Restructuring Charges

12 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

In 2024, we recorded restructuring charges of $97 million ($73 million, net of tax or $0.64 per diluted share) related to actions in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins. The charges include $92 million for severance benefits and $5 million for strategic advisory services related to the targeted severance actions. In the Consolidated Statement of Operations for the year ended September 30, 2024, $22 million of the charges were recorded in Cost of sales, $66 million were recorded in Selling, general and administrative expenses, and $9 million were recorded in Engineering and Development.

We expect the total cash expenditures associated with these restructuring actions to be $92 million. We paid $38 million and $27 million during the years ended September 30, 2025 and 2024, respectively. During 2025 we reversed $5 million of accruals primarily due to attrition without payment of severance. Accruals remaining under these restructuring actions were $27 million and $70 million at September 30, 2025 and 2024, respectively. We expect that remaining severance benefit payments will be substantially completed during 2026.