RESTRUCTURING AND RELATED COSTS

9 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

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 incurred $60 of costs in fiscal year 2023 and anticipates incurring approximately $30 to $40 of costs in fiscal year 2024 related to this initiative, of which approximately $10 to $20 are expected to be employee-related costs to reduce certain staffing levels such as severance payments, with the remainder for consulting and other costs. Costs incurred are expected to be settled primarily in cash.

The total restructuring and related implementation costs, net associated with the Company’s streamlined operating model as reflected in the condensed consolidated statements of earnings and comprehensive income:


	Three months ended				Nine months ended				Inception to date ended
	3/31/2024		3/31/2023		3/31/2024		3/31/2023		3/31/2024
Costs of products sold	$	—	$	—	$	—	$	(1)	$	(3)
Selling and administrative expenses	5		6		8		11		20
Research and development	—		—		—		—		(1)
Other (income) expense, net:
Employee-related costs	5		15		5		34		57


Total, net	$	10	$	21	$	13	$	44	$	73

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 streamlined operating model, related processes and other professional fees incurred.

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

The following table reconciles the accrual for the streamlined operating model’s restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the condensed consolidated balance sheets:


	Employee-Related Costs		Other		Total
Accrual Balance as of June 30, 2023	$	23	$	5	$	28
Charges	5		9		14
Cash payments	(20)		(9)		(29)

Accrual Balance as of March 31, 2024	$	8	$	5	$	13