RESTRUCTURING

Restructuring charges in the three months ended January 27, 2017 primarily relate to a continuation of fiscal year 2016 initiatives to improve the global cost structure in our Paints segment. These initiatives included consolidating three sites in our automotive refinish product lines as a result of the Quest acquisition and initiatives to improve our global cost structure by consolidating our operations in the Paints segment. These restructuring activities resulted in pre-tax charges of $1,894 in the three months ended January 27, 2017. Included in restructuring charges are non-cash asset-related charges of $969. Asset-related charges include asset impairment charges as well as accelerated depreciation for assets with useful lives that have been shortened, accounted for in accordance with Accounting Standards Codification (ASC) Topic 360, Property, Plant and Equipment.

Restructuring charges in the first quarter of fiscal year 2016 primarily related to a continuation of fiscal year 2015 initiatives in the Paints segment to improve our North American cost structure through activities to rationalize our manufacturing operations and staffing reductions, which resulted from moving certain manufacturing to a third party. These restructuring activities resulted in pre-tax charges of $869 in the three months ended January 29, 2016, including non-cash asset-related charges of $571.

We currently expect additional expenses of approximately $1,100 in fiscal year 2017 for these restructuring plans, primarily related to site clean-up and lease exit costs.

The following restructuring charges by segment were recorded in the 2017 and 2016 periods:



Three Months Ended January 27, 2017	Liability Balance October 28, 2016		Expense			Payments and Other Activity			Liability Balance January 27, 2017
Coatings
Severance and employee benefits	$	1,456	$	(136	)	$	(47	)	$	1,273
Exit costs (consulting/site clean-up)	425		149			(162		)	412
Total Coatings	1,881		13			(209		)	1,685
Paints
Severance and employee benefits	3,721		340			(1,167		)	2,894
Asset-related charges	—		969			(969		)	—
Exit costs (consulting/site clean-up)	856		576			(193		)	1,239
Total Paints	4,577		1,885			(2,329		)	4,133
Other and Administrative
Severance and employee benefits	1,269		(4		)	(182		)	1,083
Total Other and Administrative	1,269		(4		)	(182		)	1,083
Total	$	7,727	$	1,894		$	(2,720	)	$	6,901



Three Months Ended January 29, 2016	Liability Balance October 30, 2015		Expense		Payments and Other Activity			Liability Balance January 29, 2016
Coatings
Severance and employee benefits	$	6,679	$	107	$	(3,098	)	$	3,688
Exit costs (consulting/site clean-up)	—		84		(84		)	—
Total Coatings	6,679		191		(3,182		)	3,688
Paints
Severance and employee benefits	6,004		54		(329		)	5,729
Asset-related charges	—		571		(571		)	—
Exit costs (consulting/site clean-up)	1,069		53		(154		)	968
Total Paints	7,073		678		(1,054		)	6,697
Other and Administrative
Severance and employee benefits	38		—		(1		)	37
Total Other and Administrative	38		—		(1		)	37
Total	$	13,790	$	869	$	(4,237	)	$	10,422

The ending liability balance at January 27, 2017 and January 29, 2016 is included in other accrued liabilities and other long-term liabilities on our Condensed Consolidated Balance Sheets. The restructuring reserve balances presented are considered adequate to cover committed restructuring actions.

Restructuring charges were recorded in the Condensed Consolidated Statements of Operations for the three months ended January 27, 2017 and January 29, 2016 approximately as follows:



	Three Months Ended
	January 27, 2017		January 29, 2016
Cost of sales	$	1,192	$	435
Selling, general and administrative	702		434
Total restructuring charges	$	1,894	$	869