Spin Costs

On July 1, 2015, Energizer completed its legal separation from Edgewell Personal Care Company (Edgewell) via a tax free spin-off (the spin-off or spin). The Company incurred costs associated with the evaluation, planning and execution of the spin transaction. For the nine months ended June 30, 2017, the Company recorded income of $3.8 in spin restructuring which included $2.5 of income in the second quarter reflecting the true up of previously accrued exit lease costs related to right-sizing of the corporate headquarters and the first quarter sale of a facility in North America that was previously closed as part of the spin for a gain of $1.3.

During the quarter ended June 30, 2016, the Company incurred $2.8 in spin costs. These charges included $2.0 recorded in SG&A and $0.9 recorded in spin restructuring, which was slightly offset by income of $0.1 recorded in cost of products sold (COGS). For the nine months ended June 30, 2016, the Company incurred $11.6 in spin costs including $10.2 recorded in SG&A, $0.4 recorded in COGS and $1.0 recorded in spin restructuring.

On a project to date basis, the total costs incurred or allocated to Energizer for the spin were $197.6, inclusive of the costs of early debt retirement recorded in fiscal 2015. We do not expect any additional costs related to spin.

The following table represents the spin restructuring accrual activity and ending accrual balance at June 30, 2017 and June 30, 2016 recorded in Other current liabilities on the Consolidated Condensed Balance Sheet.



						Utilized
	October 1, 2016		Charge to Income			Cash			Non-Cash		June 30, 2017
Severance and termination related costs	$	2.8	$	—		$	(2.1	)	$	—	$	0.7
Contract termination costs	3.6		(2.5		)	(1.1		)	—		—
Net gain on asset sales	—		(1.3		)	1.3			—		—
Total	$	6.4	$	(3.8	)	$	(1.9	)	$	—	$	0.7



						Utilized
	October 1, 2015		Charge to Income			Cash			Non-Cash			June 30, 2016
Severance and termination related costs	$	12.0	$	—		$	(9.0	)	$	—		$	3.0
Non-cash asset write down	—		0.1			—			(0.1		)	—
Other exit costs	0.3		1.5			(1.8		)	—			—
Net gain on asset sales	—		(0.6		)	0.6			—			—
Total	$	12.3	$	1.0		$	(10.2	)	$	(0.1	)	$	3.0