XML 110 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Re-engineering Costs
 12 Months Ended
Dec. 31, 2011
Restructuring Charges [Abstract]  
Re-engineering Costs
Re-engineering Costs
The Company continually reviews its business models and operating methods for opportunities to increase efficiencies and/or align costs with business performance. Pretax costs incurred in the re-engineering and impairment charges caption by category were as follows:
(In millions)
2011
 
2010
 
2009
Severance
$
5.9

 
$
6.5

 
$
5.2

Asset impairment/facility moving costs
2.0

 
1.1

 
2.8

Total re-engineering and impairment charges
$
7.9

 
$
7.6

 
$
8.0


The Company recorded re-engineering and impairment charges of $5.9 million, $6.5 million and $5.2 million in 2011, 2010 and 2009, respectively, related to severance costs incurred to reduce head count in various units, mainly due to implementing changes in the businesses' management structures. These costs were primarily related to operations in France, Fuller Mexico, Japan and Malaysia in 2011; Australia, France and Japan in 2010; and Australia, BeautiControl, France, Fuller Mexico and Japan in 2009. In 2011, re-engineering and impairment charges also included $1.3 million related to the decision to merge the Nutrimetics and Tupperware businesses in Malaysia and $0.7 million related to asset impairments, exit activities and relocation costs. In 2010, re-engineering and impairment charges also included $1.1 million related to moving costs and the impairment of property, plant and equipment associated with the relocation of certain manufacturing facilities in Japan. In 2009, these costs also included $2.1 million related to the impairment of software and property, plant and equipment and $0.7 million of costs associated with the relocation of certain manufacturing facilities.
Pretax costs incurred in connection with the re-engineering program included above and allocated to cost of products sold were as follows:
(In millions)
2011
 
2010
 
2009
Re-engineering and impairment charges
$
7.9

 
$
7.6

 
$
8.0

Cost of products sold
1.7

 
—

 
—

Total pretax re-engineering costs
$
9.6

 
$
7.6

 
$
8.0


The balances included in accrued liabilities related to re-engineering and impairment charges as of December 31, 2011, December 25, 2010, and December 26, 2009 were as follows:
(In millions)
2011
 
2010
 
2009
Beginning balance
$
2.4

 
$
1.5

 
$
2.2

Provision
7.9

 
7.6

 
8.0

Cash expenditures:


 
 

 
 
Severance
(5.7
)
 
(5.5
)
 
(5.4
)
Other
(1.1
)
 
(1.1
)
 
(1.2
)
Non-cash asset impairments
(0.5
)
 
(0.1
)
 
(2.1
)
Ending balance
$
3.0

 
$
2.4

 
$
1.5


The accrual balance as of December 31, 2011, relates primarily to severance payments expected to be made by the end of the second quarter of 2012. In connection with the decision to cease operating Nutrimetics Malaysia, the Company recorded a $1.7 million charge to cost of sales for inventory obsolescence.