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RESTRUCTURING INITIATIVES
 6 Months Ended
Jun. 30, 2021
Restructuring and Related Activities [Abstract]  
RESTRUCTURING INITIATIVES RESTRUCTURING INITIATIVES
Natura &Co - Avon Integration
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, as well as top line synergies, primarily between Avon LATAM and Natura &Co Latin America.
Open Up Avon, Open Up & Grow and Transformation Plan
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 was 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. 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 International refreshed our strategy ("Open Up & Grow") which aims to return Avon International 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.
Costs to Implement Restructuring Initiatives - Three Months Ended June 30, 2021 and 2020
During the three months ended June 30, 2021, we recorded net costs to implement of $28.9, of which $3.8 related to Avon Integration, $24.8 related to Open Up & Grow and $.3 related to the Transformation Plan, in our Consolidated Statements of Operations. During the three months ended June 30, 2020, we recorded costs to implement of $3.3 of which $1.5 related to Avon Integration, $2.0 related to Open Up & Grow, and a net benefit of $.2 related to the Transformation Plan, in our Consolidated Statements of Operations.
During the six months ended June 30, 2021, we recorded net costs to implement of $48.4, of which $9.9 related to Avon Integration, $39.0 related to Open Up & Grow and a net benefit of $0.5 related to the Transformation Plan, in our Consolidated Statements of Operations. During the six months ended June 30, 2020, we recorded costs to implement of $5.1 of which $1.5 related to Avon Integration, $6.9 related to Open Up & Grow, and a net benefit of $3.3 related to the Transformation Plan, in our Consolidated Statements of Operations.
The costs during the three and six months ended June 30, 2021 and 2020 consisted of the following:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
CTI recorded in operating profit - COGS
Inventory write-off— (.2).2 (.3)
— (.2).2 (.3)
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits21.1 .6 30.4 (1.7)
Implementation costs, primarily related to professional service fees6.1 1.2 10.2 .7 
Dual running costs.3 .7 $.6 1.5 
Contract termination and other net benefits2.4 .7 $7.4 3.0 
Impairment of other assets— — $— .7 
Accelerated depreciation.2 — $.2 .4 
Variable lease charges.3 .4 $.9 .9 
30.4 3.6 $49.7 5.5 
CTI recorded in operating profit30.4 3.4 $49.9 5.2 
CTI recorded in other (expense) income
(Gain) loss on sale of business / assets(1.5)(.1)$(1.5)(.1)
Total CTI $28.9 $3.3 $48.4 $5.1 
Avon Integration$3.8 $1.5 $9.9 $1.5 
Open Up & Grow$24.8 $2.0 $39.0 $6.9 
Transformation Plan$.3 $(.2)$(.5)$(3.3)
The following liability balances 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 June 30, 2021 and December 31, 2020 is $2.7 and $.7, respectively, related to employee related costs.
The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with Open Up & Grow at June 30, 2021 is as follows:
Employee-Related CostsInventory/Assets Write-offsContract Terminations/OtherTotal
Balance at December 31, 2020$9.0 $— $2.8 $11.8 
2021 charges26.2 .2 1.5 27.9 
Cash payments(12.0)— (2.3)(14.3)
Non-cash write-offs— (.2)— (.2)
Foreign exchange(.1)— (.1)(.2)
Balance at June 30, 2021$23.1 $— $1.9 $25.0 
The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with our Transformation Plan at June 30, 2021 and December 31, 2020 is $.4 and $3.5, respectively, related to employee related costs.
The majority of cash payments, if applicable, associated with the year-end liability are expected to be made during 2021.
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 CostsInventory/ Asset Write-offsContract
Terminations/Other		Foreign Currency Translation Adjustment Write-offsTotal
Avon Integration
Charges incurred to date$11.4 $— $.2 $— $11.6 
Estimated charges to be incurred on approved initiatives— — $— — — 
Total expected charges on approved initiatives$11.4 $— $.2 $— $11.6 
Open Up & Grow
Charges incurred to date$112.0 $106.6 $13.8 $(10.9)$221.5 
Estimated charges to be incurred on approved initiatives— — 2.1 — 2.1 
Total expected charges on approved initiatives$112.0 $106.6 $15.9 $(10.9)$223.6 
The charges, net of adjustments, of initiatives under the Open Up & Grow 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 InternationalAvon Latin AmericaTotal
Avon Integration
2020$6.2 $4.6 $10.8 
First quarter 2021(.5)2.0 1.5 
Second quarter 2021(.7)— (.7)
Charges incurred to date5.0 6.6 11.6 
Estimated charges to be incurred on approved initiatives
— — — 
Total expected charges on approved initiatives$5.0 $6.6 $11.6 
Open Up & Grow
2018$52.8 $64.3 $117.1 
201934.7 36.9 71.6 
20203.2 (.8)2.4 
First quarter 20219.4 (.1)9.3 
Second quarter 202121.1 — 21.1 
Charges incurred to date121.2 100.3 221.5 
Estimated charges to be incurred on approved initiatives
2.1 — 2.1 
Total expected charges on approved initiatives$123.3 $100.3 $223.6 
The charges above are not included in segment profit, as this excludes costs to implement restructuring initiatives. The amounts shown in the tables above as charges recorded to date relate to initiatives that have been approved and recorded in the consolidated financial statements, as the costs are probable and estimable. The amounts shown in the tables above as total expected charges on approved initiatives represent charges recorded to-date plus charges yet to be recorded for approved initiatives as the relevant accounting criteria for recording an expense have not yet been met.