RESTRUCTURING COSTS

Restructuring costs for the fiscal years ended June 30, 2018, 2017 and 2016 are presented below:



	Year Ended June 30,
	2018			2017		2016
Global Integration Activities	$	106.5		$	364.2	$	—
Acquisition Integration Program	(4.5		)	2.3		42.3
Other Restructuring	71.2			5.7		44.6
Total	$	173.2		$	372.2	$	86.9

Global Integration Activities

In connection with the acquisition of the P&G Beauty Business, the Company has, and anticipates, that it will continue to incur restructuring and related costs aimed at integrating and optimizing the combined organization (“Global Integration Activities”).

Of the expected costs, the Company has incurred cumulative restructuring charges of $470.7 related to approved initiatives through the fiscal year ended June 30, 2018, which have been recorded in Corporate. The following table presents aggregate restructuring charges for the program:



	Severance and Employee Benefits		Third-Party Contract Terminations		Fixed Asset Write-offs		Other Exit Costs		Total
Fiscal 2017	$	333.9	$	22.4	$	4.6	$	3.3	$	364.2
Fiscal 2018	67.5		19.3		14.3		5.4		106.5
Cumulative through June 30, 2018	$	401.4	$	41.7	$	18.9	$	8.7	$	470.7

Over the next two fiscal years, the Company expects to incur approximately $110.0 of additional restructuring charges pertaining to the approved actions. Of the $110.0 of additional restructuring charges, the Company currently anticipates spending equal amounts related to employee termination benefits, fixed asset write-offs, contract terminations, and other costs to exit facilities and relocate employees.

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



	Severance and Employee Benefits			Third-Party Contract Terminations			Fixed Asset Write-offs			Other Exit Costs			Total Program Costs
Balance—July 1, 2017	$	310.8		$	14.9		$	—		$	2.8		$	328.5
Restructuring charges	81.3			21.7			14.3			5.4			122.7
Payments	(188.5		)	(17.0		)	—			(4.8		)	(210.3		)
Change in estimates	(13.8		)	(2.4		)	—			—			(16.2		)
Non-cash utilization	—			—			(14.3		)	—			(14.3		)
Effect of exchange rates	13.2			(0.2		)	—			(0.3		)	12.7
Balance—June 30, 2018	$	203.0		$	17.0		$	—		$	3.1		$	223.1

The Company currently estimates that the total remaining accrual of $223.1 will result in cash expenditures of approximately $202.6, $16.1 and $4.4 in fiscal 2019, 2020 and thereafter, respectively.

Acquisition Integration Program

In the first quarter of fiscal 2016, the Company’s Board of Directors (the “Board”) approved an expansion to a restructuring program in connection with the acquisition of Bourjois (the “Acquisition Integration Program”). Actions associated with the program were initiated after the acquisition of Bourjois and were substantially completed during fiscal 2017 with cash payments continuing through fiscal 2020. The Company incurred $55.4 of restructuring costs life-to-date as of June 30, 2018, which have been recorded in Corporate.

The related liability balance and activity for the Acquisition Integration Program costs are presented below:



	Severance and Employee Benefits			Third-Party Contract Terminations		Other Exit Costs^(a)			Total Program Costs
Balance—July 1, 2017	$	24.8		$	1.5	$	4.1		$	30.4
Restructuring charges	—			—		3.3			3.3
Payments	(16.9		)	—		(2.2		)	(19.1		)
Changes in estimates^(a)	(7.8		)	—		—			(7.8		)
Effect of exchange rates	1.0			—		(0.1		)	0.9
Balance—June 30, 2018	$	1.1		$	1.5	$	5.1		$	7.7

^(a)The decrease in severance and employee benefits is primarily attributable to favorable settlements with restructured employees.

The Company currently estimates that the total remaining accrual of $7.7 will result in cash expenditures of approximately $2.5, $2.3 and $2.9 in fiscal 2019, 2020 and 2021, respectively.

Other Restructuring

The Company continues to analyze its cost structure and evaluate opportunities to streamline operations. Management is considering a range of smaller initiatives and other cost reduction activities in order to reduce fixed costs and enable further investment in the business (the “2018 Restructuring Actions”). Of the expected costs, the Company incurred restructuring charges of $68.4 related to approved initiatives in fiscal 2018, primarily related to role eliminations in Europe and North America, which have been recorded in Corporate. Over the next two fiscal years, the Company expects to incur approximately $9.0 of additional restructuring charges that were approved during fiscal 2018, primarily related to employee termination benefits. See Note 25—Subsequent Events for additional information.

The related liability balance and activity of restructuring costs for the 2018 Restructuring Actions are presented below:



	Severance and Employee Benefits			Third-Party Contract Terminations		Fixed Asset Write-offs			Other Exit Costs			Total Program Costs
Balance—July 1, 2017	$	—		$	—	$	—		$	—		$	—
Restructuring charges	63.7			0.2		1.3			3.4			68.6
Payments	(15.1		)	—		—			(0.4		)	(15.5		)
Changes in estimates	(0.2		)	—		—			—			(0.2		)
Non-cash utilization	—					(1.3		)	0.3			(1.0		)
Effect of exchange rates	(0.4		)	—		—			—			(0.4		)
Balance—June 30, 2018	$	48.0		$	0.2	$	—		$	3.3		$	51.5

The Company currently estimates that the total remaining accrual of $51.5 will result in cash expenditures of approximately $48.9, $1.8 and $0.8 in fiscal 2019, 2020 and thereafter, respectively.

In connection with the acquisition of the Burberry Beauty Business, the Company recorded $3.9 of restructuring costs relating to third party contract terminations, which have been recorded in Corporate. The related liability balance was $3.9 at June 30, 2018. The Company currently estimates that the total accrual of $3.9 will result in cash expenditures of $3.9 in fiscal 2019.

The Company executed a number of other restructuring activities during 2013 and 2014, which focused primarily on work-force reductions around a new organizational structure, and other productivity initiatives related to the integration of supply chain and selling activities. These programs are substantially completed. The Company incurred (income) expenses of $(2.0), $5.7 and $44.6 in fiscal 2018, 2017 and 2016, respectively. The related liability balances were $1.7 and $10.1 at June 30, 2018 and June 30, 2017, respectively. The Company currently estimates that the total remaining accrual of $1.7 will result in cash expenditures in fiscal 2019.

In connection with the acquisition of the P&G Beauty Business, the Company assumed restructuring liabilities of approximately $21.7 at October 1, 2016. The Company incurred expenses of $0.9 and nil during the fiscal years ended 2018 and 2017, respectively, primarily related to an adjustment for lease termination. The Company estimates that the remaining accrual of $7.0 at June 30, 2018 will result in cash expenditures of $4.2, $2.1 and $0.7 in fiscal 2019, 2020 and thereafter, respectively.