NOTE 15 – RESTRUCTURING

During the 2011 fiscal year, we initiated restructuring actions in our Coatings segment, primarily in our wood product line, which will further rationalize our manufacturing capacity and reduce our overall global headcount. We also initiated restructuring actions to improve the profitability of our Australian acquisition in the Paints segment, which include facility consolidations in manufacturing and distribution, store rationalization and other related costs. These restructuring activities resulted in pre-tax charges of $33,093 or $0.24 per share after tax in 2011. These activities will span fiscal years 2011 and 2012, and we expect the total cost to be $0.30 to $0.35 per share after tax.

In fiscal year 2008, we initiated a comprehensive series of restructuring activities which are now complete. These restructuring initiatives included plant closures, reductions to research and development and selling, general and administrative expenses, manufacturing consolidation and relocation, and our exit from non-strategic product lines in certain geographies. We rationalized our manufacturing capacity and reduced our overall global headcount to lower our costs in light of the challenging global economic conditions. Pre-tax restructuring charges for these initiatives were $1,346 or $0.01 per share after tax, $12,383 or $0.08 per share after tax and $28,557 or $0.18 per share after tax in fiscal years 2011, 2010 and 2009, respectively.

Our total restructuring activities for 2011 resulted in pre-tax charges of $34,439 or $0.24 per share after tax, compared to $12,383 or $0.08 per share after tax in 2010 and $28,557 or $0.18 per share after tax in 2009.

The total resulting expenses included severance and employee benefits, asset impairments, professional services and site clean-up. We plan to pay the majority of the current restructuring liabilities within the next nine months.

The following restructuring and asset impairment charges by segment were recorded in 2011, 2010 and 2009:

Year Ended October 28, 2011

	Liability Beginning Balance 10/29/2010		Expense		Activity			Liability Ending Balance 10/28/2011
Coatings
Severance and employee benefits	$	1,139	$	10,044	$	(7,299	)	$	3,884
Asset impairments		—		5,644		(5,644	)		—
Exit costs (consulting/site clean-up)		2,034		5,252		(4,484	)		2,802
Total Coatings		3,173		20,940		(17,427	)		6,686
Paints
Severance and employee benefits		19		7,945		(5,049	)		2,915
Asset impairments		—		4,169		(4,169	)		—
Exit costs (consulting/site clean-up)		2,763		899		(3,254	)		408
Total Paints		2,782		13,013		(12,472	)		3,323
All Other
Severance and employee benefits		—		486		(49	)		437
Total All Other		—		486		(49	)		437
Total	$	5,955	$	34,439	$	(29,948	)	$	10,446


Year Ended October 29, 2010

	Liability Beginning Balance 10/30/2009		Net Expense			Activity			Liability Ending Balance 10/29/2010
Coatings
Severance and employee benefits	$	1,694	$	2,353		$	(2,908	)	$	1,139
Asset impairments		—		5,596			(5,596	)		—
Exit costs (consulting/site clean-up)		1,012		1,822			(800	)		2,034
Contract term costs (leases)		—		792			(792	)		—
Total Coatings		2,706		10,563			(10,096	)		3,173
Paints
Severance and employee benefits		827		313			(1,121	)		19
Asset impairments		—		(237	)		237			—
Exit costs (consulting/site clean-up)		2,556		1,519			(1,312	)		2,763
Total Paints		3,383		1,595			(2,196	)		2,782
All Other
Severance and employee benefits		55		—			(55	)		—
Asset impairments		—		114			(114	)		—
Exit costs (consulting/site clean-up)		—		111			(111	)		—
Total All Other		55		225			(280	)		—
Total	$	6,144	$	12,383		$	(12,572	)	$	5,955


Year Ended October 30, 2009

	Liability Beginning Balance 10/31/2008		Expense		Activity			Liability Ending Balance 10/30/2009
Coatings
Severance and employee benefits	$	7,842	$	12,339	$	(18,487	)	$	1,694
Asset impairments		—		3,417		(3,417	)		—
Exit costs (consulting/site clean-up)		423		2,010		(1,421	)		1,012
Contract term costs (leases)		—		471		(471	)		—
Total Coatings		8,265		18,237		(23,796	)		2,706
Paints
Severance and employee benefits		—		1,374		(547	)		827
Asset impairments		—		1,935		(1,935	)		—
Exit costs (consulting/site clean-up)		2,252		1,120		(816	)		2,556
Total Paints		2,252		4,429		(3,298	)		3,383
All Other
Severance and employee benefits		806		615		(1,366	)		55
Asset impairments		—		3,647		(3,647	)		—
Exit costs (consulting/site clean-up)		64		1,568		(1,632	)		—
Contract term costs (leases)		—		61		(61	)		—
Total All Other		870		5,891		(6,706	)		55
Total	$	11,387	$	28,557	$	(33,800	)	$	6,144

The ending liability balance at October 28, 2011 and at October 29, 2010 is included in other accrued liabilities on our Consolidated Balance Sheets. The restructuring reserve balances presented are considered adequate to cover committed restructuring actions. The restructuring expenses recorded are included in the Consolidated Statements of Operations. For 2011, $25,563 was charged to cost of sales and $8,876 was charged to selling, general and administrative (SG&A) expenses. For 2010, $12,520 was charged to cost of sales and $137 was credited to SG&A expenses. For 2009, $22,280 was charged to cost of sales and $6,277 was charged to SG&A expenses.

In 2010, we also recorded $6,147 of restructuring charges consisting primarily of severance related to the divestiture of certain assets to DIC Corporation, which was netted against the gain included in SG&A expenses in our Coatings segment.