Restructuring and Employee Severance

6 Months Ended

Dec. 31, 2013

The following tables summarize restructuring and employee severance costs related to our restructuring activities:



	Three Months Ended December 31
(in millions)	2013		2012
Employee-related costs (1)	$	4	$	—
Facility exit and other costs (2)	6		1
Total restructuring and employee severance	$	10	$	1



	Six Months Ended December 31
(in millions)	2013		2012
Employee-related costs (1)	$	8	$	5
Facility exit and other costs (2)	12		1
Total restructuring and employee severance	$	20	$	6


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

On January 30, 2013, we announced a restructuring plan within our Medical segment. Under this restructuring plan, among other things, we are moving production of procedure kits from our facility in Waukegan, Illinois to other facilities and selling property and consolidating office space in Waukegan, Illinois. We recognized restructuring costs of $6 million and $12 million related to this restructuring plan during the three and six months ended December 31, 2013, respectively, which primarily consisted of facility exit and other costs.

We currently estimate the total costs associated with this restructuring plan to be approximately $77 million on a pre-tax basis, of which $51 million was recognized in fiscal 2013 and $20 million was recognized during the six months ended December 31, 2013, including the write-down of the property in Waukegan, Illinois as discussed in Note 4. The estimated $6 million remaining costs to be recognized through the end of fiscal 2014 consist of facility exit and other costs.

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, 2013	$	55		$	2		$	57
Additions	12			1			13
Payments and other adjustments	(28		)	(2		)	(30		)
Balance at December 31, 2013	$	39		$	1		$	40

- 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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