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Restructuring
 12 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring

Note O. Restructuring

2024 Reorganizations

During the first quarter of fiscal 2024, the Company initiated restructuring activities in both its Reinforcement Materials segment (“RM Plan”) and its Performance Chemicals segment (“PC Plan”). Under the RM Plan, the Company closed its reinforcing carbons unit at the facility in Tianjin, China that the Company acquired from Tokai Carbon Group in February 2022, consolidating its reinforcing carbons operations and reducing ongoing operational costs. Under the PC Plan, the Company has temporarily idled its aerogel manufacturing plant in Frankfurt, Germany and reorganized certain positions within the Performance Chemicals segment to reduce operating costs. Although the Frankfurt facility is idled, the Company continues its efforts to commercialize aerogel for use in thermal insulation for electric vehicles. During fiscal 2024, the Company recorded charges of $13 million primarily for severance related costs and accelerated depreciation as part of these plans. The Company expects to record additional restructuring charges of $1 million related to these plans through fiscal 2025.

 

Details of the 2024 Reorganization restructuring activities and the related reserves for fiscal 2024 are as follows:

 

 

 

Severance
and
Employee
Benefits

 

 

Accelerated Depreciations on Assets

 

 

Other

 

 

Total

 

 

 

(In millions)

 

Reserve at September 30, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Charges

 

 

5

 

 

 

6

 

 

 

2

 

 

 

13

 

Costs charged against assets

 

 

—

 

 

 

(6

)

 

 

—

 

 

 

(6

)

Cash paid

 

 

(5

)

 

 

—

 

 

 

(1

)

 

 

(6

)

Reserve at September 30, 2024

 

$

—

 

 

$

—

 

 

$

1

 

 

$

1

 

 

Cabot’s restructuring reserves are reflected in Accounts payable and accrued liabilities on the Company’s Consolidated Balance Sheets.

Cabot’s restructuring activities were recorded in the Consolidated Statements of Operations as follows:

 

 

 

Years Ended September 30

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In millions)

 

Cost of sales

 

$

12

 

 

$

4

 

 

$

1

 

Selling and administrative expenses

 

 

1

 

 

 

—

 

 

 

2

 

Total

 

$

13

 

 

$

4

 

 

$

3