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. Project Renewal is designed to simplify and align the business around two key activities - Brand & Category Development and Market Execution & Delivery. In connection with the program, the Company eliminated its operating groups and consolidated its 13 GBUs into 5 business segments. In addition, the Company is consolidating certain manufacturing facilities and distribution centers as part of the program, with the goal of increasing operational efficiency, reducing costs and improving gross margin. Cumulative pretax costs of Project Renewal are expected to be $340 million to $375 million, of which $300 million to $340 million are cash costs. Approximately 75% of the total cash costs are expected to be employee-related cash costs, including severance, retirement, and other termination benefits and costs. Project Renewal is expected to be complete by mid-2015.

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



	2013		2012			2011		Since Inception Through December 31, 2013
Facility and other exit costs, including impairments	$	5.7	$	(0.7	)	$	8.4	$	13.4
Employee severance, termination benefits and relocation costs	93.4		29.2			18.3		140.9
Exited contractual commitments and other	14.6		8.8			4.5		27.9
	$	113.7	$	37.3		$	31.2	$	182.2
Restructuring costs-continuing operations	$	112.8	$	34.2		$	29.0	$	176.0
Restructuring costs-discontinued operations	$	0.9	$	3.1		$	2.2	$	6.2

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 tables depict the activity in accrued restructuring reserves for Project Renewal for 2013 and 2012 (in millions):



	December 31, 2012							December 31, 2013
	Balance		Provision		Costs Incurred			Balance
Facility and other exit costs, including impairments	$	—	$	5.7	$	(5.7	)	$	—
Employee severance, termination benefits and relocation costs	19.0		93.4		(52.1		)	60.3
Exited contractual commitments and other	4.3		14.6		(11.8		)	7.1
	$	23.3	$	113.7	$	(69.6	)	$	67.4



	December 31, 2011		Provision						December 31, 2012
	Balance		(Benefit)			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

The following tables depict the activity in accrued restructuring reserves for Project Renewal for 2013 and 2012 aggregated by reportable business segment (in millions):



	December 31, 2012							December 31, 2013
Segment	Balance		Provision		Costs Incurred			Balance
Writing	$	1.4	$	34.3	$	(9.9	)	$	25.8
Home Solutions	8.5		4.6		(12.4		)	0.7
Tools	0.2		4.3		(4.2		)	0.3
Commercial Products	1.4		8.1		(2.7		)	6.8
Baby & Parenting	0.9		1.9		(1.4		)	1.4
Corporate (including discontinued operations)	10.9		60.5		(39.0		)	32.4
	$	23.3	$	113.7	$	(69.6	)	$	67.4



	December 31, 2011							December 31, 2012
Segment	Balance		Provision		Costs Incurred			Balance
Writing	$	1.9	$	3.7	$	(4.2	)	$	1.4
Home Solutions	7.1		7.6		(6.2		)	8.5
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
Corporate (including discontinued operations)	4.7		18.5		(12.3		)	10.9
	$	15.7	$	37.3	$	(29.7	)	$	23.3

European Transformation Plan

In June 2010, the Company announced a program to centralize its European business (the “European Transformation Plan”). The European Transformation Plan included 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, 2013, with cumulative restructuring costs over the life of the initiative totaling $35.4 million.

Restructuring charges incurred in connection with the European Transformation Plan are reported in the Company’s Corporate segment and were $(2.3) million, $18.8 million and $18.9 million in 2013, 2012 and 2011, respectively.

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 2013 and 2012 (in millions):



	December 31, 2012		Provision						December 31, 2013
	Balance		(Benefit)			Costs Incurred			Balance
Facility and other exit costs, including impairments	$	—	$	(0.8	)	$	0.8		$	—
Employee severance, termination benefits and relocation costs	10.9		(2.0		)	(6.0		)	2.9
Exited contractual commitments and other	2.0		0.5			(1.9		)	0.6
	$	12.9	$	(2.3	)	$	(7.1	)	$	3.5



	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

Total Restructuring Costs

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



Segment	2013⁽¹⁾		2012		2011
Writing	$	34.3	$	3.7	$	3.4
Home Solutions	4.6		7.6		7.8
Tools	6.0		1.0		—
Commercial Products	8.1		5.6		—
Baby & Parenting	1.9		0.9		2.4
Corporate (including discontinued operations)	57.1		37.3		36.5
	$	112.0	$	56.1	$	50.1
Restructuring costs-continuing operations	$	111.1	$	52.9	$	47.9
Restructuring costs-discontinued operations	$	0.9	$	3.2	$	2.2


(1)	Total restructuring cost include $0.6 million of cost relating to prior restructuring projects.

Cash paid for all restructuring activities included in operating activities was $74.9 million, $48.6 million and $39.5 million for 2013, 2012 and 2011, respectively.