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Restructuring and Other Charges, Net
9 Months Ended
Jun. 29, 2018
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 29,
2018

 

June 30,
2017

 

June 29,
2018

 

June 30,
2017

 

 

 

(in millions)

 

Restructuring charges, net

 

$

75

 

$

19

 

$

120

 

$

124

 

Other charges (credits), net

 

 

(10

)

 

 

 

(14

)

 

1

 

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

65

 

$

19

 

$

106

 

$

125

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Net restructuring charges by segment were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

For the
Nine Months Ended

 

 

 

June 29,
2018

 

June 30,
2017

 

June 29,
2018

 

June 30,
2017

 

 

 

(in millions)

 

Transportation Solutions

 

$

17

 

$

3

 

$

22

 

$

60

 

Industrial Solutions

 

 

48

 

 

14

 

 

78

 

 

53

 

Communications Solutions

 

 

10

 

 

2

 

 

20

 

 

11

 

​  

​  

​  

​  

​  

​  

​  

​  

Restructuring charges, net

 

$

75

 

$

19

 

$

120

 

$

124

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Activity in our restructuring reserves was as follows:

                                                                                                                                                                                    

 

 

Balance at
September 29,
2017

 

Charges

 

Changes
in
Estimates

 

Cash
Payments

 

Non-Cash
Items

 

Currency
Translation

 

Balance at
June 29,
2018

 

 

 

(in millions)

 

Fiscal 2018 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Employee severance

 

$

 

$

102

 

$

 

$

(11

)

$

 

$

 

$

91

 

   Facility and other exit costs

 

 

 

 

6

 

 

 

 

(1

)

 

 

 

 

 

5

 

   Property, plant, and equipment

 

 

 

 

3

 

 

 

 

 

 

(3

)

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

     Total

 

 

 

 

111

 

 

 

 

(12

)

 

(3

)

 

 

 

96

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fiscal 2017 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Employee severance

 

 

103

 

 

4

 

 

(2

)

 

(54

)

 

 

 

(1

)

 

50

 

   Facility and other exit costs

 

 

1

 

 

2

 

 

 

 

(2

)

 

 

 

 

 

1

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

     Total

 

 

104

 

 

6

 

 

(2

)

 

(56

)

 

 

 

(1

)

 

51

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Pre-Fiscal 2017 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Employee severance

 

 

36

 

 

6

 

 

(4

)

 

(18

)

 

 

 

(1

)

 

19

 

   Facility and other exit costs

 

 

9

 

 

5

 

 

 

 

(6

)

 

 

 

 

 

8

 

   Property, plant, and equipment

 

 

 

 

1

 

 

(3

)

 

3

 

 

(1

)

 

 

 

 

   ​

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

     Total

 

 

45

 

 

12

 

 

(7

)

 

(21

)

 

(1

)

 

(1

)

 

27

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total Activity

 

$

149

 

$

129

 

$

(9

)

$

(89

)

$

(4

)

$

(2

)

$

174

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Fiscal 2018 Actions

        During fiscal 2018, we initiated a restructuring program associated with footprint consolidation and structural improvements primarily impacting the Industrial Solutions segment. In connection with this program, during the nine months ended June 29, 2018, we recorded restructuring charges of $111 million. We expect to complete significantly all restructuring actions commenced during the nine months ended June 29, 2018 by the end of fiscal 2020 and to incur total charges of approximately $130 million. Remaining charges primarily relate to employee severance.

        Fiscal 2017 Actions

        During fiscal 2017, we initiated a restructuring program associated with footprint consolidation related to recent acquisitions and structural improvements impacting all segments. In connection with this program, during the nine months ended June 29, 2018 and June 30, 2017, we recorded net restructuring charges of $4 million and $119 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2017 by the end of fiscal 2019 and anticipate that any additional charges will be insignificant.

        Pre-Fiscal 2017 Actions

        Prior to fiscal 2017, we initiated a restructuring program associated with headcount reductions impacting all segments and product line closures in the Communications Solutions segment. During each of the nine months ended June 29, 2018 and June 30, 2017, we recorded net restructuring charges of $5 million related to pre-fiscal 2017 actions. We expect to incur additional charges of approximately $15 million related to pre-fiscal 2017 actions with the remaining charges related to employee severance primarily in the Communications Solutions segment.

        Total Restructuring Reserves

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

                                                                                                                                                                                    

 

 

June 29,
2018

 

September 29,
2017

 

 

 

(in millions)

 

Accrued and other current liabilities

 

$

137

 

$

130

 

Other liabilities

 

 

37

 

 

19

 

​  

​  

​  

​  

Restructuring reserves

 

$

174

 

$

149

 

​  

​  

​  

​  

​  

​  

​  

​