Restructuring and Other Charges, Net

3 Months Ended

Dec. 29, 2023

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 29,		December 30,
	2023		2022
	(in millions)
Restructuring charges, net	$	9	$	104
Loss on divestiture and impairment of held for sale business		11		6
Other charges, net		1		1
Restructuring and other charges, net	$	21	$	111

Restructuring Charges, Net

Net restructuring and charges by segment were as follows:

	For the
	Quarters Ended
	December 29,		December 30,
	2023		2022
	(in millions)
Transportation Solutions	$	2	$	74
Industrial Solutions		6		6
Communications Solutions		1		24
Restructuring charges, net	$	9	$	104

Activity in our restructuring reserves was as follows:

	Balance at												Balance at
	September 29,				Changes in		Cash		Non-Cash		Currency		December 29,
	2023		Charges		Estimate		Payments		Items		Translation		2023
	(in millions)
Fiscal 2024 Actions:
Employee severance	$	—	$	5	$	—	$	—	$	—	$	—	$	5
Fiscal 2023 Actions:
Employee severance		187		—		(8)		(20)		—		8		167
Facility and other exit costs		2		1		—		(3)		—		—		—
Property, plant, and equipment		—		4		—		—		(4)		—		—
Total		189		5		(8)		(23)		(4)		8		167
Pre-Fiscal 2023 Actions:
Employee severance		127		—		5		(23)		—		4		113
Facility and other exit costs		4		2		—		(2)		—		—		4
Total		131		2		5		(25)		—		4		117
Total Activity	$	320	$	12	$	(3)	$	(48)	$	(4)	$	12	$	289

Fiscal 2024 Actions

During fiscal 2024, we initiated a restructuring program to optimize our manufacturing footprint and improve the cost structure of the organization, primarily in the Industrial Solutions and Transportation Solutions segments. During the quarter ended December 29, 2023, we recorded restructuring charges of $5 million in connection with this program. We expect to complete all restructuring actions commenced during the quarter ended December 29, 2023 by the end of fiscal 2025, and we expect additional charges related to actions commenced during the quarter ended December 29, 2023 will be insignificant.

Fiscal 2023 Actions

During fiscal 2023, we initiated a restructuring program associated with cost structure improvements across all segments. In connection with this program, during the quarters ended December 29, 2023 and December 30, 2022, we recorded net restructuring credits of $3 million and charges of $105 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2023 by the end of fiscal 2025, and to incur additional charges of approximately $24 million related primarily to employee severance and facility exit costs.

The following table summarizes expected, incurred, and remaining charges for the fiscal 2023 program by segment as of December 29, 2023:

	Total		Cumulative		Remaining
	Expected		Charges		Expected
	Charges		Incurred		Charges
	(in millions)
Transportation Solutions	$	153	$	138	$	15
Industrial Solutions		80		73		7
Communications Solutions		35		33		2
Total	$	268	$	244	$	24

Pre-Fiscal 2023 Actions

During the quarters ended December 29, 2023 and December 30, 2022, we recorded net restructuring charges of $7 million and credits of $1 million, respectively, related to pre-fiscal 2023 actions. We expect that any additional charges related to restructuring actions commenced prior to fiscal 2023 will be insignificant.

Total Restructuring Reserves

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

	December 29,		September 29,
	2023		2023
	(in millions)
Accrued and other current liabilities	$	204	$	240
Other liabilities		85		80
Restructuring reserves	$	289	$	320

Divestiture

During the quarter ended December 29, 2023, we sold one business for net cash proceeds of $38 million. In connection with the divestiture, we recorded a pre-tax loss on sale of $11 million. The business sold was reported in our Transportation Solutions segment.