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Restructuring and Other Charges, Net
9 Months Ended
Jun. 26, 2015
Restructuring and Other Charges, Net  
Restructuring and Other Charges, Net

2. Restructuring and Other Charges, Net

        Net restructuring and other charges consisted of the following:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

For the
Nine Months Ended

 

 

 

June 26,
2015

 

June 27,
2014

 

June 26,
2015

 

June 27,
2014

 

 

 

(in millions)

 

Restructuring charges, net

 

$

4

 

$

13

 

$

65

 

$

18

 

Other charges (credits), net(1)

 

 

15

 

 

(3

)

 

17

 

 

(3

)

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

19

 

$

10

 

$

82

 

$

15

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 

 

 

(1)          

In fiscal 2015, net other charges primarily consisted of charges incurred in connection with the pending sale of our Broadband Network Solutions ("BNS") business. See Note 3 for additional information.

Restructuring Charges, Net

        Net restructuring charges by segment were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

For the
Nine Months Ended

 

 

 

June 26,
2015

 

June 27,
2014

 

June 26,
2015

 

June 27,
2014

 

 

 

(in millions)

 

Transportation Solutions

 

$

 

$

 

$

 

$

 

Industrial Solutions

 

 

 

 

 

 

19 

 

 

 

Communications Solutions

 

 

 

 

10 

 

 

43 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

Restructuring charges, net

 

$

 

$

13 

 

$

65 

 

$

18 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Activity in our restructuring reserves during the first nine months of fiscal 2015 is summarized as follows:

                                                                                                                                                                                    

 

 

Balance at
September 26,
2014

 

Charges

 

Changes in
Estimate

 

Cash
Payments

 

Non-Cash
Items

 

Currency
Translation

 

Balance at
June 26,
2015

 

 

 

(in millions)

 

Fiscal 2015 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

 

$

47

 

$

 

$

(13

)

$

 

$

 

$

34

 

Facility and other exit costs

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

1

 

Property, plant, and equipment

 

 

 

 

14

 

 

 

 

 

 

(14

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

 

 

62

 

 

 

 

(13

)

 

(14

)

 

 

 

35

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2014 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

16

 

 

 

 

 

 

(7

)

 

 

 

(1

)

 

8

 

Facility and other exit costs

 

 

1

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

17

 

 

 

 

 

 

(8

)

 

 

 

(1

)

 

8

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Pre-Fiscal 2014 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

75

 

 

2

 

 

(1

)

 

(42

)

 

 

 

(8

)

 

26

 

Facility and other exit costs

 

 

22

 

 

1

 

 

 

 

(9

)

 

 

 

1

 

 

15

 

Property, plant, and equipment

 

 

 

 

1

 

 

 

 

 

 

(1

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

97

 

 

4

 

 

(1

)

 

(51

)

 

(1

)

 

(7

)

 

41

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total Activity

 

$

114

 

$

66

 

$

(1

)

$

(72

)

$

(15

)

$

(8

)

$

84

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2015 Actions

        During fiscal 2015, we initiated a restructuring program associated with headcount reductions and product line closures, primarily impacting the Communications Solutions segment. In connection with this program, during the nine months ended June 26, 2015, we recorded restructuring charges of $62 million. We expect to complete all restructuring actions commenced in the first nine months of fiscal 2015 by the end of fiscal 2016 and to incur total charges of approximately $67 million.

Fiscal 2014 Actions

        During fiscal 2014, we initiated a restructuring program primarily associated with headcount reductions and manufacturing site and product line closures in the Communications Solutions segment. In connection with this program, during the nine months ended June 27, 2014, we recorded restructuring charges of $18 million. We do not expect to incur any additional charges related to restructuring actions commenced in fiscal 2014.

Pre-Fiscal 2014 Actions

        During fiscal 2013, we initiated a restructuring program associated with headcount reductions and manufacturing site closures impacting all segments. During fiscal 2012, we initiated a restructuring program to reduce headcount across all segments. Also, during fiscal 2012, we initiated a restructuring program in the Transportation Solutions and Industrial Solutions segments associated with the acquisition of Deutsch Group SAS. During the nine months ended June 26, 2015, we recorded net restructuring charges of $3 million related to pre-fiscal 2014 actions. We do not expect to incur any additional significant charges related to pre-fiscal 2014 actions.

Total Restructuring Reserves

        Restructuring reserves included on our Condensed Consolidated Balance Sheets were as follows:

                                                                                                                                                                                    

 

 

June 26,
2015

 

September 26,
2014

 

 

 

(in millions)

 

Accrued and other current liabilities

 

$

55 

 

$

83 

 

Other liabilities

 

 

29 

 

 

31 

 

​  

​  

​  

​  

Restructuring reserves

 

$

84 

 

$

114 

 

​  

​  

​  

​  

​  

​  

​  

​