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RESTRUCTURING COSTS
12 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
RESTRUCTURING COSTS RESTRUCTURING COSTS
Restructuring costs for the fiscal years ended June 30, 2019, 2018 and 2017 are presented below:
 
Year Ended June 30,
 
2019
 
2018
 
2017
Global Integration Activities
$
28.5

 
$
106.5

 
$
365.0

2018 Restructuring Actions
16.8

 
68.4

 

Other Restructuring
(1.1
)
 
(1.7
)
 
9.8

Total
$
44.2

 
$
173.2

 
$
374.8


Turnaround Plan
On July 1, 2019, the Company announced a four-year plan to drive substantial improvement in Consumer Beauty while further optimizing Luxury and Professional Beauty (the “Turnaround Plan”). The Company expects to incur additional restructuring charges of approximately $35.0 related to employee termination benefits, contract terminations, and other related exits costs pertaining to the previously approved actions. The Company intends to utilize accruals established related to previously announced programs, as discussed below.
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 $500.0 related to approved initiatives through the fiscal year ended June 30, 2019, 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 (a)
 
Total (a)
Fiscal 2017
$
333.9

 
$
22.4

 
$
4.6

 
$
4.1

 
$
365.0

Fiscal 2018
67.5

 
19.3

 
14.3

 
5.4

 
106.5

Fiscal 2019
(6.0
)
 
4.5

 
27.8

 
2.2

 
28.5

Cumulative through June 30, 2019
$
395.4

 
$
46.2

 
$
46.7

 
$
11.7

 
$
500.0

 
 
(a) The fiscal 2017 balance reflects the impact of the ASU 2017-07 adoption which resulted in the reclassification of $0.8 of pension settlement and curtailment credits incurred in connection with Global Integration Activities, from Restructuring costs to Other expense, net. Refer to Note 2Summary of Significant Accounting Policies for further information on the adoption of ASU 2017-07.
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, 2018
$
203.0

 
$
17.0

 
$

 
$
3.1

 
$
223.1

Restructuring charges
10.8

 
4.6

 
27.8

 
2.4

 
45.6

Payments
(141.0
)
 
(9.6
)
 

 
(3.7
)
 
(154.3
)
Change in estimates
(16.8
)
 
(0.1
)
 

 
(0.2
)
 
(17.1
)
Non-cash impact
0.9

 

 
(27.8
)
 

 
(26.9
)
Effect of exchange rates
(3.2
)
 
(0.2
)
 

 

 
(3.4
)
Balance—June 30, 2019
$
53.7

 
$
11.7

 
$

 
$
1.6

 
$
67.0


The Company currently estimates that the total remaining accrual of $67.0 will result in cash expenditures of approximately $44.7, $18.1 and $4.2 in fiscal 2020, 2021 and thereafter, respectively.
2018 Restructuring Actions
During fiscal 2018, the Company began evaluating initiatives to reduce fixed costs and enable further investment in the business (“the 2018 Restructuring Actions”).
Of the expected costs, the Company incurred cumulative restructuring charges of $85.2 related to approved initiatives through the fiscal year ended June 30, 2019, primarily related to role eliminations in Europe and North America, 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 2018
$
63.5

 
$
0.2

 
$
1.3

 
$
3.4

 
$
68.4

Fiscal 2019
15.4

 
(0.1
)
 

 
1.5

 
16.8

Cumulative through June 30, 2019
$
78.9

 
$
0.1

 
$
1.3

 
$
4.9

 
$
85.2


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
 
Other
Exit
Costs
(a)
 
Total
Program
Costs
Balance—July 1, 2018
$
48.0

 
$
0.2

 
$
3.3

 
$
51.5

Restructuring charges
17.2

 

 
1.5

 
18.7

Payments
(47.1
)
 

 
(3.2
)
 
(50.3
)
Changes in estimates
(1.8
)
 
(0.1
)
 

 
(1.9
)
Effect of exchange rates
(0.8
)
 

 
(0.1
)
 
(0.9
)
Balance—June 30, 2019
$
15.5

 
$
0.1

 
$
1.5

 
$
17.1


The Company currently estimates that the total remaining accrual of $17.1 will result in cash expenditures of approximately $16.0, $0.7 and $0.4 in fiscal 2020, 2021 and thereafter, respectively.
Other Restructuring
In connection with the acquisition of the Burberry Beauty Business, the Company recorded (income) expenses of $(0.1) and $3.9 of restructuring costs relating to third party contract terminations during the fiscal years ended June 30, 2019 and June 30, 2018, respectively, which have been recorded in Corporate. The related liability balances were $0.7 and $3.9 at June 30, 2019 and June 30, 2018, respectively. The Company currently estimates that the total accrual of $0.7 will result in cash expenditures in fiscal 2020.
The Company executed a number of other restructuring activities in prior years, which are substantially completed. The Company recognized (income) expenses of $(0.8), $(6.5) and $9.8(a) in fiscal 2019, 2018 and 2017, respectively, which have been recorded in Corporate. The related liability balances were $5.4 and $9.4 at June 30, 2019 and June 30, 2018, respectively. The Company currently estimates that the remaining accrual of $5.4 will result in cash expenditures of $3.2 and $2.2 in fiscal 2020 and 2021, respectively.
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 recognized (income) expenses, net of $(0.2), $0.9 and nil during the fiscal years ended 2019, 2018 and 2017, respectively, which have been recorded in Corporate. The Company currently estimates that the remaining accrual of $2.9 at June 30, 2019 will result in cash expenditures of $2.4, $0.3 and $0.2 in fiscal 2020, 2021 and thereafter, respectively.
 
 
(a) 
The fiscal 2017 balance reflects the impact of the ASU 2017-07 adoption which resulted in the reclassification of a $1.8 pension curtailment credit related to the Bourjois acquisition restructuring program, from Restructuring costs to Other expense, net. Refer to Note 2Summary of Significant Accounting Policies for further information on the adoption of ASU 2017-07.