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Restructuring and Other Charges, Net
12 Months Ended
Sep. 25, 2015
Restructuring and Other Charges, Net  
Restructuring and Other Charges, Net

 

3. Restructuring and Other Charges, Net

        Net restructuring and other charges consisted of the following:

                                                                                                                                                                                    

 

 

Fiscal

 

 

 

2015

 

2014

 

2013

 

 

 

(in millions)

 

Restructuring charges, net

 

$

93

 

$

23

 

$

225

 

Other charges (credits), net

 

 

59

 

 

(4

)

 

(3

)

​  

​  

​  

​  

​  

​  

 

 

$

152

 

$

19

 

$

222

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Restructuring Charges, Net

        Net restructuring charges by segment were as follows:

                                                                                                                                                                                    

 

 

Fiscal

 

 

 

2015

 

2014

 

2013

 

 

 

(in millions)

 

Transportation Solutions

 

$

 

$

 

$

39 

 

Industrial Solutions

 

 

29 

 

 

 

 

62 

 

Communications Solutions

 

 

58 

 

 

 

 

124 

 

​  

​  

​  

​  

​  

​  

Restructuring charges, net

 

$

93 

 

$

23 

 

$

225 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Activity in our restructuring reserves is summarized as follows:

                                                                                                                                                                                    

 

 

Balance at
Beginning
of Fiscal
Year

 

Charges

 

Changes in
Estimate

 

Cash
Payments

 

Non-Cash
Items

 

Currency
Translation
and
Other(1)

 

Balance at
End
of Fiscal
Year

 

 

 

(in millions)

 

Fiscal 2015 Activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2015 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

 

$

68

 

$

 

$

(23

)

$

 

$

 

$

45

 

Facility and other exit costs

 

 

 

 

3

 

 

 

 

(2

)

 

 

 

 

 

1

 

Property, plant, and equipment

 

 

 

 

21

 

 

 

 

 

 

(21

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

 

 

92

 

 

 

 

(25

)

 

(21

)

 

 

 

46

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2014 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

16

 

 

 

 

 

 

(7

)

 

 

 

(5

)

 

4

 

Facility and other exit costs

 

 

1

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

17

 

 

 

 

 

 

(8

)

 

 

 

(5

)

 

4

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2013 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

61

 

 

 

 

(1

)

 

(42

)

 

 

 

(4

)

 

14

 

Facility and other exit costs

 

 

1

 

 

2

 

 

 

 

(3

)

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

62

 

 

2

 

 

(1

)

 

(45

)

 

 

 

(4

)

 

14

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Pre-Fiscal 2013 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

14

 

 

2

 

 

(3

)

 

(5

)

 

 

 

(2

)

 

6

 

Facility and other exit costs

 

 

21

 

 

1

 

 

 

 

(9

)

 

 

 

1

 

 

14

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

35

 

 

3

 

 

(3

)

 

(14

)

 

 

 

(1

)

 

20

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total fiscal 2015 activity

 

$

114

 

$

97

 

$

(4

)

$

(92

)

$

(21

)

$

(10

)

$

84

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2014 Activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2014 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

 

$

10

 

$

 

$

(13

)

$

 

$

19

 

$

16

 

Facility and other exit costs

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

1

 

Property, plant, and equipment

 

 

 

 

9

 

 

 

 

 

 

(9

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

 

 

19

 

 

 

 

(13

)

 

(9

)

 

20

 

 

17

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2013 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

159

 

 

8

 

 

(10

)

 

(105

)

 

 

 

9

 

 

61

 

Facility and other exit costs

 

 

1

 

 

4

 

 

 

 

(5

)

 

 

 

1

 

 

1

 

Property, plant, and equipment

 

 

 

 

7

 

 

 

 

 

 

(7

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

160

 

 

19

 

 

(10

)

 

(110

)

 

(7

)

 

10

 

 

62

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Pre-Fiscal 2013 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

51

 

 

2

 

 

(10

)

 

(29

)

 

 

 

 

 

14

 

Facility and other exit costs

 

 

26

 

 

2

 

 

1

 

 

(8

)

 

 

 

 

 

21

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

77

 

 

4

 

 

(9

)

 

(37

)

 

 

 

 

 

35

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total fiscal 2014 activity

 

$

237

 

$

42

 

$

(19

)

$

(160

)

$

(16

)

$

30

 

$

114

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2013 Activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2013 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

 

$

185

 

$

(8

)

$

(79

)

$

 

$

61

 

$

159

 

Facility and other exit costs

 

 

 

 

5

 

 

 

 

(4

)

 

 

 

 

 

1

 

Property, plant, and equipment

 

 

 

 

58

 

 

 

 

 

 

(58

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

 

 

248

 

 

(8

)

 

(83

)

 

(58

)

 

61

 

 

160

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Pre-Fiscal 2013 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

130

 

 

7

 

 

(27

)

 

(58

)

 

 

 

(1

)

 

51

 

Facility and other exit costs

 

 

31

 

 

2

 

 

1

 

 

(10

)

 

 

 

2

 

 

26

 

Property, plant, and equipment

 

 

 

 

2

 

 

 

 

 

 

(2

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

 

161

 

 

11

 

 

(26

)

 

(68

)

 

(2

)

 

1

 

 

77

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total fiscal 2013 activity

 

$

161

 

$

259

 

$

(34

)

$

(151

)

$

(60

)

$

62

 

$

237

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 

 

 

(1)          

Includes net charges (credits) associated with discontinued operations of $(1) million, $36 million, and $65 million in fiscal 2015, 2014, and 2013, respectively.

Fiscal 2015 Actions

        During fiscal 2015, we initiated a restructuring program associated with headcount reductions and product line closures, primarily impacting the Communications Solutions and Industrial Solutions segments. In connection with this program, during fiscal 2015, we recorded net restructuring charges of $92 million. We expect to complete all restructuring actions commenced in fiscal 2015 by the end of fiscal 2016 and to incur total charges of approximately $98 million.

Fiscal 2014 Actions

        During fiscal 2014, we initiated a restructuring program associated primarily with headcount reductions and manufacturing site and product line closures in the Communications Solutions segment. In connection with this program, we recorded net restructuring charges of $19 million in fiscal 2014. We do not expect to incur significant additional expense related to restructuring programs commenced in fiscal 2014.

Fiscal 2013 Actions

        During fiscal 2013, we initiated a restructuring program associated with headcount reductions and manufacturing site closures impacting all segments. In connection with this program, during fiscal 2015, 2014, and 2013, we recorded net restructuring charges of $1 million, $9 million, and $240 million, respectively. We do not expect to incur significant additional expense related to restructuring programs commenced in fiscal 2013.

Pre-Fiscal 2013 Actions

        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 fiscal 2014 and 2013, we recorded net restructuring credits of $5 million and $15 million, respectively, related to pre-fiscal 2013 actions. We do not expect to incur any additional charges related to pre-fiscal 2013 actions.

Total Restructuring Reserves

        Restructuring reserves included on the Consolidated Balance Sheets were as follows:

                                                                                                                                                                                    

 

 

Fiscal Year
End

 

 

 

2015

 

2014

 

 

 

(in millions)

 

Accrued and other current liabilities

 

$

60 

 

$

83 

 

Other liabilities

 

 

24 

 

 

31 

 

​  

​  

​  

​  

Restructuring reserves

 

$

84 

 

$

114 

 

​  

​  

​  

​  

​  

​  

​  

​  

Other Charges (Credits), Net

        During fiscal 2015, in connection with the sale our Broadband Network Solutions ("BNS") business, we incurred costs of $61 million, consisting primarily of $36 million of legal and professional fees and $18 million of charges associated with the exit of a facility. These amounts are not directly related to the business sold, and accordingly have been recorded in continuing operations. See Note 4 for additional information regarding the divestiture of BNS.