RESTRUCTURING INITIATIVES (Tables)

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Summary of Restructuring and Related Costs

The costs during the three months ended March 31, 2020 and 2019 consisted of the following:

	Three Months Ended March 31,
	2020		2019
CTI recorded in operating profit - COGS
Manufacturing asset write-offs	$	—	$	3.8
Inventory write-off	(.1)		.5
	(0.1)		4.3
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	(2.3)		35.3
Implementation costs, primarily related to professional service fees	(.5)		8.7
Dual running costs	.6		1.8
Contract termination and other net benefits	2.5		3.3
Impairment of other assets	.7		—
Accelerated depreciation	.4		.1
Variable lease charges	.5		—
	1.9		49.2
CTI recorded in operating profit	1.8		53.5
CTI recorded in other (expense) income
Gain on sale of business / assets	—		(10.3)
Total CTI	$	1.8	$	43.2
Open Up Avon	$	4.9	$	45.1
Transformation Plan	$	(3.1)	$	(2.0)
Other	$	—	$	.1

Schedule of Restructuring Reserve

The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with Open Up Avon at March 31, 2020 is as follows:

	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2019	$	17.8	$	—	$	6.4	$	24.2
2020 charges	1.8		.6		1.9		4.3
Adjustments	(1.1)		—		.4		(.7)
Cash payments	(3.3)		—		(5.8)		(9.1)
Non-cash write-offs	—		(.6)		—		(.6)
Foreign exchange	(.6)		—		(.1)		(.7)
Balance at March 31, 2020	$	14.6	$	—	$	2.8	$	17.4

The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with our Transformation Plan as of March 31, 2020 is as follows:

	Employee-Related Costs		Contract Terminations/Other		Total
Balance at December 31, 2019	$	8.4	$	1.5	$	9.9
2020 charges	(0.1)		.2		.1
Adjustments	(2.9)		—		(2.9)
Cash payments	(2.4)		(1.4)		(3.8)
Foreign exchange	(.1)		(.1)		(.2)
Balance at March 31, 2020	$	2.9	$	.2	$	3.1

Schedule of Restructuring Charges Reportable by Business Segment

The following table presents the restructuring charges incurred to date, under Open Up Avon and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans:

	Employee- Related Costs		Inventory/ Asset Write-offs		Contract Terminations/Other		Foreign Currency Translation Adjustment Write-offs		Total
Open Up Avon
Charges incurred to-date	$	84.3	$	108.1	$	10.8	$	(10.9)	$	192.3
Estimated charges to be incurred on approved initiatives	—		—		2.9		—		2.9
Total expected charges on approved initiatives	$	84.3	$	108.1	$	13.7	$	(10.9)	$	195.2
Transformation Plan
Charges incurred to-date	$	124.1	$	2.5	$	41.1	$	3.4	$	171.1
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	124.1	$	2.5	$	41.1	$	3.4	$	171.1

The charges, net of adjustments, of initiatives under the Open Up Avon and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans, by reportable segment are as follows:

	Avon International*		Avon Latin America*		Global & Other Operating Segments		Total
Open Up Avon
2018	$	46.6	$	64.3	$	6.2	$	117.1
2019	19.4		36.9		15.3		71.6
First quarter 2020	3.5		(.1)		.2		3.6
Charges incurred to-date	69.5		101.1		21.7		192.3
Estimated charges to be incurred on approved initiatives	2.9		—		—		2.9
Total expected charges on approved initiatives	$	72.4	$	101.1	$	21.7	$	195.2
Transformation Plan
2015	$	—	$	—	$	21.4	$	21.4
2016	40.0		17.6		16.8		74.4
2017	.4		5.0		49.4		54.8
2018	5.6		4.7		13.4		23.7
2019	(1.3)		.6		.3		(.4)
First quarter 2020	.1		.1		(3.0)		(2.8)
Charges incurred to-date	44.8		28.0		98.3		171.1
Estimated charges to be incurred on approved initiatives	—		—		—		—
Total expected charges on approved initiatives	$	44.8	$	28.0	$	98.3	$	171.1

*In January 2020 the Company became a fully owned subsidiary of Natura &Co. As a result of this transaction, the Company has updated its reportable segments to align with Natura &Co operations. Previously reported segment information has been recast throughout the financial statements, as applicable, for all periods presented to reflect the changes in the Company’s reportable segments. Refer to Note 10, Segment Information, to the Consolidated Financial Statements contained herein for more information.