Restructuring Charges, Net

Cost Synergies Initiative

The cost synergies initiative, initially referred to as the fiscal year 2015 initiative, was the beginning of the Company's restructuring program primarily related to the acquisition of Covidien. This initiative is expected to contribute to the approximately $850 million in cost synergies expected to be achieved as a result of the Covidien acquisition through fiscal year 2018, including administrative office optimization, manufacturing and supply chain infrastructure, certain program cancellations, and certain general and administrative savings. Restructuring charges are expected to be incurred in future fiscal years as cost synergy strategies are finalized. Restructuring accruals resulting from restructuring charges are scheduled to be substantially complete within one year from the period in which the restructuring charge was initially incurred.

A summary of the activity related to the cost synergies initiative is presented below:



(in millions)	Employee Termination Costs			Asset Write-downs			Other Costs			Total
Balance as of April 25, 2014	$	—		$	—		$	—		$	—
Restructuring charges	213			28			7			248
Payments/write-downs	(77		)	(28		)	—			(105		)
Balance as of April 24, 2015	$	136		$	—		$	7		$	143
Restructuring charges	248			23			61			332
Payments/write-downs	(153		)	(23		)	(31		)	(207		)
Reversal of excess accrual	(18		)	$	—		$	—		(18		)
Balance as of April 29, 2016	$	213		$	—		$	37		$	250

As a result of certain employees identified for termination finding other positions within the Company and revisions to severance provisions, the Company recorded an $18 million reversal of excess restructuring reserves during the fiscal year ended April 29, 2016.

As part of the cost synergies initiative for the fiscal year ended April 29, 2016, the Company recognized $23 million of asset write-downs, which included $9 million related to inventory write-offs of discontinued product lines recognized within cost of products sold in the consolidated statements of income. In addition, for the fiscal year ended April 29, 2016, asset write-downs included $14 million related to property, plant, and equipment impairments.

In the fiscal year ended April 24, 2015, the Company recognized $28 million of asset write-downs, which included $15 million related to inventory write-offs of discontinued product lines and production-related asset impairments recognized within cost of products sold in the consolidated statements of income. In addition, for the fiscal year ended April 24, 2015, asset write-downs included $13 million related to property, plant, and equipment impairments.

Covidien Initiative

Covidien's pre-acquisition restructuring program is designed to improve Covidien's cost structure. The program consists of reducing corporate expenses, expanding shared services, consolidating manufacturing locations, and optimizing distribution centers. The Covidien restructuring initiative is scheduled to be substantially complete by the end of fiscal year 2018. At the Acquisition Date, the Company reserved $103 million in connection with the Covidien initiative, which consisted of employee termination costs of $76 million and other costs of $27 million.

A summary of the activity related to the Covidien initiative is presented below:



	Covidien Initiative
(in millions)	Employee Termination Costs			Other Costs			Total
Balance as of January 26, 2015 (Acquisition Date)	$	76		$	27		$	103
Restructuring charges	—			—			—
Payments/write-downs	(10		)	(10		)	(20		)
Reversal of excess accrual	(5		)	—			(5		)
Balance as of April 24, 2015	$	61		$	17		$	78
Restructuring charges	—			—			—
Payments/write-downs	(49		)	(12		)	(61		)
Reversal of excess accrual	(10		)	—			(10		)
Balance as of April 29, 2016	$	2		$	5		$	7

In the fiscal year ended April 29, 2016 and April 24, 2015, the Company recorded reversals of excess restructuring reserves related to the Covidien initiative of $10 million and $5 million, respectively. The reversals were primarily a result of certain employees identified for termination finding other positions within the Company and early lease termination negotiations in fiscal year 2015.