Restructuring and Integration Costs

2014 Sauflon Integration Plan

During the fiscal fourth quarter of 2014, 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 workforce reductions, consolidation of duplicative facilities and product rationalization. We expect these activities to be completed by our fiscal first quarter of 2016.

In fiscal 2014, we recorded restructuring charges of $20.3 million for employee termination costs; $15.3 million for product rationalization, including inventory write-offs and production-related asset impairments, primarily related to our Avaira Toric contact lenses, based on our review of products, materials and manufacturing processes of Sauflon; and $0.5 million of lease termination costs for facility closures. In addition, CooperVision incurred $2.8 million of integration costs recorded in selling, general and administrative expense.

Of the employee termination costs, $19.7 million are recorded in selling, general and administrative expense and $0.6 million in research and development expense. The product rationalization costs are recorded in cost of sales. The lease termination costs and other related costs are recorded in selling, general and administrative expense.

The following table summarizes the restructuring activities by major component for the year ended October 31, 2014:



(In millions)	Employee-related			Facilities-related		Product Rationalization (a)			Total
Additions during fiscal 2014	$	20.3		$	0.5	$	15.3		$	36.1
Payments during the year	(0.4		)	—		—			(0.4		)
Non-cash adjustments	—			—		(15.3		)	(15.3		)
Balance as of October 31, 2014	$	19.9		$	0.5	$	—		$	20.4

(a) Non-cash adjustments for product rationalization were recorded as asset impairments and inventory write-offs.