Significant Restructuring Costs

6 Months Ended

Mar. 31, 2022

Significant Restructuring and Impairment Costs

To better align its resources with its growth strategies and reduce the cost structure of its global operations in certain underlying markets, the Company commits to various restructuring plans as necessary. Restructuring plans generally result in charges for workforce reductions, plant closures, asset impairments and other related costs which are reported as restructuring and impairment costs in the Company’s consolidated statements of income. The other related costs consist primarily of consulting costs incurred as a direct result of the restructuring initiatives. The Company expects the restructuring actions to reduce cost of sales and SG&A due to reduced employee-related costs, depreciation and amortization expense.

In fiscal 2021, the Company committed to a significant multi-year restructuring plan ("2021 Plan") which is expected to be completed during fiscal 2023. During the three and six months ended March 31, 2022, the Company recorded $27 million and $76 million of restructuring and impairment costs related to the 2021 Plan in the consolidated statements of income. The total amount expected to be incurred for this restructuring plan is $385 million across all segments and at Corporate.

The following table summarizes restructuring and impairment costs related to the 2021 Plan (in millions):


	Six Months Ended March 31, 2022		Inception to March 31, 2022

Building Solutions North America	$	13	$	83
Building Solutions EMEA/LA	10		39
Building Solutions Asia Pacific	11		39
Global Products	39		130
Corporate	3		27
Total	$	76	$	318

The following table summarizes the changes in the Company’s 2021 Plan reserve, included within other current liabilities in the consolidated statements of financial position (in millions):


	Employee Severance and Termination Benefits		Long-Lived Asset Impairments		Other		Total

Original reserve	$	68	$	98	$	76	$	242
Utilized—cash	(28)		—		(51)		(79)
Utilized—noncash	—		(98)		—		(98)

Balance at September 30, 2021	40		—		25		65
Additional restructuring costs	37		4		35		76
Utilized—cash	(40)		—		(25)		(65)

Utilized—noncash	—		(4)		—		(4)
Currency translation	(1)		—		—		(1)
Balance at March 31, 2022	$	36	$	—	$	35	$	71

The 2021 Plan included workforce reductions of approximately 4,500 employees. Restructuring charges associated with employee severance and termination benefits are paid over the severance period granted to each employee or on a lump sum basis in accordance with individual severance agreements. As of March 31, 2022, approximately 2,800 of the employees have been separated from the Company pursuant to the 2021 Plan.

Company management closely monitors its overall cost structure and continually analyzes each of its businesses for opportunities to consolidate current operations, improve operating efficiencies and locate facilities in close proximity to customers. This ongoing analysis includes a review of its manufacturing, engineering and purchasing operations, as well as the overall global footprint for all its businesses.