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Restructuring and Other Charges, Net

12 Months Ended

Sep. 27, 2024

Restructuring and Other Charges, Net

3. Restructuring and Other Charges, Net

Net restructuring and other charges consisted of the following:


	Fiscal
	2024		2023		2022

	(in millions)
Restructuring charges, net	$	144	$	260	$	137
(Gain) loss on divestitures and impairment of held for sale businesses, net		(10)		77		4
Costs related to change in place of incorporation		20		—		—
Other charges, net		12		3		—
Restructuring and other charges, net	$	166	$	340	$	141

Restructuring Charges, Net

Net restructuring and related charges by segment were as follows:


	Fiscal
	2024		2023		2022

	(in millions)
Transportation Solutions	$	62	$	145	$	80
Industrial Solutions		60		70		34
Communications Solutions		22		45		23
Restructuring charges, net		144		260		137
Plus: charges included in cost of sales⁽¹⁾		—		—		16
Restructuring and related charges, net	$	144	$	260	$	153

(1)

Charges included in cost of sales were attributable to inventory-related charges within the Industrial Solutions segment.

Activity in our restructuring reserves was as follows:


	Balance at												Balance at
	Beginning												End
	of Fiscal				Changes in		Cash		Non-Cash		Currency		of Fiscal
	Year		Charges		Estimate		Payments		Items		Translation		Year

	(in millions)
Fiscal 2024 Activity:
Fiscal 2024 Actions:
Employee severance	$	—	$	79	$	—	$	(9)	$	—	$	2	$	72
Property, plant, and equipment		—		7		—		—		(7)		—		—
Total		—		86		—		(9)		(7)		2		72
Fiscal 2023 Actions:
Employee severance		187		18		(16)		(79)		—		6		116
Facility and other exit costs		2		7		—		(9)		—		—		—
Property, plant, and equipment		—		13		—		—		(13)		—		—
Total		189		38		(16)		(88)		(13)		6		116
Fiscal 2022 Actions:
Employee severance		52		5		6		(53)		—		3		13
Facility and other exit costs		—		8		10		(10)		—		—		8
Property, plant, and equipment		—		(2)		(2)		—		4		—		—
Total		52		11		14		(63)		4		3		21
Pre-Fiscal 2022 Actions:
Employee severance		75		11		(10)		(21)		—		2		57
Facility and other exit costs		4		10		—		(7)		—		—		7
Total		79		21		(10)		(28)		—		2		64
Total fiscal 2024 activity	$	320	$	156	$	(12)	$	(188)	$	(16)	$	13	$	273
Fiscal 2023 Activity:
Fiscal 2023 Actions:
Employee severance	$	—	$	238	$	—	$	(50)	$	—	$	(1)	$	187
Facility and other exit costs		—		3		—		(1)		—		—		2
Property, plant, and equipment		—		6		—		—		(6)		—		—
Total		—		247		—		(51)		(6)		(1)		189
Fiscal 2022 Actions:
Employee severance		108		7		(7)		(61)		—		5		52
Facility and other exit costs		1		7		2		(10)		—		—		—
Property, plant, and equipment		—		3		—		—		(3)		—		—
Total		109		17		(5)		(71)		(3)		5		52
Pre-Fiscal 2022 Actions:
Employee severance		112		6		(1)		(49)		—		7		75
Facility and other exit costs		7		—		4		(7)		—		—		4
Property, plant, and equipment		—		—		(8)		—		8		—		—
Total		119		6		(5)		(56)		8		7		79
Total fiscal 2023 activity	$	228	$	270	$	(10)	$	(178)	$	(1)	$	11	$	320
Fiscal 2022 Activity:
Fiscal 2022 Actions:
Employee severance	$	—	$	126	$	—	$	(15)	$	—	$	(3)	$	108
Facility and other exit costs		—		2		—		(1)		—		—		1
Property, plant, and equipment and other non-cash charges		—		33		—		—		(33)		—		—
Total		—		161		—		(16)		(33)		(3)		109
Pre-Fiscal 2022 Actions:
Employee severance		287		2		(25)		(124)		—		(28)		112
Facility and other exit costs		17		13		(2)		(20)		—		(1)		7
Property, plant, and equipment		—		7		(3)		—		(4)		—		—
Total		304		22		(30)		(144)		(4)		(29)		119
Total fiscal 2022 activity	$	304	$	183	$	(30)	$	(160)	$	(37)	$	(32)	$	228

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. In connection with this program, we recorded restructuring charges of $86 million during fiscal 2024. We expect to complete all restructuring actions commenced during fiscal 2024 by the end of fiscal 2025 and anticipate that additional charges related to fiscal 2024 actions 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 fiscal 2024 and 2023, we recorded net restructuring charges of $22 million and $247 million, respectively. We expect additional charges related to fiscal 2023 actions will be insignificant.

The following table summarizes cumulative charges incurred for the fiscal 2023 program by segment as of fiscal year end 2024:


	Cumulative
	Charges
	Incurred
	(in millions)
Transportation Solutions	$	142
Industrial Solutions		92
Communications Solutions		35
Total	$	269

Fiscal 2022 Actions

During fiscal 2022, we initiated a restructuring program associated with footprint consolidation and cost structure improvements across all segments. In connection with this program, during fiscal 2024, 2023, and 2022, we recorded net restructuring charges of $25 million, net restructuring charges of $12 million, and restructuring and related charges of $161 million, respectively. We expect that any additional charges related to fiscal 2022 actions will be insignificant.

The following table summarizes cumulative charges incurred for the fiscal 2022 program by segment as of fiscal year end 2024:


	Cumulative
	Charges
	Incurred
	(in millions)
Transportation Solutions	$	119
Industrial Solutions		51
Communications Solutions		28
Total	$	198

Pre-Fiscal 2022 Actions

During fiscal 2024, 2023, and 2022, we recorded net restructuring charges of $11 million, charges of $1 million, and credits of $8 million, respectively, related to pre-fiscal 2022 actions. We expect that any additional charges related to restructuring actions commenced prior to fiscal 2022 will be insignificant.

Total Restructuring Reserves

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


	Fiscal Year End
	2024		2023

	(in millions)
Accrued and other current liabilities	$	233	$	240
Other liabilities		40		80
Restructuring reserves	$	273	$	320

Divestitures

During fiscal 2024, we sold one business for net cash proceeds of $59 million. In connection with the divestiture, we recorded a pre-tax gain on sale of $10 million. Additionally, during fiscal 2023, we recorded a pre-tax impairment charge of $68 million when the business was reclassified to held for sale. The business sold was reported in our Transportation Solutions segment.

We sold three businesses for net cash proceeds of $48 million during fiscal 2023. In connection with the divestitures, we recorded pre-tax impairment charges and a net pre-tax loss on sales, which totaled to a net charge of $9 million. Additionally, during fiscal 2022, we recorded pre-tax impairment charges of $14 million when the businesses were reclassified to held for sale. The businesses sold were reported in our Industrial Solutions segment.

During fiscal 2022, we sold two businesses for net cash proceeds of $16 million and recognized a net pre-tax gain on sales of $10 million. The businesses sold were reported in our Transportation Solutions and Industrial Solutions segments.

Change in Place of Incorporation

During fiscal 2024, we incurred costs of $20 million related to our change in place of incorporation from Switzerland to Ireland. See Notes 1 and 21 for additional information regarding the change.