Exit or Disposal Activities

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Liabilities associated with exit or disposal activities are recognized as incurred in accordance with the Exit or Disposal Cost Obligations Topic of the ASC. Qualified exit costs primarily include post-closure rent expenses, incremental post-closure costs and costs of employee terminations. Adjustments may be made to liabilities accrued for qualified exit costs if information becomes available upon which more accurate amounts can be reasonably estimated. Concurrently, property, plant and equipment is tested for impairment in accordance with the Property, Plant and Equipment Topic of the ASC, and if impairment exists, the carrying value of the related assets is reduced to estimated fair value. Additional impairment may be recorded for subsequent revisions in estimated fair value.

In the nine months ended September 30, 2014, eight stores in the Paint Stores Group, five stores in the Latin America Coatings Group and four facilities in the Consumer Group were closed due to lower demand or redundancy. In addition, the Global Finishes Group exited its business in Venezuela.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at September 30, 2014:



(Thousands of dollars)
Exit Plan	Balance at December 31, 2013		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at September 30, 2014
Consumer Group facilities shutdown in 2014:
Severance and related costs			$	2,135	$	(452	)	$	1,683
Global Finishes Group exit of business in 2014:
Severance and related costs			2,500		(2,396		)	104
Other qualified exit costs			2,022		(920		)	1,102
Paint Stores Group facility shutdown in 2013:
Severance and related costs	$	977	1,976		(1,838		)	1,115
Other qualified exit costs			1,499		(196		)	1,303
Consumer Group facilities shutdown in 2013:
Severance and related costs	598		97		(471		)	224
Global Finishes Group stores shutdown in 2013:
Severance and related costs	33				(3		)	30
Other qualified exit costs	220				(58		)	162
Latin America Coatings Group facilities shutdown in 2013:
Severance and related costs	123				(123		)
Paint Stores Group stores shutdown in 2012:
Other qualified exit costs	244				(37		)	207
Global Finishes Group facilities shutdown in 2012:
Severance and related costs	2,177				(1,863		)	314
Other qualified exit costs	83							83
Other qualified exit costs for facilities shutdown prior to 2012	1,365				(369		)	996
Totals	$	5,820	$	10,229	$	(8,726	)	$	7,323

For further details on the Company’s exit or disposal activities, see Note 5 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

- 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.

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