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RESTRUCTURING CHARGES
 6 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES RESTRUCTURING CHARGES
On May 3, 2023, in response to changing market conditions, Griffon announced that its CPP segment will expand its global sourcing strategy to include long handled tools, material handling, and wood storage and organization product lines. By transitioning these product lines to an asset-light structure, CPP’s operations will be better positioned to serve customers with a more flexible and cost-effective sourcing model that leverages supplier relationships around the world, while improving its competitive positioning in a post-pandemic marketplace.

The global sourcing strategy expansion is expected to be complete by the end of calendar 2024. Over that period, CPP expects to reduce its facility footprint by approximately 1.2 million square feet, or approximately 15%, and its headcount by approximately 600. The affected U.S. locations will include Camp Hill and Harrisburg, PA; Grantsville, MD; Fairfield, IA; and four wood mills.

Implementation of this strategy over the duration of the project will result in charges of $120,000 to $130,000, including $50,000 to $55,000 of cash charges for employee retention and severance, operational transition, and facility and lease exit costs, and $70,000 to $75,000 of non-cash charges primarily related to asset write-downs. Capital investment in the range of $3,000 to $5,000 will also be required. These costs exclude cash proceeds from the sale of real estate and equipment, which are expected to largely offset the cash charges, and also exclude inefficiencies due to duplicative labor costs and absorption impacts during transition. In both the quarter and six months ended March 31, 2023, CPP incurred pre-tax restructuring and related exit costs approximating $78,334. During the six ended March 31, 2023, cash charges totaled $19,216 and non-cash, asset-related charges totaled $59,118; the cash charges included $8,050 for one-time termination benefits and other personnel-related costs and $11,166 for facility exit costs. Non-cash charges included a $22,018 impairment charge related to certain fixed assets at several manufacturing locations and $37,100 to adjust inventory to net realizable value.

In 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 accelerated timeline for the initiative, which was completed in fiscal 2022. 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 quarter and six months ended March 31, 2022, CPP incurred pre-tax restructuring and related exit costs approximating $4,766 and $6,482, respectively. During both the three and six months ended March 31, 2022, cash charges totaled $4,427 and non-cash, asset-related charges totaled $2,055; the cash charges included $2,138 for one-time termination benefits and other personnel-related costs and $2,289 for facility exit costs. Non-cash charges included a $1,766 impairment charge related to certain fixed assets at several manufacturing locations and $289 of inventory that has no recoverable value.

A summary of the restructuring and other related charges included in Cost of goods and services and SG&A expenses in the Company's Condensed Consolidated Statements of Operations were as follows:
For the Three Months Ended March 31,For the Six Months Ended March 31,
2023202220232022
Cost of goods and services$74,645 $2,455 $74,645 $2,777 
Selling, general and administrative expenses3,689 2,311 3,689 3,705 
Total restructuring charges$78,334 $4,766 $78,334 $6,482 
For the Three Months Ended March 31,For the Six Months Ended March 31,
2023202220232022
Personnel related costs$8,050 $1,878 $8,050 $2,138 
Facilities, exit costs and other11,166 1,122 11,166 2,289 
Non-cash facility and other59,118 1,766 59,118 2,055 
Total$78,334 $4,766 $78,334 $6,482 
The following tables summarizes the accrued liabilities of the Company's restructuring actions for the six months ended March 31, 2022 and 2023:
Cash ChargesNon-Cash
Personnel related costsFacilities &
Exit Costs
Facility and Other Costs(1)
Total
Accrued liability at September 30, 2021$418 $264 $— $682 
Q1 Restructuring charges260 1,167 289 1,716 
Q1 Cash payments(275)(1,167)— (1,442)
Q1 Non-cash charges— — (289)(289)
Accrued liability at December 31, 2021$403 $264 $— $667 
Q2 Restructuring charges1,878 1,122 1,766 4,766 
Q2 Cash payments(1,883)(1,122)— (3,005)
Q2 Non-cash charges — — (1,766)(1,766)
Accrued liability at March 31, 2022$398 $264 $— $662 
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(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.
Cash ChargesNon-Cash
Personnel related costsFacilities &
Exit Costs
Facility and Other Costs (2)
Total
Accrued liability at September 30, 2022$386 $264 $— $650 
Q1 Cash payments(74)(93)— (167)
Accrued liability at December 31, 2022$312 $171 $— $483 
Q2 Restructuring charges8,050 11,166 59,118 78,334 
Q2 Cash payments(244)(1,883)— (2,127)
Q2 Non-cash charges— — (59,118)(59,118)
Accrued liability at March 31, 2023$8,118 $9,454 $— $17,572 
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(2) Non-cash charges in Facility and Other Costs represent the non-cash impairment charges related to certain fixed assets at several manufacturing sights and to adjust inventory to net realizable value.