During the three months ended July 4, 2026, the Company recorded net reorganization of business charges of $15 million, including $10 million of charges in Other charges and $5 million of charges in Cost of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $15 million were charges of $18 million related to employee separation costs, partially offset by $3 million of reversals for employee separation accruals no longer needed.

During the six months ended July 4, 2026, the Company recorded net reorganization of business charges of $30 million, including $20 million of charges in Other charges and $10 million of charges in Costs of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $30 million were charges of $33 million related to employee separation costs, partially offset by $3 million of reversals for employee separation accruals no longer needed.

The following table displays the net charges incurred by segment:



July 4, 2026	Three Months Ended		Six Months Ended

Products and Systems Integration	$	10	$	21
Software and Services	5		9
	$	15	$	30

Reorganization of Businesses Accruals


	January 1, 2026		Additional Charges		Adjustments		Amount Used		July 4, 2026
Employee separation costs	$	24	$	33	$	(3)	$	(24)	$	30

At January 1, 2026, the Company had an accrual of $24 million for employee separation costs. The 2026 additional charges of $33 million represent severance costs for approximately 500 employees. The adjustment of $3 million reflects reversals for accruals no longer needed. The $24 million used reflects cash payments to severed employees. The remaining accrual of $30 million, which is included in Accrued liabilities in the Company’s Condensed Consolidated Balance Sheets at July 4, 2026, is expected to be paid, primarily within one year, to approximately 655 employees, who have either been severed or have been notified of their severance and have begun or will begin receiving payments.

During the three months ended June 28, 2025, the Company recorded net reorganization of business charges of $14 million, consisting of $8 million of charges in Other charges and $6 million of charges in Cost of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $14 million were charges of $13 million related to employee separation costs and $1 million related to exit costs.

During the six months ended June 28, 2025, the Company recorded net reorganization of business charges of $31 million, consisting of $20 million of charges in Other charges and $11 million of charges in Cost of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $31 million were charges of $33 million related to employee separation costs and $1 million related to exit costs, partially offset by $3 million of reversals for employee separation accruals no longer needed.