Restructuring and Integration Costs

2014 Sauflon Integration Plan

During the fourth quarter of fiscal 2014 and in connection with the Sauflon acquisition, our CooperVision business unit initiated restructuring and integration activities to optimize operational synergies of the combined companies. These activities include product and equipment rationalization, workforce reductions and consolidation of duplicative facilities. At October 31, 2016, our activities related to this restructuring and integration plan were essentially complete. The total restructuring costs under this plan were $148.3 million. There were no charges related to the 2014 Sauflon Integration Plan in the first nine months of fiscal 2017.

In the three and nine month periods ended July 31, 2016, we recorded in cost of sales $8.7 million and $23.5 million of expense, respectively, arising from production-related asset disposals and accelerated depreciation on equipment, primarily related to our hydrogel lenses, based on our review of products, materials and manufacturing processes of Sauflon. We recorded in cost of sales, employee termination costs of $0.4 million and $0.9 million in the three and nine month periods ended July 31, 2016, respectively. We recorded $0.1 million of employee termination costs and $0.2 million for lease termination costs in selling, general and administrative expense in the nine months ended July 31, 2016. We also recorded in research and development expense $0.1 million of employee termination costs in the nine months ended July 31, 2016. In addition, CooperVision incurred $10.0 million of integration costs included in operating expenses in the nine months ended July 31, 2016, respectively. CooperVision did not incur integration costs in the first nine months of fiscal 2017.

A summary of the cumulative total restructuring costs by major component recognized at October 31, 2016, is as follows:



(In millions)	Employee-related		Facilities-related		Product Rationalization		Total
Cumulative amounts incurred as of October 31, 2016	$	17.8	$	1.1	$	129.4	$	148.3

The following table summarizes the restructuring activities by major component for the fiscal year ended October 31, 2016 and the nine months ended July 31, 2017:



(In millions)	Employee-related			Facilities-related			Product Rationalization			Total

Balance at October 31, 2015	$	8.6		$	0.3		$	—		$	8.9
Additions during fiscal 2016	—			0.2			56.4			56.6
Payments during the fiscal year	(5.2		)	(0.2		)	—			(5.4		)
Non-cash adjustments (a) (b)	(0.6		)	—			(56.4		)	(57.0		)
Balance at October 31, 2016	$	2.8		$	0.3		$	—		$	3.1
Payments during the nine months ended July 31, 2017	(1.5		)	—			—			(1.5		)
Non-cash adjustments (a)	(0.7		)	(0.3		)	—			(1.0		)
Balance at July 31, 2017	$	0.6		$	—		$	—		$	0.6

(a) Represent adjustments for currency translation and accrual releases for employee and facilities-related.

(b) Represents equipment disposals, inventory write-offs and accelerated depreciation for product rationalization.