NOTE 5 - RESTRUCTURING AND RELATED CHARGES

Project Ignite – At the start of the fiscal year ended September 30, 2018, the Company announced a company-wide, multi-year program referred to as Project Ignite which consists of various restructuring related initiatives to redirect resources and spending to drive growth, identify cost savings and pricing opportunities through standardization and optimization, develop organizational and operating optimization, and reduce overall operational complexity across the Company. Since the announcement of the project and subsequent announcement of the Company’s divestitures, the project shifted its focus on the development of these initiatives within the Company’s continuing operations after completion of the divestiture transactions and separation of GBL and GAC operations, including the transitioning the Company in the post-divestiture environment and transition with the Company’s continuing involvement with Energizer (Refer to Note 3 – Divestitures for further discussion). The initiative includes consultation of global processes, opportunity spending and organization design and structures; headcount reductions and transfers; and rightsizing the Company’s shared operations and commercial business strategy in certain regions and local jurisdictions; among others. Total cumulative costs incurred associated with the project were $13.6 million as of December 30, 2018; with $2.1 million forecasted in the foreseeable future.

HHI Distribution Center Consolidation – During the fiscal year ended September 30, 2017, the Company implemented an initiative within the HHI segment to consolidate certain operations and reduce operating costs. The initiative includes headcount reductions and the exit of certain facilities, including such incremental costs to consolidate or close facilities, relocate employees, cost to retain employees to use newly deployed assets or systems, lease termination costs, and redundant or incremental transitional operating costs and customer fines and penalties incurred during transition, among others. Total cumulative costs associated with this initiative was $83.0 million and was completed as of December 30, 2018.

Other Restructuring Activities – The Company may enter into small, less significant initiatives and restructuring related activities to reduce costs and improve margins throughout the organization. Individually these activities are not substantial and occur over a shorter time period (generally less than 12 months).

The following summarizes restructuring and related charges for the three month periods ended December 30, 2018 and December 31, 2017:


	Three Month Periods Ended
(in millions)	December 30, 2018		December 31, 2017
Project Ignite	$	5.9	$	1.1
HHI distribution center consolidation		2.4		15.2
PET rightsizing initiative		—		0.6
Other restructuring activities		0.8		0.2
Total restructuring and related charges	$	9.1	$	17.1
Reported as:
Cost of goods sold	$	0.9	$	0.3
Operating expense		8.2		16.8

The following is a summary of restructuring and related charges for the three month periods ended December 30, 2018 and December 31, 2017 and cumulative costs for current restructuring initiatives as of December 30, 2018, by cost type.


	Termination		Other
(in millions)	Benefits		Costs		Total
For the three month period ended December 30, 2018	$	1.6	$	7.5	$	9.1
For the three month period ended December 31, 2017		1.6		15.5		17.1
Cumulative costs through December 30, 2018		4.9		93.6		98.5
Future costs to be incurred		0.9		1.2		2.1

The following is a rollforward of the accrual related to all restructuring and related activities, included within Other Current Liabilities, by cost type for the three month period ended December 30, 2018.


	Termination		Other
(in millions)	Benefits		Costs		Total
Accrual balance at September 30, 2018	$	3.1	$	4.7	$	7.8
Provisions		0.9		2.0		2.9
Cash expenditures		(0.8)		(0.9)		(1.7)
Non-cash items		(0.3)		(0.1)		(0.4)
Accrual balance at December 30, 2018	$	2.9	$	5.7	$	8.6

NOTE 5 - RESTRUCTURING AND RELATED CHARGES (continued)

The following summarizes restructuring and related charges by segment for the three month period ended December 30, 2018 and December 31, 2017, cumulative costs incurred through December 30, 2018, and future expected costs to be incurred by Spectrum’s segments of continuing operations:


(in millions)	HHI		HPC		PET		H&G		Corporate		Total
For the three month period ended December 30, 2018	$	2.8	$	0.2	$	2.6	$	0.7	$	2.8	$	9.1
For the three month period ended December 31, 2017		15.2		—		0.6		—		1.3		17.1
Cumulative costs through December 30, 2018		83.0		0.9		1.9		1.5		11.2		98.5
Future costs to be incurred		0.9		1.2		—		—		—		2.1