IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

Activity described herein is classified within the “Cost of sales—impairment, restructuring and other,” “Impairment, restructuring and other” and “Income from discontinued operations, net of tax” lines in the Consolidated Statements of Operations. The following table details impairment, restructuring and other charges during fiscal 2016, fiscal 2015 and fiscal 2014:



	Year Ended September 30,
	2016			2015		2014
	(In millions)
Cost of sales—impairment, restructuring and other:
Restructuring and other charges	$	7.7		$	6.6	$	—
Operating expenses:
Restructuring and other (recoveries) charges	(47.2		)	76.6		16.3
Goodwill and intangible asset impairments	—			—		33.7
Impairment, restructuring and other (recoveries) charges from continuing operations	$	(39.5	)	$	83.2	$	50.0
Restructuring and other (recoveries) charges from discontinued operations	13.6			1.4		1.0
Total impairment, restructuring and other (recoveries) charges	$	(25.9	)	$	84.6	$	51.0

The following table summarizes the activity related to liabilities associated with the restructuring and other, excluding insurance reimbursement recoveries, during fiscal 2016, fiscal 2015 and fiscal 2014:



	Year Ended September 30,
	2016			2015			2014
	(In millions)
Amounts reserved for restructuring and other at beginning of year	$	28.1		$	16.0		$	11.1
Restructuring and other charges from continuing operations	16.4			83.2			16.3
Restructuring and other charges from discontinued operations	13.6			1.4			1.0
Payments and other	(37.3		)	(72.5		)	(12.4		)
Amounts reserved for restructuring and other at end of year	$	20.8		$	28.1		$	16.0

Included in the restructuring reserves, as of September 30, 2016, is $1.5 million that is classified as long-term. Payments against the long-term reserves will be incurred as the employees covered by the restructuring plan retire or through the passage of time. The remaining amounts reserved will continue to be paid out over the course of the next twelve months.

Fiscal 2016

In the first quarter of fiscal 2016, the Company announced a series of initiatives called Project Focus designed to maximize the value of its non-core assets and focus on emerging categories of the lawn and garden industry in its core U.S. business. On April 13, 2016, as part of this project, the Company completed the contribution of the SLS Business to the TruGreen Joint Venture. As a result, effective in its second quarter of fiscal 2016, the Company classified its results of operations for all periods presented to reflect the SLS Business as a discontinued operation and classified the assets and liabilities of the SLS Business as held for sale. Refer to “NOTE 2. DISCONTINUED OPERATIONS” for more information. During fiscal 2016, the Company recognized a charge of $9.0 million for the resolution of a prior SLS Business litigation matter, as well as $4.6 million in transaction related costs associated with the divestiture of the SLS Business within the “Income from discontinued operations, net of tax” line in the Consolidated Statements of Operations. In addition, during fiscal 2016, the Company recognized restructuring costs related to termination benefits of $3.4 million within the U.S. Consumer segment and $2.0 million within the Europe Consumer segment, as well as costs of $4.6 million related to other transaction activity within the “Impairment, restructuring and other” line in the Consolidated Statements of Operations.

During the third quarter of fiscal 2015, the Company’s U.S. Consumer segment began experiencing an increase in certain consumer complaints related to the reformulated Bonus^® S fertilizer product sold in the southeastern United States during fiscal 2015 indicating customers were experiencing damage to their lawns after application. During fiscal 2016, the Company recognized $6.4 million in costs related to resolving these consumer complaints and the recognition of costs the Company expects to incur for current and expected consumer claims. Costs incurred through September 30, 2016 since the inception of this matter, excluding insurance reimbursement recoveries, are $73.8 million. The Company has received reimbursement payments of $60.8 million through the end of fiscal 2016, including $40.9 million received during fiscal 2016. The Company recorded offsetting insurance reimbursement recoveries upon resolution of the insurer’s review of claim documentation in the amount of $4.9 million in fiscal 2015 and $55.9 million in fiscal 2016.

Fiscal 2015

During fiscal 2015, the Company recognized $22.2 million in restructuring costs related to termination benefits provided to U.S. and international personnel as part of the Company’s restructuring of its U.S. administrative and overhead functions, the continuation of the international profitability improvement initiative and the liquidation and exit from the U.K. Solus business. The restructuring costs for fiscal 2015 include $4.3 million of costs related to the acceleration of equity compensation expense, and were comprised of $3.7 million related to the U.S. Consumer segment, $10.3 million related to the Europe Consumer segment, $0.2 million related to the Other segment and $6.6 million related to Corporate. In addition, costs of $1.4 million related to the SLS Business were recognized within the “Income from discontinued operations, net of tax” line in the Consolidated Statements of Operations.

During fiscal 2015, the Company recognized $62.4 million in costs related to consumer complaints and claims related to the reformulated Bonus^® S fertilizer product sold in the southeastern United States during fiscal 2015.

Fiscal 2014

During the third quarter of fiscal 2014, as a result of financial performance, the Company recognized an impairment charge for a non-recurring fair value adjustment of $33.7 million within the U.S. Consumer segment related to the Ortho^® brand. The fair value was calculated based upon the evaluation of the historical performance and future growth expectations of the Ortho^® business.

During fiscal 2014, the Company recognized $12.5 million in restructuring costs related to termination benefits provided to U.S. personnel as part of the Company’s restructuring of its U.S. administrative and overhead functions, including $1.0 million related to the SLS Business recognized within the “Income from discontinued operations, net of tax” line in the Consolidated Statements of Operations. The Company also recognized $2.8 million of international restructuring and other adjustments during fiscal 2014 for the continuation of the profitability improvement initiative announced in December 2012, associated with the international restructuring plan to reduce headcount and streamline management decision making. In addition, during fiscal 2014, the Company recognized $2.0 million in additional ongoing monitoring and remediation costs for the Company’s turfgrass biotechnology program.