Avon 2011 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2011 Avon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The liability balances for the initiatives under the 2005 and 2009 Restructuring Programs are shown below:
Employee-
Related
Costs
Inventory
Write-offs
Contract
Terminations/
Other Total
Balance December 31, 2008 $ 93.6 $ – $ .3 $ 93.9
2009 Charges 143.0 – – 143.0
Adjustments (12.5) (.2) – (12.7)
Cash payments (59.5) – (.2) (59.7)
Non-cash write-offs (17.9) – – (17.9)
Foreign exchange 2.4 – – 2.4
Balance December 31, 2009 $149.1 $(.2) $ .1 $149.0
2010 Charges 63.0 – 1.6 64.6
Adjustments (23.3) – – (23.3)
Cash payments (47.7) – (1.5) (49.2)
Non-cash write-offs (1.7) – – (1.7)
Foreign exchange (3.5) – – (3.5)
Balance December 31, 2010 $135.9 $(.2) $ .2 $135.9
2011 Charges 13.4 – 12.2 25.6
Adjustments (21.3) – (.9) (22.2)
Cash payments (52.1) – (12.0) (64.1)
Non-cash write-offs .3 – – .3
Foreign exchange (1.6) – – (1.6)
Balance December 31, 2011 $ 74.6 $(.2) $ (.5) $ 73.9
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 and 2009 Restructuring
Programs, 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 $494.8 $10.8 $7.2 $11.6 $21.4 $545.8
Charges to be incurred on approved initiatives 6.9 – – – .6 7.5
Total expected charges on approved initiatives $501.7 $10.8 $7.2 $11.6 $22.0 $553.3