applicable provisions of generally accepted accounting principles. Charges for employee severance and related benefits are generally accrued based on contractual arrangements with employees or their representatives. Other exit costs are accrued based on the estimated cost to settle related contractual arrangements. Estimated environmental remediation costs are accrued when specific claims have been received or are probable of being received. The Company's decisions to curtail selected production capacity have resulted in write downs of certain long-lived assets to the extent their carrying amounts exceeded fair value or fair value less cost to sell. The Company classified the significant assumptions used to determine the fair value of the impaired assets as Level 3 in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. When a decision is made to take these actions, the Company manages and accounts for them programmatically apart from the on-going operations of the business. Information related to major programs (as in the case of the European Asset Optimization and Asia Pacific Restructuring programs below) are presented separately. Minor initiatives are presented on a combined basis as Other Restructuring Actions. When charges related to major programs are completed, remaining accrual balances are classified with Other Restructuring Actions. European Asset Optimization Since 2011, the Company has implemented the European Asset Optimization program to increase the efficiency and capability of its European operations and to better align its European manufacturing footprint with market and customer needs. This program involves making additional investments in certain facilities and addressing assets with higher cost structures. As part of this program, the Company recorded charges of $1 million in 2014, $16 million in 2013 and $86 million in 2012 for employee costs, write-down of assets, and environmental remediation related to decisions to close furnaces and manufacturing facilities in Europe. The Company expects to execute further actions under this program in phases over the next several years. Asia Pacific Restructuring Since 2011, the Company has implemented a restructuring plan in its Asia Pacific segment, primarily related to aligning its supply base with lower demand in the region. As part of this plan, the Company recorded charges of $73 million, $49 million and $47 million for the years ended 2014, 2013 and 2012, respectively, for employee costs, write-down of assets, and pension charges related to furnace closures and additional restructuring activities. Other Restructuring Actions The Company took certain other restructuring actions and recorded charges in 2014 of $2 million for employee costs related to global headcount reduction initiatives. In 2013, there were charges of $16 million for employee costs related to the closure of flat glass operations in South America, $13 million for employee costs related to global headcount reduction initiatives, and $3 million for miscellaneous other costs. In 2012, the Company recorded charges of $13 million for employee costs and asset impairments related to a decision to close a machine manufacturing facility in the U.S., $7 million for employee costs and asset impairments related to a decision to close a mold shop in South America and $15 million for miscellaneous other costs. The following table presents information related to restructuring, asset impairment and other costs related to closed facilities:
|  | European Asset Optimization |  | Asia Pacific Restructuring |  | Other Restructuring Actions |  | Total Restructuring |
Balance at January 1, 2013 |  |  | 53 |  |  | 6 |  |  | 64 |  |  | 123 |
2013 charges |  |  | 16 |  |  | 49 |  |  | 32 |  |  | 97 |
Write-down of assets to net realizable value |  |  | (3 | ) |  | (11 | ) |  | (2 | ) |  | (16 | )
Net cash paid, principally severance and related benefits |  |  | (37 | ) |  | (16 | ) |  | (25 | ) |  | (78 | )
Pension charges transferred to other accounts |  |  |  |  |  | (6 | ) |  |  |  |  | (6 | )
Other, including foreign exchange translation |  |  | 1 |  |  | (2 | ) |  | (5 | ) |  | (6 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at December 31, 2013 |  |  | 30 |  |  | 20 |  |  | 64 |  |  | 114 |
2014 charges |  |  | 1 |  |  | 73 |  |  | 2 |  |  | 76 |
Write-down of assets to net realizable value |  |  |  |  |  | (46 | ) |  |  |  |  | (46 | )
Net cash paid, principally severance and related benefits |  |  | (12 | ) |  | (20 | ) |  | (26 | ) |  | (58 | )
Pension charges transferred to other accounts |  |  |  |  |  | (7 | ) |  |  |  |  | (7 | )
Other, including foreign exchange translation |  |  | (7 | ) |  | (8 | ) |  | (4 | ) |  | (19 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at December 31, 2014 |  | $ | 12 |  | $ | 12 |  | $ | 36 |  | $ | 60 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The restructuring accrual balance represents the Company's estimates of the remaining future cash amounts to be paid related to the actions noted above. As of December 31, 2014, the Company's estimates include approximately $28 million for severance and related benefits costs, $26 million for environmental remediation costs, and $6 million for other exit costs.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 + Details
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