NOTE 16 – RESTRUCTURING

In fiscal year 2013, we initiated several restructuring actions which are expected to be completed in fiscal years 2013 and 2014. In the Paints segment, the initiatives primarily include consolidations of manufacturing and distribution operations following the acquisition of Ace Hardware Corporation's paint manufacturing business and in Australia as part of our ongoing profit improvement plans. These initiatives also include actions to lower operating expenses in Asia. In our Coatings segment, we undertook several actions to rationalize manufacturing operations and lower operating expenses. These restructuring activities resulted in after-tax charges of $1,853 or $0.02 per share and $8,268 or $0.09 per share for the three and nine months ended July 26, 2013, respectively.

In fiscal year 2012, we exited the gelcoat products market and consolidated a manufacturing facility in our Paints segment. Our gelcoat product line was categorized in Other and Administrative. During fiscal year 2012, we also completed restructuring initiatives announced in 2011, including certain actions in our Coatings and Paints segments. In our Coatings segment, we rationalized our manufacturing capacity and reduced our overall global headcount, primarily in our wood product line. In our Paints segment, we completed the first phase of actions to improve the profitability of Australia operations, which included facility consolidations in manufacturing and distribution, store rationalization and the reduction of other related costs. Total restructuring activities for the three and nine months ended July 27, 2012 resulted in after-tax charges of $4,442 or $0.05 per share and $11,259 or $0.12 per share, respectively.

The expenses comprising the above restructuring initiatives included severance and employee benefits, asset impairments, professional services and site clean-up.

The following restructuring charges by segment were recorded in the 2013 and 2012 periods:


Nine Months Ended July 26, 2013	Liability Beginning Balance 10/26/2012		Expense		Payments and Other Activity			Liability Ending Balance 7/26/2013
Coatings
Severance and employee benefits	$	2,234	$	3,919	$	(1,000	)	$	5,153
Asset impairments		—		48		(48	)		—
Exit costs (consulting/site clean-up)		390		—		(230	)		160
Total Coatings		2,624		3,967		(1,278	)		5,313
Paints
Severance and employee benefits		2,104		6,849		(3,961	)		4,992
Asset impairments		—		828		(828	)		—
Exit costs (consulting/site clean-up)		3,984		—		(1,769	)		2,215
Total Paints		6,088		7,677		(6,558	)		7,207
Other and Administrative
Severance and employee benefits		297		58		(94	)		261
Asset impairments		—		61		(61	)		—
Exit costs (consulting/site clean-up)		—		47		(47	)		—
Total Other and Administrative		297		166		(202	)		261
Total	$	9,009	$	11,810	$	(8,038	)	$	12,781


Nine Months Ended July 27, 2012	Liability Beginning Balance 10/28/2011		Expense		Payments and Other 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
Other and Administrative
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 Other and Administrative		437		3,972		(3,088	)		1,321
Total	$	10,446	$	16,379	$	(20,072	)	$	6,753

The ending liability balances at July 26, 2013 and July 27, 2012 are 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.