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 28, 2018		September 29, 2017
	(in millions)
Employee termination and other charges:
Restructuring Plan 2016	$	—	$	45
Closure of Foreign Manufacturing Facilities	4		—
Business Realignment	42		7
Total employee termination and other charges	$	46	$	52

Closure of Foreign Manufacturing Facilities

In July 2018, the Company announced the closing of its HDD manufacturing facility in Kuala Lumpur, Malaysia, in order to reduce its manufacturing costs and consolidate HDD operations into Thailand. The Company expects the closure to be substantially completed by the end of the calendar year 2019 and to result in total pre-tax charges of approximately $160 million. These charges are expected to consist of approximately $85 million in employee termination benefits and $75 million in asset-related, contract termination and other charges. During the three months ended September 28, 2018, the Company recognized $4 million in employee termination benefits.

The following table presents an analysis of the components of the restructuring charges, payments and adjustments made against the reserve during the three months ended September 28, 2018:



	Employee Termination Benefits
	(in millions)
Accrual balance at June 29, 2018	$	56
Charges	4
Accrual balance at September 28, 2018	$	60

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 during the three months ended September 28, 2018:



	Employee Termination Benefits			Contract Termination and Other			Total
	(in millions)
Accrual balance at June 29, 2018	$	31		$	5		$	36
Charges	38			4			42
Cash payments	(13		)	(4		)	(17		)
Accrual balance at September 28, 2018	$	56		$	5		$	61