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RESTRUCTURING CHARGES | 9 Months Ended
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Jul. 02, 2023
Restructuring and Related Activities [Abstract] |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES During the nine month period ended July 2, 2023, the Company entered into an initiative in response to the continuing pressures within the consumer products and retail markets and adjusted strategic initiatives within certain segments, resulting in the realization of headcount reductions. Total cumulative exit and disposal costs associated with the initiative were $5.3 million, with approximately $3 million of additional costs forecasted in the foreseeable future. The project costs are anticipated to be incurred through the September 30, 2023. During the year ended September 30, 2022, the Company entered into an 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 exit and disposal costs associated with the initiative were $10.5 million. As of July 2, 2023, substantially all exit and disposal costs associated, with the initiative have been recognized in the prior year with incremental costs realized during the three and nine month periods ended July 2, 2023, which were attributable to changes in timing and accruals previously recognized since the initiative was established. 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 exit and disposal costs associated with the initiative were $1.4 million. As of July 2, 2023, substantially all exit and disposal costs associated with the initiative have been recognized. 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 three and nine month periods ended July 2, 2023 and July 3, 2022:
|  | Three Month Periods Ended |  | Nine Month Periods Ended
(in millions) |  | July 2, 2023 |  | July 3, 2022 |  | July 2, 2023 |  | July 3, 2022
Fiscal 2023 restructuring |  | $ | 0.9 |  |  | $ | — |  |  | $ | 5.3 |  |  | $ | — |
Fiscal 2022 restructuring |  | — |  |  | 8.1 |  |  | 0.7 |  |  | 8.1 |
Russia dissolution |  | 0.1 |  |  | — |  |  | 0.8 |  |  | — |
GPC distribution center transition |  | — |  |  | 8.1 |  |  | — |  |  | 24.1 |
Global productivity improvement program |  | — |  |  | 1.2 |  |  | — |  |  | 5.2 |
Other project costs |  | 0.2 |  |  | 0.1 |  |  | 1.2 |  |  | 14.0 |
Total restructuring charges |  | $ | 1.2 |  |  | $ | 17.5 |  |  | $ | 8.0 |  |  | $ | 51.4 |
Reported as: |  |  |  |  |  |  |  |
Cost of goods sold |  | $ | — |  |  | $ | 0.4 |  |  | $ | 0.7 |  |  | $ | 1.4 |
Selling expense |  | — |  |  | 8.1 |  |  | — |  |  | 24.1 |
General and administrative expense |  | 1.2 |  |  | 9.0 |  |  | 7.3 |  |  | 25.9 |
The following is a summary of restructuring charges by segment for the three and nine month periods ended July 2, 2023 and July 3, 2022.
|  | Three Month Periods Ended |  | Nine Month Periods Ended
(in millions) |  | July 2, 2023 |  | July 3, 2022 |  | July 2, 2023 |  | July 3, 2022
GPC |  | $ | 0.7 |  |  | $ | 11.6 |  |  | $ | 3.7 |  |  | $ | 31.1 |
H&G |  | — |  |  | 0.6 |  |  | 0.2 |  |  | 0.6 |
HPC |  | 0.5 |  |  | 4.2 |  |  | 3.7 |  |  | 8.5 |
Corporate |  | — |  |  | 1.1 |  |  | 0.4 |  |  | 11.2 |
Total restructuring charges |  | $ | 1.2 |  |  | $ | 17.5 |  |  | $ | 8.0 |  |  | $ | 51.4 |
The following is a summary of restructuring charges by cost type for the three and nine month periods ended July 2, 2023 and July 3, 2022.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
For the three month period ended July 2, 2023 |  | $ | 1.1 |  |  | $ | 0.1 |  |  | $ | 1.2 |
For the three month period ended July 3, 2022 |  | 8.5 |  |  | 9.0 |  |  | 17.5 |
For the nine month period ended July 2, 2023 |  | 6.7 |  |  | 1.3 |  |  | 8.0 |
For the nine month period ended July 3, 2022 |  | 10.4 |  |  | 41.0 |  |  | 51.4 |
The following is a roll forward of the accrual for restructuring charges by cost type for the nine month period ended July 2, 2023.
(in millions) |  | Termination Benefits |  | Other Costs |  | Total
Accrual balance at September 30, 2022 |  | $ | 3.8 |  |  | $ | 0.2 |  |  | $ | 4.0 |
Provisions |  | 5.7 |  |  | 0.1 |  |  | 5.8 |
Cash expenditures |  | (7.0) |  |  | (0.1) |  |  | (7.1) |
Foreign currency and other |  | 0.3 |  |  | (0.1) |  |  | 0.2 |
Accrual balance at July 2, 2023 |  | $ | 2.8 |  |  | $ | 0.1 |  |  | $ | 2.9 |

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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