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 Company consolidated a limited number of manufacturing facilities and distribution centers as part of the program, with the goal of increasing operational efficiency, reducing costs and improving gross margin. In October 2012, the Company committed to an expansion of Project Renewal, designed to further simplify and align the business around two key activities – Brand & Category Development and Market Execution & Delivery. As part of the expanded program, the Company's Consumer and Professional groups were eliminated and the Company's nine global business units are being streamlined into six business segments. In connection with the expansion, the Company expects to incur incremental cash costs of $225 to $250 million, approximately 80% of which are employee-related cash costs, including severance, retirement, and other termination benefits and costs. The Company also expects to record incremental pretax restructuring charges in the range of $250 to $275 million over the same period. Cumulative pretax costs of the expanded Project Renewal are expected to be $340 to $375 million, with cash costs of $300 to $340 million. Project Renewal is expected to be completed by mid-2015.

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



	2012			2011		Since Inception Through December 31, 2012
Facility and other exit costs, including impairments	$	(0.7	)	$	8.4	$	7.7
Employee severance, termination benefits and relocation costs	29.2			18.3		47.5
Exited contractual commitments and other	8.8			4.5		13.3
	$	37.3		$	31.2	$	68.5

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 2012 and 2011 (in millions):



	December 31, 2011								December 31, 2012
	Balance		Provision			Costs Incurred			Balance
Facility and other exit costs, including impairments	$	—	$	(0.7	)	$	0.7		$	—
Employee severance, termination benefits and relocation costs	11.2		29.2			(21.4		)	19.0
Exited contractual commitments and other	4.5		8.8			(9.0		)	4.3
	$	15.7	$	37.3		$	(29.7	)	$	23.3



	December 31, 2010							December 31, 2011
	Balance		Provision		Costs Incurred			Balance
Facility and other exit costs, including impairments	$	—	$	8.4	$	(8.4	)	$	—
Employee severance, termination benefits and relocation costs	—		18.3		(7.1		)	11.2
Exited contractual commitments and other	—		4.5		—			4.5
	$	—	$	31.2	$	(15.5	)	$	15.7

The following table depicts the activity in accrued restructuring reserves for Project Renewal for 2012 and 2011 aggregated by reportable business segment (in millions):



	December 31, 2011							December 31, 2012
Segment	Balance		Provision		Costs Incurred			Balance
Home Solutions	$	7.1	$	7.6	$	(6.2	)	$	8.5
Writing	1.4		2.4		(3.1		)	0.7
Tools	—		1.0		(0.8		)	0.2
Commercial Products	—		5.6		(4.2		)	1.4
Baby & Parenting	2.0		0.9		(2.0		)	0.9
Specialty	2.4		3.4		(3.1		)	2.7
Corporate	2.8		16.4		(10.3		)	8.9
	$	15.7	$	37.3	$	(29.7	)	$	23.3



	December 31, 2010							December 31, 2011
Segment	Balance		Provision		Costs Incurred			Balance
Home Solutions	$	—	$	7.8	$	(0.7	)	$	7.1
Writing	—		1.9		(0.5		)	1.4
Baby & Parenting	—		2.4		(0.4		)	2.0
Specialty	—		3.7		(1.3		)	2.4
Corporate	—		15.4		(12.6		)	2.8
	$	—	$	31.2	$	(15.5	)	$	15.7

European Transformation Plan

In June 2010, the Company announced a program to 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 margin in the European region to approximately10%. The implementation of the European Transformation Plan was complete as of December 31, 2012, with cumulative restructuring costs over the life of the initiative totaling $37.7 million.

Restructuring charges incurred in connection with the European Transformation Plan are reported in the Company’s Corporate segment and were $18.8 million and $18.9 million in 2012 and 2011, respectively, while restructuring charges in 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 2012 and 2011 (in millions):



	December 31, 2011							December 31, 2012
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	6.0	$	14.8	$	(9.9	)	$	10.9
Exited contractual commitments and other	2.1		4.0		(4.1		)	2.0
	$	8.1	$	18.8	$	(14.0	)	$	12.9



	December 31, 2010							December 31, 2011
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	—	$	14.9	$	(8.9	)	$	6.0
Exited contractual commitments and other	—		4.0		(1.9		)	2.1
	$	—	$	18.9	$	(10.8	)	$	8.1

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. In July 2008, the Company expanded Project Acceleration to include initiatives to exit certain product categories to create a more focused and more profitable platform for growth by eliminating selected low-margin, commodity-like, mostly resin-intensive product categories and reduce the Company’s exposure to volatile commodity markets, particularly resin. The implementation of Project Acceleration was complete as of December 31, 2010, with cumulative restructuring costs over the life of the initiative totaling $498.4 million.

The table below summarizes the restructuring costs recognized for Project Acceleration restructuring activities for the periods indicated (in millions):



	2010		Since Inception Through December 31, 2010
Facility and other exit costs, including impairments	$	6.0	$	178.4
Employee severance, termination benefits and relocation costs	53.5		241.0
Exited contractual commitments and other	17.9		79.0
	$	77.4	$	498.4

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. Costs incurred include cash payments and the impairment of assets associated with vacated facilities. Impairments included in restructuring charges totaled $6.0 million for 2010. The impaired assets include vacated land and buildings, land and buildings for which a plan existed to vacate and dispose of the facility, and machinery and equipment to be sold or otherwise disposed of prior to the end of its original estimated useful life. The impairments primarily result from the consolidation of manufacturing activities as well as the increased use of sourcing partners.

A summary of activity in accrued restructuring reserves for continuing operations for 2012 and 2011 is as follows (in millions):



	December 31, 2011							December 31, 2012
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	3.3	$	—	$	(1.5	)	$	1.8
Exited contractual commitments and other	5.9		—		(2.6		)	3.3
	$	9.2	$	—	$	(4.1	)	$	5.1



	December 31, 2010							December 31, 2011
	Balance		Provision		Costs Incurred			Balance
Employee severance, termination benefits and relocation costs	$	22.2	$	—	$	(18.9	)	$	3.3
Exited contractual commitments and other	11.3		—		(5.4		)	5.9
	$	33.5	$	—	$	(24.3	)	$	9.2

The table below shows restructuring costs recognized for Project Acceleration aggregated by reportable business segment for the years ended December 31, (in millions):



Segment	2010		Since inception through December 31, 2010
Home Solutions	$	6.6	$	125.6
Writing	23.7		187.7
Tools	7.3		68.6
Commercial Products	1.6		3.0
Baby & Parenting	8.1		22.8
Specialty	—		12.4
Corporate	30.1		78.3
	$	77.4	$	498.4

The following table depicts the activity in accrued restructuring reserves for 2012 and 2011 aggregated by reportable business segment (in millions):



	December 31, 2011							December 31, 2012
Segment	Balance		Provision		Costs Incurred			Balance
Writing	$	2.3	$	—	$	(1.5	)	$	0.8
Tools	4.1		—		(1.1		)	3.0
Corporate	2.8		—		(1.5		)	1.3
	$	9.2	$	—	$	(4.1	)	$	5.1



	December 31, 2010							December 31, 2011
Segment	Balance		Provision		Costs Incurred			Balance
Home Solutions	$	2.1	$	—	$	(2.1	)	$	—
Writing	10.5		—		(8.2		)	2.3
Tools	4.7		—		(0.6		)	4.1
Baby & Parenting	1.9		—		(1.9		)	—
Specialty	0.7		—		(0.7		)	—
Corporate	13.6		—		(10.8		)	2.8
	$	33.5	$	—	$	(24.3	)	$	9.2

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



Segment	2012		2011		2010
Home Solutions	$	7.6	$	7.8	$	6.6
Writing	2.4		1.9		23.7
Tools	1.0		—		7.3
Commercial Products	5.6		—		1.6
Baby & Parenting	0.9		2.4		8.1
Specialty	3.4		3.7		—
Corporate	35.2		34.3		30.1
	$	56.1	$	50.1	$	77.4

Cash paid for all restructuring activities included in operating activities was $48.6 million, $39.5 million and $72.8 million for 2012, 2011 and 2010, respectively.