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Restructuring and Other Charges, Net

3 Months Ended

Dec. 27, 2024

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 27,		December 29,
	2024		2023

	(in millions)
Restructuring charges, net	$	43	$	9
Loss on divestiture		—		11
Costs related to change in place of incorporation		10		—
Other charges (credits), net		(3)		1
Restructuring and other charges, net	$	50	$	21

Restructuring Charges, Net

Net restructuring charges by segment were as follows:


	For the
	Quarters Ended
	December 27,		December 29,
	2024		2023

	(in millions)
Transportation Solutions	$	26	$	2
Industrial Solutions		17		7
Restructuring charges, net	$	43	$	9

Activity in our restructuring reserves was as follows:


	Balance at												Balance at
	September 27,				Changes in		Cash		Non-Cash		Currency		December 27,
	2024		Charges		Estimate		Payments		Items		Translation		2024

	(in millions)
Fiscal 2025 Actions:
Employee severance	$	—	$	27	$	—	$	—	$	—	$	—	$	27
Property, plant, and equipment		—		3		—		—		(3)		—		—
Total		—		30		—		—		(3)		—		27
Fiscal 2024 Actions:
Employee severance		72		2		—		(11)		—		(4)		59
Property, plant, and equipment		—		—		2		—		(2)		—		—
Total		72		2		2		(11)		(2)		(4)		59
Pre-Fiscal 2024 Actions:
Employee severance		186		9		(2)		(26)		—		(9)		158
Facility and other exit costs		15		1		—		(5)		—		(1)		10
Property, plant, and equipment		—		1		—		—		(1)		—		—
Total		201		11		(2)		(31)		(1)		(10)		168
Total Activity	$	273	$	43	$	—	$	(42)	$	(6)	$	(14)	$	254

Fiscal 2025 Actions

During fiscal 2025, we initiated a restructuring program associated with footprint consolidation and cost structure improvements in both of our segments. During the quarter ended December 27, 2024, we recorded restructuring charges of $30 million in connection with this program. We expect to complete all restructuring actions commenced during the quarter ended December 27, 2024 by the end of fiscal 2032 and to incur additional charges of approximately $10 million related primarily to facility exit costs in the Industrial Solutions segment.

Fiscal 2024 Actions

During fiscal 2024, we initiated a restructuring program to optimize our manufacturing footprint and improve the cost structure of the organization. In connection with this program, during the quarters ended December 27, 2024 and December 29, 2023, we recorded net restructuring charges of $4 million and $5 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2024 by the end of fiscal 2025 and anticipate that additional charges related to actions commenced during fiscal 2024 will be insignificant.

Pre-Fiscal 2024 Actions

During the quarters ended December 27, 2024 and December 29, 2023, we recorded net restructuring charges of $9 million and $4 million, respectively, related to pre-fiscal 2024 actions. We expect to incur additional charges of approximately $10 million in connection with the restructuring actions commenced prior to fiscal 2024.

Total Restructuring Reserves

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


	December 27,		September 27,
	2024		2024

	(in millions)
Accrued and other current liabilities	$	219	$	233
Other liabilities		35		40
Restructuring reserves	$	254	$	273

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 in the quarter ended December 29, 2023. The business sold was reported in our Transportation Solutions segment.

Change in Place of Incorporation

During the quarter ended December 27, 2024, we incurred costs of $10 million related to our change in place of incorporation from Switzerland to Ireland. See Note 1 for additional information regarding the change.