Exit or Disposal Activities

6 Months Ended

Jun. 30, 2015

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 six months ended June 30, 2015, nineteen stores in the Paint Stores Group, two stores in the Global Finishes Group and one store in the Latin America Coatings Group were closed due to lower demand or redundancy. No provisions were incurred for the 2015 store shutdowns due to the timing of lease cancellations and movement of employees to other locations.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at June 30, 2015:



(Thousands of dollars)
Exit Plan	Balance at December 31, 2014		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at June 30, 2015
Paint Stores Group stores shutdown in 2014:
Other qualified exit costs	$	280	$	142	$	(135	)	$	287
Consumer Group facilities shutdown in 2014:
Severance and related costs	2,732		1,224		(2,981		)	975
Other qualified exit costs	781		6		(479		)	308
Global Finishes Group exit of business in 2014:
Severance and related costs	104				(104		)
Other qualified exit costs	1,080		110		(61		)	1,129
Paint Stores Group facility shutdown in 2013:
Severance and related costs	654				(507		)	147
Other qualified exit costs	1,205				(205		)	1,000
Global Finishes Group stores shutdown in 2013:
Severance and related costs	28				(28		)
Other qualified exit costs	138				(99		)	39
Other qualified exit costs for facilities shutdown prior to 2013	1,514				(446		)	1,068
Totals	$	8,516	$	1,482	$	(5,045	)	$	4,953

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, 2014.