2005 Annual Report - Investor Relations - Sherwin-Williams

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(thousands of dollars unless otherwise indicated)
impending closure and the remaining useful lives of the
assets were reduced in accordance with FAS No. 144.
The facility was closed during 2004. In accordance with
FAS No. 146, noncancelable rent, post-closure severance
and other qualified exit costs were accrued at the
time of closing.
Less than 6 percent of the ending accrual for qualified
exit costs at December 31, 2005, related to facilities
shutdown prior to 2003, are expected to be incurred by
the end of 2006. The remaining portion of the ending
accrual for facilities shutdown prior to 2003 primarily
represented post-closure contractual and demolition
expenses related to certain owned facilities which are
closed and being held for disposal or involved in
ongoing environmental-related activities. The Company
cannot reasonably estimate when such matters will be
concluded to permit disposition.
The following table summarizes the activity and remaining liabilities associated with qualified exit costs:
Exit Plan
Balance at
December 31,
2004
Provisions in
Cost of goods
sold or
acquired
Actual
expenditures
charged to
accrual
Adjustments to
prior provisions
in Other
expense - net
Balance at
December 31,
2005
Consumer manufacturing facilities
shutdown in 2005:
Severance and related costs ............ $ 1,472 $ (535) $ (15) $ 922
Other qualified exit costs................ 1,016 (30) 986
Automotive Finishes distribution
facility shutdown in 2004:
Other qualified exit costs................ $ 316 (266) (50)
Consumer manufacturing facility
shutdown in 2004:
Other qualified exit costs................ 836 (186) 650
Other qualified exit costs for
facilities shutdown prior to 2003 .. 13,819 (766) (170) 12,883
Totals ................................................ $ 14,135 $ 3,324 $ (1,783) $ (235) $ 15,441
Exit Plan
Balance at
December 31,
2003
Provisions in
Cost of goods
sold
Actual
expenditures
charged to
accrual
Adjustments to
prior provisions
in Other
expense - net
Balance at
December 31,
2004
Automotive Finishes distribution
facility shutdown in 2004:
Severance and related costs ............ $ 297 $ (185) $ (112)
Other qualified exit costs................ 903 (683) 96 $ 316
Consumer manufacturing facility
shutdown in 2004:
Other qualified exit costs................ 1,500 (1,810) 310
Other qualified exit costs for
facilities shutdown prior to 2003 .. $ 14,912 (836) (257) 13,818
Totals ................................................ $ 14,912 $ 2,700 $ (3,514) $ 37 $ 14,135
Balance at
December 31,
2002
Provisions in
Cost of goods
sold
Actual
expenditures
charged to
accrual
Adjustments to
prior provisions
in Other
expense - net
Balance at
December 31,
2003
Exit Plan
Other qualified exit costs for
facilities shutdown prior to 2003 .. $ 16,477 $ (1,579) $ 14 $ 14,912
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