Restructuring, Severance and Related Charges

12 Months Ended

Aug. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring, Severance and Related Charges

Restructuring, Severance and Related Charges

Following is a summary of the Company’s restructuring, severance and related charges (in millions):

	Fiscal Year Ended August 31,
	2025(1)		2024(2)		2023(3)
Employee severance and benefit costs	$	58	$	177	$	48
Lease costs	6		2		—
Asset write-off costs	53		79		5
Other costs	64		38		4
Total restructuring, severance and related charges(4)	$	181	$	296	$	57

(1)Primarily relates to the 2025 Restructuring Plan.

(2)Primarily relates to the 2024 Restructuring Plan.

(3)Primarily relates to headcount reduction to further optimize the Company's business activities.

(4)Except for asset write-off costs, all restructuring, severance and related charges are cash costs.

The following table presents the Company’s restructuring, severance, and related charges disaggregated by segment (in millions):

	Fiscal Year Ended August 31,
	2025		2024		2023
Total restructuring, severance and related charges:
Regulated Industries	$	80	$	75	$	11
Intelligent Infrastructure	34		69		10
Connected Living and Digital Commerce	21		84		24
Non-allocated charges	46		68		12
Total	$	181	$	296	$	57

See Note 14 – “Concentration of Risk and Segment Data” to the Consolidated Financial Statements for further details on the change in reportable segments.

2025 Restructuring Plan

On September 24, 2024, the Company’s Board of Directors approved a restructuring plan to align our support infrastructure to further optimize organizational effectiveness. This action includes headcount reductions across our Selling, General, and Administrative (“SG&A”) and manufacturing cost base and capacity realignment (the “2025 Restructuring Plan”). The 2025 Restructuring Plan reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain locations are still subject to consultation with the Company’s employees and their representatives.

The Company expects to recognize approximately $200 million in pre-tax restructuring and other related costs related to the 2025 Restructuring Plan. The restructuring and other related charges are expected to include $60 million to $70 million of employee severance and benefit costs; $65 million to $70 million of asset write-off costs; and $55 million to $65 million of contract termination costs and other related costs. The amount and timing of the actual charges may vary due to a variety of factors, including the finalization of timetables for the transition of functions, consultation with employees and their representatives, as well as the impact of jurisdictional statutory severance requirements. The Company’s estimates for the charges discussed above exclude any potential income tax effects.

The table below summarizes the Company’s liability activity, primarily associated with the 2025 Restructuring Plan (in millions):

	Employee Severance and Benefit Costs		Lease Costs		Asset Write-off Costs		Other Related Costs		Total
Balance as of August 31, 2024	$	—	$	—	$	—	$	—	$	—
Restructuring related charges	61		6		43		58		168
Asset write-off charge and other non-cash activity	—		—		(43)		(33)		(76)
Cash payments	(54)		(6)		—		(10)		(70)
Balance as of August 31, 2025	$	7	$	—	$	—	$	15	$	22

2024 Restructuring Plan

On September 26, 2023, the Company’s Board of Directors approved a restructuring plan to (i) realign the Company’s cost base for stranded costs associated with the Company’s sale and realignment of the Mobility Business and (ii) optimize the Company’s global footprint. This action includes headcount reductions across our SG&A cost base and capacity realignment (the “2024 Restructuring Plan”).

The 2024 Restructuring Plan, totaling approximately $300 million in pre-tax restructuring and other related costs, was substantially complete as of August 31, 2024.

The table below summarizes the Company’s liability activity, primarily associated with the 2024 Restructuring Plan (in millions):

	Employee  Severance and Benefit Costs		Lease Costs		Asset Write-off Costs		Other Related Costs		Total
Balance as of August 31, 2024	$	66	$	1	$	—	$	5	$	72
Restructuring related charges	(3)		—		10		6		13
Asset write-off charge and other non-cash activity	—		—		(10)		(2)		(12)
Cash payments	(54)		(1)		—		(7)		(62)
Balance as of August 31, 2025	$	9	$	—	$	—	$	2	$	11