Restructuring Costs

6 Months Ended

Mar. 31, 2020

Restructuring Costs

Restructuring Costs

Note 16 — Restructuring Costs

In fiscal 2019, we initiated projects to restructure and modify our supply chain strategy, functional responsibilities, methods, capabilities, processes and rationalize suppliers with the goal of reducing ongoing costs and increasing the efficiencies of our worldwide procurement organization. The majority of the costs associated with these restructuring

activities are related to consultants that we have engaged in connection with these efforts, and such costs have been recognized by our corporate entity. The total costs of this restructuring project have been incurred and these efforts have been materially completed as of the second quarter of fiscal 2020.

In the first and second quarters of fiscal 2019 and 2020 our Corporate segment incurred additional restructuring charges, consisting primarily of employee severance costs related to headcount reductions initiated to optimize our cost positions. The total costs of each of these restructuring plans initiated thus far are not expected to be significantly greater than the charges incurred to date.

Restructuring charges incurred by our business segments were as follows (in millions):

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Restructuring costs:
Cubic Transportation Systems	$	0.1		0.3	$	0.5	$	0.7
Cubic Mission Solutions		—		—		—		—
Cubic Global Defense Systems		0.5		—		0.6		0.1
Unallocated corporate expenses		3.2		1.4		4.3		2.9
Total restructuring costs	$	3.8	$	1.7	$	5.4	$	3.7

The following table presents a rollforward of our restructuring liability as of March 31, 2020, which is included within accrued compensation and other current liabilities within our condensed consolidated balance sheets (in millions):

	Restructuring Liability		Restructuring Liability
	Employee Separation and other		Consulting Costs
Balance as of September 30, 2019	$	2.0	$	0.8
Accrued costs		4.0		1.4
Cash payments		(5.0)		(2.0)
Balance as of March 31, 2020	$	1.0	$	0.2

Certain restructuring costs are based upon estimates. Actual amounts paid may ultimately differ from these estimates. If additional costs are incurred or recognized amounts exceed costs, such changes in estimates will be recognized when incurred.