Restructuring Costs

3 Months Ended

Mar. 31, 2012

Restructuring Cost and Reserve [Line Items]

Restructuring Costs

Restructuring Costs

Project Renewal

In October 2011, the Company announced Project Renewal, a program designed to reduce the complexity of the organization and increase investment in growth platforms within the business. In connection with the program, the Company consolidated three operating groups into two and 13 global business units into nine. In addition, the consolidation of a limited number of manufacturing facilities and distribution centers will be implemented as part of the program, with the goal of increasing operational efficiency, reducing costs and improving gross margin. The Company expects to record pretax restructuring charges of $90 to $100 million for Project Renewal, of which $75 to $90 million are expected to be cash costs. Project Renewal is expected to be complete by the end of 2012.

Restructuring charges incurred in connection with Project Renewal were as follows for the periods indicated (in millions):

	Three Months Ended March 31, 2012		Three Months Ended March 31, 2011		Since inception through March 31, 2012
Restructuring charges	$	11.3	$	—	$	42.5

The following table depicts the restructuring charges incurred in connection with Project Renewal for the three months ended March 31, (in millions):

	2012
Employee severance, termination benefits and relocation costs	$	7.6
Exited contractual commitments and other	3.7
	$	11.3

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 Project Renewal for the three months ended March 31, 2012 (in millions):

	December 31, 2011							March 31, 2012
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	11.2	$	7.6	$	(5.5	)	$	13.3
Exited contractual commitments and other	4.5		3.7		(3.9		)	4.3
	$	15.7	$	11.3	$	(9.4	)	$	17.6

The following table depicts the activity in accrued restructuring reserves for Project Renewal for the three months ended March 31, 2012 aggregated by reportable business segment (in millions):

	December 31, 2011							March 31, 2012
Segment	Balance		Provision		Costs Incurred			Balance
Newell Consumer	$	8.7	$	8.6	$	(6.2	)	$	11.1
Newell Professional	2.4		2.3		(1.5		)	3.2
Baby & Parenting	1.8		0.2		(0.7		)	1.3
Corporate	2.8		0.2		(1.0		)	2.0
	$	15.7	$	11.3	$	(9.4	)	$	17.6

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 facilitate a more efficient and cost effective implementation of an enterprise resource planning program in Europe, all with the aim of increasing operating margin in the European region to at least 10%.

The European Transformation Plan 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 substantially complete by December 31, 2012.

Restructuring charges incurred in connection with the European Transformation Plan are reported in the Company's Corporate segment and were as follows for the periods indicated (in millions):

	Three Months Ended March 31, 2012		Three Months Ended March 31, 2011		Since inception through March 31, 2012
Restructuring charges	$	1.4	$	5.8	$	20.3

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 three months ended March 31, 2012 (in millions):

	December 31, 2011							March 31, 2012
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	6.0	$	0.8	$	(1.8	)	$	5.0
Exited contractual commitments and other	2.1		0.6		(0.7		)	2.0
	$	8.1	$	1.4	$	(2.5	)	$	7.0

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, 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, and exit selected low-margin, commodity-like, mostly resin-intensive product categories.

A summary of activity in accrued restructuring reserves for the three months ended March 31, 2012 is as follows (in millions):

	December 31,  2011							March 31, 2012
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	3.3	$	—	$	(0.5	)	$	2.8
Exited contractual commitments and other	5.9		—		(0.3		)	5.6
	$	9.2	$	—	$	(0.8	)	$	8.4

The following table depicts the activity in accrued restructuring reserves for the three months ended March 31, 2012 aggregated by reportable business segment (in millions):

	December 31,  2011							March 31, 2012
Segment	Balance		Provision		Costs Incurred			Balance
Newell Consumer	$	2.7	$	—	$	—		$	2.7
Newell Professional	3.7		—		(0.1		)	3.6
Corporate	2.8		—		(0.7		)	2.1
	$	9.2	$	—	$	(0.8	)	$	8.4

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
	March 31,
Segment	2012		2011
Newell Consumer	$	8.6	$	—
Newell Professional	2.3		—
Baby & Parenting	0.2		—
Corporate	1.6		5.8
	$	12.7	$	5.8

Cash paid for all restructuring activities was $12.9 million and $11.8 million for the three months ended March 31, 2012 and 2011, respectively.