Exit or Disposal Activities

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2015, twenty-three stores in the Paint Stores Group, three branches in the Global Finishes Group and two stores in the Latin America Coatings Group were closed due to lower demand or redundancy. In addition, the Global Finishes Group exited a business in Europe.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at September 30, 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 September 30, 2015
Paint Stores Group stores shutdown in 2015:
Other qualified exit costs			$	25				$	25
Global Finishes Group exit of a business in 2015:
Severance and related costs			1,257					1,257
Other qualified exit costs			4,515					4,515
Paint Stores Group stores shutdown in 2014:
Other qualified exit costs	$	280	142		$	(168	)	254
Consumer Group facilities shutdown in 2014:
Severance and related costs	2,732		1,223		(3,386		)	569
Other qualified exit costs	781				(601		)	180
Global Finishes Group exit of business in 2014:
Severance and related costs	104		326					430
Other qualified exit costs	1,080				(564		)	516
Paint Stores Group facility shutdown in 2013:
Severance and related costs	654				(632		)	22
Other qualified exit costs	1,205				(273		)	932
Global Finishes Group stores shutdown in 2013:
Severance and related costs	28				(28		)
Other qualified exit costs for facilities shutdown prior to 2013	1,652				(170		)	1,482
Totals	$	8,516	$	7,488	$	(5,822	)	$	10,182

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.