Restructuring And Related Charges

12 Months Ended

Sep. 30, 2016

Restructuring And Related Charges [Abstract]

NOTE 4 - RESTRUCTURING AND RELATED CHARGES

GAC Business Rationalization Initiatives – During the third quarter of the year ended September 30, 2016, the Company implemented a series of initiatives in the GAC segment to consolidate certain operations and reduce operating costs. These initiatives included headcount reductions and the exit of certain facilities. Total costs associated with these initiatives are expected to be approximately $20 million, of which $5.3 million has been incurred to date, the balance is anticipated to be incurred through September 30, 2017.

HHI Business Rationalization Initiatives – During the fourth quarter of the year ended September 30, 2014, the Company implemented a series of initiatives throughout the HHI segment to reduce operating costs and exit low margin business outside the U.S. These initiatives included headcount reductions, the exit of certain facilities and the sale of a portion of the global HHI operations. Total costs associated with these initiatives of $16.6 million has been incurred to date, and completed as of September 30, 2016.

Global Expense Rationalization Initiatives – During the third quarter of the year ended September 30, 2013, the Company implemented a series of initiatives throughout the Company to reduce operating costs. These initiatives consisted of headcount reductions in the GBA and PET, and within Corporate. Total costs associated with these initiatives of $47.0 million has been incurred to date, and completed as of September 30, 2016.

Other Restructuring Activities – The Company has entered or may enter into small, less significant initiatives and restructuring activities to reduce costs and improve margins throughout the organization. Individually these activities are not substantial, and occur over a shorter time period (less than 12 months). Total costs associated with these initiatives are expected to be approximately $6 million, of which $2.9 million has been incurred to date.

The following summarizes restructuring and related charges for the years ended September 30, 2016, 2015, and 2014:


(in millions)	2016		2015		2014
Global expense rationalization initiatives	$	5.2	$	17.1	$	13.4
HHI business rationalization initiatives		1.8		10.3		4.5
GAC business rationalization initiatives		5.3		—		—
Other restructuring activities		2.9		1.3		5.0
Total restructuring and related charges	$	15.2	$	28.7	$	22.9
Reported as:
Cost of goods sold	$	0.5	$	2.1	$	3.7
Operating expense		14.7		26.6		19.2

The following summarizes restructuring and related charges for the years ended September 30, 2016, 2015, and 2014, and cumulative costs on restructuring initiatives as of September 30, 2016, by cost type:


	Termination		Other
(in millions)	Benefits		Costs		Total
For the year ended September 30, 2016		4.3		10.9		15.2
For the year ended September 30, 2015		7.0		21.7		28.7
For the year ended September 30, 2014		11.2		11.7		22.9
Cumulative costs through September 30, 2016		32.4		39.4		71.8

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 years ended September 30, 2016, 2015, and 2014:


	Termination		Other
(in millions)	Benefits		Costs		Total
Accrual balance at September 30, 2014	$	9.9	$	1.6	$	11.5
Provisions		5.1		3.9		9.0
Cash expenditures		(9.5)		(1.7)		(11.2)
Non Cash Items		(1.2)		0.1		(1.1)
Accrual balance at September 30, 2015		4.3		3.9		8.2
Provisions		4.3		10.9		15.2
Cash expenditures		(6.9)		(13.6)		(20.5)
Non-cash items		(0.1)		(0.2)		(0.3)
Accrual balance at September 30, 2016	$	1.6	$	1.0	$	2.6

The following summarizes restructuring and related charges by segment for the years ended September 30, 2016, 2015, and 2014, cumulative costs on restructuring initiatives as of September 30, 2016 and future expected costs to be incurred by segment:


(in millions)	GBA		PET		HHI		GAC		Corporate		Total
For the year ended September 30, 2016	$	0.8	$	4.6	$	4.5		5.3	$	—	$	15.2
For the year ended September 30, 2015		8.5		9.5		10.3		—		0.4		28.7
For the year ended September 30, 2014		11.2		3.0		8.2		—		0.5		22.9
Cumulative costs through September 30, 2016		30.0		15.1		19.3		5.3		2.1		71.8
Future costs to be incurred		1.0		1.8		0.1		14.6		0.1		17.6

SB/RH Holdings, LLC 10-K