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Restructuring | 3 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring Restructuring and related expenses, net, were $28 million and $1 million during the three months ended September 30, 2023 and 2022, respectively. The Company's restructuring activities for the three months ended September 30, 2023 are primarily comprised of restructuring activities related to the 2023 Restructuring Plan (as defined below). The Company's restructuring activities in the three months ended September 30, 2022 included expenses relating to Other Restructuring Plans (as defined below). Restructuring related expenses are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. The Company believes the disclosure of restructuring related costs provides more information on its restructuring activities. 2023 Restructuring Plan On February 7, 2023, the Company announced that it will allocate approximately $110 million to $130 million of the sale proceeds from the Company's three manufacturing sites in Russia ("Russian business") to various cost saving initiatives to partly help offset divested earnings from these sites (the "2023 Restructuring Plan" or the "Plan"). The Company expects the total Plan cash and non-cash net expenses to total $200 million to $220 million. As of September 30, 2023, the Company has initiated projects with an expected net cost of approximately $170 million, of which $89 million relates to employee related expenses, $14 million to fixed asset related expenses (net of expected gains on asset disposals), $52 million to other restructuring expenses, and $15 million to restructuring related expenses. The projects initiated as of September 30, 2023 are expected to result in approximately $100 million of net cash expenditures. The Plan includes both the Flexibles and Rigid Packaging reportable segments and is expected to be largely completed by the end of fiscal year 2024. From the initiation of the Plan through September 30, 2023, the Company has incurred $81 million in employee related expenses, $19 million in fixed asset related expenses, $11 million in other restructuring, and $9 million in restructuring related expenses, with $109 million incurred in the Flexibles reportable segment and $11 million incurred in the Rigid Packaging reportable segment. The Plan has resulted in cumulative net cash outflows of $37 million. Additional cash payments of approximately $65 million to $75 million, net of estimated proceeds from disposals, are expected for the remainder of the fiscal year 2024, the majority of which relates to the Flexibles reportable segment. The restructuring related costs relate primarily to the closure of facilities and include startup and training costs after relocation of equipment, and other costs incidental to the Plan. Other Restructuring Plans The Company has entered into other individually immaterial restructuring plans ("Other Restructuring Plans"). Expenses incurred on such programs are primarily costs to move equipment and other costs. Consolidated Restructuring Plans The total costs incurred from the beginning of the Company's 2023 Restructuring Plan and other restructuring plans are as follows:
($ in millions) |  | 2023 Restructuring Plan (1) |  | Other Restructuring Plans (2) |  | Total Restructuring and Related Expenses
Fiscal year 2023 |  | $ | 94 |  |  | $ | 17 |  |  | $ | 111 |
Fiscal year 2024, first quarter |  | 26 |  |  | 2 |  |  | 28 |
Net expenses incurred |  | $ | 120 |  |  | $ | 19 |  |  | $ | 139 |
(1)Includes restructuring related expenses from the 2023 Restructuring Plan of $6 million and $3 million for fiscal year 2023 and first quarter of fiscal year 2024, respectively. In the three months ended September 30, 2023, $23 million of the restructuring and related expenses, net, were incurred in the Flexibles reportable segment and $3 million in the Rigid Packaging reportable segment. (2)Includes restructuring related costs of $4 million and nil for fiscal year 2023 and first quarter of fiscal year 2024, respectively. An analysis of the restructuring charges by type incurred follows:
|  | Three Months Ended September 30, |  |
($ in millions) |  | 2023 |  | 2022 |  |  |  |
Employee related expenses |  | $ | 16 |  |  | $ | 1 |  |  |  |  |
Fixed asset related expenses |  | 6 |  |  | — |  |  |  |  |
Other expenses |  | 3 |  |  | — |  |  |  |  |
Total restructuring expenses, net |  | $ | 25 |  |  | $ | 1 |  |  |  |  |
An analysis of the Company's restructuring plan liability is as follows:
($ in millions) |  | Employee Costs |  | Fixed Asset Related Costs |  | Other Costs |  | Total Restructuring Costs
Liability balance as of June 30, 2023 |  | $ | 126 |  |  | $ | 3 |  |  | $ | 21 |  |  | $ | 150 |
Net charges to earnings |  | 16 |  |  | 6 |  |  | 3 |  |  | 25 |
Cash paid |  | (22) |  |  | — |  |  | (8) |  |  | (30) |
Non-cash and other |  | — |  |  | (6) |  |  | — |  |  | (6) |
Foreign currency translation |  | (4) |  |  | — |  |  | (1) |  |  | (5) |
Liability balance as of September 30, 2023 |  | $ | 116 |  |  | $ | 3 |  |  | $ | 15 |  |  | $ | 134 |
The table above includes liabilities arising from the 2023 Restructuring Plan and Other Restructuring Plans. The accruals related to restructuring activities have been recorded on the unaudited condensed consolidated balance sheets under other current liabilities

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- References No definition available. + Details
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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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