Avon 2013 Annual Report Download - page 119

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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 realign certain manufacturing
facilities;
• accelerated depreciation of $14.6 associated with our initiatives to realign certain distribution operations and close certain manufacturing
operations; and
• a net gain of $5.2 primarily due to the sale of a facility 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,
in the Consolidated Statements of Income.
The liability balance, which primarily consists of employee-related costs, for the initiatives under the 2005 and 2009 Restructuring Programs
is as follows:
Total
Balance December 31, 2010 $135.9
2011 Charges 25.6
Adjustments (22.2)
Cash payments (64.1)
Non-cash write-offs .3
Foreign exchange (1.6)
Balance December 31, 2011 $ 73.9
2012 Charges 2.3
Adjustments (14.4)
Cash payments (41.5)
Non-cash write-offs 1.0
Foreign exchange (.3)
Balance December 31, 2012 $ 21.0
2013 Charges .7
Adjustments (4.6)
Cash payments (15.9)
Non-cash write-offs –
Foreign exchange –
Balance December 31, 2013 $ 1.2
Non-cash write-offs associated with employee-related costs are the result of settlements, curtailments and special termination benefits for
pension and postretirement benefits plans due to the initiatives implemented.
The 2005 and 2009 Restructuring Programs are substantially complete.
A V O N 2013 F-49