Avon 2009 Annual Report Download - page 95

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The liability balances for the initiatives under the 2005 Restructuring Program are shown below.
Employee-
Related
Costs
Asset
Write-offs
Inventory
Write-offs
Contract
Terminations/
Other Total
Balance December 31, 2006 $84.9 $– $– $1.1 $86.0
2007 Charges 117.0 .2 –.8118.0
Adjustments (8.0) –– –(8.0)
Cash payments (47.6) ––(1.1) (48.7)
Non-cash write-offs (4.9) (.2) ––(5.1)
Foreign exchange 1.8 ––(.1) 1.7
Balance December 31, 2007 $143.2 $– $– $.7$143.9
2008 Charges 20.5 –– .8 21.3
Adjustments (3.1) –– .9 (2.2)
Cash payments (60.7) ––(2.1) (62.8)
Non-cash write-offs 1.0 –– –1.0
Foreign exchange (7.3) –– –(7.3)
Balance December 31, 2008 $93.6 $– $– $.3$93.9
2009 Charges 16.8 –– –16.8
Adjustments (11.9) –(.2) –(12.1)
Cash payments (43.5) ––(.2) (43.7)
Non-cash write-offs (13.9) –– –(13.9)
Foreign exchange 1.8 –– –1.8
Balance December 31, 2009 $42.9 $– $(.2) $.1$42.8
Non-cash write-offs associated with employee-related costs are the result of settlement, curtailment and special termination benefit charges
for pension plans and postretirement due to the initiatives implemented. Inventory write-offs relate to exited businesses.
The following table presents the restructuring charges incurred to date, net of adjustments, under our 2005 Restructuring Program, along
with the charges expected to be incurred under the plan:
Employee-
Related
Costs
Asset
Write-offs
Inventory
Write-offs
Currency
Translation
Adjustment
Write-offs
Contract
Terminations/
Other Total
Charges incurred to date $349.4 $10.8 $7.2 $11.6 $8.6 $387.6
Charges to be incurred on approved initiatives 5.4 –– ––5.4
Total expected charges on approved initiatives $354.8 $10.8 $7.2 $11.6 $8.6 $393.0
AVON2009 F-31