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IMPAIRMENT, RESTRUCTURING AND OTHER | 6 Months Ended
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Apr. 01, 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 Condensed Consolidated Statements of Operations. The following table details impairment, restructuring and other charges for each of the periods presented:
| Three Months Ended |  | Six Months Ended
| April 1, 2023 |  | April 2, 2022 |  | April 1, 2023 |  | April 2, 2022
Cost of sales—impairment, restructuring and other: |  |  |  |  |  |  |
Restructuring and other charges, net | $ | 99.9 |  |  | $ | 2.5 |  |  | $ | 105.6 |  |  | $ | 2.5 |
Right-of-use asset impairments | 14.1 |  |  | — |  |  | 15.4 |  |  | — |
Property, plant and equipment impairments | 4.7 |  |  | 2.8 |  |  | 8.0 |  |  | 2.8 |
Operating expenses: |  |  |  |  |  |  |
Restructuring and other charges, net | 21.8 |  |  | 0.1 |  |  | 30.2 |  |  | 1.8 |
Total impairment, restructuring and other charges | $ | 140.5 |  |  | $ | 5.4 |  |  | $ | 159.2 |  |  | $ | 7.1 |
The following table summarizes the activity related to liabilities associated with restructuring activities during the six months ended April 1, 2023:
Amounts accrued at September 30, 2022 | $ | 31.5 |
Restructuring charges | 21.3 |
Payments | (21.7) |
Amounts accrued at April 1, 2023 | $ | 31.1 |
As of April 1, 2023, restructuring accruals include $9.7 that is classified as long-term. 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. During the second quarter of fiscal 2023, the Company accelerated the optimization of its Hawthorne supply chain network by announcing the closure of four additional distribution centers. In order to reduce on hand inventory to align with the optimized network capacity, the Company sold its non-core Hurricane TM branded fans business for $5.0 and commenced plans to accelerate the reduction of certain other Hawthorne inventory, primarily lighting, growing environments and hardware products. During the three and six months ended April 1, 2023, the Company incurred costs of $136.8 and $151.4, respectively, 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 $0.2 and $1.2 in its U.S. Consumer segment and $118.5 and $127.0 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 April 1, 2023, respectively. The Company incurred costs of $0.1 and $0.3 in its U.S. Consumer segment, $17.1 and $18.2 in its Hawthorne segment, $0.1 and $0.2 in its Other segment and $0.8 and $4.5 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended April 1, 2023, respectively. Costs incurred from the inception of this restructuring initiative through April 1, 2023 were $180.3 for the Hawthorne segment, $23.1 for the U.S. Consumer segment, $0.9 for the Other segment and $12.2 for Corporate.

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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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