RESTRUCTURING INITIATIVES

9 Months Ended

Sep. 30, 2019

RESTRUCTURING INITIATIVES.

RESTRUCTURING INITIATIVES

NOTE 19 – RESTRUCTURING INITIATIVES

In late 2017, we began a business transformation to drive profitable sales growth, increase operational excellence, enhance our approach to innovation and improve organizational effectiveness. The primary focus of the plan is the Beauty + Home segment; however, certain global general and administrative functions are also being addressed. For the three and nine months ended September 30, 2019, we recognized $6.0 million and $17.3 million of restructuring costs related to this plan, respectively. For the three and nine months ended September 30, 2018, we recognized $23.9 million and $48.0 million of restructuring costs related to this plan, respectively. Using current exchange rates, we estimate total implementation costs of approximately $90 million over three years, including costs that have been recognized to date. The cumulative expense incurred as of September 30, 2019 was $83.3 million. We also anticipate making capital investments related to the transformation plan of approximately $50 million, of which $32 million has been incurred to date.

As of September 30, 2019 we have recorded the following activity associated with the business transformation:

	Beginning		Net Charges for						Ending
	Reserve at		the Nine Months				Interest and		Reserve at
	12/31/2018		Ended 9/30/2019		Cash Paid		FX Impact		9/30/2019
Employee severance	$	3,934	$	7,566	$	(4,023)	$	(258)	$	7,219
Professional fees and other costs		11,101		9,720		(18,958)		(71)		1,792
Totals	$	15,035	$	17,286	$	(22,981)	$	(329)	$	9,011