Restructuring and Other Charges, Net

9 Months Ended

Jun. 28, 2019

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				Nine Months Ended
	June 28,		June 29,		June 28,		June 29,
	2019		2018		2019		2018
	(in millions)
Restructuring charges, net	$	67	$	74	$	184	$	118
Other charges (credits), net		—		(10)		—		(14)
Restructuring and other charges, net	$	67	$	64	$	184	$	104

Net restructuring charges by segment were as follows:

	For the				For the
	Quarters Ended				Nine Months Ended
	June 28,		June 29,		June 28,		June 29,
	2019		2018		2019		2018
	(in millions)
Transportation Solutions	$	53	$	18	$	98	$	23
Industrial Solutions		8		49		60		79
Communications Solutions		6		7		26		16
Restructuring charges, net	$	67	$	74	$	184	$	118

Activity in our restructuring reserves was as follows:

	Balance at												Balance at
	September 28,				Changes in		Cash		Non-Cash		Currency		June 28,
	2018		Charges		Estimate		Payments		Items		Translation		2019
	(in millions)
Fiscal 2019 Actions:
Employee severance	$	—	$	177	$	—	$	(33)	$	(2)	$	1	$	143
Facility and other exit costs		—		1		—		(1)		—		—		—
Property, plant, and equipment		—		1		—		—		(1)		—		—
Total		—		179		—		(34)		(3)		1		143
Fiscal 2018 Actions:
Employee severance		114		2		—		(45)		—		(2)		69
Facility and other exit costs		4		3		—		(3)		—		—		4
Property, plant, and equipment		—		2		(2)		—		—		—		—
Total		118		7		(2)		(48)		—		(2)		73
Pre-Fiscal 2018 Actions:
Employee severance		49		7		(7)		(20)		—		(2)		27
Facility and other exit costs		—		2		—		(2)		—		—		—
Property, plant, and equipment		—		1		(3)		—		2		—		—
Total		49		10		(10)		(22)		2		(2)		27
Total Activity	$	167	$	196	$	(12)	$	(104)	$	(1)	$	(3)	$	243

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 nine months ended June 28, 2019, we recorded restructuring charges of $179 million. We expect to complete all restructuring actions commenced during the nine months ended June 28, 2019 by the end of fiscal 2021 and to incur additional charges of approximately $25 million related primarily to employee severance 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 nine months ended June 28, 2019 and June 29, 2018, we recorded net restructuring charges of $5 million and $109 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2018 by the end of fiscal 2020 and anticipate that any additional charges will be insignificant.

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 nine months ended June 29, 2018, we recorded net restructuring charges of $9 million 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:

	June 28,		September 28,
	2019		2018
	(in millions)
Accrued and other current liabilities	$	214	$	141
Other liabilities		29		26
Restructuring reserves	$	243	$	167