Significant Restructuring and Impairment Costs

6 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Significant Restructuring and Impairment Costs

To better align its resources with its growth strategies and reduce the cost structure of its global operations in certain underlying markets, the Company commits to various restructuring activities as necessary. Restructuring activities generally result in charges for workforce reductions, plant closures, asset impairments and other related costs which are reported as restructuring and impairment costs in the Company’s consolidated statements of income. The other related costs consist primarily of consulting costs incurred as a direct result of the restructuring activities. The Company expects the restructuring activities to reduce cost of sales and SG&A due to reduced employee-related costs, depreciation and amortization expense.

During the three and six months ended March 31, 2023, the Company recorded $24 million and $81 million of restructuring and impairment costs in the consolidated statements of income, respectively. These charges relate to restructuring plans within the segments and at Corporate to reduce and optimize our cost structure. Refer to Note 4, "Assets and Liabilities Held for Sale," and Note 8, "Goodwill and Other Intangible Assets," of the notes to the consolidated financial statements for disclosure of other impairment costs.

The following table summarizes restructuring and impairment costs (in millions):


	Three Months Ended March 31, 2023		Six Months Ended March 31, 2023

Building Solutions North America	$	4	$	6
Building Solutions EMEA/LA	—		21
Building Solutions Asia Pacific	1		6
Global Products	4		27
Corporate	15		21
Total	$	24	$	81

The following table summarizes changes in the restructuring reserve, which is included within other current liabilities in the consolidated statements of financial position, for new restructuring actions taken in the six months ended March 31, 2023 (in millions):


	Employee Severance and Termination Benefits		Long-Lived Asset Impairments		Other		Total

Original reserve	$	30	$	6	$	21	$	57
Utilized—cash	(3)		—		(5)		(8)
Utilized—noncash	—		(6)		—		(6)

Balance at December 31, 2022	27		—		16		43
Additional restructuring costs	17		4		3		24
Utilized—cash	(32)		—		(8)		(40)
Utilized—noncash	—		(4)		—		(4)

Balance at March 31, 2023	$	12	$	—	$	11	$	23