Avon 2015 Annual Report Download - page 130

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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:
Employee-
Related
Costs
Inventory/
Asset
Write-offs
Foreign
Currency
Translation
Adjustment
Write-offs
Contract
Terminations/
Other Total
Total charges incurred $126.1 $.7 $(.2) $12.9 $139.5
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
Asia
Pacific Corporate Total
2012 $12.9 $ 1.1 $12.9 $ 3.6 $ 30.5
2013 11.1 15.6 1.3 17.7 45.7
2014 24.5 19.9 6.5 17.1 68.0
2015 (1.3) (1.2) (.2) (2.0) (4.7)
Total charges incurred $47.2 $35.4 $20.5 $36.4 $139.5
As noted previously, we have recorded total costs to implement of $165.7 before taxes under the $400M Cost Savings Initiative. The
amounts shown in the tables above as total charges incurred relate to initiatives that have been approved and recorded in the financial
statements. No material additional charges are expected to be incurred. In addition to the charges included in the tables above, we have
incurred other costs to implement restructuring initiatives such as other professional services and accelerated depreciation.
Other Restructuring Initiatives
During 2015, 2014 and 2013, we recorded net charges of $.5, $2.1 and $.8, respectively, in selling, general and administrative expenses, in
the Consolidated Statements of Operations, associated with the restructuring programs launched in 2005 and 2009 and the restructuring
initiative launched in 2012 (the “Other Restructuring Initiatives”), each of which are substantially complete. The liability balance associated
with the Other Restructuring Initiatives, which primarily consists of contract termination costs, as of December 31, 2015 is not material.
NOTE 15. Contingencies
Settlements of FCPA Investigations
As previously reported, we engaged outside counsel to conduct an internal investigation and compliance reviews focused on compliance
with the FCPA and related U.S. and foreign laws in China and additional countries. The internal investigation, which was conducted under
the oversight of our Audit Committee, began in June 2008. The internal investigation and compliance reviews focused on reviewing certain
expenses and books and records processes, including, but not limited to, travel, entertainment, gifts, use of third-party vendors and
consultants and related due diligence, joint ventures and acquisitions, and payments to third-party agents and others, in connection with our
business dealings, directly or indirectly, with foreign governments and their employees. The internal investigation and compliance reviews of
these matters are complete. In connection with the internal investigation and compliance reviews, certain personnel actions, including
termination of employment of certain senior members of management, were taken. In connection with the internal investigation and
compliance reviews, we have enhanced our ethics and compliance program, including our policies and procedures, FCPA compliance-related
training, FCPA third-party due diligence program and other compliance-related resources.
As previously reported, in October 2008, we voluntarily contacted the U.S. Securities and Exchange Commission (the “SEC”) and the U.S.
Department of Justice (the “DOJ”) to advise both agencies of our internal investigation. We cooperated with investigations of these matters
by the SEC and the DOJ.
7553_fin.pdf 120