XML 27 R11.htm IDEA: XBRL DOCUMENT
v3.21.1

IMPAIRMENT, RESTRUCTURING AND OTHER | 6 Months Ended
--- | ---
Apr. 03, 2021
Restructuring and Related Activities [Abstract] |
IMPAIRMENT, RESTRUCTURING AND OTHER | IMPAIRMENT, RESTRUCTURING AND OTHER Activity described herein is classified within the “Cost of sales—impairment, restructuring and other,” “Impairment, restructuring and other” and “Income (loss) from discontinued operations, net of tax” lines in the Condensed Consolidated Statements of Operations. The following table details impairment, restructuring and other charges (recoveries) for each of the periods presented:
| Three Months Ended |  | Six Months Ended
| April 3, 2021 |  | March 28, 2020 |  | April 3, 2021 |  | March 28, 2020
Cost of sales—impairment, restructuring and other: |  |  |  |  |  |  |
COVID-19 related costs | $ | 12.3 |  |  | $ | 3.1 |  |  | $ | 21.0 |  |  | $ | 3.1 |
Restructuring and other charges | 0.1 |  |  | 0.3 |  |  | 0.4 |  |  | 0.5 |
Operating expenses: |  |  |  |  |  |  |
COVID-19 related costs | 2.6 |  |  | 0.7 |  |  | 3.2 |  |  | 0.7 |
Restructuring and other charges (recoveries), net | (0.1) |  |  | (0.4) |  |  | — |  |  | (2.9) |
Impairment, restructuring and other charges from continuing operations | 14.9 |  |  | 3.7 |  |  | 24.6 |  |  | 1.4 |
Restructuring and other charges (recoveries), net, from discontinued operations | — |  |  | (3.1) |  |  | — |  |  | (3.1) |
Total impairment, restructuring and other charges (recoveries) | $ | 14.9 |  |  | $ | 0.6 |  |  | $ | 24.6 |  |  | $ | (1.7) |
The following table summarizes the activity related to liabilities associated with restructuring and other during the six months ended April 3, 2021:
Amounts accrued for restructuring and other at September 30, 2020 | $ | 3.9 |
Restructuring and other charges from continuing operations | 24.6 |
Payments and other | (25.9) |
Amounts accrued for restructuring and other at April 3, 2021 | $ | 2.6 |
Included in restructuring accruals, as of April 3, 2021, is $1.1 that is classified as long-term. Payments against the long-term accruals will be incurred as the employees covered by the restructuring plan retire or through the passage of time. The remaining amounts accrued will continue to be paid out over the course of the next twelve months. COVID-19 The World Health Organization recognized COVID-19 as a public health emergency of international concern on January 30, 2020 and as a global pandemic on March 11, 2020. In response to the COVID-19 pandemic, the Company has implemented additional measures intended to both protect the health and safety of its employees and maintain its ability to provide products to its customers, including (i) requiring a significant part of its workforce to work from home, (ii) monitoring its employees for COVID-19 symptoms, (iii) making additional personal protective equipment available to its operations team, (iv) requiring all manufacturing and warehousing associates to take their temperatures before beginning a shift, (v) modifying work methods and schedules of its manufacturing and field associates to create distance or add barriers between associates, consumers and others, (vi) expanding cleaning efforts at its operation centers, (vii) modifying attendance policies so that associates may elect to stay home if they have symptoms, (viii) prioritizing production for goods that are more essential to its customers and (ix) implementing an interim premium pay allowance for certain associates in its field sales force or working in manufacturing or distribution centers. During the three and six months ended April 3, 2021, the Company incurred costs of $14.9 and $24.2, respectively, associated with the COVID-19 pandemic primarily related to premium pay. The Company incurred costs of $10.7 and $19.0 in its U.S. Consumer segment, $1.5 and $1.9 in its Hawthorne segment and $0.1 in its Other segment in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended April 3, 2021, respectively. The Company incurred costs of $2.6 and $3.2 in its U.S. Consumer segment in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended April 3, 2021, respectively. Since the inception of the COVID-19 pandemic, total costs classified within the “Cost of sales—impairment, restructuring and other” and the “Impairment, restructuring and other” lines in the Condensed Consolidated Statements of Operations are $38.4 for the U.S. Consumer segment, $4.5 for the Hawthorne segment and $0.7 for the Other segment. During the three and six months ended March 28, 2020, the Company incurred costs of $3.8 associated with the COVID-19 pandemic primarily related to premium pay and incremental cleaning costs. The Company incurred costs of $2.6 in its U.S. Consumer segment and $0.5 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended March 28, 2020. The Company incurred costs of $0.7 in its U.S. Consumer segment in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended March 28, 2020. Project Catalyst In connection with the acquisition of Sunlight Supply during the third quarter of fiscal 2018, the Company announced the launch of an initiative called Project Catalyst, which is a company-wide restructuring effort to reduce operating costs throughout the U.S. Consumer, Hawthorne and Other segments and drive synergies from acquisitions within the Hawthorne segment. Costs incurred during the three and six months ended April 3, 2021 and March 28, 2020 related to Project Catalyst were not material. Costs incurred to date since the inception of Project Catalyst are $25.1 for the Hawthorne segment, $14.0 for the U.S. Consumer segment, $1.3 for the Other segment and $2.8 for Corporate. Additionally, during the three and six months ended March 28, 2020, the Company received zero and $2.6, respectively, from the final settlement of escrow funds related to a previous acquisition within the Hawthorne segment that was recognized in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration