NOTE 16 – RESTRUCTURING

There were no restructuring charges in the first quarter of fiscal year 2013. In fiscal year 2012, we exited the gelcoat products market and initiated the consolidation of a manufacturing facility in our Paints segment. Our gelcoat product line was categorized in All Other. 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 operations, which included 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. 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 2013 and 2012:


Three Months Ended January 25, 2013	Liability Beginning Balance 10/26/2012		Expense		Activity			Liability Ending Balance 1/25/2013
Coatings
Severance and employee benefits	$	2,234	$	—	$	(123	)	$	2,111
Exit costs (consulting/site clean-up)		390		—		(129	)		261
Total Coatings		2,624		—		(252	)		2,372
Paints
Severance and employee benefits		2,104		—		(1,695	)		409
Exit costs (consulting/site clean-up)		3,984		—		(553	)		3,431
Total Paints		6,088		—		(2,248	)		3,840
All Other
Severance and employee benefits		297		—		(52	)		245
Total All Other		297		—		(52	)		245
Total	$	9,009	$	—	$	(2,552	)	$	6,457


Three Months Ended 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

The ending liability balance at January 25, 2013 and at January 27, 2012 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 months ended January 27, 2012, $2,954 was charged to cost of sales and $2,143 was charged to selling, general and administrative expenses.