Restructuring and Employee Severance

12 Months Ended

Jun. 30, 2014

The following table summarizes restructuring and employee severance costs related to our restructuring activities:



(in millions)	2014 (3)		2013 (4)		2012
Employee-related costs (1)	$	13	$	59	$	20
Facility exit and other costs (2)	18		12		1
Total restructuring and employee severance	$	31	$	71	$	21


(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.


(3)	Includes $10 million of primarily facility exit and other costs related to the restructuring within our Medical segment described further below.


(4)	Includes $30 million of employee-related costs and $10 million of facility exit and other costs related to the restructuring within our Medical segment described further below.

On January 30, 2013, we announced a restructuring plan within our Medical segment. Under this restructuring plan, among other things, we have reorganized our Medical segment, moved production of procedure kits from our facility in Waukegan, Illinois to other facilities, and consolidated office space in Waukegan, Illinois. In addition, we are selling property in Waukegan, Illinois and are exiting our gamma sterilization business in El Paso, Texas.

We currently estimate the total costs associated with this restructuring plan to be approximately $74 million on a pre-tax basis, of which $18 million was recognized in fiscal 2014, including the loss to write down the property in Waukegan, Illinois as discussed in Note 4. Costs of $51 million associated with this restructuring plan were recognized in fiscal 2013, including the loss to write down our gamma sterilization assets as discussed in Note 4. The estimated $5 million remaining costs to be recognized in fiscal 2015 consist of facility exit and other costs.

During the fourth quarter of fiscal 2013, we recognized $11 million of employee-related costs related to a restructuring plan within our Nuclear Pharmacy Services division.

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, 2011	$	6		$	4		$	10
Additions	22			1			23
Payments and other adjustments	(12		)	(3		)	(15		)
Balance at June 30, 2012	$	16		$	2		$	18
Additions	63			2			65
Payments and other adjustments	(24		)	(2		)	(26		)
Balance at June 30, 2013	$	55		$	2		$	57
Additions	23			1			24
Payments and other adjustments	(54		)	(3		)	(57		)
Balance at June 30, 2014	$	24		$	—		$	24

- 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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