In 2026, we recorded restructuring charges of $25 million related to actions in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins. The charges are for severance benefits. In the Consolidated Statement of Operations for the year ended September 30, 2026, $4 million of the charges were recorded in Cost of sales, and $21 million were recorded in Selling, general and administrative expenses.

In 2024, we recorded restructuring charges of $97 million 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 $115 million. We expect that remaining severance benefit payments will be substantially completed during 2027.


	Severance Benefits		Other		Total
Balance as of September 30, 2023	$	—	$	—	$	—
Restructuring Charges	92		5		97
Payments	(22)		(5)		(27)
Balance as of September 30, 2024	$	70	$	—	$	70
Restructuring Reversal	(5)		—		(5)
Payments	(38)		—		(38)
Balance as of September 30, 2025	$	27	$	—	$	27
Restructuring Charges	25		—		25
Payments	(22)		—		(22)
Balance as of September 30, 2026	$	30	$	—	$	30