RESTRUCTURING INITIATIVES

6 Months Ended

Jun. 30, 2020

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, 2020, we recognized $7.3 million and $12.2 million of restructuring costs related to this plan, respectively. 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. Using current exchange rates, we estimate total implementation costs of approximately $125 million for these initiatives, including costs that have been recognized to date. The cumulative expense incurred as of June 30, 2020 was $98.7 million. We also anticipate making capital investments related to the transformation plan of approximately $50 million, of which $43 million has been incurred to date.

As of June 30, 2020 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
	12/31/2019		Ended 6/30/2020		Cash Paid		FX Impact		6/30/2020
Employee severance	$	7,090	$	8,190	$	(2,324)	$	192	$	13,148
Professional fees and other costs		3,609		3,980		(4,595)		(17)		2,977
Totals	$	10,699	$	12,170	$	(6,919)	$	175	$	16,125