Employee Termination, Asset Impairment and Other Charges

The Company recorded the following charges related to employee terminations benefits, asset impairment, and other charges:



	Three Months Ended
	September 29, 2017		September 30, 2016
	(in millions)
Employee termination and other charges:
Restructuring Plan 2016	$	45	$	27
Closure of Foreign Manufacturing Facility	—		4
Business Realignment	7		37
Total employee termination and other charges	$	52	$	68

Restructuring Plan 2016

In 2016, the Company initiated a set of actions relating to the restructuring plan associated with the integration of substantial portions of its HGST and WD subsidiaries (“Restructuring Plan 2016”). Restructuring Plan 2016 consists of asset and footprint reduction, product road map consolidation and organization rationalization. In addition to the amounts recognized under Restructuring Plan 2016 as presented above, the Company recognized $5 million and $26 million of accelerated depreciation on facility assets in cost of revenue during the three months ended September 29, 2017 and September 30, 2016, respectively. The Company expects Restructuring Plan 2016 to be substantially completed by the end of calendar year 2017.

The following table presents an analysis of the components of the activity against the reserve during the three months ended September 29, 2017:



	Employee Termination Benefits			Contract Termination and Other			Total
	(in millions)
Accrual balance at June 30, 2017	$	11		$	2		$	13
Charges	36			9			45
Cash payments	(8		)	(6		)	(14		)
Accrual balance at September 29, 2017	$	39		$	5		$	44

Business Realignment

The Company periodically incurs charges as part of the integration process of recent acquisitions and to realign its operations with anticipated market demand. The following table presents an analysis of the components of the activity against the reserve:



	Employee Termination Benefits			Contract Termination and Other			Total
	(in millions)
Accrual balance at June 30, 2017	$	18		$	5		$	23
Charges	4			3			7
Cash payments	(4		)	(1		)	(5		)
Accrual balance at September 29, 2017	$	18		$	7		$	25