Restructuring and Related Costs

6 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND RELATED 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 activities as necessary. Restructuring activities 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 Company expects the restructuring activities to reduce cost of sales and selling, general and administrative expenses ("SG&A") due to reduced employee-related costs, depreciation and amortization expense.

In the third and fourth quarters of fiscal 2023, the Company developed a restructuring plan which included workforce reductions and other actions focused on continued scaling of SG&A expenses to its planned growth. Additional restructuring charges related to this plan were recorded in the three and six months ended March 31, 2024 and are expected in subsequent quarters.

The following table summarizes restructuring and related costs (in millions):


	Three Months Ended March 31, 2024		Six Months Ended March 31, 2024

Building Solutions North America	$	—	$	4
Building Solutions EMEA/LA	—		13
Building Solutions Asia Pacific	3		3
Global Products	15		36
Corporate	6		7
Total	$	24	$	63

The following table summarizes changes in the restructuring reserve, which is 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

Restructuring and related costs	$	204	$	38	$	34	$	276
Utilized—cash	(111)		—		(19)		(130)
Utilized—noncash	—		(38)		(3)		(41)
Balance at September 30, 2023	93		—		12		105
Additional restructuring and related costs	34		23		6		63
Utilized—cash	(84)		—		(6)		(90)
Utilized—noncash	—		(23)		(1)		(24)
Other	28		—		—		28

Balance at March 31, 2024	$	71	$	—	$	11	$	82