Exit or Disposal Activities

6 Months Ended

Jun. 30, 2011

Exit or Disposal Activities [Abstract]

EXIT OR DISPOSAL ACTIVITIES

NOTE 6—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, 2011, 3 stores in the Paint Stores Group and 5 branches in the Global Finishes Group were closed due to lower demand or redundancy. During the six months ended June 30, 2011, amounts charged to SG&A and Cost of goods sold included qualified exit costs and severance costs of $0.7 million related to these closed facilities. Adjustments to prior provisions of $0.3 million related to Global Finishes Group facilities closed during 2009 were recorded in Other general expense — net in the six months ended June 30, 2011.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at June 30, 2011 and for the six-month period then ended:

(Thousands of dollars)
					Actual			Adjustments to
	Balance at		Provisions in		expenditures			prior provisions			Balance at
	December 31,		Cost of goods		charged to			in Other general			June 30,
Exit Plan	2010		sold or SG&A		accrual			expense - net			2011
Global Finishes Group stores shutdown in 2011:
Severance and related costs			$	116	$	(91	)				$	25
Other qualified exit costs				597		(34	)					563
Global Finishes Group stores shutdown in 2010:
Other qualified exit costs	$	1,114				(53	)					1,061
Paint Stores Group stores shutdown in 2010:
Other qualified exit costs		4						$	(4	)
Paint Stores Group stores shutdown in 2009:
Other qualified exit costs		2,022				(419	)		(29	)		1,574
Global Finishes Group manufacturing facility and branches shutdown in 2009:
Other qualified exit costs		1,820				(497	)		262			1,585
Consumer Group manufacturing facilities shutdown in 2009:
Other qualified exit costs		721				(131	)					590
Consumer Group manufacturing and distribution facilities shutdown in 2008:
Other qualified exit costs		242				(65	)					177
Paint Stores Group manufacturing and distribution facilities, administrative offices and stores shutdown in 2008:
Other qualified exit costs		3,058				(1,880	)		(6	)		1,172
Other qualified exit costs for facilities shutdown prior to 2008		7,066				(759	)					6,307
Totals	$	16,047	$	713	$	(3,929	)	$	223		$	13,054

For further details on the Company’s exit or disposal activities, see Note 6 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.