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RESTRUCTURING COSTS
 6 Months Ended
Dec. 31, 2014
Restructuring and Related Activities [Abstract]  
Restructuring Costs
RESTRUCTURING COSTS
Restructuring costs for the three and six months ended December 31, 2014 and 2013 are presented below:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
Organizational Redesign
$
11.8

 
$
—

 
$
52.6

 
$
—

China Optimization
—

 
—

 
(0.1
)
 
—

Productivity Program
0.2

 
4.7

 
—

 
6.3

Total
$
12.0

 
$
4.7

 
$
52.5

 
$
6.3


Organizational Redesign
During the fourth quarter of fiscal 2014, the Company’s Board of Directors (“the Board”) 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 $65.6 of restructuring costs as of December 31, 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
52.9

 
1.1

 
54.0

Payments
(8.8
)
 
(2.2
)
 
(11.0
)
Changes in estimates (a)
(1.4
)
 
—

 
(1.4
)
Effect of exchange rates
(2.1
)
 
—

 
(2.1
)
Payables
—

 
(0.8
)
 
(0.8
)
Balance—December 31, 2014
$
49.7

 
$
—

 
$
49.7


 
 
(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 $49.7 will result in cash expenditures of $23.8, $21.4, and $4.5 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 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 December 31, 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

Restructuring charges
—

 
0.2

 
0.2

Payments
(7.8
)
 
—

 
(7.8
)
Changes in estimates
(0.2
)
 
(0.1
)
 
(0.3
)
Foreign currency translation
(0.2
)
 
(0.1
)
 
(0.3
)
Balance—December 31, 2014
$
1.4

 
$
0.2

 
$
1.6


The Company currently estimates that the total remaining restructuring accrual of $1.6 will result in cash expenditures in fiscal 2015.

In October 2014, the Company agreed to sell certain TJoy assets for cash of 86.0 million RMB ($14.1) in conjunction with China Optimization. The agreement allowed the Company to continue using the facility through the completion of the sale in January 2015. A gain of approximately $7.3 will be recognized in the Company’s Condensed Consolidated Statement of Operations in the third quarter of fiscal 2015.
Productivity Program
During the fourth quarter of fiscal 2013, the Board 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 implementing 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 $39.5 was incurred as of December 31, 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

Restructuring charges
0.2

 
—

 
0.2

 
0.4

Payments
(5.1
)
 
—

 
(0.2
)
 
(5.3
)
Changes in estimates
(0.4
)
 
—

 
—

 
(0.4
)
Effect of exchange rates
(0.5
)
 
(0.2
)
 
(0.1
)
 
(0.8
)
Balance—December 31, 2014
$
10.0

 
$
—

 
$
0.1

 
$
10.1


The Company currently estimates that the total remaining accrual of $10.1 will result in cash expenditures of approximately $6.9 and $3.2 in fiscal 2015 and 2016, respectively.