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IMPAIRMENT, RESTRUCTURING AND OTHER | 12 Months Ended
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Sep. 30, 2023
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 Consolidated Statements of Operations. The following table details impairment, restructuring and other charges (recoveries) for each of the periods presented:
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
Cost of sales—impairment, restructuring and other: |  |  |  |  |
Restructuring and other charges (recoveries), net | $ | 148.5 |  |  | $ | 143.6 |  |  | $ | (0.3) |
Right-of-use asset impairments | 25.8 |  |  | — |  |  | — |
Property, plant and equipment impairments | 11.4 |  |  | 16.6 |  |  | — |
COVID-19 related costs | — |  |  | — |  |  | 25.0 |
Operating expenses—impairment, restructuring and other: |  |  |  |  |
Goodwill and intangible asset impairments | 127.9 |  |  | 668.3 |  |  | — |
Convertible debt other-than-temporary impairments | 101.3 |  |  | — |  |  | — |
Restructuring and other charges, net | 51.2 |  |  | 40.9 |  |  | 0.1 |
Gains on sale of property, plant and equipment | — |  |  | (16.2) |  |  | — |
COVID-19 related costs | — |  |  | — |  |  | 4.2 |
Total impairment, restructuring and other charges | $ | 466.1 |  |  | $ | 853.2 |  |  | $ | 29.0 |
The following table summarizes the activity related to liabilities associated with restructuring activities for each of the periods presented:
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
Amounts accrued at beginning of year | $ | 31.5 |  |  | $ | 1.9 |  |  | $ | 3.9 |
Restructuring charges | 55.6 |  |  | 47.1 |  |  | 29.0 |
Payments | (46.6) |  |  | (17.5) |  |  | (31.0) |
Amounts accrued at end of year | $ | 40.5 |  |  | $ | 31.5 |  |  | $ | 1.9 |
As of September 30, 2023, restructuring accruals include $13.9 that is classified as long-term. During fiscal 2023, the Company recorded non-cash, pre-tax goodwill and intangible asset impairment charges of $127.9 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations, comprised of $117.7 of finite-lived intangible asset impairment charges associated with the Hawthorne segment and $10.3 of goodwill impairment charges associated with the Other segment. During fiscal 2023, the Company recorded a non-cash, pre-tax other-than-temporary impairment charge related to its convertible debt investments of $101.3 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations. During fiscal 2022, the Company began implementing a series of Company-wide organizational changes and initiatives intended to create operational and management-level efficiencies. As part of this restructuring initiative, the Company is reducing the size of its supply chain network, reducing staffing levels and implementing other cost-reduction initiatives. In addition, to reduce its on hand inventory to align with the optimized network capacity, the Company has accelerated the reduction of certain Hawthorne inventory, primarily lighting, growing environments and hardware products. During fiscal 2023, the Company incurred costs of $229.0 associated with this restructuring initiative primarily related to inventory write-down charges, employee termination benefits, facility closure costs and impairment of right-of-use assets and property, plant and equipment. The Company incurred costs of $16.3 in its U.S. Consumer segment and $168.5 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2023. The Company incurred costs of $7.7 in its U.S. Consumer segment, $20.7 in its Hawthorne segment, $0.8 in its Other segment and $14.9 at Corporate in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2023. During fiscal 2022, the Company incurred costs of $65.2 associated with this restructuring initiative primarily related to employee termination benefits and impairment of property, plant and equipment. The Company incurred costs of $9.7 in its U.S. Consumer segment and $27.1 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2022. The Company incurred costs of $11.9 in its U.S. Consumer segment, $8.1 in its Hawthorne segment, $0.7 in its Other segment and $7.7 at Corporate in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2022. Costs incurred to date since the inception of this restructuring initiative are $45.5 for the U.S. Consumer segment, $224.4 for the Hawthorne segment, $1.5 for the Other segment and $22.7 at Corporate. During fiscal 2022, the Company recorded non-cash, pre-tax goodwill and intangible asset impairment charges of $632.4 as a result of interim impairment testing of its Hawthorne segment in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations, comprised of $522.4 of goodwill impairment charges and $110.0 of finite-lived intangible asset impairment charges. During fiscal 2022, the Company incurred inventory write-down charges of $120.9 in the “Cost of sales—impairment, restructuring and other” line in the Consolidated Statements of Operations and finite-lived intangible asset impairment charges of $35.3 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations associated with its decision to discontinue and exit the market for certain Hawthorne lighting products and brands. During fiscal 2022, the Company recorded gains of $16.2 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations associated with the sale of property, plant and equipment. During fiscal 2021, the Company incurred costs of $29.2 associated with the COVID-19 pandemic primarily related to premium pay. The Company incurred costs of $21.2 in its U.S. Consumer segment, $3.2 in its Hawthorne segment and $0.6 in its Other segment in the “Cost of sales—impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2021. The Company incurred costs of $4.0 in its U.S. Consumer segment and $0.2 in its Other segment in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2021.

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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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