Restructuring and Other Charges, Net

12 Months Ended

Sep. 27, 2019

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
	2019		2018		2017
	(in millions)
Restructuring charges, net	$	255	$	140	$	146
Gain on divestiture		—		(2)		—
Other charges (credits), net		—		(12)		1
Restructuring and other charges, net	$	255	$	126	$	147

Net restructuring charges by segment were as follows:

	Fiscal
	2019		2018		2017
	(in millions)
Transportation Solutions	$	144	$	42	$	69
Industrial Solutions		63		83		73
Communications Solutions		48		15		4
Restructuring charges, net	$	255	$	140	$	146

Activity in our restructuring reserves was as follows:

	Balance at												Balance at
	Beginning												End
	of Fiscal				Changes in		Cash		Non-Cash		Currency		of Fiscal
	Year		Charges		Estimate		Payments		Items		Translation		Year
	(in millions)
Fiscal 2019 Activity:
Fiscal 2019 Actions:
Employee severance	$	—	$	252	$	(3)	$	(55)	$	(3)	$	(3)	$	188
Facility and other exit costs		—		2		—		(1)		—		—		1
Property, plant, and equipment		—		3		—		—		(3)		—		—
Total		—		257		(3)		(56)		(6)		(3)		189
Fiscal 2018 Actions:
Employee severance		114		3		(5)		(57)		—		(3)		52
Facility and other exit costs		4		4		(2)		(5)		—		—		1
Property, plant, and equipment		—		2		(2)		—		—		—		—
Total		118		9		(9)		(62)		—		(3)		53
Fiscal 2017 Actions:
Employee severance		36		2		(4)		(19)		—		(1)		14
Pre-Fiscal 2017 Actions:
Employee severance		13		4		(3)		(6)		—		(1)		7
Facility and other exit costs		—		4		—		(3)		—		—		1
Property, plant, and equipment		—		1		(3)		—		2		—		—
Total		13		9		(6)		(9)		2		(1)		8
Total fiscal 2019 activity	$	167	$	277	$	(22)	$	(146)	$	(4)	$	(8)	$	264
Fiscal 2018 Activity:
Fiscal 2018 Actions:
Employee severance	$	—	$	130	$	—	$	(16)	$	—	$	—	$	114
Facility and other exit costs		—		6		—		(2)		—		—		4
Property, plant, and equipment		—		6		—		—		(6)		—		—
Total		—		142		—		(18)		(6)		—		118
Fiscal 2017 Actions:
Employee severance		102		5		(10)		(60)		—		(1)		36
Facility and other exit costs		1		2		—		(3)		—		—		—
Property, plant, and equipment		—		1		(2)		2		(1)		—		—
Total		103		8		(12)		(61)		(1)		(1)		36
Pre-Fiscal 2017 Actions:
Employee severance		35		7		(9)		(19)		—		(1)		13
Facility and other exit costs		—		6		—		(5)		—		(1)		—
Property, plant, and equipment		—		1		(3)		3		(1)		—		—
Total		35		14		(12)		(21)		(1)		(2)		13
Total fiscal 2018 activity	$	138	$	164	$	(24)	$	(100)	$	(8)	$	(3)	$	167
Fiscal 2017 Activity:
Fiscal 2017 Actions:
Employee severance	$	—	$	141	$	(5)	$	(39)	$	—	$	5	$	102
Facility and other exit costs		—		2		—		(1)		—		—		1
Property, plant, and equipment		—		9		—		—		(9)		—		—
Total		—		152		(5)		(40)		(9)		5		103
Pre-Fiscal 2017 Actions:
Employee severance		76		8		(13)		(33)		—		(3)		35
Facility and other exit costs		1		4		—		(5)		—		—		—
Total		77		12		(13)		(38)		—		(3)		35
Total fiscal 2017 activity	$	77	$	164	$	(18)	$	(78)	$	(9)	$	2	$	138

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 fiscal 2019, we recorded net restructuring charges of $254 million. We expect to complete all restructuring actions commenced during fiscal 2019 by the end of fiscal 2021 and to incur additional charges of approximately $35 million related primarily to employee severance and facility exit costs in the Transportation Solutions and Industrial Solutions segments.

The following table summarizes expected, incurred, and remaining charges for the fiscal 2019 program by segment:

	Total		Cumulative		Remaining
	Expected		Charges		Expected
	Charges		Incurred		Charges
	(in millions)
Transportation Solutions	$	160	$	144	$	16
Industrial Solutions		80		66		14
Communications Solutions		49		44		5
Total	$	289	$	254	$	35

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 fiscal 2018, we recorded restructuring charges of $142 million. 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.

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 fiscal 2019, 2018, and 2017, we recorded net restructuring credits of $2 million, credits of $4 million, and charges of $147 million, respectively. We anticipate that any additional charges will be insignificant for restructuring actions commenced during fiscal 2017.

Pre-Fiscal 2017 Actions

During fiscal 2019, 2018, and 2017, we recorded net restructuring charges of $3 million, charges of $2 million, and credits of $1 million, respectively. We anticipate that any additional charges will be insignificant for restructuring actions commenced prior to fiscal 2017.

Total Restructuring Reserves

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

	Fiscal Year End
	2019		2018
	(in millions)
Accrued and other current liabilities	$	245	$	141
Other liabilities		19		26
Restructuring reserves	$	264	$	167