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 our Paints segment, which include facility consolidations in manufacturing and distribution, store rationalization and other related costs. In the third quarter of 2012, we announced the exit of our gelcoat product line, categorized in All Other, and the consolidation of a manufacturing facility in our Paints segment. These restructuring activities resulted in pre-tax charges of $6,864 or $0.05 per share after tax and $16,379 or $0.12 per share after tax for the three and nine-month periods ended July 27, 2012, respectively. Pre-tax restructuring charges were $14,333 or $0.10 per share after tax and $15,696 or $0.12 per share after tax for the three and nine-month periods ended July 29, 2011, respectively. The restructuring charges for these initiatives for the full year 2011 were $0.24 per share after tax. We expect the total cost of these activities, which began in fiscal year 2011 and are anticipated to be completed in fiscal year 2012, to be approximately $0.40 - $0.42 per share after tax.

In fiscal year 2008, we initiated a comprehensive series of restructuring activities that 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 $1,346 or $0.01 per share after tax for the nine-month period ended July 29, 2011. Our total restructuring activities for the nine-months ended July 29, 2011 was $17,042 or $0.12 per share after tax.

The total resulting expenses recognized in fiscal year 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:


Nine Months Ended July 27, 2012	Liability Beginning Balance 10/28/2011		Expense		Activity			Liability Ending Balance 7/27/2012
Coatings
Severance and employee benefits	$	3,884	$	535	$	(2,169	)	$	2,250
Asset impairments		—		167		(167	)		—
Exit costs (consulting/site clean-up)		2,802		194		(2,296	)		700
Total Coatings		6,686		896		(4,632	)		2,950
Paints
Severance and employee benefits		2,915		3,617		(6,087	)		445
Asset impairments		—		5,101		(5,101	)		—
Exit costs (consulting/site clean-up)		408		2,793		(1,164	)		2,037
Total Paints		3,323		11,511		(12,352	)		2,482
All Other
Severance and employee benefits		437		1,068		(184	)		1,321
Asset impairments		—		2,171		(2,171	)		—
Exit costs (consulting/site clean-up)		—		733		(733	)		—
Total All Other		437		3,972		(3,088	)		1,321
Total	$	10,446	$	16,379	$	(20,072	)	$	6,753


Nine Months Ended July 29, 2011	Liability Beginning Balance 10/29/2010		Expense		Activity			Liability Ending Balance 7/29/2011
Coatings
Severance and employee benefits	$	1,139	$	5,676	$	(2,806	)	$	4,009
Asset impairments		—		2,998		(2,998	)		—
Exit costs (consulting/site clean-up)		2,034		2,030		(1,253	)		2,811
Total Coatings		3,173		10,704		(7,057	)		6,820
Paints
Severance and employee benefits		19		3,972		(670	)		3,321
Asset impairments		—		1,750		(1,750	)		—
Exit costs (consulting/site clean-up)		2,763		272		(2,603	)		432
Total Paints		2,782		5,994		(5,023	)		3,753
All Other
Severance and employee benefits		—		233		(233	)		—
Exit costs (consulting/site clean-up)		—		111		(111	)		—
Total All Other		—		344		(344	)		—
Total	$	5,955	$	17,042	$	(12,424	)	$	10,573

The ending liability balance at July 27, 2012 and at July 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 July 27, 2012, $4,312 was charged to cost of sales and $2,552 was charged to selling, general and administrative (SG&A) expenses. For the nine-month period ended July 27, 2012, $8,972 was charged to cost of sales and $7,407 was charged to SG&A expenses. For the three-month period ended July 29, 2011, $12,224 was charged to cost of sales and $1,960 was charged to SG&A expenses. For the nine-month period ended July 29, 2011, $14,149 was charged to cost of sales and $2,893 was charged to SG&A expenses.