Restructuring Costs

6 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

Restructuring reserves, primarily related to unpaid employee termination benefits, were $7 million at March 31, 2021 and $10 million at September 30, 2020. Restructuring costs are recorded within Other operating expense, net within the Condensed Consolidated Statement of Operations. The changes in restructuring reserves for the six months ended ended March 31, 2021 and 2020 are as follows (in millions):

	Employee Termination Benefits		Plant  Shutdown  & Other		Total
Balance at September 30, 2020	$	10	$	—	$	10
Activity during the period:
Charges	6		2		8
Cash payments	(8)		—		(8)
Other	(1)		(2)		(3)
Total restructuring reserves at March 31, 2021	7		—		7
Less: non-current restructuring reserves	—		—		—
Restructuring reserves – current, at March 31, 2021	$	7	$	—	$	7
Balance at September 30, 2019	$	8	$	—	$	8
Activity during the period:
Charges	15		—		15
Cash payments	(15)		—		(15)
Other	(1)		—		(1)
Total restructuring reserves at March 31, 2020	7		—		7
Less: non-current restructuring reserves	—		—		—
Restructuring reserves – current, at March 31, 2020	$	7	$	—	$	7

Global Restructuring Programs Fiscal Year 2021: On November 11, 2020, the company approved a restructuring plan to close three U.S. manufacturing plants and one European administration office in its Aftermarket & Industrial segment and consolidate their operations into existing facilities. The site closures include:

• Chicago, Illinois

• Livermore, California

• Livonia, Michigan

• Zurich, Switzerland

The closures impact approximately 150 hourly and salaried workers. These restructuring plans are intended to optimize the company’s manufacturing footprint, reduce costs and increase efficiencies. With this restructuring plan, the company expects to incur up to $19 million in restructuring charges in the Aftermarket & Industrial segment, consisting of an impact on long-lived assets of $9 million, severance related costs of $5 million and other associated costs of $5 million. During the first six months of fiscal year 2021, the company incurred $6 million in restructuring costs related to this plan. Restructuring actions associated with this plan are expected to be substantially complete by the end of 2021.

Global Restructuring Program Fiscal Year 2020: On June 2, 2020, the company approved and began executing a restructuring plan to reduce labor costs and align with current market forecasts. Under this plan, the company expects to incur approximately $13 million in employee severance costs that affects approximately eight percent of its global salaried positions, and will eliminate certain hourly roles. During fiscal year 2020, the company incurred $10 million in restructuring costs related to this plan of which $7 million was in the Commercial Truck segment and $3 million related to the Aftermarket & Industrial

segment. During the first six months of fiscal year 2021, the company incurred $2 million in restructuring costs related to this plan in the Commercial Truck segment. Restructuring actions associated with this plan are substantially complete.