Avon 2014 Annual Report Download - page 119

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The liability balance for the $400M Cost Savings Initiative as of December 31, 2014 is as follows:
Employee-
Related
Costs
Inventory/
Asset
Write-offs
Foreign
Currency
Translation
Adjustment
Write-offs
Contract
Terminations/
Other Total
2012 Charges $ 45.2 $ 1.4 $ – $ 1.9 $ 48.5
Cash payments (3.2) – – (.2) (3.4)
Non-cash write-offs (.8) (1.4) – – (2.2)
Foreign exchange .1 – – – .1
Balance at December 31, 2012 $ 41.3 $ – $ – $ 1.7 $ 43.0
2013 Charges 54.4 .1 (3.5) 5.3 56.3
Adjustments (4.0) (.8) – (.5) (5.3)
Cash payments (44.9) – – (4.8) (49.7)
Non-cash write-offs (.2) .7 3.5 – 4.0
Foreign exchange .1 – – .1 .2
Balance at December 31, 2013 $ 46.7 $ – $ – $ 1.8 $ 48.5
2014 Charges 80.4 – 3.7 7.4 91.5
Adjustments (8.4) – – (1.1) (9.5)
Cash payments (66.9) – – (7.5) (74.4)
Non-cash write-offs .6 – (3.7) – (3.1)
Foreign exchange (2.3) – – (.1) (2.4)
Balance at December 31, 2014 $ 50.1 $ – $ – $ .5 $ 50.6
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 following table presents the restructuring charges incurred to-date, net of adjustments, under our $400M Cost Savings Initiative, along
with the estimated charges expected to be incurred on approved initiatives under the plan:
Employee-
Related
Costs
Inventory/
Asset
Write-offs
Foreign
Currency
Translation
Adjustment
Write-offs
Contract
Terminations/
Other Total
Charges incurred to date $167.6 $ .7 $ .2 $13.0 $181.5
Estimated charges to be incurred on approved initiatives 4.4 4.1 – 6.0 14.5
Total expected charges on approved initiatives $172.0 $ 4.8 $ .2 $19.0 $196.0
The charges, net of adjustments, of initiatives under the $400M Cost Savings Initiative by reportable business segment were as follows:
Latin
America
Europe,
Middle East
& Africa
North
America
Asia
Pacific Corporate Total
2012 $12.9 $ 1.1 $18.0 $12.9 $ 3.6 $ 48.5
2013 11.1 15.6 5.3 1.3 17.7 51.0
2014 24.5 19.9 14.0 6.5 17.1 82.0
Charges incurred to date 48.5 36.6 37.3 20.7 38.4 181.5
Estimated charges to be incurred on approved initiatives 2.2 – 11.5 .8 – 14.5
Total expected charges on approved initiatives $50.7 $36.6 $48.8 $21.5 $38.4 $196.0
A V O N 2014 F-45