EXIT OR DISPOSAL ACTIVITIES

Management is continually re-evaluating the Company’s operating facilities, including acquired operating facilities, against its long-term strategic goals. Liabilities associated with exit or disposal activities are recognized as incurred in accordance with the Exit or Disposal Cost Obligations Topic of the ASC. Provisions for qualified exit costs are made at the time a facility is no longer operational. Qualified exit costs primarily include post-closure rent expenses or costs to terminate the contract before the end of its term 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. Adjustments to prior provisions and additional impairment charges for property, plant and equipment of closed sites being held for disposal are recorded in Other general expense – net.

During 2018, 15 stores in The Americas Group and 11 branches in the Performance Coatings Group were closed due to

lower demand or redundancy. The Company continues to evaluate all legacy operations in response to the Acquisition in order to optimize restructured operations. Provisions of $12,251 and $2,672 for severance and other qualified exit costs, along with other 2018 activity, were charged to the Administrative Segment and Performance Coatings Group, respectively. There were $612 of provisions recorded for severance and other qualified exit costs related to manufacturing facilities, distribution facilities, stores and branches closed prior to 2018.

During 2017, 13 stores in The Americas Group and 2 branches in the Performance Coatings Group were closed due to lower demand or redundancy. Accruals for exit and disposal activities of $4,456 were acquired in connection with the Acquisition. These Acquisition-related restructuring charges were recorded in the Administrative segment as presented in the table below. Provisions of $47,308 and $143 for severance and other qualified exit costs related to the Acquisition and other 2017 activity were charged to the Administrative Segment and Performance Coatings Group, respectively. Provisions for severance and other qualified exit costs related to manufacturing facilities, distribution facilities, stores and branches closed prior to 2017 of $3,052 were recorded.

During 2016, 16 stores in The Americas Group, 13 branches in the Performance Coatings Group and 2 facilities in Consumer Brands Group were closed due to lower demand or redundancy. Provisions for severance and other qualified exit cost of $1,020 and $505 were charged to Consumer Brands Group and Performance Coatings Group, respectively. Provisions for severance and other qualified exit costs related to manufacturing facilities, distribution facilities, stores and branches closed prior to 2016 of $1,513 were recorded.

At December 31, 2018, a portion of the remaining accrual for qualified exit costs relating to facilities shutdown prior to 2016 is expected to be incurred by the end of 2019. The remaining portion of the ending accrual for facilities shutdown prior to 2016 primarily represented post-closure contractual expenses related to certain owned facilities which are closed and being held for disposal. The Company cannot reasonably estimate when such matters will be concluded to permit disposition.

The following tables summarize the activity and remaining liabilities associated with qualified exit costs:



Exit Plan	Balance at December 31, 2017		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at December 31, 2018
Administrative segment acquisition-related restructuring:
Severance and related costs	$	6,019	$	12,043	$	(16,939	)	$	1,123
Other qualified exit costs	5,541		208		(1,503		)	4,246
Performance Coatings Group facilities shutdown in 2018:
Severance and related costs			13		(13		)	—
Other qualified exit costs			2,047		(1,426		)	621
Performance Coatings Group branches shutdown in 2017:
Severance and related costs	14		274		(235		)	53
Other qualified exit costs	121		338		(224		)	235
Consumer Brands Group facilities shutdown in 2016:
Severance and related costs	21				(21		)	—
Performance Coatings Group branches shutdown in 2016:
Severance and related costs								—
Other qualified exit costs	111				(77		)	34
Severance and other qualified exit costs for facilities shutdown prior to 2016	1,558				(818		)	740
Totals	$	13,385	$	14,923	$	(21,256	)	$	7,052



Exit Plan	Balance at December 31, 2016		Acquired Balances		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at December 31, 2017
Administrative segment Acquisition-related restructuring in 2017:
Severance and related costs			$	3,303	$	38,739	$	(36,023	)	$	6,019
Other qualified exit costs			1,153		8,569		(4,181		)	5,541
Performance Coatings Group stores shutdown in 2017:
Severance and related costs					14					14
Other qualified exit costs					129		(8		)	121
Consumer Brands Group facilities shutdown in 2016:
Severance and related costs	$	907			2,910		(3,796		)	21
Performance Coatings Group stores shutdown in 2016:
Severance and related costs	136						(136		)	—
Other qualified exit costs	269				97		(255		)	111
The Americas Group stores shutdown in 2015:
Other qualified exit costs	195				20		(215		)	—
Performance Coatings Group stores shutdown in 2015:
Other qualified exit costs	433				25		(446		)	12
Severance and other qualified exit costs for facilities shutdown prior to 2015	1,908						(362		)	1,546
Totals	$	3,848	$	4,456	$	50,503	$	(45,422	)	$	13,385



Exit Plan	Balance at December 31, 2015		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at December 31, 2016
Consumer Brands Group facilities shutdown in 2016:
Severance and related costs			$	1,020	$	(113	)	$	907
Performance Coatings Group stores shutdown in 2016:
Severance and related costs			136					136
Other qualified exit costs			369		(100		)	269
The Americas Group stores shutdown in 2015:
Other qualified exit costs	$	12	481		(298		)	195
Performance Coatings Group stores shutdown in 2015:
Severance and related costs	1,096				(1,096		)	—
Other qualified exit costs	2,750		499		(2,816		)	433
The Americas Group stores shutdown in 2014:
Other qualified exit costs	184				(81		)	103
Consumer Brands Group facilities shutdown in 2014:
Severance and related costs	445				(46		)	399
Other qualified exit costs	52				(39		)	13
Performance Coatings Group exit of business in 2014:
Severance and related costs	430				(430		)	—
Other qualified exit costs	353		430		(600		)	183
Severance and other qualified exit costs for facilities shutdown prior to 2014	1,755		103		(648		)	1,210
Totals	$	7,077	$	3,038	$	(6,267	)	$	3,848