Restructuring and Employee Severance

12 Months Ended

Jun. 30, 2012

Restructuring and Related Activities Disclosure

Restructuring and Employee Severance

We consider restructuring activities to be programs whereby we fundamentally change our operations such as closing and consolidating certain manufacturing and distribution facilities, moving manufacturing of a product to another location, outsourcing production, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including substantial realignment of the management structure of a business unit in response to changing market conditions).

The following table summarizes our restructuring and employee severance costs during fiscal 2012, 2011 and 2010:



(in millions)	2012		2011		2010
Employee-related costs (1)	$	20	$	7	$	33
Facility exit and other costs (2)	1		8		58
Total (3)	$	21	$	15	$	91


(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 consist of accelerated depreciation, equipment relocation costs, project consulting fees and costs associated with restructuring our delivery of information technology infrastructure services.


(3)	We incurred restructuring expenses related to the Spin-Off of $7 million and $65 million for fiscal 2011 and 2010, respectively.

The following table summarizes activity related to liabilities associated with our restructuring and employee severance activities during fiscal 2012, 2011 and 2010:



(in millions)	Employee Related Costs			Facility Exit and Other Costs			Total
Balance at June 30, 2009	$	13		$	12		$	25
Additions	33			58			91
Payments and other adjustments	(37		)	(63		)	(100		)
Balance at June 30, 2010	9			7			16
Additions	7			8			15
Payments and other adjustments	(10		)	(11		)	(21		)
Balance at June 30, 2011	6			4			10
Additions	22			1			23
Payments and other adjustments	(12		)	(3		)	(15		)
Balance at June 30, 2012	$	16		$	2		$	18

- 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.

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