Restructuring and Other Charges (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Restructuring Charges

The following is a summary of restructuring charges for the three and nine months ended September 30, 2013 and 2012 (in millions):

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Workforce restructurings and other	$	11.2	$	1.0	$	12.0	$	3.7

Reconciliation of Restructuring Liability

The change in the balance of the restructuring liability for the nine months ended September 30, 2013 is as follows (in millions):

	Workforce Restructurings and Other			Contract Termination Costs			Total
Balance at December 31, 2012	$	3.6		$	2.7		$	6.3
Provision		12.0			—			12.0
Cash payments		(3.5	)		(0.3	)		(3.8	)
Foreign currency and other		0.3			(0.3	)		—
Balance at September 30, 2013	$	12.4		$	2.1		$	14.5

Summary of Unusual or Infrequent Items

Our pre-tax operating income for the three and nine months ended September 30, 2013 and 2012 was impacted by the following additional items (in millions):

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Acquisition and integration-related (gains) charges (a)(b)	$	(11.1	)	$	1.8		$	(10.3	)	$	17.1
Other charges included in Costs of goods sold (c)		0.1			—			0.1			0.2
Other charges (credits) included in Selling, general and administrative expense (c)		2.9			(0.2	)		6.9			0.6
	$	(8.1	)	$	1.6		$	(3.3	)	$	17.9

(a) In 2013, the gain (included in “Selling, general, and administrative expense”) primarily relates to a $12.2 million decrease in the fair value of estimated contingent consideration for our Skinnygirl ready-to-serve cocktail business based on revised estimated sales levels, which was partially offset by accelerated depreciation expense (included in “Cost of goods sold”) incurred in connection with integrating the Pinnacle business into our operations.

(b) In 2012, the charges relate to the acquisition and integration of the Pinnacle business and Cooley business. The charges in the three months ended September 30, 2012 primarily consist of expenses incurred in connection with integrating these businesses into the Company’s existing operational structure (e.g., accelerated depreciation, employee retention, information technology systems integration costs and other organizational streamlining expenses). The charges in the nine months ended September 30, 2012 impacting “Selling, general, and administrative expense” consist of: transaction-related expenses of $5 million, contract termination expenses of $10 million and integration related expenses of $1 million. Contract termination fees are primarily based on actual settlement agreements, but where a settlement agreement has not been reached, we recorded an estimated liability.

(c) Other charges for 2013 represent legal, forensic accounting and other third party expenses related to our India investigation, as well as asset write-offs of $1.1 million related to the repositioning of that business. Other credits in the three months ended September 30, 2012 primarily consist of accruals which were deemed to be no longer necessary. Other charges in the nine months ended September 30, 2012 primarily relate to organizational streamlining activities.