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IMPAIRMENT, RESTRUCTURING AND OTHER
 12 Months Ended
Sep. 30, 2025
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,
202520242023
Cost of sales—impairment, restructuring and other:
Restructuring and other charges, net$11.9 $72.9 $148.5 
Right-of-use asset impairments4.5 5.3 25.8 
Property, plant and equipment impairments3.9 5.3 11.4 
Operating expenses—impairment, restructuring and other:
Restructuring and other charges (recoveries), net35.2 (4.3)51.2 
Loss on sale of business17.7 — — 
Loss on exchange of convertible debt investment7.0 — — 
Goodwill and intangible asset impairments3.6 2.5 127.9 
Convertible debt other-than-temporary impairments— 64.6 101.3 
Total impairment, restructuring and other charges$83.8 $146.3 $466.1 
The following table summarizes the activity related to liabilities associated with restructuring activities for each of the periods presented:
Year Ended September 30,
 202520242023
Amounts accrued at beginning of year$18.9 $40.5 $31.5 
Restructuring charges36.2 11.8 55.6 
Payments(36.0)(33.4)(46.6)
Amounts accrued at end of year $19.1 $18.9 $40.5 
As of September 30, 2025, restructuring accruals include $4.5 that is classified as long-term.
On September 30, 2025, the Company completed the divestiture of its Hawthorne professional horticulture business based in the Netherlands for $8.5, which was financed by the Company in the form of a loan bearing interest at 6.0% with a maturity date of December 31, 2029. The seller financing loan is recorded in the “Other assets” line in the Consolidated Balance Sheets and was classified as an investing activity in the Consolidated Statements of Cash Flows. The Company incurred a non tax-deductible loss on the sale of $17.7 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2025. The loss included a write-off of accumulated foreign currency translation adjustments of $9.5.
During fiscal 2025, the Company incurred employee and executive severance charges of $25.3. The Company incurred charges of $6.1 in its U.S. Consumer segment and $1.2 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2025. The Company incurred charges of $2.3 in its U.S. Consumer segment, $3.0 in its Hawthorne segment, $1.1 in its Other segment and $11.6 at Corporate in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2025.
During fiscal 2025, the Company incurred a charge of $7.5 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations associated with a settlement agreement to resolve litigation with the former shareholders of a business that was acquired in fiscal 2021.
During fiscal 2025, the Company incurred a non-cash loss of $7.0 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations related to the exchange of its convertible debt investment in RIV Capital for non-voting exchangeable shares of FLUENT. Refer to “NOTE 7. INVESTMENT IN UNCONSOLIDATED AFFILIATES” for further details.
During fiscal 2025, the Company incurred impairment charges of $3.6 associated with Hawthorne finite-lived intangible assets 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 reduced the size of its supply chain network, reduced staffing levels and implemented other cost-reduction initiatives. The Company also accelerated the reduction of certain Hawthorne inventory, primarily lighting, growing environments and hardware products, to reduce on hand inventory to align with the reduced network capacity. During fiscal 2025, the Company incurred costs of $13.0 associated with this restructuring initiative primarily related to facility closure costs and impairment of right-of-use assets and property, plant and equipment. The Company incurred costs of $4.0 in its U.S. Consumer segment and $9.0 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2025. During fiscal 2024, the Company incurred costs of $89.4 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, intangible assets, property, plant and equipment and software. The Company incurred costs of $11.3 in its U.S. Consumer segment and $71.8 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2024. The Company incurred costs of $1.5 in its U.S. Consumer segment, $1.0 in its Hawthorne segment, $1.1 in its Other segment and $2.4 at Corporate in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations during fiscal 2024. 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. Costs incurred since the inception of this restructuring initiative through September 30, 2025 were $62.4 for the U.S. Consumer segment, $306.2 for the Hawthorne segment, $2.9 for the Other segment and $25.1 at Corporate.
During fiscal 2024 and fiscal 2023, the Company recorded non-cash, pre-tax other-than-temporary impairment charges related to its convertible debt investments of $64.6 and $101.3, respectively, in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations. Refer to “NOTE 15. FAIR VALUE MEASUREMENTS” for further details.
During fiscal 2024, the Company recorded a gain of $12.1 in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations associated with a payment received in resolution of a dispute with the former ownership group of a business that was acquired in fiscal 2022. This payment was classified as an operating activity in the Consolidated Statements of Cash Flows.
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. Refer to “NOTE 4. GOODWILL AND INTANGIBLE ASSETS, NET” for further details.