XML 47 R18.htm IDEA: XBRL DOCUMENT
v3.22.2.2

RESTRUCTURING CHARGES | 12 Months Ended
--- | ---
Sep. 30, 2022
Restructuring and Related Activities [Abstract] |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES During the year ended September 30, 2022, the Company entered into a new initiative in response to changes observed within consumer products and retail markets, continued inflationary cost pressures and headwinds, and to facilitate changes in the management structure for enabling functions of the consolidated group, resulting in the realization of headcount reductions. Total cumulative costs associated with the initiative were $9.8 million. Substantially all costs associated with the initiative have been recognized, with no further significant costs expected to be incurred. Additionally, during the year ended September 30, 2022, the Company initiated the exit of its in-country commercial operations in Russia, predominantly supporting the HPC segment, including costs for severance and other exit and disposal activity to close the operations. Total cumulative costs associated, with the initiative were $0.6 million with total projected costs for the initiative to be approximately $2 million, excluding lease termination or asset impairment costs. During the year ended September 30, 2021, the GPC segment entered into an initiative to update its supply chain and distribution operations within the U.S. to address capacity needs, optimize and improve fill rates attributable to recent growth in the business and consumer demand, and improve overall operational effectiveness and throughput. The initiative includes the transition of its third party logistics (3PL) service provider at its existing distribution center, incorporating new facilities into the distribution footprint by expanding warehouse capacity and securing additional space to support long-term distribution and fulfillment, plus updating engagement and processes with suppliers and its transportation and logistics handlers. Incremental costs include one-time transition, implementation and start-up cost with the new 3PL service provider, including the integration of provider systems and technology, incentive-based compensation to maintain performance during transition, duplicative and redundant costs, and incremental costs for various disruptions in the operations during the transition period including supplemental transportation and storage costs, and incremental detention and demurrage costs. As of September 30, 2022, total cumulative costs associated with the initiative were $41.9 million, with the project being complete and no further costs to be incurred. During the year ended September 30, 2019, the Company initiated the Global Productivity Improvement Program, which was a company-wide, multi-year program, consisting of various 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. With the Company’s divestitures in GBL and GAC during the year ended September 30, 2019, the project focus included the transition of the Company’s continuing operations in a post-divestiture environment and exiting of TSAs which were fully exited in January 2022. Refer to Note 3 – Divestitures for further discussion. The initiative included a review of global processes and organization design and structures, headcount reductions and transfers, and rightsizing the Company’s shared operations and commercial business strategy, and exit of certain internal production to third-party supplies, among others, resulting in recognition of severance benefits and other exit and disposal costs to facilitate such activity. As of September 30, 2022, total cumulative costs associated with the project were $157.3 million with the project being complete and no further costs to be incurred. The Company may enter into small, less significant initiatives 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 charges for the years ended September 30, 2022, 2021, and 2020:
(in millions) |  | 2022 |  | 2021 |  | 2020
Fiscal 2022 restructuring |  | $ | 9.8 |  |  | $ | — |  |  | $ | — |
Russia dissolution |  | 0.6 |  |  | — |  |  | — |
GPC distribution center transition |  | 30.4 |  |  | 11.5 |  |  | — |
Global productivity improvement program |  | 5.1 |  |  | 21.2 |  |  | 71.1 |
Other project costs |  | 13.9 |  |  | 7.6 |  |  | 0.5 |
Total restructuring and related charges |  | $ | 59.8 |  |  | $ | 40.3 |  |  | $ | 71.6 |
Reported as: |  |  |  |  |  |
Cost of goods sold |  | $ | 1.2 |  |  | $ | 1.9 |  |  | $ | 13.8 |
Selling expense |  | 30.4 |  |  | 11.5 |  |  | — |
General and administrative expense |  | 28.2 |  |  | 26.9 |  |  | 57.8 |
The following summarizes restructuring charges by segment for the years ended September 30, 2022, 2021, and 2020:
(in millions) |  | 2022 |  | 2021 |  | 2020
HPC |  | $ | 10.0 |  |  | $ | 9.1 |  |  | $ | 4.6 |
GPC |  | 37.9 |  |  | 15.2 |  |  | 20.8 |
H&G |  | 0.7 |  |  | 0.4 |  |  | 0.5 |
Corporate |  | 11.2 |  |  | 15.6 |  |  | 45.7 |
Total restructuring charges |  | $ | 59.8 |  |  | $ | 40.3 |  |  | $ | 71.6 |
The following is a summary of restructuring charges by cost type for the years ended September 30, 2022, 2021, and 2020.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
For the year ended September 30, 2022 |  | $ | 12.0 |  |  | $ | 47.8 |  |  | $ | 59.8 |
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 |
The following is a rollforward of the accrual for restructuring charges by cost type for the years ended September 30, 2022, 2021, and 2020, included in Other Current Liabilities on the Consolidated Statements of Financial Position.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
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 |
Provisions |  | 8.0 |  |  | (4.3) |  |  | 3.7 |
Cash expenditures |  | (6.3) |  |  | (0.7) |  |  | (7.0) |
Non-cash items |  | (2.6) |  |  | (0.3) |  |  | (2.9) |
Accrual balance at September 30, 2022 |  | $ | 3.7 |  |  | $ | 0.3 |  |  | $ | 4.0 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration