RESTRUCTURING CHARGES

3 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

In November 2019, Griffon announced the development of a new next-generation business platform for CPP to enhance the growth, efficiency, and competitiveness of its U.S. operations.

This initiative includes three key development areas. First, multiple independent information systems will be unified into a single data and analytics platform which will serve the whole CPP U.S. enterprise. Second, certain CPP U.S. operations will be consolidated to optimize facilities footprint and talent. Third, strategic investments in automation and facilities expansion will be made to increase the efficiency of our manufacturing and fulfillment operations, and support e-commerce growth.

The expected costs to implement this new business platform, over the three-year duration of the project, will include approximately $35,000 of one-time charges and approximately $40,000 in capital investments. The one-time charges are comprised of $16,000 of cash charges, which includes $12,000 personnel-related costs such as training, severance, and duplicate personnel costs and $4,000 of facility and lease exit costs. The remaining $19,000 of charges are non-cash and are primarily related to asset write-downs.

In the quarter ended December 31, 2019, CPP incurred pre-tax restructuring and related exit costs approximating $6,434, comprised of cash charges of $2,274 and non-cash, asset-related charges of $4,160; the cash charges included $2,134 for one-time termination benefits and other personnel-related costs and $140 for facility exit costs. Non-cash charges included a $1,740 impairment charge related to a facility’s operating lease as well as $671 of leasehold improvements made to the leased facility that have no recoverable value, and a $1,749 impairment charge related to machinery and equipment that have no recoverable value at one of the Company's owned manufacturing locations. As a result of these transactions, headcount was reduced by 28.

A summary of the restructuring and other related charges included in Cost of goods and services and Selling, general and administrative expenses in the Company's Condensed Consolidated Statements of Operations were as follows:



	For the Three Months ended December 31, 2019
Cost of goods and services	$	2,723
Selling, general and administrative expenses	3,711
Total restructuring charges	$	6,434



	For the Three Months Ended December 31, 2019
Personnel related costs	$	2,134
Facilities, exit costs and other	140
Non-cash facility and other	4,160
Total	$	6,434

The following table summarizes the accrued liabilities of the Company's restructuring actions:



	Personnel related costs			Facilities & Exit Costs			Non-Cash Facility and Other Costs			Total
Accrued liability at September 30, 2019	$	—		$	—		$	—		$	—
2020 restructuring charges	2,134			140			4,160			6,434
Cash payments	(621		)	(140		)	—			(761		)
Non-cash charges ⁽¹⁾	—			—			(4,160		)	(4,160		)
Accrued liability at December 31, 2019	$	1,513		$	—		$	—		$	1,513
(1) Non-cash charges in Facility and Other Costs primarily represent the non-cash write-off of certain long-lived assets in connection with certain facility closures.