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Restructuring and Employee Severance

6 Months Ended

Dec. 31, 2017

Restructuring Charges [Abstract]

Restructuring and Employee Severance

3. Restructuring and Employee Severance

The following table summarizes restructuring and employee severance costs:

	Three Months Ended December 31,
(in millions)	2017				2016
Employee-related costs (1)	$	15			$	6
Facility exit and other costs (2)	6				1
Total restructuring and employee severance	$	21			$	7

	Six Months Ended December 31,
(in millions)	2017				2016
Employee-related costs (1)	$	19			$	13
Facility exit and other costs (2)	134				3
Total restructuring and employee severance	$	153			$	16

(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 expected costs with this restructuring include $125 million, on a pre-tax basis, in contract termination costs.

These costs are reflected in facility exit and other costs in the condensed consolidated statement of earnings during the six months ended December 31, 2017. We paid $65 million of the contract termination fee during the three months ended December 31, 2017 and the remaining $60 million during January 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, 2017	$	41			$	—			$	41
Additions	11				130				141
Payments and other adjustments	(16		)		(66		)		(82		)
Balance at December 31, 2017	$	36			$	64			$	100

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- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

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- References

No definition available.

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