IMPAIRMENT, RESTRUCTURING AND OTHER

9 Months Ended

Jun. 28, 2025

Restructuring and Related Activities [Abstract]

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				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024

Cost of sales—impairment, restructuring and other:

Restructuring and other charges (recoveries), net	$	3.7	$	(4.8)	$	9.2	$	59.3
Right-of-use asset impairments	—		2.3		4.5		3.3
Property, plant and equipment impairments	—		—		2.4		4.1
Operating expenses—impairment, restructuring and other:

Restructuring and other charges (recoveries), net	2.4		(0.8)		22.7		(5.9)
Loss on exchange of convertible debt investment	—		—		7.0		—

Total impairment, restructuring and other charges (recoveries), net	$	6.1	$	(3.3)	$	45.8	$	60.8

The following table summarizes the activity related to liabilities associated with restructuring activities during the nine months ended June 28, 2025:


Amounts accrued at September 30, 2024	$	18.9
Restructuring charges	31.4

Payments	(26.8)
Amounts accrued at June 28, 2025	$	23.5

As of June 28, 2025, restructuring accruals include $4.1 that is classified as long-term.

During the three and nine months ended June 28, 2025, the Company incurred employee and executive severance charges of $2.6 and $6.2, respectively, in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations and $1.4 and $16.2, respectively, in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations. The Company incurred charges of $2.0 and $5.0 in its U.S. Consumer segment and $0.6 and $1.2 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 June 28, 2025, respectively. The Company incurred charges of $1.9 in its U.S. Consumer segment, $2.7 in its Hawthorne segment and $11.6 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the nine months ended June 28, 2025.

During the three and nine months ended June 28, 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. During the three months ended June 28, 2025, the Company incurred costs associated with this restructuring initiative that were not material. During the nine months ended June 28, 2025, the Company incurred costs of $3.6 in its U.S. Consumer segment and $6.3 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 months ended June 29, 2024, the Company recorded net recoveries associated with this restructuring initiative that were not material. During the nine months ended June 29, 2024, the Company incurred costs of $69.7 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 $3.7 in its U.S. Consumer segment and $62.9 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the nine months ended June 29, 2024. The Company recorded recoveries of $1.2 in its U.S. Consumer segment, and incurred costs of $1.0 in its Hawthorne segment, $0.8 in its Other segment and $2.4 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the nine months ended June 29, 2024. Costs incurred since the inception of this restructuring initiative through June 28, 2025 were $303.5 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 nine months ended June 29, 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.