Avon 2014 Annual Report Download - page 118

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
• charge of $3.7 primarily related to the accumulated foreign currency translation adjustments associated with the closure of the France
market; and
• implementation costs of $16.3 primarily related to professional service fees associated with our North America business.
The majority of cash payments, if applicable, associated with these charges were made in 2014 and the remaining are expected to be made
during 2015.
Restructuring Charges – 2013
During 2013, we recorded total costs to implement of $68.4 related to the $400M Cost Savings Initiative, and the costs consisted of the
following:
• net charge of $50.4 primarily for employee-related costs, including severance and pension and postretirement benefits;
• accelerated depreciation of $13.9 associated with the closure and rationalization of certain facilities;
• contract termination and other charges of $4.8, primarily related to the costs associated with our exit from the Republic of Ireland market;
• net benefit of $3.5 due to accumulated foreign currency translation adjustments in the second quarter of 2013 primarily associated with
our exit from the Vietnam market;
• implementation costs of $3.3 for professional service fees;
• net benefit of $.7 due to inventory adjustments in the first and second quarters of 2013; and
• net loss of $.2 due to the sale of a facility in the U.S.
Of the total costs to implement, $69.1 was recorded in selling, general and administrative expenses and a net benefit of $.7 was recorded in
cost of sales, in the Consolidated Statements of Income.
Restructuring Charges – 2012
During 2012, we recorded total costs to implement of $50.7 related to the $400M Cost Savings Initiative, and the costs consisted of the
following:
• net charge of $45.2 primarily for employee-related costs, including severance and pension and postretirement benefits;
• accelerated depreciation of $2.2 associated with the closure and rationalization of certain facilities;
• contract termination and other charges of $1.9 primarily related to the closure of certain facilities and our exit from the South Korea
market; and
• inventory write-offs of $1.4 associated with the exit of our South Korea and Vietnam markets.
Of the total costs to implement, $49.3 was recorded in selling, general and administrative expenses and $1.4 was recorded in cost of sales,
in the Consolidated Statements of Income.