RESTRUCTURING INITIATIVES

6 Months Ended

Jun. 30, 2019

RESTRUCTURING INITIATIVES.

RESTRUCTURING INITIATIVES

NOTE 19 – RESTRUCTURING INITIATIVES

In late 2017, we began a business transformation to drive profitable sales growth, increase operational excellence, enhance our approach to innovation and improve organizational effectiveness. The primary focus of the plan is the Beauty + Home segment; however, certain global general and administrative functions are also being addressed. For the three and six months ended June 30, 2019, we recognized $1.7 million and $11.3 million of restructuring costs related to this plan, respectively. For the three and six months ended June 30, 2018, we recognized $18.2 million and $24.2 million of restructuring costs related to this plan, respectively. Using current exchange rates, we estimate total implementation costs of approximately $90 million over three years, including costs that have been recognized to date. The cumulative expense incurred as of June 30, 2019 was $77.3 million. We also anticipate making capital investments related to the transformation plan of approximately $55 million, of which the majority will be in 2019.

As of June 30, 2019 we have recorded the following activity associated with the business transformation:

	Beginning		Net Charges for						Ending
	Reserve at		the Six Months				Interest and		Reserve at
	12/31/2018		Ended 6/30/2019		Cash Paid		FX Impact		6/30/2019
Employee severance	$	3,934	$	3,209	$	(1,814)	$	222	$	5,551
Professional fees and other costs		11,101		8,058		(17,887)		(41)		1,231
Totals	$	15,035	$	11,267	$	(19,701)	$	181	$	6,782