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 $4,418 or $0.04 per share after tax and $9,515 or $0.07 per share after tax for the three and six-month periods ended April 27, 2012, respectively. Pre-tax restructuring charges for these actions in both the three and six-month periods ended April 29, 2011 were $1,364 or $0.01 per share after tax. We expect the total cost of these activities, which began in fiscal year fiscal year 2011 and are anticipated to be completed in 2012, to be approximately $0.35 per share after tax. The restructuring charges for these initiatives 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 $98 and $1,494 in the three and six-month periods ended April 29, 2011, respectively.

Our total restructuring activities for the three and six-month periods ended April 27, 2012 resulted in pre-tax charges of $4,418 or $0.04 per share after tax and $9,515 or $0.07 per share after tax, respectively. In comparison, total restructuring activities for the three and six-month periods ended April 29, 2011 resulted in pre-tax charges of $1,462 or 0.01 per share after tax and $2,858, or $0.02 per share after tax respectively. The total resulting expenses recognized in fiscal years 2012 and 2011 included severance and employee benefits, asset impairments, professional services and site clean-up

The following restructuring charges by segment were recorded in the 2012 and 2011 periods:


Six Months Ended April 27, 2012	Liability Beginning Balance 10/28/2011		Expense		Activity			Liability Ending Balance 4/27/2012
Coatings
Severance and employee benefits	$	3,884	$	532	$	(2,125	)	$	2,291
Asset impairments		—		312		(312	)		—
Exit costs (consulting/site clean-up)		2,802		191		(1,860	)		1,133
Total Coatings		6,686		1,035		(4,297	)		3,424
Paints
Severance and employee benefits		2,915		3,066		(2,318	)		3,663
Asset impairments		—		2,911		(2,911	)		—
Exit costs (consulting/site clean-up)		408		1,821		(691	)		1,538
Total Paints		3,323		7,798		(5,920	)		5,201
All Other
Severance and employee benefits		437		682		(962	)		157
Total All Other		437		682		(962	)		157
Total	$	10,446	$	9,515	$	(11,179	)	$	8,782


Six Months Ended April 29, 2011	Liability Beginning Balance 10/29/2010		Expense		Activity			Liability Ending Balance 4/29/2011
Coatings
Severance and employee benefits	$	1,139	$	1,112	$	(1,499	)	$	752
Asset impairments		—		252		(252	)		—
Exit costs (consulting/site clean-up)		2,034		1,094		(1,533	)		1,595
Total Coatings		3,173		2,458		(3,284	)		2,347
Paints
Severance and employee benefits		19		—		(18	)		1
Exit costs (consulting/site clean-up)		2,763		400		(1,689	)		1,474
Total Paints		2,782		400		(1,707	)		1,475
Total	$	5,955	$	2,858	$	(4,991	)	$	3,822

The ending liability balance at April 27, 2012 and at April 29, 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 our Condensed Consolidated Statements of Operations. For the three-month period ended April 27, 2012, $1,706 was charged to cost of sales and $2,712 was charged to selling, general and administrative (SG&A) expenses. For the six-month period ended April 27, 2012, $4,660 was charged to cost of sales and $4,855 was charged to SG&A expenses. For the three-month period ended April 29, 2011, $529 was charged to cost of sales and $933 was charged to SG&A expenses. For the six-month period ended April 29, 2011, $1,925 was charged to cost of sales and $933 was charged to SG&A expenses.