Restructuring and Integration Costs

2014 Sauflon Integration Plan

During the fiscal fourth quarter of 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 fiscal first quarter of 2017.

In the fiscal first quarter of 2016, we recorded in cost of sales $10.5 million of expense, 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; and we reduced in cost of sales, the accrued employee termination costs by $0.2 million. In the fiscal first quarter of 2016, we recorded in selling, general and administrative expense $0.1 million, of employee termination costs and $0.3 million of expense for lease termination costs. We also recorded in research and development expense $0.1 million of employee termination costs. In addition, CooperVision incurred $7.9 million of integration costs in the fiscal first quarter of 2016, included in operating expenses.

A summary of the cumulative total restructuring costs by major component recognized as of 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 three months ended January 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 three months ended January 31, 2017	(0.8		)	—			—			(0.8		)
Non-cash adjustments (a)	(0.5		)	—			—			(0.5		)
Balance at January 31, 2017	$	1.5		$	0.3		$	—		$	1.8

(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.