Restructuring and Employee Severance

12 Months Ended

Jun. 30, 2018

3. Restructuring and Employee Severance

The following tables summarize restructuring and employee severance costs:



(in millions)	2018		2017		2016
Employee-related costs (1)	$	34	$	51	$	15
Facility exit and other costs (2)	142		5		10
Total restructuring and employee severance	$	176	$	56	$	25


(1)	Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods.


(2)	Facility exit and other costs primarily consist of product distribution and lease contract termination costs, accelerated depreciation, equipment relocation costs, project consulting fees and costs associated with restructuring our delivery of information technology infrastructure services.

In September 2017, we entered into an agreement to transition the distribution of our Medical segment's surgeon gloves in certain international markets from a third-party distribution arrangement to a direct distribution model. The costs with this restructuring include $125 million, on a pre-tax basis, of contract termination costs which have been paid and are reflected in facility exit and other costs in the consolidated statement of earnings during the fiscal year ended 2018.

The following table summarizes activity related to liabilities associated with restructuring and employee severance:



(in millions)	Employee- Related Costs			Facility Exit and Other Costs			Total
Balance at June 30, 2016	$	15		$	1		$	16
Additions	43			1			44
Payments and other adjustments	(17		)	(2		)	(19		)
Balance at June 30, 2017	41			—			41
Additions	19			131			150
Payments and other adjustments	(36		)	(127		)	(163		)
Balance at June 30, 2018	$	24		$	4		$	28