RESTRUCTURING COSTS

Restructuring costs for the three months ended September 30, 2014 and 2013 are presented below:



	Three Months Ended September 30,
	2014			2013
Organizational Redesign	$	40.8		$	—
China Optimization	(0.1		)	—
Productivity Program	(0.2		)	1.6
Total	$	40.5		$	1.6

Organizational Redesign

During the fourth quarter of fiscal 2014, the Company’s Board of Directors approved a program associated with a new organizational structure (“Organizational Redesign”) that aims to reinforce the Company’s growth path and strengthen its position as a global leader in beauty. The Company anticipates that the Organizational Redesign will result in pre-tax restructuring and related costs of $145.0 to $180.0, all of which will result in cash payments. The Company anticipates substantial completion of all project activities by the end of fiscal 2017, with the remaining costs primarily charged to Corporate.

The Company incurred $53.8 of restructuring costs as of September 30, 2014 in Corporate.

The related liability balance and activity for the restructuring costs are presented below:



	Severance and Employee Benefits			Other Exit Costs			Total Program Costs
Balance—July 1, 2014	$	9.1		$	1.9		$	11.0
Charges	40.5			0.3			40.8
Payments	(0.5		)	(1.9		)	(2.4		)
Effect of exchange rates	1.0			—			1.0
Balance—September 30, 2014	$	50.1		$	0.3		$	50.4

The Company currently estimates that the total remaining accrual of $50.4 will result in cash expenditures of $35.8, $11.4, and $3.2 in fiscal 2015, 2016 and 2017, respectively.

China Optimization

During the fourth quarter of fiscal 2014, the Company entered into a distribution agreement with a third-party distributor for certain of the Company’s brands sold through the mass distribution channel in China and announced the discontinuation of the Company’s TJoy brand. In conjunction with these events, the Company commenced implementation of restructuring of the Company's mass business in China (“China Optimization”) that is expected to generate operating efficiencies. The Company anticipates that the China Optimization will result in pre-tax restructuring costs of approximately $10.0, all of which will result in cash payments. The Company incurred $9.7 of restructuring costs as of September 30, 2014 in Corporate. The Company expects to complete all program activities during fiscal 2015, with the remaining costs primarily charged to Corporate.

The related liability balance and activity for the restructuring costs are presented below:



	Restructuring Costs
	Severance and Employee Benefits			Other Exit Costs		Total Restructuring Costs
Initial provision	$	9.6		$	0.2	$	9.8
Payments	(6.1		)	—		(6.1		)
Changes in estimates	(0.1		)	—		(0.1		)
Foreign currency translation	(0.5		)	—		(0.5		)
Balance—September 30, 2014	$	2.9		$	0.2	$	3.1

The Company currently estimates that the total remaining restructuring accrual of $3.1 will result in cash expenditures in fiscal 2015.

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 redesign 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 $39.3 was incurred as of September 30, 2014.

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, 2014	$	15.8		$	0.2		$	0.2	$	16.2
Payments	(2.9		)	—			—		(2.9		)
Changes in estimates	—			(0.2		)	—		(0.2		)
Balance—September 30, 2014	$	12.9		$	—		$	0.2	$	13.1

The Company currently estimates that the total remaining accrual of $13.1 will result in cash expenditures of approximately $9.9 and $3.2 in fiscal 2015 and 2016, respectively.

Other Restructuring Programs

During fiscal 2013 and 2012, the Company maintained several restructuring initiatives aimed at integrating acquired companies and reducing costs. The related liability was $0.3 and $6.6 as of September 30, 2014 and 2013, respectively, and related costs were nil and $4.1 for the three months ended September 30, 2014 and 2013, respectively. The Company paid $0.9 and $9.7 for the three months ended September 30, 2014 and 2013, respectively, related to its Other Restructuring Programs. The Company currently estimates that the total remaining accrual of $0.3 will result in cash expenditures in fiscal 2015.