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RESTRUCTURING AND RELATED CHARGES | 12 Months Ended
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Sep. 30, 2021
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND RELATED CHARGES | RESTRUCTURING AND RELATED CHARGES Global Productivity Improvement Program – 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 in 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 3 – Divestitures and Note 17 – Related Party Transactions for further discussion. The initiative includes review of global processes, opportunity spending 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 $152.2 million as of September 30, 2021, with approximately $2.5 million forecasted in the foreseeable future. The project costs are anticipated to be incurred through the fiscal year ending September 30, 2022. GPC Edwardsville 3PL Transition - During the year ended September 30, 2021, the GPC segment entered into an initiative to transition its third party logistics (3PL) service provide at its Edwardsville, IL distribution center to optimize its operations and improve fill rates to meet customer requirements and handle projected growth. Costs incurred to facilitate the transition service providers include one-time implementation and start-up costs with the new service provider, including the integration of the provider systems and technology, incremental compensation and incentive-based compensation to maintain performance during the transition period, duplicative and redundant costs between providers, and incremental costs for various disruptions in the operations during the transition period, including supplemental transportation and storage costs as the new 3PL operations are fully integrated and transitioned. Total cumulative costs incurred associated with the project were $11.5 million as of September 30, 2021, with approximately $12.2 million forecasted in the foreseeable future. The project costs are anticipated to be incurred through the first half of the fiscal year ending September 30, 2022. SAP S4 ERP Transformation - During the year ended September 30, 2021, the Company entered into an initiative to transform its enterprise-wide operating system to SAP S4. The initiative is a multi-year project that will include various project costs, including software configuration and implementation costs that would be recognized as a capital expenditure or deferred cost in accordance with applicable accounting policies. Certain restructuring related costs associated with the initiative include project development and management costs, and professional services with business partners engaged towards planning, design and business process review that would not qualify as software implementation costs. The Company is currently in the planning and design stage of the project. Total cumulative costs incurred associated with the project were $4.3 million as of September 30, 2021 with approximately $13.0 million forecasted in the foreseeable future. The project is a multi-year implementation with various phases that will be realized throughout the project timeline, depending upon business unit and/or jurisdiction, and is anticipated to be incurred through September 30, 2024. 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 years ended September 30, 2021, 2020, and 2019:
(in millions) |  | 2021 |  | 2020 |  | 2019
Global productivity improvement program |  | $ | 21.2 |  |  | $ | 71.1 |  |  | $ | 59.9 |
GPC Edwardsville 3PL transition |  | 11.5 |  |  | — |  |  | — |
SAP S4 ERP transformation |  | 4.3 |  |  | — |  |  | — |
Other restructuring activities |  | 3.3 |  |  | 0.5 |  |  | 1.1 |
Total restructuring and related charges |  | $ | 40.3 |  |  | $ | 71.6 |  |  | $ | 61.0 |
Reported as: |  |  |  |  |  |
Cost of goods sold |  | $ | 1.9 |  |  | $ | 13.8 |  |  | $ | 2.5 |
Operating expense |  | 38.4 |  |  | 57.8 |  |  | 58.5 |
The following summarizes restructuring and related charges for the years ended September 30, 2021, 2020, and 2019, and cumulative costs of restructuring initiatives as of September 30, 2021, by cost type. Termination costs consist of involuntary employee termination benefits and severance pursuant to a one-time benefit arrangement recognized as part of a restructuring initiative. Other costs consist of non-termination type costs related to restructuring initiatives such as incremental costs to consolidate or close facilities, relocate employees, cost to retrain employees to use newly deployed assets or systems, transition of third-party providers, pervasive system implementations and redundant or incremental transitional operating costs, among others:
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
For the year ended September 30, 2021 |  | $ | 7.7 |  |  | $ | 32.6 |  |  | $ | 40.3 |
For the year ended September 30, 2020 |  | 12.4 |  |  | 59.2 |  |  | 71.6 |
For the year ended September 30, 2019 |  | 9.4 |  |  | 51.6 |  |  | 61.0 |
Cumulative costs through September 30, 2021 |  | 29.2 |  |  | 123.0 |  |  | 152.2 |
Future costs to be incurred |  | — |  |  | 27.7 |  |  | 27.7 |
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 years ended September 30, 2021, 2020, and 2019:
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
Accrual balance at September 30, 2019 |  | $ | 6.6 |  |  | $ | 27.0 |  |  | $ | 33.6 |
Adoption of ASU 842 |  | — |  |  | (4.2) |  |  | (4.2) |
Provisions |  | 4.0 |  |  | 41.6 |  |  | 45.6 |
Cash expenditures |  | (7.0) |  |  | (57.8) |  |  | (64.8) |
Non-cash items |  | 0.3 |  |  | (0.3) |  |  | — |
Accrual balance at September 30, 2020 |  | $ | 3.9 |  |  | $ | 6.3 |  |  | $ | 10.2 |
Provisions |  | 5.7 |  |  | 4.6 |  |  | 10.3 |
Cash expenditures |  | (4.7) |  |  | (5.4) |  |  | (10.1) |
Non-cash items |  | (0.3) |  |  | 0.1 |  |  | (0.2) |
Accrual balance at September 30, 2021 |  | $ | 4.6 |  |  | $ | 5.6 |  |  | $ | 10.2 |
Effective October 1, 2019, the Company adopted ASU 842 resulting in the recognition of ROU operating lease liabilities for outstanding payments on operating leases. Amounts previously recognized as a restructuring accrual associated with lease termination costs were recognized as a reduction of the ROU operating lease asset realized upon adoption of ASU 842 for the respective lease and the outstanding lease payments are captured as ROU operating lease liabilities. The following summarizes restructuring and related charges by segment for the years ended September 30, 2021, 2020, and 2019, cumulative costs of restructuring initiatives as of September 30, 2021 and future expected costs to be incurred by segment:
(in millions) |  | HPC |  | GPC |  | H&G |  | Corporate |  | Total
For the year ended September 30, 2021 |  | $ | 9.1 |  |  | $ | 15.2 |  |  | $ | 0.4 |  |  | $ | 15.6 |  |  | $ | 40.3 |
For the year ended September 30, 2020 |  | 4.6 |  |  | 20.8 |  |  | 0.5 |  |  | 45.7 |  |  | 71.6 |
For the year ended September 30, 2019 |  | 8.1 |  |  | 7.6 |  |  | 1.8 |  |  | 43.5 |  |  | 61.0 |
Cumulative costs through September 30, 2021 |  | 20.6 |  |  | 30.3 |  |  | 2.7 |  |  | 98.6 |  |  | 152.2 |
Future costs to be incurred |  | 1.3 |  |  | 12.5 |  |  | — |  |  | 13.9 |  |  | 27.7 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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