In the first quarter of fiscal year 2023, the Company began recognizing costs related to a plan that involves streamlining its operating model to meet its objectives of driving growth and productivity. The streamlined operating model is expected to enhance the Company’s ability to respond more quickly to changing consumer behaviors and innovate faster. The Company anticipates the implementation of this new model will be completed in fiscal year 2024, with different phases occurring throughout the implementation period.

The Company anticipates incurring approximately $75 to $100 of costs in fiscal years 2023 and 2024 related to this initiative. Of this total amount, the higher-end of the range of approximately $40 to $60 is expected to be incurred in fiscal year 2023. Related costs are primarily expected to include employee-related costs to reduce certain staffing levels such as severance payments, as well as for consulting and other costs. Costs incurred are expected to be settled primarily in cash.

Restructuring and related implementation costs, net were $21 and $44 for the three and nine months ended March 31, 2023, respectively. The following table summarizes the total restructuring and related implementation costs, net associated with the Company’s streamlined operating model plan as reflected in the Consolidated Statements of Earnings and Comprehensive Income.


	Three Months Ended		Nine Months Ended
	3/31/2023		3/31/2023
Costs of products sold	$	—	$	(1)
Selling and administrative expenses	6		11
Other (income) expense, net:
Employee-related costs	15		34


Total, net	$	21	$	44

Employee-related costs primarily include severance and other termination benefits calculated based on salary levels, prior service and statutory requirements. Other costs primarily include consulting fees incurred for the organizational design and implementation of the future streamlined operating model, related processes and other professional fees incurred.

Charges for restructuring and related implementation costs are recorded in the Corporate segment as these initiatives are centrally directed and controlled and are not included in internal measures of segment operating performance.

The Company may, from time to time, decide to pursue additional restructuring-related initiatives that involve costs in future periods.

The following tables reconcile the accrual for the streamlined operating model restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the Consolidated Balance Sheets:


	Three Months Ended March 31
	Employee-Related Costs		Other		Total
Accrual Balance as of December 31, 2022	$	13	$	2	$	15
Charges	15		7		22
Cash payments	(10)		(4)		(14)

Accrual Balance as of March 31, 2023	$	18	$	5	$	23


	Nine Months Ended March 31
	Employee-Related Costs		Other		Total
Accrual Balance as of June 30, 2022	$	—	$	—	$	—
Charges	34		14		48
Cash payments	(16)		(9)		(25)

Accrual Balance as of March 31, 2023	$	18	$	5	$	23