Exit or Disposal Activities

6 Months Ended

Jun. 30, 2013

Restructuring and Related Activities [Abstract]

EXIT OR DISPOSAL ACTIVITIES

EXIT OR DISPOSAL ACTIVITIES

Liabilities associated with exit or disposal activities are recognized as incurred in accordance with the Exit or Disposal Cost Obligations Topic of the ASC. Qualified exit costs primarily include post-closure rent expenses, incremental post-closure costs and costs of employee terminations. Adjustments may be made to liabilities accrued for qualified exit costs if information becomes available upon which more accurate amounts can be reasonably estimated. Concurrently, property, plant and equipment is tested for impairment in accordance with the Property, Plant and Equipment Topic of the ASC, and if impairment exists, the carrying value of the related assets is reduced to estimated fair value. Additional impairment may be recorded for subsequent revisions in estimated fair value.

In the six months ended June 30, 2013, three stores in the Paint Stores Group, one branch in the Global Finishes Group and four stores in the Latin America Coatings Group were closed due to lower demand or redundancy.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at June 30, 2013:

					Actual			Adjustments to
(Thousands of dollars)	Balance at		Provisions in		expenditures			prior provisions			Balance at
	December 31,		Cost of goods		charged to			in Other general			June 30,
Exit Plan	2012		sold or SG&A		accrual			expense—net			2013
Paint Stores Group stores shutdown in 2013:
Other qualified exit costs			$	27	$	(16	)				$	11
Paint Stores Group stores shutdown in 2012:
Other qualified exit costs	$	313			(44		)	$	(1	)	268
Global Finishes Group facility shutdown in 2012:
Severance and related costs	2,236				(1,548		)	261			949
Other qualified exit costs	3,430				(3,530		)	100
Global Finishes Group branches shutdown in 2011:
Other qualified exit costs	290				(93		)				197
Other qualified exit costs for facilities shutdown prior to 2011	2,288				(724		)	(20		)	1,544
Totals	$	8,557	$	27	$	(5,955	)	$	340		$	2,969

For further details on the Company’s exit or disposal activities, see Note 5 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.