RESTRUCTURING COSTS

Restructuring costs for the years ended June 30, 2015, 2014 and 2013 are presented below:



	Year Ended June 30,
	2015			2014		2013
Organizational Redesign	$	58.6		$	13.0	$	—
Acquisition Integration Program	15.3			—		—
Productivity Program	2.1			14.2		25.3
China Optimization	(0.6		)	9.8		—
Other restructuring programs	—			0.3		4.1
Total	$	75.4		$	37.3	$	29.4

Organizational Redesign

During the fourth quarter of fiscal 2014, the Company’s Board of Directors approved a program associated with an 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 $71.6 of restructuring costs life-to-date as of June 30, 2015 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
Restructuring Charges	63.3			2.5			65.8
Payments	(28.7		)	(3.8		)	(32.5		)
Changes in estimates ^(a)	(7.2		)	—			(7.2		)
Effects of exchange rates	(4.5		)	(0.3		)	(4.8		)
Payables	—			(0.2		)	(0.2		)
Balance—June 30, 2015	$	32.0		$	0.1		$	32.1


^(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 $32.1 will result in cash expenditures of $27.1, $4.5, $0.5 and in fiscal 2016, 2017, and 2018, respectively.

Acquisition Integration Program

In connection with the acquisition of the Bourjois brand, the Company recorded $15.3 of restructuring costs primarily related to distributor termination fees, recorded in the Corporate segment. The related liability was $15.3 as of June 30, 2015. The Company currently estimates the total remaining accrual of $15.3 will result in cash expenditures of $10.1 and $5.2 in fiscal 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, during fiscal 2015 the Company completed a restructuring and product rationalization of the Company's mass business in China (“China Optimization”) that are aimed at generating operating efficiencies. The China Optimization pre-tax restructuring costs were $9.2 all of which have or will result in cash payments and were 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
Balance—July 1, 2014	$	9.6		$	0.2		$	9.8
Restructuring charges	—			—			—
Payments	(8.7		)	—			(8.7		)
Changes in estimate	(0.6		)	—			(0.6		)
Effects of exchange rates	0.1			(0.2		)	(0.1		)
Balance—June 30, 2015	$	0.4		$	—		$	0.4

The Company currently estimates that the total remaining restructuring accrual of $0.4 will result in cash expenditures in fiscal 2016.

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 that the Productivity Program will result in pre-tax restructuring and related costs of approximately $70.0. The Company anticipates completing the implementation of all project activities by the end of fiscal 2016. The Company incurred $41.6 of restructuring costs life-to-date as of June 30, 2015 in Corporate.

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	2.2			—			1.6			3.8
Payments	(8.8		)	—			(1.6		)	(10.4		)
Changes in estimates ^(a)	(1.7		)	—			—			(1.7		)
Effect of exchange rates	(0.5		)	(0.2		)	(0.2		)	(0.9		)
Balance—June 30, 2015	$	7.0		$	—		$	—		$	7.0

^(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 $7.0 will result in cash expenditures of approximately $6.7 and $0.3 in fiscal 2016 and 2017, respectively.