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Restructuring and Other Charges (Credits), Net
6 Months Ended
Mar. 25, 2016
Restructuring and Other Charges (Credits), Net  
Restructuring and Other Charges (Credits), Net

3. Restructuring and Other Charges (Credits), Net

        Net restructuring and other charges (credits) consisted of the following:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

For the
Six Months Ended

 

 

 

March 25,
2016

 

March 27,
2015

 

March 25,
2016

 

March 27,
2015

 

 

 

(in millions)

 

Restructuring charges, net

 

$

26

 

$

36

 

$

61

 

$

61

 

Gain on divestiture

 

 

(146

)

 

—

 

 

(146

)

 

—

 

Other charges, net

 

 

21

 

 

2

 

 

26

 

 

2

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

 

$

(99

)

$

38

 

$

(59

)

$

63

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Restructuring Charges, Net

        Net restructuring charges by segment were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

For the
Six Months Ended

 

 

 

March 25,
2016

 

March 27,
2015

 

March 25,
2016

 

March 27,
2015

 

 

 

(in millions)

 

Transportation Solutions

 

$

4 

 

$

1 

 

$

19 

 

$

2 

 

Industrial Solutions

 

 

14 

 

 

15 

 

 

23 

 

 

17 

 

Communications Solutions

 

 

8 

 

 

20 

 

 

19 

 

 

42 

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Restructuring charges, net

 

$

26 

 

$

36 

 

$

61 

 

$

61 

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

        Activity in our restructuring reserves during the six months ended March 25, 2016 is summarized as follows:

                                                                                                                                                                                    

 

 

Balance at
September 25,
2015

 

Charges

 

Changes
in
Estimates

 

Cash
Payments

 

Non-Cash
Items

 

Balance at
March 25,
2016

 

 

 

(in millions)

 

Fiscal 2016 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

—

 

$

50

 

$

—

 

$

(8

)

$

—

 

$

42

 

Facility and other exit costs

 

 

—

 

 

2

 

 

—

 

 

(2

)

 

—

 

 

—

 

Property, plant, and equipment

 

 

—

 

 

8

 

 

—

 

 

—

 

 

(8

)

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

 

—

 

 

60

 

 

—

 

 

(10

)

 

(8

)

 

42

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Fiscal 2015 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

45

 

 

3

 

 

—

 

 

(23

)

 

—

 

 

25

 

Facility and other exit costs

 

 

1

 

 

—

 

 

—

 

 

(1

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

 

46

 

 

3

 

 

—

 

 

(24

)

 

—

 

 

25

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Pre-Fiscal 2015 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

24

 

 

—

 

 

(3

)

 

(7

)

 

—

 

 

14

 

Facility and other exit costs

 

 

14

 

 

1

 

 

—

 

 

(2

)

 

—

 

 

13

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

 

38

 

 

1

 

 

(3

)

 

(9

)

 

—

 

 

27

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Activity

 

$

84

 

$

64

 

$

(3

)

$

(43

)

$

(8

)

$

94

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Fiscal 2016 Actions

        During fiscal 2016, we initiated a restructuring program associated with headcount reductions impacting all segments and product line closures in the Communications Solutions segment. In connection with this program, during the six months ended March 25, 2016, we recorded restructuring charges of $60 million. We expect to complete all restructuring actions commenced in the six months ended March 25, 2016 by the end of fiscal 2019 and to incur total charges of approximately $93 million with remaining charges related primarily to employee severance.

        The following table summarizes expected, incurred, and remaining charges for the fiscal 2016 program by segment:

                                                                                                                                                                                    

 

 

Total
Expected
Charges

 

Charges Incurred
For the Six
Months Ended
March 25, 2016

 

Remaining
Expected
Charges

 

 

 

(in millions)

 

Transportation Solutions

 

$

23 

 

$

16 

 

$

7 

 

Industrial Solutions

 

 

26 

 

 

23 

 

 

3 

 

Communications Solutions

 

 

44 

 

 

21 

 

 

23 

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

$

93 

 

$

60 

 

$

33 

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

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 the six months ended March 25, 2016 and March 27, 2015, we recorded restructuring charges of $3 million and $60 million, respectively. We do not expect to incur any additional charges related to fiscal 2015 actions.

Pre-Fiscal 2015 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. During fiscal 2013, we initiated a restructuring program associated with headcount reductions and manufacturing site closures impacting all segments. During the six months ended March 25, 2016 and March 27, 2015, we recorded restructuring credits of $2 million and charges of $1 million, respectively, related to pre-fiscal 2015 actions. We do not expect to incur any additional charges related to pre-fiscal 2015 actions.

Total Restructuring Reserves

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

                                                                                                                                                                                    

 

 

March 25,
2016

 

September 25,
2015

 

 

 

(in millions)

 

Accrued and other current liabilities

 

$

67 

 

$

60 

 

Other liabilities

 

 

27 

 

 

24 

 

​

​

​  

​  

​

​  

​  

​

Restructuring reserves

 

$

94 

 

$

84 

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

Gain on Divestiture

        During the second quarter of fiscal 2016, we sold our Circuit Protection Devices ("CPD") business for $350 million, subject to working capital adjustments, of which we received $261 million during the quarter ended March 25, 2016. We recognized a pre-tax gain of $146 million on the transaction. The CPD business was reported in our Communications Solutions segment.

Other Charges, Net

        During the six months ended March 25, 2016, we incurred charges of $15 million related to the write-off of certain investments and costs of $11 million associated with the divestiture of certain businesses.