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RESTRUCTURING AND RELATED CHARGES | 6 Months Ended
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Apr. 03, 2022
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 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 from Energizer TSAs and reverse TSAs. Refer to Note 2 – Divestitures 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 $156.3 million as of April 3, 2022, with approximately $0.9 million forecasted in the foreseeable future. The project costs are anticipated to be incurred through the fiscal year ending September 30, 2022. GPC Distribution Center Transitions – During the year ended September 30, 2021, the GPC segment entered into an initiative to update its supply chain and distribution operations within the US to optimize and improve fill rates, address capacity needs attributable to recent and projected growth in the business, improve product availability to meet increasing customer demand and improve overall operational effectiveness and throughput. The initiative includes the transition of its third party logistics (3PL) service provider at its existing Edwardsville, IL distribution center, incorporating new facilities into the distribution footprint by expanding warehouse capacity and securing additional space, and updating engagement and processes with suppliers and its transportation and logistics handlers. Costs incurred to facilitate the transition of service providers include one-time implementation and start-up costs, 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, and incremental costs for various disruptions in the operations during the transition period, including supplemental transportation and storage costs. Due to the continued supply chain constraints impacting product availability experienced by the GPC segment, the Company has extended the initiative and expanded the project to include additional long-term capacity to be available later in the 2022 fiscal year. Total cumulative costs incurred associated with the project were $27.4 million as of April 3, 2022, with approximately $5.3 million forecasted in the foreseeable future. The project costs are anticipated to be incurred through the remainder of the year ending September 30, 2022. Other Restructuring Activities – The Company may enter into small, less significant initiatives and restructuring related activities primarily 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 six month periods ended April 3, 2022 and April 4, 2021:
|  | Three Month Periods Ended |  | Six Month Periods Ended
(in millions) |  | April 3, 2022 |  | April 4, 2021 |  | April 3, 2022 |  | April 4, 2021
Global productivity improvement program |  | $ | 2.3 |  |  | $ | 1.9 |  |  | $ | 4.1 |  |  | $ | 10.9 |
GPC distribution transition |  | 5.6 |  |  | — |  |  | 15.9 |  |  | — |
Other restructuring activities |  | 8.5 |  |  | 2.4 |  |  | 13.8 |  |  | 2.4 |
Total restructuring and related charges |  | $ | 16.4 |  |  | $ | 4.3 |  |  | $ | 33.8 |  |  | $ | 13.3 |
Reported as: |  |  |  |  |  |  |  |
Cost of goods sold |  | $ | 1.2 |  |  | $ | 1.3 |  |  | $ | 1.5 |  |  | $ | 1.4 |
Operating expense |  | 15.2 |  |  | 3.0 |  |  | 32.3 |  |  | 11.9 |
The following is a summary of restructuring and related charges for the three and six month periods ended April 3, 2022 and April 4, 2021, by cost type.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
For the three month period ended April 3, 2022 |  | $ | 1.2 |  |  | $ | 15.2 |  |  | $ | 16.4 |
For the three month period ended April 4, 2021 |  | 0.4 |  |  | 3.9 |  |  | 4.3 |
For the six month period ended April 3, 2022 |  | 1.9 |  |  | 31.9 |  |  | 33.8 |
For the six month period ended April 4, 2021 |  | 3.3 |  |  | 10.0 |  |  | 13.3 |
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 six month period ended April 3, 2022.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
Accrual balance at September 30, 2021 |  | $ | 4.6 |  |  | $ | 5.6 |  |  | $ | 10.2 |
Provisions |  | 0.1 |  |  | 2.9 |  |  | 3.0 |
Cash expenditures |  | (1.9) |  |  | (0.7) |  |  | (2.6) |
Foreign currency and other |  | (0.8) |  |  | (0.1) |  |  | (0.9) |
Accrual balance at April 3, 2022 |  | $ | 2.0 |  |  | $ | 7.7 |  |  | $ | 9.7 |
The following summarizes restructuring and related charges by segment for the three and six month periods ended April 3, 2022 and April 4, 2021, by the Company’s segments:
(in millions) |  | HPC |  | GPC |  | H&G |  | Corporate |  | Total
For the three month period ended April 3, 2022 |  | $ | 3.7 |  |  | $ | 8.2 |  |  | $ | — |  |  | $ | 4.5 |  |  | $ | 16.4 |
For the three month period ended April 4, 2021 |  | 1.5 |  |  | 0.6 |  |  | — |  |  | 2.2 |  |  | 4.3 |
For the six month period ended April 3, 2022 |  | 4.3 |  |  | 19.6 |  |  | — |  |  | 9.9 |  |  | 33.8 |
For the six month period ended April 4, 2021 |  | 4.1 |  |  | 2.1 |  |  | — |  |  | 7.1 |  |  | 13.3 |

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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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