Subsequent to the merger of Natura and Avon in January 2020, an integration plan (the "Avon Integration") was established to create the right global infrastructure to support the future ambitions of the Natura &Co Group while also identifying synergies and opportunities to leverage our combined strength, scale and reach. Synergies will be derived mainly from procurement, manufacturing/distribution and administrative, including new top line synergies at Natura &Co Latin America, as well as cost synergies at Avon International.

In January 2016, we initiated a transformation plan (the "Transformation Plan"), in order to enable us to achieve our long-term goals of mid-single-digit Constant $ revenue growth and low double-digit operating margin. There are no further restructuring actions to be taken associated with our Transformation Plan as, beginning in the third quarter of 2018, all new restructuring actions approved operate under our new Open Up Avon plan described below.

In September 2018, we initiated a new strategy in order to return Avon to growth ("Open Up Avon"). The Open Up Avon strategy is integral to our ability to return Avon to growth, built around the necessity of incorporating new approaches to various elements of our business, including increased utilization of third-party providers in manufacturing and technology, a more fit for purpose asset base, and a focus on enabling our Representatives to more easily interact with the company and achieve relevant earnings. These savings have been and are expected to continue to be achieved through restructuring actions (that have may continue to result in charges related to severance, contract terminations and inventory and other asset write-offs), as well as other cost-savings strategies that would not result in restructuring charges. In January 2019, we announced significant advancements in this strategy, including a structural reset of inventory processes and a reduction in global workforce.

In May 2020, the new leadership of Avon refreshed our strategy ("Open Up & Grow") which aims to return Avon to growth over the next three years. Open Up & Grow replaces and builds on the success of the Open Up Avon strategy, launched in 2018 to strengthen competitiveness through enhancing the representative experience, improving brand position and relevance, accelerating digital expansion and improving costs. Over the next three years, savings are expected to continue to be achieved through restructuring actions (that may continue to result in charges related to severance, contract terminations and asset write-offs), as well as other cost-savings strategies that would not result in restructuring charges.

During the three months ended September 30, 2020, we recorded net costs to implement of $10.9, of which $11.1 related to Avon Integration, $0.7 related to Open Up & Grow and a benefit of $.9 related to the Transformation Plan, in our Consolidated Statements of Operations. During the three months ended September 30, 2019, we recorded costs to implement of $17.5 of which $10.8 related to Open Up Avon, $6.7 related to the Transformation Plan, in our Consolidated Statements of Operations.

During the nine months ended September 30, 2020, we recorded net costs to implement of $16.1, of which $12.7 related to Avon Integration, $7.6 related to Open Up & Grow and a benefit of $4.2 related to the Transformation Plan, in our Consolidated Statements of Operations. During the nine months ended September 30, 2019, we recorded costs to implement of $93.2 of which $84.1 related to Open Up Avon, $9.0 related to the Transformation Plan, and $.1 related to other restructuring initiatives, in our Consolidated Statements of Operations.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
CTI recorded in operating profit - COGS
Manufacturing asset write-offs	$	—	$	1.1	$	—	$	10.9
Inventory write-off	(.8)		(2.1)		(1.1)		1.0
	(.8)		(1.0)		(1.1)		11.9

CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	5.7		3.2		4.0		51.9
Implementation costs, primarily related to professional service fees	5.9		7.8		6.7		33.7
Dual running costs	.8		3.7		2.3		8.2
Contract termination and other net benefits	.4		(.1)		3.4		4.5
Impairment of other assets	—		.1		.7		2.4
Accelerated depreciation	—		2.3		.4		2.6
Variable lease charges	.4		1.5		1.3		1.5
	13.2		18.5		18.8		104.8

CTI recorded in operating profit	12.4		17.5		17.7		116.7

CTI recorded in other (expense) income
(Gain) loss on sale of business / assets	(1.5)		—		(1.6)		(23.5)

Total CTI	$	10.9	$	17.5	$	16.1	$	93.2

Avon Integration	$	11.1	$	—	$	12.7	$	—
Open Up & Grow	$	.7	$	10.8	$	7.6	$	84.1
Transformation Plan	$	(.9)	$	6.7	$	(4.2)	$	9.0
Other	$	—	$	—			$	.1

The tables below include restructuring costs such as employee-related costs, inventory and asset write-offs, foreign currency translation write-offs and contract terminations, and do not include other costs to implement restructuring initiatives such as professional services fees, dual running costs, accelerated depreciation and gain on sale of business.

The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with Avon Integration at September 30, 2020 is $.7 related to employee related costs.


	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2019	$	17.8	$	—	$	6.4	$	24.2
2020 charges	2.3		(.5)		3.0		4.8
Adjustments	(2.6)		—		.3		(2.3)
Cash payments	(7.8)		—		(6.9)		(14.7)
Non-cash write-offs	—		.5		—		.5
Foreign exchange	(.6)		—		(.1)		(.7)
Balance at September 30, 2020	$	9.1	$	—	$	2.7	$	11.8


	Employee-Related Costs		Contract Terminations/Other		Total
Balance at December 31, 2019	$	8.4	$	1.5	$	9.9
2020 charges	(.2)		—		(.2)
Adjustments	(4.3)		—		(4.3)
Cash payments	(.4)		(1.3)		(1.7)
Foreign exchange	(.1)		(.1)		(.2)
Balance at September 30, 2020	$	3.4	$	.1	$	3.5

The following table presents the restructuring charges incurred to date, under, Avon Integration, Open Up & Grow (formerly 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
Avon Integration
Charges incurred to-date	$	8.8	$	—	$	—	$	—	$	8.8
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	8.8	$	—	$	—	$	—	$	8.8

Open Up & Grow
Charges incurred to-date	$	83.3	$	107.1	$	11.9	$	(10.9)	$	191.4
Estimated charges to be incurred on approved initiatives	—		—		2.5		—		2.5
Total expected charges on approved initiatives	$	83.3	$	107.1	$	14.4	$	(10.9)	$	193.9

Transformation Plan
Charges incurred to-date	$	122.6	$	2.5	$	40.9	$	3.4	$	169.4
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	122.6	$	2.5	$	40.9	$	3.4	$	169.4

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*		Total
Avon Integration
Second quarter 2020	$	1.5	$	—	$	1.5
Third quarter 2020	4.5		2.8		7.3
Charges incurred to-date	6.0		2.8		8.8
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	6.0	$	2.8	$	8.8

Open Up & Grow
2018	$	52.8	$	64.3	$	117.1
2019	34.7		36.9		71.6
First quarter 2020	3.7		(.1)		3.6
Second quarter 2020	(.3)		(.1)		(.4)
Third quarter 2020	(.2)		(.3)		(.5)
Charges incurred to-date	90.7		100.7		191.4
Estimated charges to be incurred on approved initiatives	2.5		—		2.5
Total expected charges on approved initiatives	$	93.2	$	100.7	$	193.9

Transformation Plan
2015	$	21.4	$	—	$	21.4
2016	56.8		17.6		74.4
2017	49.8		5.0		54.8
2018	19.0		4.7		23.7
2019	(1.0)		.6		(.4)
First quarter 2020	(2.9)		.1		(2.8)
Second quarter 2020	(.2)		—		(.2)
Third quarter 2020	(1.6)		.1		(1.5)
Charges incurred to-date	141.3		28.1		169.4
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	141.3	$	28.1	$	169.4

*In January 2020 the Company became a fully owned subsidiary of Natura &Co Holding. As a result of this transaction, the Company has updated its reportable segments to align with how the business is operated and managed since the merger with Natura &Co Holding. 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 9, Segment Information for more information.