Restructuring Costs

9 Months Ended

Sep. 30, 2011

Restructuring Cost and Reserve [Line Items]

Restructuring Costs

Restructuring Costs

European Transformation Plan

In June 2010, the Company announced a program to simplify and centralize its European business (the “European Transformation Plan”). The European Transformation Plan includes initiatives designed to transform the European organizational structure and processes to centralize certain operating activities, improve performance, leverage the benefits of scale and to contribute to a more efficient and cost effective implementation of an enterprise resource planning program in Europe, all with the aim of increasing operating income margin in the European region to at least 10%.

The European Transformation Plan is expected to be completed in 2012 and is expected to result in cumulative restructuring charges totaling between $40 and $45 million, substantially all of which are employee-related cash costs, including severance, retirement, and other termination benefits and relocation costs. The Company expects the European Transformation Plan to be complete by December 31, 2012.

The following table depicts the restructuring charges incurred in connection with the European Transformation Plan (in millions):

	Three Months Ended September 30, 2011		Nine Months Ended September 30, 2011		Since inception through September 30, 2011
Restructuring charges	$	5.5	$	12.3	$	12.3

Restructuring charges incurred under the European Transformation Plan during the three and nine months ended September 30, 2010 were not material.

Restructuring provisions were determined based on estimates prepared at the time the restructuring actions were approved by management, are periodically updated for changes and also include amounts recognized as incurred. The following table depicts the activity in accrued restructuring reserves for the European Transformation Plan for the nine months ended September 30, 2011 (in millions):

	December 31,     2010							September 30, 2011
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	—	$	10.1	$	(3.5	)	$	6.6
Exited contractual commitments and other	—		2.2		(0.8		)	1.4
	$	—	$	12.3	$	(4.3	)	$	8.0

Project Acceleration

In 2010, the Company completed a global initiative referred to as Project Acceleration aimed at strengthening and transforming the Company’s portfolio. Project Acceleration was designed to reduce manufacturing overhead, better align the Company’s distribution and transportation processes to achieve logistical excellence, and reorganize the Company’s overall business structure to align with the Company’s core organizing concept, the global business unit, to achieve best total cost. The table below summarizes the restructuring costs recognized for Project Acceleration restructuring activities for the periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Facility and other exit costs	$	—	$	3.3	$	—	$	5.0
Employee severance, termination benefits and relocation costs	—		8.0		—		40.2
Exited contractual commitments and other	—		4.9		—		8.1
	$	—	$	16.2	$	—	$	53.3

A summary of activity in accrued restructuring reserves for the nine months ended September 30, 2011 is as follows (in millions):

	December 31,  2010							September 30, 2011
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	22.2	$	—	$	(18.5	)	$	3.7
Exited contractual commitments and other	11.3		—		(3.7		)	7.6
	$	33.5	$	—	$	(22.2	)	$	11.3

The following table depicts the activity in accrued restructuring reserves for the nine months ended September 30, 2011 aggregated by reportable business segment (in millions):

	December 31,  2010							September 30, 2011
Segment	Balance		Provision		Costs Incurred			Balance
Home & Family	$	4.0	$	—	$	(2.8	)	$	1.2
Office Products	11.1		—		(7.9		)	3.2
Tools, Hardware & Commercial Products	4.8		—		(1.1		)	3.7
Corporate	13.6		—		(10.4		)	3.2
	$	33.5	$	—	$	(22.2	)	$	11.3

The table below shows restructuring costs recognized for all restructuring activities for the periods indicated, aggregated by reportable business segment (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment	2011		2010		2011		2010
Home & Family	$	—	$	3.5	$	—	$	9.9
Office Products	—		6.0		—		17.2
Tools, Hardware & Commercial Products	—		2.3		—		5.8
Corporate	5.5		4.4		12.3		20.4
	$	5.5	$	16.2	$	12.3	$	53.3

Cash paid for all restructuring activities was $6.0 million and $26.5 million for the three and nine months ended September 30, 2011, respectively, and $18.3 million and $49.6 million for the three and nine months ended September 30, 2010, respectively.