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IMPAIRMENT, RESTRUCTURING AND OTHER | 6 Months Ended
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Mar. 29, 2025
Restructuring and Related Activities [Abstract] |
IMPAIRMENT, RESTRUCTURING AND OTHER | NOTE 3. 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 |  | Six Months Ended
| March 29, 2025 |  | March 30, 2024 |  | March 29, 2025 |  | March 30, 2024
Cost of sales—impairment, restructuring and other: |  |  |  |  |  |  |
Restructuring and other charges, net | $ | 3.6 |  |  | $ | 70.1 |  |  | $ | 5.4 |  |  | $ | 64.0 |
Right-of-use asset impairments | 2.8 |  |  | 0.7 |  |  | 4.5 |  |  | 0.9 |
Property, plant and equipment impairments | 0.9 |  |  | 4.1 |  |  | 2.5 |  |  | 4.2 |
Operating expenses—impairment, restructuring and other: |  |  |  |  |  |  |
Restructuring and other charges (recoveries), net | 10.7 |  |  | 2.1 |  |  | 20.2 |  |  | (5.0) |
Loss on exchange of convertible debt investment | — |  |  | — |  |  | 7.0 |  |  | — |
Total impairment, restructuring and other charges, net | $ | 18.0 |  |  | $ | 77.0 |  |  | $ | 39.6 |  |  | $ | 64.1 |
The following table summarizes the activity related to liabilities associated with restructuring activities during the six months ended March 29, 2025:
Amounts accrued at September 30, 2024 | $ | 18.9 |
Restructuring charges | 24.2 |
Payments | (18.0) |
Amounts accrued at March 29, 2025 | $ | 25.1 |
As of March 29, 2025, restructuring accruals include $4.9 that is classified as long-term. During the three and six months ended March 29, 2025, the Company incurred employee and executive severance charges of $3.6 in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations and $5.4 and $14.9, respectively, in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations. The Company incurred charges of $3.0 in its U.S. Consumer segment and $0.6 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 six months ended March 29, 2025. The Company incurred charges of $3.3 in its U.S. Consumer segment and $2.1 and $11.6 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended March 29, 2025, respectively. During the three and six months ended March 29, 2025, the Company incurred a non-cash loss of $0.0 and $7.0, respectively, in the “Impairment, restructuring and other” line in the Condensed 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 2. INVESTMENT IN UNCONSOLIDATED AFFILIATES” for further details. 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. The Company incurred costs of $2.3 and $3.7 in its U.S. Consumer segment and $1.4 and $5.1 in its Hawthorne segment associated with this restructuring initiative 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 29, 2025, respectively. During the three and six months ended March 30, 2024, the Company incurred costs of $77.0 and $73.2, 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 recorded recoveries of $0.5 and incurred costs of $1.4 in its U.S. Consumer segment and incurred costs of $75.4 and $67.8 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 30, 2024, respectively. The Company recorded recoveries of $0.1 and $0.9 in its U.S. Consumer segment and incurred costs of $1.9 and $2.3 in its Hawthorne segment and $0.0 and $2.4 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended March 30, 2024, respectively. Costs incurred since the inception of this restructuring initiative through March 29, 2025 were $302.3 for the Hawthorne segment, $62.0 for the U.S. Consumer segment, $2.9 for the Other segment and $25.1 for Corporate. During the three and six months ended March 30, 2024, the Company recorded a gain of $0.0 and $12.1, respectively, in the “Impairment, restructuring and other” line in the Condensed 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 Condensed Consolidated Statements of Cash Flows.

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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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