Avon 2011 Annual Report Download - page 97
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Restructuring Charges – 2009
During 2009, we recorded total costs to implement of $170.9 associated with previously approved initiatives that are part of our 2005 and
2009 Restructuring Programs, and the costs consisted of the following:
• net charge of $130.3 primarily for employee-related costs, including severance and pension benefits;
• implementation costs of $28.4 for professional service fees, primarily associated with our initiatives to outsource certain finance processes,
realign certain distribution operations, realign certain support functions to a more regional basis and realignment of certain manufacturing
facilities; and
• accelerated depreciation of $12.2 associated with our initiatives to realign certain distribution operations and close certain manufacturing
operations.
Of the total costs to implement, $164.2 was recorded in selling, general and administrative expenses and $6.7 was recorded in cost of sales
for 2009.
Restructuring Charges – 2010
During 2010, we recorded total costs to implement of $80.7 associated with previously approved initiatives that are part of our 2005 and
2009 Restructuring Programs, and the costs consisted of the following:
• net charge of $41.3 primarily for employee-related costs, including severance and pension benefits;
• implementation costs of $27.7 for professional service fees, primarily associated with our initiatives to outsource certain finance processes,
realign certain distribution operations, realign certain support functions to a more regional basis and realignment of certain manufacturing
facilities; and
• accelerated depreciation of $11.7 associated with our initiatives to realign certain distribution operations and close certain manufacturing
operations.
Of the total costs to implement, $71.2 was recorded in selling, general and administrative expenses and $9.5 was recorded in cost of sales
for 2010.
Restructuring Charges – 2011
During 2011, we recorded total costs to implement of $40.0 associated with previously approved initiatives that are part of our 2005 and
2009 Restructuring Programs, and the costs consisted of the following:
• net charge of $3.4 primarily for employee-related costs, including severance and pension benefits;
• implementation costs of $27.2 for professional service fees, primarily associated with our initiatives to outsource certain finance processes
and realign certain distribution operations, realign certain support functions to a more regional basis and realignment of certain
manufacturing facilities; and
• accelerated depreciation of $14.6 associated with our initiatives to realign certain distribution operations and close certain manufacturing
operations, offset by a net gain of $5.2 primarily due to the sale of land and a building in Germany.
Of the total costs to implement, $28.8 was recorded in selling, general and administrative expenses and $11.2 was recorded in cost of sales
for 2011. Most of these costs to implement are expected to result in future cash expenditure, with a majority of the cash payments to be
made in 2012.
A V O N 2011 F-37