Footnote 3 — Restructuring Costs

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 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 at least ten percent.

The European Transformation Plan is expected to be completed in 2012 and 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 also expects to incur an additional $70 to $75 million of selling, general and administrative expenses, otherwise referred to as restructuring-related charges, to implement the European Transformation Plan. Restructuring-related charges are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2011 and 2010 and are reflected in the Europe, Middle East and Africa operating income for the three and six months ended June 30, 2011 and 2010 in Footnote 12. The Company expects all restructuring costs under the European Transformation Plan to be substantially incurred by the end of the year ending December 31, 2011 and substantially all restructuring-related costs to be incurred by the end of the year ending December 31, 2012.

The following table depicts the restructuring and restructuring-related charges incurred in connection with the European Transformation Plan (in millions):


	Three Months Ended June 30, 2011		Six Months Ended June 30, 2011		Since inception through June 30, 2011

Restructuring charges	$	1.0	$	6.8	$	6.8
Restructuring-related charges		9.0		14.3		29.5

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 changes in accrued restructuring reserves for the European Transformation Plan for the six months ended June 30, 2011 (in millions):


	December 31, 2010 Balance		Provision		Costs Incurred			June 30, 2011 Balance

Employee severance, termination benefits and relocation costs	$	0	$	6.8	$	(1.8	)	$	5.0

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010

Facility and other exit costs	$	0	$	0.8	$	0	$	1.7
Employee severance, termination benefits and relocation costs		0		18.4		0		32.2
Exited contractual commitments and other		0		2.0		0		3.3

	$	0	$	21.2	$	0	$	37.2

A summary of accrued restructuring reserves as of and for the six months ended June 30, 2011 is as follows (in millions):


	December 31, 2010 Balance		Provision		Costs Incurred			June 30, 2011 Balance

Employee severance, termination benefits and relocation costs	$	22.2	$	0	$	(15.5	)	$	6.7
Exited contractual commitments and other		11.3		0		(3.2	)		8.1

	$	33.5	$	0	$	(18.7	)	$	14.8

The following table depicts the changes in accrued restructuring reserves for the six months ended June 30, 2011 aggregated by reportable business segment (in millions):


Segment	December 31, 2010 Balance		Provision		Costs Incurred			June 30, 2011 Balance

Home & Family	$	4.0	$	0	$	(2.6	)	$	1.4
Office Products		11.1		0		(6.9	)		4.2
Tools, Hardware & Commercial Products		4.8		0		(0.9	)		3.9
Corporate		13.6		0		(8.3	)		5.3

	$	33.5	$	0	$	(18.7	)	$	14.8

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 June 30,				Six Months Ended June 30,
Segment	2011		2010		2011		2010

Home & Family	$	0	$	3.1	$	0	$	6.4
Office Products		0		5.8		0		11.2
Tools, Hardware & Commercial Products		0		2.3		0		3.6
Corporate		1.0		10.0		6.8		16.0

	$	1.0	$	21.2	$	6.8	$	37.2

Cash paid for all restructuring activities was $8.7 million and $20.5 million for the three and six months ended June 30, 2011, respectively, and $15.2 million and $31.3 million for the three and six months ended June 30, 2010, respectively.