Restructuring

6 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Project Momentum Restructuring - In November 2022, the Board of Directors approved a profit recovery program, Project Momentum, which includes an enterprise-wide restructuring focused on recovering operating margins, optimizing our manufacturing, distribution and global supply chain networks, and enhancing our organizational efficiency throughout the Company. In July 2023, the Company's Board of Directors approved an expansion to the Project Momentum profit recovery program and delegated authority to the Company's management to determine the final actions with respect to the plan. The expansion of this program included an additional year, which will allow for additional optimization of our battery manufacturing, distribution and global supply chain networks, further review of our global real estate footprint and the implementation of IT systems that will allow us to streamline our organization and fully execute the program.

Following the Belgium Acquisition in the first quarter of fiscal 2024, the Company expanded the Project Momentum program and increased the savings and cost expectations, partially due to the impact the expanded manufacturing capacity will have on the Company's battery network. It is estimated that the Company will incur total pre-tax exit-related cash operating costs associated with the program of approximately $140 to $150, non-cash costs of approximately $20, and capital expenditures of $75 to $85 through the end of fiscal 2025.

The pre-tax expense for charges related to the restructuring for the quarters and six months ended March 31, 2024 and 2023 are noted in the table below, and were reflected in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income:


	For the Quarters Ended March 31,				For the Six Months Ended March 31,
	2024		2023		2024		2023
Project Momentum Restructuring Program
Costs of products sold
Severance and related benefit costs	$	0.4	$	4.9	$	0.9	$	4.9
Accelerated depreciation & asset write-offs	3.4		0.9		4.7		0.9
Other restructuring related costs(1)	11.7		(0.1)		22.7		0.2
Selling, general and administrate expense
Severance and related benefit costs	1.0		—		2.8		0.6
Accelerated depreciation & asset write-offs	0.5		—		1.0		—
Other restructuring related costs(2)	3.1		1.8		6.5		7.5


Momentum Restructuring Cost Total	$	20.1	$	7.5	$	38.6	$	14.1
IT enablement(3)	3.3		—		7.2		—
Total restructuring and related costs	$	23.4	$	7.5	$	45.8	$	14.1

(1) Includes charges primarily related to consulting, relocation, decommissioning, and other facility exit costs.

(2) Primarily includes consulting, real estate rationalization costs, and legal fees for the restructuring program.

(3) Relates to operating expenses for new IT systems, primarily the organizational design and change management costs, which are enabling the Company to complete restructuring initiatives. Costs are included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income.

Although the Company's restructuring costs are recorded outside of segment profit, if allocated to the reportable segments, the pre-tax restructuring and related costs for the quarter and six months ended March 31, 2024 would be incurred within the Battery & Lights segment in the amounts of $20.5 and $41.2, respectively, and the Auto Care segment in the amount of $2.9 and $4.6, respectively. For the quarter and six months ended March 31, 2023, the pre-tax restructuring and related costs would have been incurred within the Battery & Lights segment in the amount of $6.8 and $12.6, respectively, and the Auto Care segment in the amount of $0.7 and $1.5, respectively.

The following table summarizes the restructuring and related costs reserve activity related to the Project Momentum restructuring program for the six months ended March 31, 2023 and 2024:


					Utilized
	September 30, 2022 (1)		Charge to Income		Cash		Non-Cash		March 31, 2023 (1)
Severance & termination related costs	$	—	$	5.5	$	0.6	$	—	$	4.9
Accelerated depreciation & asset write-offs	—		0.9		—		0.9		—
Other restructuring related costs	0.9		7.7		7.1		—		1.5

Total restructuring and related costs	$	0.9	$	14.1	$	7.7	$	0.9	$	6.4


					Utilized
	September 30, 2023 (1)		Charge to Income		Cash		Non-Cash		March 31, 2024 (1)
Severance & termination related costs	$	15.4	$	3.7	$	8.0	$	—	$	11.1
Accelerated depreciation & asset write-offs	—		5.7		—		5.7		—
Other restructuring related costs	3.3		29.2		29.1		1.5		1.9
IT enablement	0.9		7.2		6.4		0.2		1.5
Total restructuring and related costs	$	19.6	$	45.8	$	43.5	$	7.4	$	14.5

(1) The restructuring and related costs reserve is recorded on the Consolidated (Condensed) Balance Sheet in Other current liabilities and Other long term liabilities.