Restructuring Costs

6 Months Ended

Mar. 31, 2021

Restructuring Costs

Restructuring Costs

Note 15 — Restructuring Costs

In the fourth quarter of fiscal 2020, we announced our NextCUBIC transformation to restructure the way we work and operate as a business. Part of this initiative included establishing a Transformation Office and appointing a Chief Transformation Officer to identify, vet, plan and implement improvement initiatives across Cubic. Coinciding with this initiative, we also announced the combination of CGD and CMS into CMPS. This combination will help us optimize customer access and presence, leverage key enablers across the combined businesses and realize untapped cross-segment technical synergies to capture organizational efficiencies. The significant portion 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. Other restructuring charges related to headcount reductions initiated to optimize our cost positions. Our NextCUBIC transformation initiatives will continue through fiscal 2021, and our consulting fees that will be incurred in the future are generally contingent upon the achievement of future cost savings, the total expected restructuring costs related to these initiatives cannot currently be estimated.

In the first quarter of fiscal 2021, CMPS also incurred costs related to modifying its go-to market and legal structure in the Middle East. The total cost of these efforts is not expected to be significantly greater than those incurred through December 31, 2020.

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

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Restructuring costs:
Cubic Transportation Systems	$	1.6		0.1	$	1.8	$	0.5
Cubic Mission and Performance Solutions		0.8		0.5		3.9		0.6
Unallocated corporate expenses		5.4		3.2		6.2		4.3
Total restructuring costs	$	7.8	$	3.8	$	11.9	$	5.4

The following table presents a rollforward of our restructuring liability as of March 31, 2021, which is included within accrued compensation and other current liabilities within our condensed consolidated balance sheet (in millions):

	Restructuring Liability		Restructuring Liability
	Employee Separation and Other		Consulting Costs
Balance as of October 1, 2020	$	5.2	$	0.8
Accrued costs		6.9		5.0
Cash payments		(8.3)		(2.5)
Balance as of March 31, 2021	$	3.8	$	3.3

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.