Avon 2008 Annual Report Download - page 82

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The liability balances for the initiatives that have been approved to date are shown below.
Employee-
Related
Costs
Asset
Write-offs
Inventory
Write-offs
Currency
Translation
Adjustment
Write-offs
Contract
Terminations/
Other Total
2005 Charges $ 30.4 $ 1.4 $ 8.4 $ 11.4 $ – $ 51.6
Cash payments (.5) – – – – (.5)
Non-cash write-offs (.7) (1.4) (8.4) (11.4) – (21.9)
Foreign exchange – – – – – –
Balance December 31, 2005 $ 29.2 $ – $ – $ – $ – $ 29.2
2006 Charges 201.2 9.8 .6 .2 6.5 218.3
Adjustments (13.5) (.6) (1.6) – (.4) (16.1)
Cash payments (112.0) – – – (5.1) (117.1)
Non-cash write-offs (23.0) (9.2) 1.0 (.2) – (31.4)
Foreign exchange 3.0 – – – .1 3.1
Balance December 31, 2006 $ 84.9 $ – $ – $ – $ 1.1 $ 86.0
2007 Charges 117.0 .2 – – .8 118.0
Adjustments (8.0) – – – – (8.0)
Cash payments (47.6) – – – (1.1) (48.7)
Non-cash write-offs (4.9) (.2) – – – (5.1)
Foreign exchange 1.8 – – – (.1) 1.7
Balance December 31, 2007 $ 143.2 $ – $ – $ – $ .7 $ 143.9
2008 Charges 20.5 – – – .8 21.3
Adjustments (3.1) – – – .9 (2.2)
Cash payments (60.7) – – – (2.1) (62.8)
Non-cash write-offs 1.0 – – – – 1.0
Foreign exchange (7.3) – – – – (7.3)
Balance December 31, 2008 $ 93.6 $ – $ – $ – $ .3 $ 93.9
Non-cash write-offs associated with employee-related costs are the result of settlement, curtailment and special termination benefit charges
for pension plans and postretirement due to the initiatives implemented. Inventory write-offs relate to exited businesses.
The following table presents the restructuring charges incurred to date, net of adjustments, under our multi-year restructuring plan that
began in the fourth quarter of 2005, along with the charges expected to be incurred under the plan:
Employee-
Related
Costs
Asset
Write-offs
Inventory
Write-offs
Currency
Translation
Adjustment
Write-offs
Contract
Terminations/
Other Total
Charges incurred to date $344.5 $10.8 $7.4 $11.6 $8.6 $382.9
Charges to be incurred on approved initiatives 21.9 – – – – 21.9
Total expected charges $366.4 $10.8 $7.4 $11.6 $8.6 $404.8