Cost Plan (Notes)
|3 Months Ended|
Dec. 30, 2018
|Restructuring and Related Activities [Abstract]|
|Restructuring and Related Activities Disclosure||
In the second quarter of fiscal 2018, we announced a Cost Plan designed to align our cost structure to our long-term margin targets. As part of this plan, we have initiated a series of targeted actions across our businesses to reduce annual costs by $1 billion, excluding incremental costs resulting from any future acquisition of a business. We expect these cost reductions to be fully captured in fiscal 2019, excluding litigation costs that are in excess of the baseline spend.
During the three months ended December 30, 2018, we recorded restructuring and restructuring-related charges of $180 million in other expenses, which consisted of restructuring charges of $29 million, primarily related to severance and consulting costs, and restructuring-related charges of $151 million, primarily related to asset impairment charges resulting from the planned sale of a nonreportable segment. In connection with this plan, we expect to incur additional restructuring and restructuring-related charges of up to $50 million, which primarily consist of severance and consulting costs, the vast majority of which are expected to be settled in cash. Since inception of the Cost Plan, we have incurred a total of $867 million in net restructuring and restructuring-related charges.
The restructuring accrual, a portion of which was included in payroll and other benefits related liabilities with the remainder included in other current liabilities, is expected to be substantially paid within the next 12 months. Changes in the restructuring accrual for the first quarter of fiscal 2019 were as follows (in millions):
In the first quarter of fiscal 2019, we entered into a definitive agreement under which we agreed to sell a nonreportable segment. As a result, assets (recorded as other current assets and other noncurrent assets) and liabilities (recorded as other current liabilities and other noncurrent liabilities) of $129 million and $40 million, respectively, were classified as held for sale at December 30, 2018.
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef