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Restructuring and Other Charges, Net
6 Months Ended
Mar. 29, 2019
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

 

For the

 

 

 

Quarters Ended

 

Six Months Ended

 

 

 

March 29,

 

March 30,

 

March 29,

 

March 30,

 

 

    

2019

    

2018

    

2019

    

2018

    

 

 

(in millions)

 

Restructuring charges, net

 

$

42

 

$

10

 

$

117

 

$

44

 

Other charges (credits), net

 

 

 —

 

 

(4)

 

 

 —

 

 

(4)

 

Restructuring and other charges, net

 

$

42

 

$

 6

 

$

117

 

$

40

 

Net restructuring charges by segment were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the

 

For the

 

 

 

Quarters Ended

 

Six Months Ended

 

 

 

March 29,

 

March 30,

 

March 29,

 

March 30,

 

 

    

2019

    

2018

    

2019

    

2018

    

 

 

(in millions)

 

Transportation Solutions

 

$

24

 

$

 1

 

$

45

 

$

 5

 

Industrial Solutions

 

 

17

 

 

 8

 

 

52

 

 

30

 

Communications Solutions

 

 

 1

 

 

 1

 

 

20

 

 

 9

 

Restructuring charges, net

 

$

42

 

$

10

 

$

117

 

$

44

 

Activity in our restructuring reserves was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Balance at

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Balance at

    

 

 

September 28,

 

 

 

 

Changes in

 

Cash

 

Non-Cash

 

Currency

 

March 29,

 

 

 

2018

 

Charges

 

Estimate

 

Payments

 

Items

 

Translation

 

2019

 

 

 

(in millions)

 

Fiscal 2019 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

 —

 

$

107

 

$

 —

 

$

(14)

 

$

 —

 

$

 —

 

$

93

 

Fiscal 2018 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

114

 

 

 1

 

 

 —

 

 

(32)

 

 

 —

 

 

(3)

 

 

80

 

Facility and other exit costs

 

 

 4

 

 

 2

 

 

 —

 

 

(2)

 

 

 —

 

 

 —

 

 

 4

 

Property, plant, and equipment

 

 

 —

 

 

 2

 

 

 —

 

 

 —

 

 

(2)

 

 

 —

 

 

 —

 

Total

 

 

118

 

 

 5

 

 

 —

 

 

(34)

 

 

(2)

 

 

(3)

 

 

84

 

Pre-Fiscal 2018 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 

49

 

 

 7

 

 

(4)

 

 

(14)

 

 

 —

 

 

(2)

 

 

36

 

Facility and other exit costs

 

 

 —

 

 

 1

 

 

 —

 

 

(2)

 

 

 —

 

 

 1

 

 

 —

 

Property, plant, and equipment

 

 

 —

 

 

 1

 

 

 —

 

 

 —

 

 

(1)

 

 

 —

 

 

 —

 

Total

 

 

49

 

 

 9

 

 

(4)

 

 

(16)

 

 

(1)

 

 

(1)

 

 

36

 

Total Activity

 

$

167

 

$

121

 

$

(4)

 

$

(64)

 

$

(3)

 

$

(4)

 

$

213

 

Fiscal 2019 Actions

During fiscal 2019, we initiated a restructuring program associated with footprint consolidation and structural improvements impacting all segments. In connection with this program, during the six months ended March 29, 2019, we recorded restructuring charges of $107 million. We expect to complete all restructuring actions commenced during the six months ended March 29, 2019 by the end of fiscal 2021 and to incur additional charges of approximately $20 million primarily in the Transportation Solutions and Industrial Solutions segments.

Fiscal 2018 Actions

During fiscal 2018, we initiated a restructuring program associated with footprint consolidation and structural improvements primarily impacting the Industrial Solutions and Transportation Solutions segments. In connection with this program, during the six months ended March 29, 2019 and March 30, 2018, we recorded restructuring charges of $5 million and $35 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2018 by the end of fiscal 2020 and to incur additional charges of approximately $10 million primarily in the Industrial Solutions segment.

Pre-Fiscal 2018 Actions

Prior to fiscal 2018, we initiated a restructuring program associated with footprint consolidation related to recent acquisitions and structural improvements impacting all segments. Also prior to fiscal 2018, we initiated a restructuring program associated with headcount reductions impacting all segments and product line closures in the Communications Solutions segment. During the six months ended March 29, 2019 and March 30, 2018, we recorded net restructuring charges of $5 million and $9 million, respectively, related to pre-fiscal 2018 actions. We expect additional charges related to pre-fiscal 2018 actions to be insignificant.

Total Restructuring Reserves

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

 

 

 

 

 

 

 

 

 

 

March 29,

 

September 28,

 

 

    

2019

    

2018

    

 

 

(in millions)

 

Accrued and other current liabilities

 

$

193

 

$

141

 

Other liabilities

 

 

20

 

 

26

 

Restructuring reserves

 

$

213

 

$

167