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CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES | 6 Months Ended
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Dec. 31, 2019
CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES |
CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES | NOTE 5 – CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES ​ In May 2016, the Company announced a multi-year initiative (“Leading Beauty Forward” or “LBF”) to build on its strengths and better leverage its cost structure to free resources for investment to continue its growth momentum. LBF is designed to enhance the Company’s go-to-market capabilities, reinforce its leadership in global prestige beauty and continue creating sustainable value. As of June 30, 2019, the Company concluded the approvals of all major initiatives under LBF related to the optimization of select corporate functions, supply chain activities, and corporate and regional market support structures, as well as the exit of underperforming businesses, and expects to substantially complete those initiatives through fiscal 2021. The approved restructuring and other charges expected to be incurred were: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Sales | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Returns | ​ | ​ | ​ | ​ | Operating Expenses | ​ | ​ | ​
​ | ​ | (included in | ​ | ​ | ​ | ​ | Restructuring | ​ | Other | ​ | ​ | ​
(In millions) |  | Net Sales) |  | Cost of Sales |  | Charges |  | Charges |  | Total
Total Charges Approved | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cumulative through December 31, 2019 | ​ | $ | 14 | ​ | $ | 88 | ​ | $ | 507 | ​ | $ | 358 | ​ | $ | 967
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Employee- | ​ | Asset- | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Related | ​ | Related | ​ | Contract | ​ | Other Exit | ​ | ​ | ​
(In millions) |  | Costs |  | Costs |  | Terminations |  | Costs |  | Total
Restructuring Charges Approved | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cumulative through December 31, 2019 | ​ | $ | 461 | ​ | $ | 7 | ​ | $ | 25 | ​ | $ | 14 | ​ | $ | 507
​ The Company records approved charges associated with restructuring and other activities once the relevant accounting criteria have been met. Total cumulative charges recorded associated with restructuring and other activities for LBF were: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Sales | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
​ | ​ | Returns | ​ | ​ | ​ | ​ | Operating Expenses | ​ | ​ | ​ |
​ | ​ | (included in | ​ | ​ | ​ | ​ | Restructuring | ​ | Other | ​ | ​ | ​ |
(In millions) |  | Net Sales) |  | Cost of Sales |  | Charges |  | Charges |  | Total | ​
Total Charges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cumulative through June 30, 2019 | ​ | $ | 14 | ​ | $ | 55 | ​ | $ | 457 | ​ | $ | 265 | ​ | $ | 791 | ​
Six months ended December 31, 2019 | ​ | ​ | — | ​ | ​ | 8 | ​ | ​ | 1 | ​ | ​ | 29 | ​ | ​ | 38 | ​
Cumulative through December 31, 2019 | ​ | $ | 14 | ​ | $ | 63 | ​ | $ | 458 | ​ | $ | 294 | ​ | $ | 829 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Employee- | ​ | Asset- | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Related | ​ | Related | ​ | Contract | ​ | Other Exit | ​ | ​ | ​
(In millions) |  | Costs |  | Costs |  | Terminations |  | Costs |  | Total
Restructuring Charges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cumulative through June 30, 2019 | ​ | $ | 445 | ​ | $ | 4 | ​ | $ | 3 | ​ | $ | 5 | ​ | $ | 457
Six months ended December 31, 2019 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1 | ​ | ​ | 1
Cumulative through December 31, 2019 | ​ | $ | 445 | ​ | $ | 4 | ​ | $ | 3 | ​ | $ | 6 | ​ | $ | 458
​ Changes in accrued restructuring charges for the six months ended December 31, 2019 were: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Employee- | ​ | Asset- | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
​ | ​ | Related | ​ | Related | ​ | Contract | ​ | Other Exit | ​ | ​ | ​ | ​
(In millions) |  | Costs |  | Costs |  | Terminations |  | Costs |  | Total |
Balance at June 30, 2019 | ​ | $ | 202 | ​ | $ | — | ​ | $ | — | ​ | $ | 1 | ​ | $ | 203 | ​
Charges | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1 | ​ | ​ | 1 | ​
Cash payments | ​ | ​ | (52) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (2) | ​ | ​ | (54) | ​
Balance at December 31, 2019 | ​ | $ | 150 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 150 | ​
​ Accrued restructuring charges at December 31, 2019 are expected to result in cash expenditures funded from cash provided by operations of approximately $63 million, $62 million, $20 million and $5 million for the remainder of fiscal 2020 and for fiscal 2021, 2022 and 2023, respectively. ​ Additional information about LBF is included in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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