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 global business units into five 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.

In October 2014, the Company announced an expansion of Project Renewal, under which the Company intends to: (i) further streamline its supply chain function, including a reduction of overhead and a realignment of the supply chain management structure; (ii) invest in value analysis and value engineering efforts to reduce product and packaging costs; (iii) reduce operational and manufacturing complexity in its Writing segment; (iv) further streamline its distribution and transportation functions; and (v) further reduce its overhead costs. In connection with the expansion, the Company expects to incur incremental costs of approximately $200.0 million, including pretax restructuring charges in the range of $75 to $125 million. Other costs related to the expansion include advisory costs for process transformation and optimization initiatives as well as project management, capital investment and capability building costs.

Cumulative pretax costs of the expanded Project Renewal are expected to be $540 to $575 million, of which $510 to $540 million are expected to be cash costs. Approximately 65% to 75% of the total costs are expected to be restructuring costs, a majority of which 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 the end of 2017.

The following table depicts the restructuring charges incurred in connection with Project Renewal (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,				Since Inception Through
	2014		2013		2014		2013		September 30, 2014
Facility and other exit costs, including impairments	$	1.9	$	1.7	$	4.7	$	4.0	$	18.1
Employee severance, termination benefits and relocation costs	10.3		25.9		27.4		80.5		168.3
Exited contractual commitments and other	7.5		3.7		12.4		14.3		40.3
	$	19.7	$	31.3	$	44.5	$	98.8	$	226.7

Restructuring provisions were determined based on estimates prepared at the time the restructuring actions were approved by management and are periodically updated for changes. Restructuring amounts also include amounts recognized as incurred. The following table depicts the activity in accrued restructuring reserves for Project Renewal for the nine months ended September 30, 2014 (in millions):



	December 31, 2013							September 30, 2014
	Balance		Provision		Costs Incurred			Balance
Facility and other exit costs, including impairments	$	—	$	4.7	$	(4.7	)	$	—
Employee severance, termination benefits and relocation costs	60.3		27.4		(53.9		)	33.8
Exited contractual commitments and other	7.1		12.4		(8.4		)	11.1
	$	67.4	$	44.5	$	(67.0	)	$	44.9

The following table depicts the activity in accrued restructuring reserves for Project Renewal for the nine months ended September 30, 2014 aggregated by reportable business segment (in millions):



	December 31, 2013							September 30, 2014
Segment	Balance		Provision		Costs Incurred			Balance
Writing	$	25.8	$	8.1	$	(14.2	)	$	19.7
Home Solutions	0.7		1.0		(1.5		)	0.2
Tools	0.3		3.2		(2.8		)	0.7
Commercial Products	6.8		3.4		(4.3		)	5.9
Baby & Parenting	1.4		0.2		(0.3		)	1.3
Corporate	32.4		28.6		(43.9		)	17.1
	$	67.4	$	44.5	$	(67.0	)	$	44.9

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Segment	2014		2013		2014		2013
Writing	$	6.3	$	14.1	$	8.1	$	34.8
Home Solutions	—		1.6		1.0		3.6
Tools	1.6		2.1		3.2		4.8
Commercial Products	0.7		1.8		3.4		4.3
Baby & Parenting	—		2.2		0.2		2.2
Corporate⁽¹⁾	11.1		9.5		27.3		48.0
	$	19.7	$	31.3	$	43.2	$	97.7


(1)	Includes adjustments of $1.3 million and $1.1 million for the nine months ended September 30, 2014 and 2013, respectively, relating to previous restructuring projects that had the impact of decreasing restructuring costs.

Cash paid for all restructuring activities was $12.2 million and $61.7 million for the three and nine months ended September 30, 2014, respectively, and $11.4 million and $50.9 million for the three and nine months ended September 30, 2013, respectively.