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Restructuring And Related Charges | 9 Months Ended
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Jun. 28, 2020
Restructuring and Related Activities [Abstract] |
Restructuring And Related Charges | RESTRUCTURING AND RELATED CHARGES Global Productivity Improvement Plan – During the year ended September 30, 2019, the Company initiated a company-wide, multi-year program, which consists of various restructuring related initiatives to redirect resources and spending to drive growth, identify cost savings and pricing opportunities through standardization and optimization, develop organizational and operating optimization, and reduce overall operational complexity across the Company. Since the announcement of the project and completion of the Company’s divestitures of GBL and GAC during the year ended September 30, 2019, the project focus includes the transitioning of the Company’s continuing operations in a post-divestiture environment and separation with Energizer TSAs and reverse TSAs. Refer to Note 2 – Divestitures and Note 18 – Related Party Transactions for further discussion of continuing involvement with Energizer. The initiative includes review of global processes and organization design and structures; headcount reductions and transfers; and rightsizing the Company’s shared operations and commercial business strategy in certain regions and local jurisdictions; among others. Total cumulative costs incurred associated with the project were $113.9 million as of June 28, 2020, with approximately $74.8 million forecasted in the foreseeable future. The project costs are anticipated to be incurred through the fiscal year ending September 30, 2022. Other Restructuring Activities – The Company may enter into small, less significant initiatives and restructuring related activities to reduce costs and improve margins throughout the organization. Individually these activities are not substantial and occur over a shorter time period (generally less than 12 months). The following summarizes restructuring and related charges for the three and nine month periods ended June 28, 2020 and June 30, 2019:
|  | Three Month Periods Ended |  |  |  | Nine Month Periods Ended |  |
(in millions) |  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
Global productivity improvement plan |  | $ | 12.2 |  |  | $ | 19.6 |  |  | $ | 60.1 |  |  | $ | 38.1 |
Other restructuring activities |  | — |  |  | 1.1 |  |  | 1.5 |  |  | 4.1 |
Total restructuring and related charges |  | $ | 12.2 |  |  | $ | 20.7 |  |  | $ | 61.6 |  |  | $ | 42.2 |
Reported as: |  |  |  |  |  |  |  |
Cost of goods sold |  | $ | (0.3) |  |  | $ | 0.5 |  |  | $ | 12.5 |  |  | $ | 1.5 |
Operating expense |  | 12.5 |  |  | 20.2 |  |  | 49.1 |  |  | 40.7 |
The following is a summary of restructuring and related charges for the three and nine month periods ended June 28, 2020 and June 30, 2019 and cumulative costs for current restructuring initiatives as of June 28, 2020, by cost type.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
For the three month period ended June 28, 2020 |  | $ | 0.5 |  |  | $ | 11.7 |  |  | $ | 12.2 |
For the three month period ended June 30, 2019 |  | 4.0 |  |  | 16.7 |  |  | 20.7 |
For the nine month period ended June 28, 2020 |  | 11.9 |  |  | 49.7 |  |  | 61.6 |
For the nine month period ended June 30, 2019 |  | 7.6 |  |  | 34.6 |  |  | 42.2 |
Cumulative costs through June 28, 2020 |  | 19.1 |  |  | 94.8 |  |  | 113.9 |
Future costs to be incurred |  | 3.5 |  |  | 71.3 |  |  | 74.8 |
The following is a rollforward of the accrual related to all restructuring and related activities, included within Other Current Liabilities, by cost type for the nine month period ended June 28, 2020.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
Accrual balance at September 30, 2019 |  | $ | 6.6 |  |  | $ | 27.0 |  |  | $ | 33.6 |
Adoption of ASU 842 (Note 1) |  | — |  |  | (4.2) |  |  | (4.2) |
Provisions |  | 4.1 |  |  | 38.3 |  |  | 42.4 |
Cash expenditures |  | (4.6) |  |  | (57.4) |  |  | (62.0) |
Non-cash items |  | 0.1 |  |  | (0.3) |  |  | (0.2) |
Accrual balance at June 28, 2020 |  | $ | 6.2 |  |  | $ | 3.4 |  |  | $ | 9.6 |
The following summarizes restructuring and related charges by segment for the three and nine month periods ended June 28, 2020 and June 30, 2019, cumulative costs incurred through June 28, 2020, and future expected costs to be incurred by Spectrum’s segments of continuing operations:
(in millions) |  | HHI |  | HPC |  | GPC |  | H&G |  | Corporate |  | Total
For the three month period ended June 28, 2020 |  | $ | 0.3 |  |  | $ | 0.7 |  |  | $ | 2.1 |  |  | $ | — |  |  | $ | 9.1 |  |  | $ | 12.2 |
For the three month period ended June 30, 2019 |  | 1.1 |  |  | 3.2 |  |  | 1.4 |  |  | 0.4 |  |  | 14.6 |  |  | 20.7 |
For the nine month period ended June 28, 2020 |  | 0.9 |  |  | 3.6 |  |  | 18.8 |  |  | 0.3 |  |  | 38.0 |  |  | 61.6 |
For the nine month period ended June 30, 2019 |  | 4.3 |  |  | 4.7 |  |  | 6.4 |  |  | 1.4 |  |  | 25.4 |  |  | 42.2 |
Cumulative costs through June 28, 2020 |  | 1.4 |  |  | 11.6 |  |  | 18.5 |  |  | 2.1 |  |  | 80.3 |  |  | 113.9 |
Future costs to be incurred |  | 1.5 |  |  | 6.0 |  |  | 1.1 |  |  | 4.4 |  |  | 61.8 |  |  | 74.8 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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