Restructuring and Related Charges

The Company reports restructuring and related charges associated with manufacturing and related initiatives of Spectrum Brands in “Consumer products cost of goods sold.” Restructuring and related charges reflected in “Consumer products cost of goods sold” include, but are not limited to, termination, compensation and related costs associated with manufacturing employees, asset impairments relating to manufacturing initiatives, and other costs directly related to the restructuring or integration initiatives implemented.

The Company reports restructuring and related charges relating to administrative functions of Spectrum Brands in “Selling, acquisition, operating and general expenses,” such as initiatives impacting sales, marketing, distribution, or other non-manufacturing functions. Restructuring and related charges reflected in “Selling, acquisition, operating and general expenses” include, but are not limited to, termination and related costs, any asset impairments relating to the functional areas described above, and other costs directly related to the initiatives.

In Fiscal 2013 and 2009, Spectrum Brands implemented a series of initiatives to reduce operating costs and to evaluate opportunities to improve its capital structure (the “Global Expense Rationalization Initiatives” and the “Global Cost Reduction Initiatives”). The following table summarizes restructuring and related charges incurred by the Global Expense Rationalization Initiatives and the Global Cost Reduction Initiatives, as well as other initiatives which were not significant, for the year ended September 30, 2013 and September 30, 2012 and where those charges are classified in the accompanying Consolidated Statements of Operations:



	Year ended September 30,
	2013		2012		2011		Charges Since Inception		Expected Future Charges		Total Projected Costs		Expected Completion Date
Initiatives:
Global Expense Rationalization	$	11.3	$	—	$	—	$	11.3	$	4.2	$	15.5	September 30, 2015
Global Cost Reduction	16.4		18.7		25.5		99.4		3.0		102.4		January 31, 2015
Other	6.3		0.9		3.1
	$	34.0	$	19.6	$	28.6

Classification:
Consumer products cost of goods sold	$	10.0	$	9.8	$	7.8
Selling, acquisition, operating and general expenses	24.0		9.8		20.8
	$	34.0	$	19.6	$	28.6

Included in “Other initiatives” in the table above, Spectrum Brands also recorded $6.2 of restructuring and related charges during the year ended September 30, 2013, related to initiatives implemented by the HHI Business prior to the acquisition by Spectrum Brands in December 2012.

The following table summarizes restructuring and related charges incurred by type of charge and where those charges are classified in the accompanying Consolidated Statements of Operations:



	Year ended September 30,
	2013			2012		2011
Costs included in cost of goods sold:
Global Expense Rationalization Initiatives:
Termination benefits	$	—		$	—	$	—
Other associated benefits	—			—		—
Global Cost Reduction Initiatives:
Termination benefits	0.2			2.9		1.7
Other associated benefits	3.3			6.9		5.9
HHI Business and other restructuring initiatives:
Termination benefits	0.2			—		—
Other associated benefits	6.3			—		0.2
Total included in cost of goods sold	10.0			9.8		7.8
Costs included in selling, acquisition, operating and general expenses:
Global Expense Rationalization Initiatives:
Termination benefits	10.3			—		—
Other associated benefits	1.1			—		—
Global Cost Reduction Initiatives:
Termination benefits	6.3			3.1		10.2
Other associated benefits	6.4			5.8		7.8
HHI Business and other restructuring initiatives:
Termination benefits	—			—		0.9
Other associated benefits	(0.1		)	0.9		1.9
Total included in selling, acquisition, operating and general expenses:	24.0			9.8		20.8
Total restructuring and related charges	$	34.0		$	19.6	$	28.6

The following table summarizes the remaining accrual balance associated with the initiatives and the activity during the year ended September 30, 2013:



	Accrual Balance at September 30, 2012		Provisions		Cash Expenditures			Non-Cash Items			Accrual Balance at September 30, 2013		Expensed as Incurred (a)
Global Expense Rationalization Initiatives:
Termination benefits	$	—	$	9.0	$	(2.1	)	$	0.4		$	7.3	$	1.3
Other costs	—		—		—			—			—		1.0
	—		9.0		(2.1		)	0.4			7.3		2.3
Global Cost Reduction Initiatives:
Termination benefits	3.3		5.3		(3.7		)	$	—		4.9		1.3
Other costs	1.1		0.5		(1.2		)	—			0.4		9.3
	4.4		5.8		(4.9		)	—			5.3		10.6
Other initiatives	2.2		6.0		(0.5		)	(3.6		)	4.1		0.3
	$	6.6	$	20.8	$	(7.5	)	$	(3.2	)	$	16.7	$	13.2

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(a)	Consists of amounts not impacting the accrual for restructuring and related charges.