Restructuring and Other Charges, Net

9 Months Ended

Jun. 26, 2020

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				For the
	Quarters Ended				Nine Months Ended
	June 26,		June 28,		June 26,		June 28,
	2020		2019		2020		2019
	(in millions)
Transportation Solutions	$	55	$	53	$	77	$	98
Industrial Solutions		40		8		56		60
Communications Solutions		3		6		11		26
Restructuring charges, net	$	98	$	67	$	144	$	184

Activity in our restructuring reserves was as follows:

	Balance at										Currency		Balance at
	September 27,				Changes in		Cash		Non-Cash		Translation		June 26,
	2019		Charges		Estimate		Payments		Items		and Other		2020
	(in millions)
Fiscal 2020 Actions:
Employee severance	$	—	$	120	$	—	$	(10)	$	—	$	—	$	110
Property, plant, and equipment		—		18		—		—		(18)		—		—
Total		—		138		—		(10)		(18)		—		110
Fiscal 2019 Actions:
Employee severance		188		7		(19)		(83)		—		2		95
Facility and other exit costs		1		9		—		(10)		—		2		2
Property, plant, and equipment		—		6		—		—		(6)		—		—
Total		189		22		(19)		(93)		(6)		4		97
Pre-Fiscal 2019 Actions:
Employee severance		73		—		(5)		(40)		—		—		28
Facility and other exit costs		2		6		—		(6)		—		—		2
Property, plant, and equipment		—		2		—		—		(2)		—		—
Total		75		8		(5)		(46)		(2)		—		30
Total Activity	$	264	$	168	$	(24)	$	(149)	$	(26)	$	4	$	237

Fiscal 2020 Actions

During fiscal 2020, we initiated a restructuring program associated with footprint consolidation and structural improvements, due in part to the coronavirus disease COVID-19, across all segments. In connection with this program, during the nine months ended June 26, 2020, we recorded restructuring charges of $138 million. We expect to complete all restructuring actions commenced during the nine months ended June 26, 2020 by the end of fiscal 2022 and to incur additional charges of approximately $30 million related primarily to employee severance and facility exit costs in the Transportation Solutions and Industrial Solutions segments.

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 26, 2020 and June 28, 2019, we recorded net restructuring charges of $3 million and $179 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 $10 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 nine months ended June 26, 2020 and June 28, 2019, we recorded net restructuring charges of $3 million and $5 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:

	June 26,		September 27,
	2020		2019
	(in millions)
Accrued and other current liabilities	$	211	$	245
Other liabilities		26		19
Restructuring reserves	$	237	$	264