Exit or Disposal Activities

9 Months Ended

Sep. 30, 2016

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, 2016, fourteen stores in the Paint Stores Group, eight branches in the Global Finishes Group and one facility in the Consumer Group were closed due to lower demand or redundancy.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at September 30, 2016:



(Thousands of dollars)
Exit Plan	Balance at December 31, 2015		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at September 30, 2016
Consumer Group facilities shutdown in 2016:
Severance and related costs			$	115	$	(115	)
Global Finishes Group stores shutdown in 2016:
Other qualified exit costs			178		(23		)	$	155
Paint Stores Group stores shutdown in 2015:
Other qualified exit costs	$	12	293		(305		)
Global Finishes Group exit of a business in 2015:
Severance and related costs	1,096				(598		)	498
Other qualified exit costs	2,750		525		(2,413		)	862
Paint Stores Group stores shutdown in 2014:
Other qualified exit costs	184				(63		)	121
Consumer Group facilities shutdown in 2014:
Severance and related costs	445				(43		)	402
Other qualified exit costs	52				(39		)	13
Global Finishes Group exit of business in 2014:
Severance and related costs	430				(430		)
Other qualified exit costs	353		430		(561		)	222
Other qualified exit costs for facilities shutdown prior to 2014	1,755				(484		)	1,271
Totals	$	7,077	$	1,541	$	(5,074	)	$	3,544

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, 2015.