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IMPAIRMENT, RESTRUCTURING AND OTHER | 9 Months Ended
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Jul. 02, 2022
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” and “Impairment, restructuring and other” 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 |  | Nine Months Ended
| July 2, 2022 |  | July 3, 2021 |  | July 2, 2022 |  | July 3, 2021
Cost of sales—impairment, restructuring and other: |  |  |  |  |  |  |
COVID-19 related costs | $ | — |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | 22.5 |
Restructuring and other charges (recoveries), net | 58.8 |  |  | (0.7) |  |  | 61.3 |  |  | (0.3) |
Property, plant and equipment impairments | 7.0 |  |  | — |  |  | 9.8 |  |  | — |
Operating expenses: |  |  |  |  |  |  |
COVID-19 related costs | — |  |  | 0.4 |  |  | — |  |  | 3.6 |
Restructuring and other charges, net | 25.3 |  |  | 0.1 |  |  | 27.1 |  |  | 0.1 |
Goodwill and intangible asset impairments | 633.1 |  |  | — |  |  | 633.1 |  |  | — |
Impairment, restructuring and other charges from continuing operations | $ | 724.2 |  |  | $ | 1.3 |  |  | $ | 731.3 |  |  | $ | 25.9 |
The following table summarizes the activity related to liabilities associated with restructuring and other during the nine months ended July 2, 2022:
Amounts accrued for restructuring and other at September 30, 2021 | $ | 1.9 |
Restructuring and other charges from continuing operations | 40.0 |
Payments and other | (6.3) |
Amounts accrued for restructuring and other at July 2, 2022 | $ | 35.6 |
Included in restructuring accruals, as of July 2, 2022, is $2.0 that is classified as long-term. The remaining amounts accrued will continue to be paid out over the course of the next twelve months. During the three and nine months ended July 2, 2022, the Company recognized non-cash, pre-tax goodwill and intangible asset impairment charges of $632.4 related to its Hawthorne segment in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations, comprised of $522.4 of goodwill impairment charges and $110.0 of finite-lived intangible asset impairment charges. During the three and nine months ended July 2, 2022, the Company incurred inventory write-down charges of $45.9 in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations associated with its decision to discontinue and exit the market for certain lighting products and brands. During the three and nine months ended July 2, 2022, the Company began implementing an expanded series of organizational changes and initiatives intended to create operational and management-level efficiencies. As part of this restructuring program, the Company is reducing the size of its supply chain network, reducing staffing levels and implementing other cost-reduction initiatives. During the three and nine months ended July 2, 2022, the Company incurred costs of $40.7 and $46.1, respectively, associated with this restructuring initiative primarily related to employee termination benefits and impairment of property, plant and equipment. The Company incurred costs of $9.5 in its U.S. Consumer segment and $10.4 and $15.6 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 nine months ended July 2, 2022, respectively. The Company incurred costs of $7.4 in its U.S. Consumer segment, $7.1 in its Hawthorne segment and $6.3 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and nine months ended July 2, 2022, respectively. The COVID-19 pandemic has had, and continues to have, an impact on financial markets, economic conditions, and portions of the Company’s business and industry. The Company has actively addressed the pandemic’s ongoing impact on its employees, operations, customers, consumers, and communities, by, among other things, implementing contingency plans, making operational adjustments where necessary, and providing assistance to organizations that support front-line workers. The first priority of the Company’s pandemic response has been and remains the health, safety and well-being of its employees. In addition to implementing measures to help ensure the health and safety of its employees, the Company implemented an interim premium pay allowance for certain associates in its field sales force and its manufacturing and distribution centers. Costs incurred during the three and nine months ended July 2, 2022 related to COVID-19 were immaterial. During the three and nine months ended July 3, 2021, the Company incurred costs of $1.9 and $26.1, respectively, associated with the COVID-19 pandemic primarily related to premium pay. The Company incurred costs of $0.8 and $19.8 in its U.S. Consumer segment, $0.5 and $2.4 in its Hawthorne segment and $0.2 and $0.3 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 nine months ended July 3, 2021, respectively. The Company incurred costs of $0.3 and $3.5 in its U.S. Consumer segment and $0.1 in its Other segment in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and nine months ended July 3, 2021, respectively.

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- 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
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