Employee Termination, Asset Impairment and Other Charges

The Company recorded the following charges related to employee terminations benefits, asset impairment, and other charges:



	Three Months Ended				Nine Months Ended
	March 30, 2018		March 31, 2017		March 30, 2018		March 31, 2017
	(in millions)
Employee termination and other charges:
Restructuring Plan 2016	$	10	$	6	$	87	$	52
Closure of Foreign Manufacturing Facility	—		3		—		9
Business Realignment	8		26		31		69
Total employee termination and other charges	18		35		118		130
Stock-based compensation accelerations and adjustments
Restructuring Plan 2016	—		—				(1		)
Business Realignment	1		4		1		10
Total stock-based compensation accelerations and adjustments	1		4		1		9
Asset impairment:
Restructuring Plan 2016	16		—		16		—
Closure of Foreign Manufacturing Facility	—		—		—		13
Total asset impairment	16		—		16		13
Total employee termination and other charges, and stock-based compensation accelerations and adjustments	$	35	$	39	$	135	$	152

Restructuring Plan 2016

In 2016, the Company initiated a set of actions relating to the restructuring plan associated with the integration of substantial portions of its HGST and WD subsidiaries (“Restructuring Plan 2016”). Restructuring Plan 2016 consists of asset and footprint reduction, product road map consolidation and organization rationalization. In addition to the amounts recognized under Restructuring Plan 2016 as presented above, the Company recognized $9 million and $37 million of accelerated depreciation on facility assets in cost of revenue during the nine months ended March 30, 2018 and March 31, 2017, respectively.

The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 30, 2018:



	Employee Termination Benefits			Contract Termination and Other			Total
	(in millions)
Accrual balance at June 30, 2017	$	11		$	2		$	13
Charges	64			23			87
Cash payments	(63		)	(16		)	(79		)
Accrual balance at March 30, 2018	$	12		$	9		$	21

Business Realignment

The Company periodically incurs charges as part of the integration process of recent acquisitions and to realign its operations with anticipated market demand. The following table presents an analysis of the components of the activity against the reserve:



	Employee Termination Benefits			Contract Termination and Other			Total
	(in millions)
Accrual balance at June 30, 2017	$	18		$	5		$	23
Charges	24			7			31
Cash payments	(24		)	(6		)	(30		)
Accrual balance at March 30, 2018	$	18		$	6		$	24