XML 87 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
RESTRUCTURING COSTS
 9 Months Ended
Mar. 31, 2014
Restructuring and Related Activities [Abstract]  
Restructuring Costs
RESTRUCTURING COSTS

Productivity Program

During the fourth quarter of fiscal 2013, the Company’s Board of Directors approved a number of business integration and productivity initiatives aimed at enhancing long-term operating margins (the “Productivity Program”). Such activities primarily relate to integration of supply chain and selling activities within the Skin & Body Care segment, as well as certain commercial organization re-design activities, primarily in Europe and optimization of selected administrative support functions.

The Company anticipates completing the implementation of all project activities by fiscal 2016. The total charge associated with the Productivity Program is expected to be approximately $70.0 to $75.0, of which $35.6 and $25.3 was incurred as of March 31, 2014 and June 30, 2013, respectively.

The related liability balance and activity for the restructuring costs are presented below:
 
Severance and
Employee
Benefits
 
Third-Party
Contract
Terminations
 
Other
Exit
Costs
 
Total
Program
Costs
Balance—July 1, 2013
$
21.7

 
$
0.4

 
$
0.1

 
$
22.2

Restructuring charges
9.2

 
0.2

 
1.8

 
11.2

Payments
(13.4
)
 
(0.5
)
 
(1.7
)
 
(15.6
)
Changes in estimates (a)
(0.8
)
 
(0.1
)
 
—

 
(0.9
)
Effect of exchange rates
0.3

 
—

 
—

 
0.3

Balance—March 31, 2014
$
17.0

 
$
—

 
$
0.2

 
$
17.2

 
 
 
 
 
(a) The decrease in severance and employee benefits is primarily attributable to employees who have voluntarily left positions that were later eliminated.

The Company currently estimates that the total remaining accrual of $17.2 will result in cash expenditures of approximately $6.7, $7.5 and $3.0 in fiscal 2014, 2015 and 2016, respectively.

Service Agreement Termination

During fiscal 2013, a service agreement in which the Company provided selected selling, distribution, and administrative services throughout North America in return for a commission-based fee expired and was not renewed. The fees from the agreement comprised an insignificant portion of revenue. As a result of the service agreement termination, the Company eliminated several positions and reduced certain other support activities.

The related liability balance and activity for the restructuring charges are presented below:
 
Severance and
Employee
Benefits
Balance—July 1, 2013
$
3.7

Payments
(2.6
)
Balance—March 31, 2014
$
1.1



The Company expects to pay the remaining accrual of $1.1 primarily during fiscal 2014.

In addition to the restructuring charges listed above, the Company changed its estimates for other restructuring charges recorded in Restructuring costs in the Condensed Consolidated Statements of Operations by $(0.1) and $0.1 for the three months ended March 31 2014 and 2013, respectively and $(0.1) and $0.5 for the nine months ended March 31, 2014 and 2013. The related liability balance as of March 31, 2014 and June 30, 2013 was $1.1 and $2.9, respectively.