Restructuring Costs

Project Renewal

On April 29, 2015, the Company committed to a further expansion of Project Renewal (the “April 2015 Expansion”), a program initially launched in October 2011 to reduce the complexity of the organization and increase investment in growth platforms within the business. Under Project Renewal, the Company is simplifying and aligning its businesses around two key activities - Brand & Category Development and Market Execution & Delivery. Pursuant to the program, the Company eliminated its operating groups and consolidated 13 global business units into three operating groups that manage five operating segments. Pursuant to an expansion of Project Renewal in October 2014, the Company is: (i) further streamlining its supply chain function, including reducing overhead and realigning the supply chain management structure; (ii) investing in value analysis and value engineering efforts to reduce product and packaging costs; (iii) reducing operational and manufacturing complexity in its Writing segment; and (iv) further streamlining its distribution and transportation functions. Under the April 2015 Expansion, the Company plans to implement additional activities designed to further streamline business partnering functions (e.g., Finance/IT, Legal and Human Resources), optimize global selling and trade marketing functions, and rationalize the Company’s real estate portfolio.

In connection with the April 2015 Expansion, the Company expects to incur approximately $150.0 million of additional costs, including cash costs of approximately $135.0 million. The additional costs include pretax restructuring charges in the range of approximately $125.0 million to $135.0 million, a majority of which are expected to be facility exit costs and employee-related cash costs, including severance, retirement and other termination benefits, including costs associated with relocating the Company’s headquarters within Atlanta, Georgia.

Cumulative costs of the expanded Project Renewal are now expected to be approximately $690.0 million to $725.0 million pretax, with cash costs of approximately $645.0 million to $675.0 million. Approximately 60% to 70% 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
	2015		2014		2015		2014		September 30, 2015
Facility and other exit costs, including impairments	$	5.5	$	1.9	$	5.2	$	4.7	$	26.1
Employee severance, termination benefits and relocation costs	11.8		10.3		40.0		27.4		206.1
Exited contractual commitments and other	2.5		7.5		13.4		12.4		62.4
	$	19.8	$	19.7	$	58.6	$	44.5	$	294.6

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, 2015 (in millions):



	December 31, 2014							September 30, 2015
	Balance		Provision		Costs Incurred			Balance
Facility and other exit costs, including impairments	$	—	$	5.2	$	(5.2	)	$	—
Employee severance, termination benefits and relocation costs	22.8		40.0		(19.8		)	43.0
Exited contractual commitments and other	17.5		13.4		(15.1		)	15.8
	$	40.3	$	58.6	$	(40.1	)	$	58.8

The following table depicts the activity in accrued restructuring reserves for Project Renewal for the nine months ended September 30, 2015 aggregated by reportable business segment (in millions):



	December 31, 2014							September 30, 2015
Segment	Balance		Provision		Costs Incurred			Balance
Writing	$	9.7	$	10.4	$	(5.1	)	$	15.0
Home Solutions	1.0		4.3		(1.0		)	4.3
Tools	0.5		2.9		(1.8		)	1.6
Commercial Products	5.1		1.9		(3.0		)	4.0
Baby & Parenting	2.2		0.6		(2.6		)	0.2
Corporate (including discontinued operations)	21.8		38.5		(26.6		)	33.7
	$	40.3	$	58.6	$	(40.1	)	$	58.8

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	2015			2014		2015		2014
Writing	$	6.8		$	6.3	$	10.4	$	8.1
Home Solutions⁽¹⁾	(0.6		)	—		4.5		1.0
Tools	2.1			1.6		2.9		3.2
Commercial Products	0.8			0.7		1.9		3.4
Baby & Parenting ⁽¹⁾	1.3			—		3.4		0.2
Corporate⁽²⁾	10.6			11.1		38.5		27.3
	$	21.0		$	19.7	$	61.6	$	43.2


(1)	Includes $0.2 million of restructuring costs in the Home Solutions segment associated with the integration of Ignite and bubba for the nine months ended September 30, 2015 and $1.2 million and $2.8 million of restructuring costs for the three and nine months ended September 30, 2015, respectively, in the Baby & Parenting segment associated with the integration of Baby Jogger.


(2)	Includes adjustments of $1.3 million in Corporate for the nine months ended September 30, 2014 relating to previous restructuring projects that had the impact of decreasing restructuring costs.

Cash paid for all restructuring activities (including discontinued operations) was $11.2 million and $41.4 million for the three and nine months ended September 30, 2015, respectively, and $12.2 million and $61.7 million for the three and nine months ended September 30, 2014, respectively.