Special Charges

In connection with various organizational changes to improve our business alignment and cost structure, we recognized Special charges of $8.0 million and $13.5 million for the quarters ended December 31, 2018 and 2017. We continue to evaluate additional actions related to these programs and expect additional Special charges to be incurred. However, it is not practicable to estimate the amount of these future expected costs until such time as the evaluations are complete.

These charges are summarized as follows:

Business Optimization

In fiscal 2018, we initiated a global transformation program focused on reducing complexity, increasing efficiency, improving our cost structure with targeted investments that align with our strategic priorities. For the quarter ended December 31, 2018, this program resulted in charges of $3.8 million, of which $2.7 million were severance and benefit costs with the remainder related to professional fees and project management costs. These amounts compare to charges of $9.1 million in the quarter ended December 31, 2017, of which $6.0 million were severance and benefit costs.

Site Consolidation

In fiscal 2015, we initiated a plan to streamline our operations and simplify our supply chain by consolidating certain manufacturing and distribution operations (“Site Consolidation”). As part of this action, we have announced the closure of eight sites. In the quarter ended December 31, 2018, we recorded charges of $4.1 million related to these efforts, primarily comprising lease termination and facility closure costs. This amount compares to charges of $4.1 million in the quarter ended December 31, 2017, of which $0.2 million were severance and benefit costs.

Since the inception of the Site Consolidation program through December 31, 2018, we have recognized aggregate Special charges of $54.9 million.

Integration and Business Realignment

As we acquire businesses, we initiate integration activities and position our existing businesses to capitalize on opportunities for growth. We also incur costs, including severance and benefit costs, associated with other business realignment and integration activities. In the quarter ended December 31, 2018, we incurred integration and business realignment charges of approximately $0.1 million. This amount compares to charges of $0.3 million in the quarter ended December 31, 2017.

For all accrued severance and other benefit charges described above, we record restructuring reserves within Other current liabilities. The reserve activity for severance and other benefits in the quarter ended December 31, 2018 was as follows:



Balance as of September 30, 2018	$	8.5
Expenses	3.2
Cash Payments	(6.2		)
Reversals	(0.5		)
Balance as of December 31, 2018	$	5.0