Restructuring and Other Charges, Net

6 Months Ended

Mar. 29, 2024

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				For the
	Quarters Ended				Six Months Ended
	March 29,		March 31,		March 29,		March 31,
	2024		2023		2024		2023
	(in millions)
Restructuring charges, net	$	32	$	62	$	41	$	166
Impairment of held for sale businesses and (gain) loss on divestitures, net		—		56		11		62
Costs related to change in place of incorporation		8		—		8		—
Other charges, net		—		1		1		2
Restructuring and other charges, net	$	40	$	119	$	61	$	230

Restructuring Charges, Net

Net restructuring charges by segment were as follows:

	For the				For the
	Quarters Ended				Six Months Ended
	March 29,		March 31,		March 29,		March 31,
	2024		2023		2024		2023
	(in millions)
Transportation Solutions	$	15	$	18	$	17	$	92
Industrial Solutions		10		36		16		42
Communications Solutions		7		8		8		32
Restructuring charges, net	$	32	$	62	$	41	$	166

Activity in our restructuring reserves was as follows:

	Balance at												Balance at
	September 29,				Changes in		Cash		Non-Cash		Currency		March 29,
	2023		Charges		Estimate		Payments		Items		Translation		2024
	(in millions)
Fiscal 2024 Actions:
Employee severance	$	—	$	11	$	—	$	(2)	$	—	$	—	$	9
Fiscal 2023 Actions:
Employee severance		187		9		(8)		(42)		—		4		150
Facility and other exit costs		2		5		—		(7)		—		—		—
Property, plant, and equipment		—		6		—		—		(6)		—		—
Total		189		20		(8)		(49)		(6)		4		150
Pre-Fiscal 2023 Actions:
Employee severance		127		2		1		(44)		—		3		89
Facility and other exit costs		4		14		—		(8)		—		—		10
Property, plant, and equipment		—		1		—		—		(1)		—		—
Total		131		17		1		(52)		(1)		3		99
Total Activity	$	320	$	48	$	(7)	$	(103)	$	(7)	$	7	$	258

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 six months ended March 29, 2024, we recorded restructuring charges of $11 million in connection with this program. We expect to complete all restructuring actions commenced during the six months ended March 29, 2024 by the end of fiscal 2025 and anticipate that additional charges related to actions commenced during the six months ended March 29, 2024 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 six months ended March 29, 2024 and March 31, 2023, we recorded net restructuring charges of $12 million and $161 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 $14 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 March 29, 2024:

	Total		Cumulative		Remaining
	Expected		Charges		Expected
	Charges		Incurred		Charges
	(in millions)
Transportation Solutions	$	155	$	146	$	9
Industrial Solutions		83		79		4
Communications Solutions		35		34		1
Total	$	273	$	259	$	14

Pre-Fiscal 2023 Actions

During the six months ended March 29, 2024 and March 31, 2023, we recorded net restructuring charges of $18 million and $5 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:

	March 29,		September 29,
	2024		2023
	(in millions)
Accrued and other current liabilities	$	198	$	240
Other liabilities		60		80
Restructuring reserves	$	258	$	320

Divestitures

During the six months ended March 29, 2024, 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 in the six months ended March 29, 2024. Additionally, during the six months ended March 31, 2023, we recorded a pre-tax impairment charge of $60 million when the business was reclassified to held for sale. The business sold was reported in our Transportation Solutions segment.

During the six months ended March 31, 2023, we sold two businesses for net cash proceeds of $51 million. In connection with the divestitures, we recorded pre-tax impairment charges and a net pre-tax gain on sales, which totaled to a net charge of $2 million. The businesses sold were both reported in our Industrial Solutions segment.

Change in Place of Incorporation

During the six months ended March 29, 2024, we incurred costs of $8 million related to our proposed change in place of incorporation from Switzerland to Ireland. See Note 1 for additional information regarding the proposed change.