DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

International Business

Prior to August 31, 2017, the Company operated consumer lawn and garden businesses located in Australia, Austria, Belgium, Luxembourg, Czech Republic, France, Germany, Poland and the United Kingdom (the “International Business”). On August 31, 2017, the Company completed the sale of the International Business. As a result, effective in its fourth quarter of fiscal 2017, the Company classified its results of operations for all periods presented to reflect the International Business as a discontinued operation. The sale proceeds were net of seller financing provided by the Company in the form of a $29.7 loan for seven years bearing interest at 5% for the first three years, with annual 2.5% increases thereafter. The seller financing loan receivable is recorded in the “Other assets” line in the Consolidated Balance Sheets as of September 30, 2021. The transaction also included contingent consideration with a maximum payout of $23.8 and an initial fair value of $18.2, the payment of which depended on the achievement of certain performance criteria by the International Business following the closing of the transaction through fiscal 2020. During fiscal 2021, the Company agreed to accept a contingent consideration payout of $6.0, which will be paid to the Company prior to March 31, 2022. This amount is recorded in the “Prepaid and other current assets” line in the Consolidated Balance Sheets as of September 30, 2021. The Company recorded a pre-tax charge of $12.2 during fiscal 2021 to write-down the contingent consideration receivable to the agreed upon payout amount.

Wild Bird Food

During fiscal 2014, the Company completed the sale of its U.S. and Canadian wild bird food business. As a result, effective in fiscal 2014, the Company classified its results of operations for all periods presented to reflect the wild bird food business as a discontinued operation. During fiscal 2019, the Company recognized a favorable adjustment of $22.5 as a result

of the final resolution of the previously disclosed settlement agreement related to the In re Morning Song Bird Food Litigation legal matter. This matter relates to a class-action lawsuit filed in 2012 in connection with the sale of wild bird food products that were the subject of a voluntary recall in 2008 by the Company’s previously sold wild bird food business. In addition, during fiscal 2020 and fiscal 2019, the Company recognized insurance recoveries of $1.5 and $13.4, respectively, related to this matter. Refer to “NOTE 20. CONTINGENCIES” for more information.

The following table summarizes the results of discontinued operations described above and reflected within discontinued operations in the Company’s consolidated financial statements for each of the periods presented:


	Year Ended September 30,
	2021		2020		2019


Operating and exit costs	$	—	$	1.3	$	0.6
Impairment, restructuring and other charges (recoveries)	—		(3.1)		(35.8)

Write-down of contingent consideration receivable	12.2		—		—

Income (loss) from discontinued operations before income taxes	(12.2)		1.8		35.2
Income tax expense (benefit) from discontinued operations	(8.3)		0.1		11.7
Income (loss) from discontinued operations, net of tax	$	(3.9)	$	1.7	$	23.5

The Consolidated Statements of Cash Flows do not present the cash flows from discontinued operations separately from cash flows from continuing operations. Cash provided by (used in) operating activities related to discontinued operations was zero, $3.6 and $(38.6) for fiscal 2021, fiscal 2020 and fiscal 2019, respectively. Cash (used in) provided by investing activities related to discontinued operations was zero for fiscal 2021, fiscal 2020 and fiscal 2019.