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Restructuring Charges
 12 Months Ended
Apr. 26, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
In fiscal year 2024, the Company incurred $389 million of restructuring and associated costs primarily related to employee termination benefits and facility consolidations to support cost reduction initiatives. In fiscal years 2023 and 2022, restructuring costs primarily related to Enterprise Excellence and Simplification restructuring programs, both of which were substantially completed as of the end fiscal year 2023. Enterprise Excellence was designed to leverage the Company’s global size and scale to focus on global operations, and functional and commercial optimization, and had total cumulative pre-tax charges of $1.8 billion. Simplification was designed to focus the organization on accelerating innovation, enhancing customer experience, driving revenue growth and winning market share, and had total cumulative pre-tax charges of $0.5 billion. In addition, in the fourth quarter of fiscal year 2023, the Company incurred $0.3 billion of restructuring charges primarily related to employee termination benefits to support cost reduction initiatives. These charges were incremental to charges incurred under our Enterprise Excellence and Simplification programs noted above.
Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated and voluntary early retirement benefits in fiscal year 2023. Associated costs primarily include salaries and wages of employees that are fully-dedicated to restructuring programs, consulting fees, and asset write-offs.
The following table presents the classification of restructuring costs in the consolidated statements of income:
Fiscal year
(in millions)202420232022
Cost of products sold$55 $97 $117 
Selling, general, and administrative expenses108 173 158 
Restructuring charges, net(1)
226 375 60 
Total restructuring and associated costs$389 $647 $335 
(1) In fiscal year 2023, restructuring charges, net included $94 million of incremental defined benefit, defined contribution, and post-retirement related expenses for employees that accepted voluntary early retirement packages.
The following table summarizes the activity related to restructuring programs for fiscal years 2024 and 2023:
(in millions)
Employee Termination Benefits(1)
Associated and Other CostsTotal
April 29, 2022$81 $28 $110 
Charges285 279 564 
Cash payments(150)(281)(433)
Accrual adjustments(2)
(11)(1)(12)
April 28, 2023204 25 230 
Charges233 163 396 
Cash payments(292)(161)(453)
Settled non-cash— (16)(16)
Accrual adjustments(2)
(8)— (8)
April 26, 2024$136 $11 $147 
(1)In fiscal year 2023, restructuring charges, net included $94 million of incremental defined benefit, defined contribution, and post-retirement related expenses for employees that accepted voluntary early retirement packages. These costs are not included in the table summarizing restructuring charges above, as they are associated with costs that are accounted for under the pension and post-retirement rules.
(2)Accrual adjustments relate to certain employees identified for termination finding other positions within the Company or contract terminations being settled for less than originally estimated.