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108 THE EST{E LAUDER COMPANIES INC.
Restructuring Charges
The following table presents aggregate restructuring charges related to the Program:
Employee-Related Asset Contract
Costs Write-offs Terminations Other Exit Costs Total
(In millions)
Fiscal 2009 $ 60.9 $ 4.2 $ 3.4 $ 1.8 $ 70.3
Fiscal 2010 29.3 11.0 2.3 6.2 48.8
Fiscal 2011 34.6 2.4 3.0 1.1 41.1
Fiscal 2012 37.1 1.7 12.6 2.2 53.6
Charges recorded through
June 30, 2012 $161.9 $19.3 $21.3 $11.3 $213.8
The following table presents accrued restructuring charges and the related activities under the Program:
Employee-Related Asset Contract
Costs Write-offs Terminations Other Exit Costs Total
(In millions)
Charges $ 60.9 $ 4.2 $ 3.4 $ 1.8 $ 70.3
Cash payments (7.5) — (0.5) (1.6) (9.6)
Non-cash write-offs — (4.2) — — (4.2)
Translation adjustments 0.6 — — — 0.6
Other adjustments (2.4) — — — (2.4)
Balance at June 30, 2009 51.6 — 2.9 0.2 54.7
Charges 29.3 11.0 2.3 6.2 48.8
Cash payments (49.5) — (5.1) (6.0) (60.6)
Non-cash write-offs — (11.0) — — (11.0)
Translation adjustments (0.8) — — — (0.8)
Balance at June 30, 2010 30.6 — 0.1 0.4 31.1
Charges 34.6 2.4 3.0 1.1 41.1
Cash payments (30.6) — (2.4) (1.4) (34.4)
Non-cash write-offs — (2.4) — — (2.4)
Translation adjustments 1.2 — (0.1) 0.1 1.2
Balance at June 30, 2011 35.8 — 0.6 0.2 36.6
Charges 37.1 1.7 12.6 2.2 53.6
Cash payments (23.6) — (12.4) (2.0) (38.0)
Non-cash write-offs — (1.7) — — (1.7)
Translation adjustments (1.4) — — 0.1 (1.3)
Balance at June 30, 2012 $ 47.9 $— $ 0.8 $ 0.5 $ 49.2
Accrued restructuring charges at June 30, 2012 are expected
to result in cash expenditures funded from cash provided
by operations of approximately $35 million, $12 million
and $2 million in fiscal 2013, 2014 and 2015, respectively.
Total Returns and Other Charges Associated with
Restructuring Activities
The following table presents total charges associated with
restructuring and other activities related to the Program:
YEAR ENDED JUNE 30 2012 2011 2010
(In millions)
Sales returns (included in
Net Sales) $ 2.1 $ 4.6 $15.7
Cost of sales 1.5 5.8 7.9
Restructuring charges 53.6 41.1 48.8
Other charges 6.0 7.9 12.3
Total returns and charges
associated with
restructuring activities $63.2 $59.4 $84.7
During fiscal 2012, we recorded $2.1 million reflecting
sales returns (less related cost of sales of $0.3 million) and
a write-off of inventory of $1.8 million associated with
exiting unprofitable operations.
During fiscal 2011, we recorded $4.6 million reflecting
sales returns (less related cost of sales of $1.2 million) and
a write-off of inventory of $7.0 million associated with
turnaround operations, primarily related to the reformula-
tion of Ojon brand products.
During fiscal 2010, we recorded $15.7 million reflect-
ing sales returns (less related cost of sales of $2.5 million)
and $10.4 million for the write-off of inventory associated
with exiting unprofitable operations, primarily related to
the exit from the global wholesale distribution of the
Prescriptives brand.