Employee Termination, Asset Impairment and Other Charges

9 Months Ended

Apr. 02, 2021

Employee Termination, Asset Impairment and Other Charges

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


	Three Months Ended				Nine Months Ended
	April 2, 2021		April 3, 2020		April 2, 2021		April 3, 2020
	(in millions)
Employee termination and other charges:

Closure of Foreign Manufacturing Facilities	$	—	$	1	$	—	$	5
Business Realignment	2		7		27		37
Total employee termination and other charges	2		8		27		42





Gain on disposition of assets:


Business Realignment	(70)		—		(70)		(17)

Total employee termination, asset impairment, and other charges	$	(68)	$	8	$	(43)	$	25

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, primarily consisting of organization rationalization designed to streamline its business, reduce its cost structure and focus its resources. The Company may also record credits related to gains upon sale of property in connection with these activities. The Company recognized gains related to the disposition of assets associated with these activities of $70 million in the three and nine months ended April 2, 2021 and $17 million in the nine months ended April 3, 2020.

The following table presents an analysis of the components of these activities against the reserve during the nine months ended April 2, 2021:


	Employee Termination Benefits		Contract Termination and Other		Total
	(in millions)








Accrual balance at July 3, 2020	$	13	$	—	$	13
Charges	24		3		27
Cash payments	(34)		(3)		(37)

Accrual balance at April 2, 2021	$	3	$	—	$	3