Quarterly report pursuant to Section 13 or 15(d)

Cost Plan (Notes)

Cost Plan (Notes)
9 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Cost Plan Cost Plan
In the second quarter of fiscal 2018, we announced a Cost Plan designed to align our cost structure to our long-term margin targets. As part of this plan, we initiated a series of targeted actions across our businesses with the objective to reduce annual costs by $1 billion, excluding incremental costs resulting from any future acquisition of a business. Actions taken under this plan have been completed and have resulted in us achieving substantially all of this target in fiscal 2019 based on our run rate exiting the second quarter of fiscal 2019, excluding litigation costs that are in excess of the baseline spend.
During the nine months ended June 30, 2019, we recorded net restructuring and restructuring-related charges related to our Cost Plan of $207 million in other expenses. This consisted of restructuring-related charges of $151 million, primarily related to asset impairment charges (and included a $52 million net gain from the sale of certain assets related to wireless electric vehicle charging applications and the sale of our mobile health nonreportable segment), and restructuring charges of $56 million, primarily related to severance and consulting costs. Since inception of the Cost Plan, we have incurred a total of $894 million in net restructuring and restructuring-related charges. The remaining restructuring and restructuring-related charges to be incurred related to the plan are expected to be negligible.
The restructuring accrual, a portion of which was included in payroll and other benefits related liabilities with the remainder included in other current liabilities, is expected to be substantially paid within the next 12 months. At June 30, 2019 and September 30, 2018, the restructuring accrual was $21 million and $83 million, respectively.