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 30, 2016			October 2, 2015
	(in millions)
Employee termination and other charges:
Restructuring Plan 2016	$	27		$	—
Closure of Foreign Manufacturing Facility	4			—
Business Realignment	37			48
Total employee termination and other charges	68			48
Stock-based compensation accelerations and adjustments
Restructuring Plan 2016	(1		)	—
Business Realignment	1			—
Total stock-based compensation accelerations and adjustments	—			—
Asset impairment:
Business Realignment	—			8
Total asset impairment	—			8
Total employee termination and other charges, stock-based compensation adjustments and asset impairments	$	68		$	56

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 (the “Restructuring Plan 2016”). Restructuring Plan 2016 consists of asset and footprint reduction, product road map consolidation and organization rationalization. The following table presents an analysis of the components of the activity against the reserve during the three months ended September 30, 2016:



	Employee Termination Benefits			Contract Termination and Other			Total
	(in millions)
Accrual balance at July 1, 2016	$	26		$	—		$	26
Charges	8			19			27
Cash payments	(21		)	(19		)	(40		)
Non-cash items and other	1			—			1
Accrual balance at September 30, 2016	$	14		$	—		$	14

Closure of Foreign Manufacturing Facility

In January 2016, the Company announced the closing of its head component front end wafer manufacturing facility in Odawara, Japan, in order to reduce manufacturing costs. As of September 30, 2016, the Company substantially completed all activities related to the closure of the facility. The following table presents an analysis of the components of the activity against the reserve during the three months ended September 30, 2016:



	Employee Termination Benefits			Contract Termination and Other			Total
	(in millions)
Accrual balance at July 1, 2016	$	14		$	—		$	14
Charges	2			2			4
Cash payments	(9		)	(5		)	(14		)
Non-cash items and other	—			3			3
Accrual balance at September 30, 2016	$	7		$	—		$	7

Business Realignment

The Company periodically incurs charges 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 30, 2016:



	Employee Termination Benefits			Contract Termination and Other		Total
	(in millions)
Accrual balance at July 1, 2016	$	11		$	3	$	14
Charges	37			—		37
Cash payments	(22		)	—		(22		)
Non-cash items and other	6			—		6
Accrual balance at September 30, 2016	$	32		$	3	$	35