IMPAIRMENT, RESTRUCTURING AND OTHER

Activity described herein is classified within the “Impairment, restructuring and other” and the “Income from discontinued operations, net of tax” lines in the Condensed Consolidated Statements of Operations.

The following table details impairment, restructuring and other for each of the periods presented:



	THREE MONTHS ENDED					NINE MONTHS ENDED
	JULY 2, 2016			JUNE 27, 2015		JULY 2, 2016			JUNE 27, 2015
	(In millions)
Restructuring and other (recoveries) charges from continuing operations	$	(5.4	)	$	44.3	$	(46.2	)	$	57.6
Restructuring and other (recoveries) charges from discontinued operations	—			—		13.6			1.4
Total impairment, restructuring and other (recoveries) charges	$	(5.4	)	$	44.3	$	(32.6	)	$	59.0

The following table summarizes the activity related to liabilities associated with restructuring and other, excluding insurance reimbursement recoveries, during the nine months ended July 2, 2016 (in millions):



Amounts reserved for restructuring and other at September 30, 2015	$	28.1
Restructuring and other charges from continuing operations	9.6
Restructuring and other charges from discontinued operations	13.6
Payments and other	(32.8		)
Amounts reserved for restructuring and other at July 2, 2016	$	18.5

Included in the restructuring reserves as of July 2, 2016 is $1.9 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 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 the three and nine months ended July 2, 2016, the Company recognized zero and $9.0 million for the resolution of a prior SLS Business litigation matter, as well as zero and $4.4 million, respectively, in transaction related costs associated with the divestiture of the SLS Business within the “Income from discontinued operations, net of tax” line in the Condensed Consolidated Statements of Operations. In addition, during the three and nine months ended July 2, 2016, the Company recognized costs of $(0.3) million and $2.3 million, respectively, related to other transaction activity within the “Impairment, restructuring and other” line in the Condensed 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 the three and nine months ended July 2, 2016, the Company recognized $0.5 million and $6.9 million, respectively, 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 to date since the inception of this matter, excluding insurance reimbursement recoveries, are $74.3 million. The Company has received reimbursement payments of $60.8 million through the third quarter of fiscal 2016, including $5.9 million and $40.9 million received during the three and nine months ended July 2, 2016, respectively. 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 the fourth quarter of fiscal 2015, $50.0 million in the second quarter of fiscal 2016 and $5.9 million in the third quarter of fiscal 2016.

Fiscal 2015

During the three and nine months ended June 27, 2015, the Company recognized $6.6 million and $19.9 million, respectively, 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. These restructuring charges included zero and $4.3 million of costs related to the acceleration of equity compensation expense for the three and nine months ended June 27, 2015, respectively.

During the third quarter of fiscal 2015, the Company recognized $37.7 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.