XML 33 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
RESTRUCTURING CHARGES
 12 Months Ended
Sep. 30, 2022
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES RESTRUCTURING CHARGESIn November 2019, Griffon announced the development of a next-generation business platform for CPP to enhance the growth, efficiency, and competitiveness of its U.S. operations, and on November 12, 2020, Griffon announced that CPP was broadening this strategic initiative to include additional North American facilities, the AMES United Kingdom (U.K.) and Australia businesses, and a manufacturing facility in China. On April 28, 2022, Griffon announced a reduced scope and an accelerated timeline for the initiative, which was completed in fiscal 2022. These changes reflect the rapid progress made with the initiative, and reduced investment in facilities expansion and equipment given recent significant increases in construction and
equipment costs. Any remaining expenditures, after the end of fiscal 2022, including those related to the deployment of AMES' global information systems, will be included in the continuing operations of the business. Future investments in equipment, particularly for automation, will be part of normal-course annual capital expenditures.

This initiative included three key development areas. First, certain AMES U.S. and global operations were consolidated to optimize facilities footprint and talent. Second, strategic investments in automation and facilities expansion were made to increase the efficiency of our manufacturing and fulfillment operations, and support e-commerce growth. Third, multiple independent information systems were unified into a single data and analytics platform, which will serve the whole AMES global enterprise.
The cost to implement this new business platform, over the duration of the project, included one-time charges of approximately $51,869 and capital investments of approximately $15,000, net of future proceeds from the sale of exited facilities. Total cumulative charges of $51,869 consisted of cash charges totaling $35,691 and non-cash, asset-related charges totaling $16,178; the cash charges included $12,934 for one-time termination benefits and other personnel-related costs and $22,757 for facility exit costs. As a result of these transactions, headcount was reduced by approximately 420.

In the year ended September 30, 2022, CPP incurred pre-tax restructuring and related exit costs approximating $16,782. Cash charges totaled $11,951 and non-cash, asset-related charges totaled $4,831; the cash charges included $4,124 for one-time termination benefits and other personnel related costs and $7,827 for facility exit costs. Non-cash charges included a $3,805 of inventory that have no recoverable value and $1,026 primarily related to disposal of fixed assets at several manufacturing locations.

In the year ended September 30, 2021, CPP incurred pre-tax restructuring and related exit costs approximating $21,418. Cash charges totaled $14,763 and non-cash, asset-related charges totaled $6,655; the cash charges included $3,190 for one-time termination benefits and other personnel-related costs and $11,573 for facility and lease exit costs primarily driven by the consolidation of distribution facilities and system optimization. Non-cash charges of $6,655 predominantly related to inventory of $4,158 that have no recoverable value, and a $1,882 impairment charge related to machinery and equipment that have no recoverable value at one of the Company's owned manufacturing locations.
In the year ended September 30, 2020, CPP incurred pre-tax restructuring and related exit costs approximating $13,669. Cash charges totaled $8,977 and non-cash, asset-related charges totaled $4,692; the cash charges included $5,620 for one-time termination benefits and other personnel-related costs and $3,357 for facility exit costs. Non-cash charges included a $1,968 impairment charge related to a facility’s operating lease as well as $671 of leasehold improvements made to the leased facility and $304 of inventory 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.
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 Consolidated Statements of Operations were as follows:
For the Year Ended September 30,
202220212020
Cost of goods and services$7,964 $7,923 $4,159 
Selling, general and administrative expenses8,818 13,495 9,510 
Total restructuring charges$16,782 $21,418 $13,669 
For the Year Ended September 30,
202220212020
Personnel related costs$4,124 $3,190 $5,620 
Facilities, exit costs and other7,827 11,573 3,357 
Non-cash facility and other4,831 6,655 4,692 
Total$16,782 $21,418 $13,669 
The following table summarizes the accrued liabilities of the Company's restructuring actions:
Cash ChargesCash ChargesNon Cash Charges
Personnel related costsFacilities &
Exit Costs		Facility and Other CostsTotal
Accrued liability at September 30, 2019$— $— $— $— 
Charges5,620 3,357 4,692 13,669 
Payments(5,039)(3,093)— (8,132)
Non-cash charges (1)
— $— (4,692)(4,692)
Accrued liability at September 30, 2020$581 $264 $— $845 
Charges3,190 11,573 6,655 21,418 
Payments(3,353)(11,573)— (14,926)
Non-cash charges (1)
— (6,655)(6,655)
Accrued liability at September 30, 2021$418 $264 $— $682 
Charges4,124 7,827 4,831 16,782 
Payments(4,156)(7,827)— (11,983)
Non-cash charges (1)
— (4,831)(4,831)
Accrued liability at September 30, 2022$386 $264 $— $650 
(1) Non-cash charges in Facility and Other Costs primarily represent the non-cash write-off of certain long-lived assets and inventory that has no recoverable value in connection with certain facility closures.