XML 25 R19.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Restructuring
 6 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring

H. Restructuring

2024 Reorganizations

During the first quarter of fiscal 2024, the Company initiated restructuring activities in both its Reinforcement Materials segment (“RM Plan”) and its Performance Chemicals segment (“PC Plan”). Under the RM Plan, the Company closed its reinforcing carbons unit at the facility in Tianjin, China that the Company acquired from Tokai Carbon Group in February 2022. The Company consolidated reinforcing carbons operations and reduced ongoing operational costs. Under the PC Plan, the Company has temporarily idled its aerogel manufacturing plant in Frankfurt, Germany and reorganized certain positions within the Performance Chemicals segment to reduce operating costs. While the Frankfurt facility is idled, the Company continues its efforts to commercialize aerogel for use in thermal insulation for electric vehicles. During the three months ended March 31, 2024, the Company recorded charges of $3 million, primarily for severance related costs as part of these plans. During the six months ended March 31, 2024, the Company recorded charges of $12 million, primarily for severance related costs and accelerated depreciation as part of these plans. The Company expects to record additional restructuring charges of $1 million related to these plans during the remainder of fiscal 2024.

Cabot’s restructuring activities were recorded in the Consolidated Statements of Operations for the three and six months ended March 31, 2024 and 2023 as follows:

 

 

 

Three Months Ended March 31

 

 

Six Months Ended March 31

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(In millions)

 

Cost of sales

 

$

2

 

 

$

—

 

 

$

11

 

 

$

—

 

Selling and administrative expenses

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Total

 

$

3

 

 

$

—

 

 

$

12

 

 

$

—

 

 

Details of all restructuring activities and the related reserves during the three and six months ended March 31, 2024 are as follows:

 

 

 

Severance
and Employee
Benefits

 

 

Accelerated Depreciation on Assets

 

 

Other

 

 

Total

 

 

 

(In millions)

 

Reserve at September 30, 2023

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Charges

 

 

3

 

 

 

6

 

 

 

—

 

 

 

9

 

Cost charged against assets

 

 

—

 

 

 

(6

)

 

 

—

 

 

 

(6

)

Cash paid

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(1

)

Reserve at December 31, 2023

 

$

2

 

 

$

—

 

 

$

—

 

 

$

2

 

Charges

 

 

2

 

 

 

—

 

 

 

1

 

 

 

3

 

Cash paid

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(1

)

Reserve at March 31, 2024

 

$

3

 

 

$

—

 

 

$

1

 

 

$

4

 

 

Cabot’s severance and employee benefit reserves are reflected in Accounts payable and accrued liabilities on the Company’s Consolidated Balance Sheets.