XML 33 R23.htm IDEA: XBRL DOCUMENT v3.25.1
RESTRUCTURING CHARGES
 6 Months Ended
Mar. 31, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES RESTRUCTURING CHARGES
Griffon announced in May 2023 that CPP was expanding its global sourcing strategy to include long handled tools, material handling, and wood storage and organization product lines for the U.S. market. This initiative was successfully completed as of September 30, 2024, ahead of the previously announced date of December 31, 2024.

As a result of this global sourcing expansion initiative, manufacturing operations have concluded at four manufacturing sites and four wood mills, resulting in a total facility footprint reduction of approximately 1.2 million square feet, or approximately 15% of CPP's square footage, and a headcount reduction of approximately 600. The closed locations have met the held for sale criteria and have been classified as such on our Condensed Consolidated Balance Sheets as of March 31, 2025 and September 30, 2024. The net book value of these properties as of March 31, 2025 and September 30, 2024 totaled $5,450 and $14,532, respectively.

The adoption of an asset-light business model for these U.S. products has positioned CPP to better serve customers with a more flexible and cost-effective sourcing model that leverages supplier relationships around the world, and improved its competitive positioning.

Implementation of this strategy over the duration of the project resulted in charges of $133,777, which included $51,082 of cash charges for employee retention and severance, operational transition, and facility and lease exit costs, and $82,695 of non-cash charges primarily related to asset write-downs. In addition, there were $2,678 of capital investments to effectuate the project. This excludes cash proceeds from the sale of real estate and equipment, which at the conclusion of the project as of September 30, 2024 totaled $13,271, and excludes future proceeds from the sale of remaining real estate and equipment designated as held for sale on the condensed consolidated balance sheets. During the six months ended March 31, 2025, cash proceeds related to the sale of the remaining real estate and equipment held for sale totaled $17,445.

In the quarter ended March 31, 2024, CPP incurred pre-tax restructuring and related exit costs comprised of cash charges totaling $2,401. The cash charges included $482 for one-time termination benefits and other personnel-related costs and $1,919 for facility exit costs. In the six months ended March 31, 2024, CPP incurred pre-tax restructuring and related exit costs approximating $14,801, comprised of cash charges totaling $6,319 and non-cash, asset-related charges totaling $8,482. The cash charges included $2,329 for one-time termination benefits and other personnel-related costs and $3,990 for facility exit costs. Non-cash charges of $8,482 were recorded to adjust inventory to its net realizable value.

A summary of the restructuring and other related charges included in Cost of goods and services and SG&A expenses in the Company's Condensed Consolidated Statements of Operations were as follows:
Three Months Ended March 31,Six Months Ended March 31,
20242024
Cost of goods and services$1,334 $12,980 
Selling, general and administrative expenses1,067 1,821 
Total $2,401 $14,801 
For the Three Months Ended March 31,For the Six Months Ended March 31,
20242024
Personnel related costs$482 $2,329 
Facilities, exit costs and other1,919 3,990 
Non-cash facility and other— 8,482 
Total$2,401 $14,801 
The following tables summarizes the accrued liabilities of the Company's restructuring actions for the six months ended March 31, 2025 and 2024:
Cash ChargesNon-Cash
Personnel related costsFacilities &
Exit Costs
Facility and Other Costs(1)
Total
Accrued liability at September 30, 2024$8,182 $4,816 $— $12,998 
Q1 Cash payments(5,009)(1,064)— (6,073)
Accrued liability at December 31, 2024$3,173 $3,752 $— $6,925 
Q2 Cash payments(83)(1,649)— (1,732)
Accrued Liability at March 31, 2025$3,090 $2,103 $— $5,193 
Cash ChargesNon-Cash
Personnel related costsFacilities &
Exit Costs
Facility and Other Costs(1)
Total
Accrued liability at September 30, 2023$14,107 $5,551 $— $19,658 
Q1 Restructuring charges1,847 2,071 8,482 12,400 
Q1 Cash payments(7,215)(3,362)— (10,577)
Q1 Non-cash charges— (8,482)(8,482)
Accrued liability at December 31, 2023$8,739 $4,260 $— $12,999 
Q2 Restructuring charges482 1,919 — 2,401 
Q2 Cash payments(608)(1,919)— (2,527)
Accrued liability at March 31, 2024$8,613 $4,260 $— $12,873 
______________________
(1) Non-cash charges in Facility and Other Costs represent non-cash impairment charges to adjust inventory to its net realizable value.