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Restructuring And Integration Costs
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6 Months Ended |
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Jun. 30, 2011
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| Restructuring And Integration Costs | |
| Restructuring And Integration Costs |
Note 11. Restructuring and Integration Costs Akzo Nobel Integration With our acquisition of the U.S. vehicle refinish paint distribution business of Akzo Nobel, we have undertaken certain restructuring activities to integrate the acquired paint distribution locations into our existing business. Our restructuring plan, which is in the process of being finalized, includes the closure of duplicate facilities, elimination of overlapping delivery routes and termination of employees in connection with the consolidation of the overlapping facilities and delivery routes. We expect that these integration activities will be substantially completed by the end of 2011. During the six month period ended June 30, 2011, we incurred $2.1 million in charges primarily related to excess facility costs, which were expensed at the cease-use date for the facilities. These costs are included in Restructuring Expenses on the accompanying Unaudited Consolidated Condensed Statements of Income. We expect to incur approximately $0.8 million of additional charges as we integrate the business, including costs related to the closure of duplicate facilities, the movement of inventory between locations, and severance and related benefits for terminated employees. Cross Canada Integration We have undertaken certain restructuring activities in connection with our acquisition of Cross Canada in the fourth quarter of 2010. The restructuring plan includes the integration of our existing Canadian aftermarket operations into the Cross Canada business, as well as the transition of certain corporate functions to our corporate headquarters and our field support center in Nashville. Based on our analysis of the overlapping facilities, we identified aftermarket warehouses and corporate locations that will be closed in order to eliminate duplicate facilities. Related to the facilities that will be closed, we will terminate certain personnel including drivers, other facility personnel and corporate employees. During the six months ended June 30, 2011, we incurred $0.3 million related to these integration efforts, including $0.2 million for facility closure costs and $0.1 million for severance and benefits for terminated employees. We expect $1.2 million of additional charges in 2011 for further headcount reduction and facility closures. These charges may include restructuring expense related to lease termination or excess facility costs if we are unable to recover the rent from a sublease tenant after we vacate the facilities. These restructuring expenses will be expensed as incurred, or in the case of excess facility costs, at the cease-use date for the facility. |