Harbinger Group Inc.
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10-K
HRG GROUP, INC. filed this Form 10-K on 11/23/2016
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Acquisition and Integration Costs
The following table summarizes acquisition and integration related charges incurred by the Company during the years ended September 30, 2016, 2015 and 2014:
(in millions)
 
2016
 
2015
 
2014
Armored AutoGroup
 
$
14.6

 
$
21.8

 
$
—

HHI Business
 
13.3

 
12.0

 
11.0

European IAMS and Eukanuba
 
3.5

 
9.3

 
—

Salix
 
2.1

 
10.7

 
—

Other
 
3.2

 
5.0

 
9.1

Total acquisition and integration related charges
 
$
36.7

 
$
58.8

 
$
20.1

NOTE 4 - RESTRUCTURING AND RELATED CHARGES
GAC Business Rationalization Initiatives - During the third quarter of the year ended September 30, 2016, the Company implemented a series of initiatives in the GAC segment to consolidate certain operations and reduce operating costs. These initiatives included headcount reductions and the exit of certain facilities. Total costs associated with these initiatives are expected to be approximately $20 million, of which $5.3 million has been incurred to date, the balance is anticipated to be incurred through September 30, 2017.
HHI Business Rationalization Initiatives - During the fourth quarter of the year ended September 30, 2014, the Company implemented a series of initiatives throughout the HHI segment to reduce operating costs and exit low margin business outside the U.S. These initiatives included headcount reductions, the exit of certain facilities and the sale of a portion of the global HHI operations. Total costs associated with these initiatives of $16.6 million has been incurred to date, and completed as of September 30, 2016.
Global Expense Rationalization Initiatives - During the third quarter of the year ended September 30, 2013, the Company implemented a series of initiatives throughout the Company to reduce operating costs. These initiatives consisted of headcount reductions in the GBA and PET, and within Corporate. Total costs associated with these initiatives of $47.0 million has been incurred to date, and completed as of September 30, 2016.
Other Restructuring Activities - The Company has entered or may enter into small, less significant initiatives and restructuring activities to reduce costs and improve margins throughout the organization. Individually these activities are not substantial, and occur over a shorter time period (less than 12 months). Total costs associated with these initiatives are expected to be approximately $6 million, of which $2.9 million has been incurred to date.
The following summarizes restructuring and related charges for the years ended September 30, 2016, 2015, and 2014:
(in millions)
 
2016
 
2015
 
2014
Global expense rationalization initiatives
 
$
5.2

 
$
17.1

 
$
13.4

HHI business rationalization initiatives
 
1.8

 
10.3

 
4.5

GAC business rationalization initiatives
 
5.3

 
—

 
—

Other restructuring activities
 
2.9

 
1.3

 
5.0

Total restructuring and related charges
 
$
15.2

 
$
28.7

 
$
22.9

Reported as:
 
 
 
 
 
 
Cost of goods sold
 
$
0.5

 
$
2.1

 
$
3.7

Operating expense
 
14.7

 
26.6

 
19.2

The following summarizes restructuring and related charges for the years ended September 30, 2016, 2015, and 2014, and cumulative costs on restructuring initiatives as of September 30, 2016, by cost type:
(in millions)
 
Termination
Benefits
 
Other
Costs
 
Total
For the year ended September 30, 2016
 
$
4.3

 
$
10.9

 
$
15.2

For the year ended September 30, 2015
 
7.0

 
21.7

 
28.7

For the year ended September 30, 2014
 
11.2

 
11.7

 
22.9

Cumulative costs through September 30, 2016
 
32.4

 
39.4

 
71.8


S-27
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