Restructuring and Employee Severance

9 Months Ended

Mar. 31, 2015

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



	Three Months Ended March 31
(in millions)	2015		2014
Employee-related costs (1)	$	3	$	2
Facility exit and other costs (2)	4		3
Total restructuring and employee severance	$	7	$	5



	Nine Months Ended March 31
(in millions)	2015		2014
Employee-related costs (1)	$	24	$	10
Facility exit and other costs (2)	9		15
Total restructuring and employee severance	$	33	$	25


(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.

The majority of restructuring costs incurred during the nine months ended March 31, 2015 and 2014 related to restructuring activities within our Medical segment.

In connection with a restructuring plan within our Medical segment announced on January 30, 2013, we completed the sale of our property in Waukegan, Illinois during the second quarter of fiscal 2015, which resulted in a $1 million loss on disposal of held for sale assets.

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, 2014	$	24		$	—		$	24
Additions	21			1			22
Payments and other adjustments	(27		)	(1		)	(28		)
Balance at March 31, 2015	$	18		$	—		$	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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