Restructuring

12 Months Ended

Sep. 30, 2021

Restructuring And Related Activities [Abstract]

Restructuring

Note O. Restructuring

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

	Years Ended September 30
	2021		2020		2019
	(In millions)
Cost of sales	$	7	$	6	$	9
Selling and administrative expenses		3		13		7
Research and technical expenses		1		—		—
Total	$	11	$	19	$	16

Details of all restructuring activities and the related reserves for fiscal 2019, 2020, and 2021 were as follows:

	Severance and Employee Benefits			Environmental Remediation and Decommissioning Activities			Non-Cash Asset Impairment and Accelerated Depreciation			Other			Total
	(In millions)
Reserve at September 30, 2018	$	1		$	4		$	—		$	—		$	5
Charges (gain)		11			—			2			3			16
Costs charged against assets		—			—			(2	)		—			(2	)
Cash (paid) received		(9	)		—			—			(3	)		(12	)
Reserve at September 30, 2019		3			4			—			—			7
Charges (gain)		14			—			1			4			19
Costs charged against liabilities		—			—			(1	)		—			(1	)
Cash paid		(12	)		—			—			(4	)		(16	)
Reserve at September 30, 2020		5			4			—			—			9
Charges (gain)		5			1			2			3			11
Costs charged against assets		—			—			(2	)		—			(2	)
Cash (paid) received		(5	)		(1	)		—			(3	)		(9	)
Reserve at September 30, 2021	$	5		$	4		$	—		$	—		$	9

Cabot’s severance and employee benefit reserves and other closure related reserves are reflected in Accounts payable and accrued liabilities on the Company’s Consolidated Balance Sheets. Cabot’s environmental remediation reserves related to restructuring activities are reflected in Other liabilities on the Company’s Consolidated Balance Sheets.

Reorganization Actions

Beginning in fiscal 2020, the Company has undertaken various actions that it believes will enable the Company to perform certain activities more effectively. These actions have primarily consisted of the reorganization of Cabot’s leadership structure, the creation of a Global Business Services function and other operational efficiency initiatives. As of September 30, 2021, the Company had recorded total charges of $22 million, of which $17 million was recorded in fiscal 2020, primarily related to severance costs, and also had $4 million of accrued severance charges in the Consolidated Balance Sheets related to these actions. The Company expects to record additional restructuring charges of approximately $3 million in fiscal 2022 and $2 million thereafter, primarily related to severance and site demolition costs associated with the reorganization. As of September 30, 2021, the Company had paid a total of $18 million in cash, of which $13 million was paid in fiscal 2020, and expects to have future cash outlays of approximately $7 million in fiscal 2022 and $2 million thereafter related to the reorganization.

Purification Solutions Transformation Plan

In December 2018, the Company initiated a transformation plan to improve the long‐term performance of the Purification Solutions segment. The purpose of the plan was to focus the business’s product portfolio, optimize its manufacturing assets, and streamline its organizational structure to support the new focus. As of September 30, 2021, the Company had recorded total charges of $15 million for this plan, of which $11 million was recorded in prior fiscal years, primarily related to severance costs, and also had $1 million of accrued severance and other charges in the Consolidated Balance Sheets related to this plan. The Company expects to record additional restructuring charges $2 million in fiscal 2022 and thereafter primarily related to decommissioning costs associated with the business’s manufacturing facility in Marshall, Texas. As of September 30, 2021, the Company had paid a total of $12 million in cash for this plan, of which $10 million was paid in prior fiscal years, and expects to have future cash outlays of approximately $2 million in fiscal 2022 and $1 million thereafter.