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RESTRUCTURING ACTIVITIES | 6 Months Ended
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Jun. 27, 2015
RESTRUCTURING ACTIVITIES |
RESTRUCTURING ACTIVITIES | (3) RESTRUCTURING ACTIVITIES In April 2015, the Company's Board of Directors authorized a broad restructuring plan (the "Plan") of up to $60 million to respond to the market environment in certain businesses. We anticipate the Company will recognize the following pre-tax expenses in conjunction with the initial restructuring activities from the Plan announced in 2015:
|  | EIP |  | Utility |  | Coatings |  | Irrigation |  | Other/ Corporate |  | TOTAL |
Severance |  | $ | 4,000 |  | $ | 1,445 |  | $ | 460 |  | $ | 425 |  | $ | 75 |  | $ | 6,405 |
Other cash restructuring expenses |  |  | 725 |  |  | 1,810 |  |  | 225 |  |  | — |  |  | — |  |  | 2,760 |
Asset impairments/net loss on disposals |  |  | 3,850 |  |  | 625 |  |  | 4,150 |  |  | 250 |  |  | — |  |  | 8,875 |
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Total cost of sales |  |  | 8,575 |  |  | 3,880 |  |  | 4,835 |  |  | 675 |  |  | 75 |  |  | 18,040 |
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Severance |  |  | 3,900 |  |  | 450 |  |  | — |  |  | 575 |  |  | 1,025 |  |  | 5,950 |
Other cash restructuring expenses |  |  | 750 |  |  | 270 |  |  | 275 |  |  | 100 |  |  | 650 |  |  | 2,045 |
Asset impairments/net loss on disposals |  |  | 2,375 |  |  | — |  |  | — |  |  | 150 |  |  | 1,890 |  |  | 4,415 |
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Total selling, general and administrative expenses |  |  | 7,025 |  |  | 720 |  |  | 275 |  |  | 825 |  |  | 3,565 |  |  | 12,410 |
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Consolidated total |  | $ | 15,600 |  | $ | 4,600 |  | $ | 5,110 |  | $ | 1,500 |  | $ | 3,640 |  | $ | 30,450 |
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Certain of these initial restructuring actions are within the APAC Coatings reporting unit which has approximately $16 million of goodwill as of June 27, 2015. The Company expects these activities to improve the profitability of this reporting unit. Should operating income not improve within this reporting unit after these restructuring activities are implemented, we may have to write off all or a portion of our goodwill for this reporting unit during our annual impairment testing during the third quarter. Inclusive of this goodwill, the Company is currently evaluating additional potential restructuring activities estimated up to $25 million of asset impairments and $5 million of cash expenses. The following is a summary of the segments affected by these additional potential restructuring activities under current evaluation and the estimated pre-tax expense:
|  | EIP |  | Coatings |  | Other/ Corporate |  | TOTAL |
Severance |  | $ | 2,000 |  | $ | — |  | $ | 250 |  | $ | 2,250 |
Other cash restructuring expenses |  |  | 700 |  |  | — |  |  | 250 |  |  | 950 |
Asset impairments/net loss on disposals |  |  | 3,800 |  |  | — |  |  | 500 |  |  | 4,300 |
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Total cost of sales |  |  | 6,500 |  |  | — |  |  | 1,000 |  |  | 7,500 |
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Severance |  |  | 500 |  |  | — |  |  | 1,150 |  |  | 1,650 |
Asset impairments/net loss on disposals |  |  | 600 |  |  | 16,000 |  |  | 3,500 |  |  | 20,100 |
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Total selling, general and administrative expenses |  |  | 1,100 |  |  | 16,000 |  |  | 4,650 |  |  | 21,750 |
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Consolidated total |  | $ | 7,600 |  | $ | 16,000 |  | $ | 5,650 |  | $ | 29,250 |
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During the first quarter of fiscal 2015, the Company's EIP segment recognized approximately $800 of pre-tax expense for severance and other cash restructuring expenses. During the second quarter of fiscal 2015, the Company recognized the following pre-tax restructuring expenses:
|  | EIP |  | Utility |  | Coatings |  | Irrigation |  | Other/ Corporate |  | TOTAL |
Severance |  | $ | 535 |  | $ | 1,380 |  | $ | 310 |  | $ | — |  | $ | 73 |  | $ | 2,298 |
Other cash restructuring expenses |  |  | 45 |  |  | 375 |  |  | 40 |  |  | — |  |  | — |  |  | 460 |
Asset impairments/net loss on disposals |  |  | 797 |  |  | 295 |  |  | 4,150 |  |  | — |  |  | — |  |  | 5,242 |
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Total cost of sales |  |  | 1,377 |  |  | 2,050 |  |  | 4,500 |  |  | — |  |  | 73 |  |  | 8,000 |
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Severance |  |  | 965 |  |  | 405 |  |  | — |  |  | 219 |  |  | 240 |  |  | 1,829 |
Other cash restructuring expenses |  |  | 125 |  |  | — |  |  | 269 |  |  | — |  |  | — |  |  | 394 |
Asset impairments/net loss on disposals |  |  | 2,030 |  |  | — |  |  | — |  |  | 130 |  |  | 1,890 |  |  | 4,050 |
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Total selling, general and administrative expenses |  |  | 3,120 |  |  | 405 |  |  | 269 |  |  | 349 |  |  | 2,130 |  |  | 6,273 |
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Consolidated total |  | $ | 4,497 |  | $ | 2,455 |  | $ | 4,769 |  | $ | 349 |  | $ | 2,203 |  | $ | 14,273 |
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Liabilities recorded for the restructuring Plan and changes therein for the first half of fiscal 2015 were as follows:
|  | Balance at December 27, 2014 |  | Recognized Restructuring Expense |  | Costs Paid or Otherwise Settled |  | Balance at June 27, 2015 |
Severance |  | $ | — |  | $ | 4,927 |  | $ | (2,294 | ) | $ | 2,633 |
Other cash restructuring expenses |  |  | — |  |  | 885 |  |  | (645 | ) |  | 240 |
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Total cost of sales |  | $ | — |  | $ | 5,812 |  | $ | (2,939 | ) | $ | 2,873 |
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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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