Restructuring and Other Charges, Net

3 Months Ended

Dec. 25, 2020

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
	Quarters Ended
	December 25,		December 27,
	2020		2019
	(in millions)
Restructuring charges, net	$	149	$	24
Other charges, net		18		—
Restructuring and other charges, net	$	167	$	24

Net restructuring charges by segment were as follows:

	For the
	Quarters Ended
	December 25,		December 27,
	2020		2019
	(in millions)
Transportation Solutions	$	118	$	4
Industrial Solutions		20		15
Communications Solutions		11		5
Restructuring charges, net	$	149	$	24

Activity in our restructuring reserves was as follows:

	Balance at												Balance at
	September 25,				Changes in		Cash		Non-Cash		Currency		December 25,
	2020		Charges		Estimate		Payments		Items		Translation		2020
	(in millions)
Fiscal 2021 Actions:
Employee severance	$	—	$	136	$	—	$	(1)	$	—	$	—	$	135
Facility and other exit costs		—		2		—		—		—		—		2
Property, plant, and equipment		—		4		—		—		(4)		—		—
Total		—		142		—		(1)		(4)		—		137
Fiscal 2020 Actions:
Employee severance		180		1		—		(34)		—		8		155
Facility and other exit costs		8		7		—		—		—		1		16
Property, plant, and equipment		—		3		—		—		(3)		—		—
Total		188		11		—		(34)		(3)		9		171
Pre-Fiscal 2020 Actions:
Employee severance		93		—		(5)		(19)		—		2		71
Facility and other exit costs		4		1		—		(5)		—		—		—
Total		97		1		(5)		(24)		—		2		71
Total Activity	$	285	$	154	$	(5)	$	(59)	$	(7)	$	11	$	379

Fiscal 2021 Actions

During fiscal 2021, we initiated a restructuring program associated with footprint consolidation and structural improvements, due in part to the COVID-19 pandemic, across all segments. In connection with this program, during the quarter ended December 25, 2020, we recorded restructuring charges of $142 million. We expect to complete all restructuring actions commenced during the quarter ended December 25, 2020 by the end of fiscal 2022 and to incur additional charges of approximately $12 million related primarily to employee severance and facility exit costs across all segments.

Fiscal 2020 Actions

During fiscal 2020, we initiated a restructuring program associated with footprint consolidation and structural improvements, due in part to the COVID-19 pandemic, across all segments. In connection with this program, during the quarters ended December 25, 2020 and December 27, 2019, we recorded restructuring charges of $11 million and $15 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2020 by the end of fiscal 2023 and to incur additional charges of approximately $34 million related primarily to employee severance and facility exit costs.

The following table summarizes expected, incurred, and remaining charges for the fiscal 2020 program by segment:

	Total		Cumulative		Remaining
	Expected		Charges		Expected
	Charges		Incurred		Charges
	(in millions)
Transportation Solutions	$	140	$	126	$	14
Industrial Solutions		114		99		15
Communications Solutions		41		36		5
Total	$	295	$	261	$	34

Pre-Fiscal 2020 Actions

Prior to fiscal 2020, we initiated restructuring programs associated with footprint consolidation and structural improvements impacting all segments. During the quarters ended December 25, 2020 and December 27, 2019, we recorded net restructuring credits of $4 million and charges of $9 million, respectively, related to pre-fiscal 2020 actions. We expect additional charges related to pre-fiscal 2020 actions to be insignificant.

Total Restructuring Reserves

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

	December 25,		September 25,
	2020		2020
	(in millions)
Accrued and other current liabilities	$	340	$	229
Other liabilities		39		56
Restructuring reserves	$	379	$	285