NOTE 14: RESTRUCTURING

During the 2011 fiscal year, we initiated restructuring actions in our Coatings segment, primarily in our wood product line, which further rationalized our manufacturing capacity and reduced 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 $5,097 or $0.04 per share after tax in the first quarter of fiscal year 2012. There were no restructuring charges for these actions in the first quarter of fiscal year 2011.We expect the total cost of these activities, which began in fiscal year 2011 and are anticipated to be completed in 2012, to be $0.30 to $0.35 per share after tax. The restructuring charges for the full year 2011 were $0.24 per share after tax.

In fiscal year 2008, we initiated a comprehensive series of restructuring activities which were completed in fiscal year 2011. 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 $0 and $1,396 in the three months ended January 27, 2012 and January 28, 2011, respectively.

Our total restructuring activities for the three months ended January 27, 2012 resulted in pre-tax charges of $5,097 or $0.04 per share after tax, compared to $1,396 for the three months ended January 28, 2011.

The total resulting expenses included severance and employee benefits, asset impairments, professional services and site clean-up.

The following restructuring charges by segment were recorded in the first quarter of 2012 and 2011:


Three-Month Period Ending January 27, 2012	Liability Beginning Balance 10/28/2011		Expense		Activity			Liability Ending Balance 1/27/2012
Coatings
Severance and employee benefits	$	3,884	$	136	$	(1,455	)	$	2,565
Asset impairments		—		89		(89	)		—
Exit costs (consulting/site clean-up)		2,802		164		(393	)		2,573
Total Coatings		6,686		389		(1,937	)		5,138
Paints
Severance and employee benefits		2,915		2,082		(1,478	)		3,519
Asset impairments		—		1,265		(1,265	)		—
Exit costs (consulting/site clean-up)		408		679		(809	)		278
Total Paints		3,323		4,026		(3,552	)		3,797
All Other
Severance and employee benefits		437		682		(331	)		788
Total All Other		437		682		(331	)		788
Total	$	10,446	$	5,097	$	(5,820	)	$	9,723


Three-Month Period Ending January 28, 2011	Liability Beginning Balance 10/29/2010		Expense		Activity			Liability Ending Balance 1/28/2011
Coatings
Severance and employee benefits	$	1,139	$	2	$	(502	)	$	639
Exit costs (consulting/site clean-up)		2,034		427		(821	)		1,640
Contract term costs (leases)		—		567		(567	)		—
Total Coatings		3,173		996		(1,890	)		2,279
Paints
Severance and employee benefits		19		—		—			19
Exit costs (consulting/site clean-up)		2,763		400		(508	)		2,655
Total Paints		2,782		400		(508	)		2,674
Total	$	5,955	$	1,396	$	(2,398	)	$	4,953

The ending liability balance at January 27, 2012 and at January 28, 2011 is included in other accrued liabilities on our Condensed Consolidated Balance Sheets. The restructuring reserve balances presented are considered adequate to cover committed restructuring actions. The restructuring expenses recorded are included in the Condensed Consolidated Statements of Operations. For the three-month period ended January 27, 2012, $2,954 was charged to cost of sales and $2,143 was charged to selling, general and administrative expenses. For the three-month period ended January 28, 2011, $1,396 was charged to cost of sales.