Exit or Disposal Activities

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

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 three months ended March 31, 2015, fourteen stores in the Paint Stores Group and one store in the Latin America Coatings Group were closed due to lower demand or redundancy. No provisions were incurred for the 2015 store shutdowns due to the timing of lease cancellations and movement of employees to other locations.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at March 31, 2015:



(Thousands of dollars)
Exit Plan	Balance at December 31, 2014		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at March 31, 2015
Paint Stores Group stores shutdown in 2014:
Other qualified exit costs	$	280	$	142	$	(82	)	$	340
Consumer Group facilities shutdown in 2014:
Severance and related costs	2,732		509		(643		)	2,598
Other qualified exit costs	781				(296		)	485
Global Finishes Group exit of business in 2014:
Severance and related costs	104				(104		)
Other qualified exit costs	1,080		110		(21		)	1,169
Paint Stores Group facility shutdown in 2013:
Severance and related costs	654				(358		)	296
Other qualified exit costs	1,205				(98		)	1,107
Global Finishes Group stores shutdown in 2013:
Severance and related costs	28				(25		)	3
Other qualified exit costs	138				(57		)	81
Other qualified exit costs for facilities shutdown prior to 2013	1,514				(282		)	1,232
Totals	$	8,516	$	761	$	(1,966	)	$	7,311

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, 2014.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details