Restructuring and Other Charges, Net

3 Months Ended

Dec. 27, 2019

Restructuring and Other Charges, Net

Restructuring and Other Charges, Net

2. Restructuring and Other Charges, Net

Net restructuring charges by segment were as follows:

	For the
	Quarters Ended
	December 27,		December 28,
	2019		2018
	(in millions)
Transportation Solutions	$	4	$	21
Industrial Solutions		15		35
Communications Solutions		5		19
Restructuring charges, net	$	24	$	75

Activity in our restructuring reserves was as follows:

	Balance at										Currency		Balance at
	September 27,				Changes in		Cash		Non-Cash		Translation		December 27,
	2019		Charges		Estimate		Payments		Items		and Other		2019
	(in millions)
Fiscal 2020 Actions:
Employee severance	$	—	$	15	$	—	$	(1)	$	—	$	—	$	14
Fiscal 2019 Actions:
Employee severance		188		5		(3)		(23)		(1)		3		169
Facility and other exit costs		1		1		—		(2)		—		2		2
Property, plant, and equipment		—		4		—		—		(4)		—		—
Total		189		10		(3)		(25)		(5)		5		171
Pre-Fiscal 2019 Actions:
Employee severance		73		1		(3)		(18)		—		1		54
Facility and other exit costs		2		4		—		(5)		—		—		1
Total		75		5		(3)		(23)		—		1		55
Total Activity	$	264	$	30	$	(6)	$	(49)	$	(5)	$	6	$	240

Fiscal 2020 Actions

During fiscal 2020, we initiated a restructuring program associated with footprint consolidation and structural improvements across all segments. In connection with this program, during the quarter ended December 27, 2019, we recorded restructuring charges of $15 million. We expect to complete all restructuring actions commenced during the quarter ended December 27, 2019 by the end of fiscal 2021 and to incur additional charges of approximately $5 million.

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 quarters ended December 27, 2019 and December 28, 2018, we recorded net restructuring charges of $7 million and $67 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2019 by the end of fiscal 2021 and to incur additional charges of approximately $25 million related primarily to employee severance and facility exit costs in the Transportation Solutions and Industrial Solutions segments.

Pre-Fiscal 2019 Actions

Prior to fiscal 2019, we initiated a restructuring program associated with footprint consolidation and structural improvements primarily impacting the Industrial Solutions and Transportation Solutions segments. Also prior to fiscal 2019, we initiated a restructuring program associated with footprint consolidation related to recent acquisitions and structural improvements impacting all segments. During the quarters ended December 27, 2019 and December 28, 2018, we recorded net restructuring charges of $2 million and $8 million, respectively, related to pre-fiscal 2019 actions. We expect additional charges related to pre-fiscal 2019 actions to be insignificant.

Total Restructuring Reserves

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

	December 27,		September 27,
	2019		2019
	(in millions)
Accrued and other current liabilities	$	215	$	245
Other liabilities		25		19
Restructuring reserves	$	240	$	264