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.

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 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.

During the twelve months ended December 31, 2022, we recorded net costs to implement of $68.6, of which $25.5 related to Avon Integration, $44.1 related to Open Up & Grow, and a net benefit of $1.0 related to the Transformation Plan and other restructuring initiatives, in our Consolidated Statements of Operations. During the twelve months ended December 31, 2021, we recorded net costs to implement of $58.8, of which $15.4 related to Avon Integration, $44.0 related to Open Up & Grow, and a net benefit of $0.6 related to the Transformation Plan and other restructuring initiatives, in our Consolidated Statements of Operations. During the twelve months ended December 31, 2020, we recorded costs to implement of $22.2 of which $16.1 related to Avon Integration, $10.9 related to Open Up Avon, and a net benefit of $4.8 related to the Transformation Plan and other restructuring initiatives, in our Consolidated Statements of Operations.


	Year ended December 31,
	2022		2021		2020
CTI recorded in operating profit - COGS

Inventory write-off	1.3		—		(1.8)

	1.3		—		(1.8)

CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	39.2		36.7		5.2
Implementation costs, primarily related to professional service fees	16.8		17.5		10.3
Dual running costs	2.3		1.1		3.1
Contract termination and other net costs	5.9		10.5		3.9
Impairment of other assets	—		1.0		.8
Accelerated depreciation	3.1		.3		.4
Variable lease charges	—		1.6		1.8
Foreign Currency Translation Adjustment Write-offs	—		—		—
	67.3		68.7		25.5

CTI recorded in operating profit	68.6		68.7		23.7

CTI recorded in other (income) expense
Gain on sale of business / assets	—		(9.9)		(1.5)
Total CTI	$	68.6	$	58.8	$	22.2

Avon Integration	$	25.5	$	15.4	$	16.1
Open Up & Grow	$	44.1	$	44.0	$	10.9
Transformation Plan & Other	$	(1.0)	$	(.6)	$	(4.8)

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 which are clearly identifiable and directly associated with exit activity such as people cost to perform knowledge transfer or rental costs for building being exited once the new building has become fully operational , 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 December 31, 2022 and 2021 is $1.5 and $1.6, respectively, related to employee related costs.


	Employee-Related Costs		Inventory/ Asset Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2020	$	9.0	$	—	$	2.8	$	11.8
2021 charges	33.8		1.0		3.4		38.2
Adjustments	(1.3)		—		—		(1.3)
Cash payments	(26.8)		—		(5.0)		(31.8)
Non-cash write-offs	—		(1.0)		—		(1.0)
Foreign exchange	(.7)		—		—		(.7)
Balance at December 31, 2021	$	14.0	$	—	$	1.2	$	15.2
2022 charges	27.0		1.3		3.0		31.3
Adjustments	—		—		—		—
Cash payments	(20.7)		—		(2.5)		(23.2)
Non-cash write-offs	—		(1.3)		—		(1.3)
Foreign exchange	(.7)		—		(.1)		(.8)
Balance at December 31, 2022	$	19.6	$	—	$	1.6	$	21.2

The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with our Transformation Plan at December 31, 2022 and 2021 is $1.3 and $1.5, respectively, related to employee related costs.

The following table presents the restructuring charges incurred to date, under the Avon Integration , Open Up & Grow 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	$	24.5			$	3.1			$	27.6
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	24.5	$	—	$	3.1	$	—	$	27.6

Open Up & Grow
Charges incurred to-date	$	142.8	$	108.7	$	18.9	$	(10.9)	$	259.5
Estimated charges to be incurred on approved initiatives	$	.4	—		—		—		$	.4
Total expected charges on approved initiatives	$	143.2	$	108.7	$	18.9	$	(10.9)	$	259.9

Transformation Plan
Charges incurred to-date	$	122.7	$	2.5	$	40.9	$	3.4	$	169.5
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	122.7	$	2.5	$	40.9	$	3.4	$	169.5

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 International		Avon LATAM		Total
Avon Integration
2020	6.2		4.6		$	10.8
2021	(1.2)		3.0		$	1.8
2022	.6		14.4		15.0
Charges incurred to-date	5.6		22.0		27.6
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	5.6	$	22.0	$	27.6

Open Up & Grow
2018	52.8		64.3		$	117.1
2019	34.7		36.9		71.6
2020	3.2		(.8)		2.4
2021	36.9		.2		37.1
2022	31.3				31.3
Charges incurred to-date	158.9		100.6		259.5
Estimated charges to be incurred on approved initiatives	.4		—		.4
Total expected charges on approved initiatives	$	159.3	$	100.6	$	259.9

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.

On November 3, 2022, the board of directors of Avon Products, Inc. approved a plan to relocate its research and development facilities to Brazil and Poland, two of its largest markets, by the end of its fiscal quarter ending June 30, 2024, in order to further deliver its Global Innovation Program and realize cost efficiencies. As a result, Avon will close its research and development facility in Suffern, New York. The closure of the Suffern facility is expected to be completed by the end of Avon’s fiscal quarter ending June 30, 2024.

Avon is currently assessing the costs associated with the closure of its research and development facility in Suffern and the relocation of research and development activities to Brazil and Poland. Avon expects to incur total non-recurring restructuring costs in connection with the closure and relocation in the amount of approximately $37, of which approximately $10 was incurred in the fiscal year ending December 31, 2022 and the remainder to be incurred in the fiscal year ending 31, 2023, 2024 and 2025. Avon also expects to incur capital expenditures relating to the infrastructure and facilities in Brazil and Poland totaling approximately $10, to be incurred in the fiscal years ending December 31, 2023.

Following the announcement of the above plan, the remaining useful life and estimated residual value of facility fixed assets were reassessed and on the basis that the facility fixed assets continued to be held in use as a corporate asset, accelerated depreciation of approximately $3.1 was recognized in the fiscal year ending December 31, 2022. If the facility fixed assets were to become classified as held for sale, Avon would expect record a potential impairment charge in the range of $15 and $20.

The restructuring costs described above are preliminary estimates and actual amounts may be materially different from these estimates. Avon may also incur additional charges, non-cash costs, future cash expenditures or impairments not currently contemplated due to events that may occur as a result of, or that are associated with, the Suffern facility closure and the relocation of its research and development facilities to Brazil and Poland.