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Restructuring and Employee Severance
12 Months Ended
Jun. 30, 2019
Restructuring Charges [Abstract]  
Restructuring and Employee Severance
3. Restructuring and Employee Severance
The following tables summarize restructuring and employee severance costs:
(in millions)
2019
 
2018
 
2017
Employee-related costs (1)
$
95

 
$
34

 
$
51

Facility exit and other costs (2)
30

 
142

 
5

Total restructuring and employee severance
$
125

 
$
176

 
$
56


(1)
Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods.
(2)
Facility exit and other costs primarily consist of product distribution and lease contract termination costs, lease costs associated with vacant facilities, accelerated depreciation, equipment relocation costs, project consulting fees, costs associated with restructuring our delivery of information technology infrastructure services and certain other divestiture-related costs.
In early fiscal 2019, we began implementing certain enterprise-wide cost-savings measures, which we expect will reduce our future operating expenses. As a result of these measures, we incurred pre-tax restructuring related costs of $92 million during the fiscal year ended June 30, 2019, which are reflected in restructuring and employee severance in the consolidated statements of earnings.
In fiscal 2018, we entered into an agreement to transition the distribution of our Medical segment's surgeon gloves in certain international markets from a third-party distribution arrangement to a direct distribution model. The costs associated with this restructuring included $125 million, on a pre-tax basis, in contract termination costs that were paid during fiscal 2018. These costs are reflected in restructuring and employee severance in the consolidated statements of earnings during the fiscal year ended 2018.
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, 2017
$
41

 
$

 
$
41

Additions
19

 
131

 
150

Payments and other adjustments
(36
)
 
(127
)
 
(163
)
Balance at June 30, 2018
24

 
4

 
28

Additions
84

 
8

 
92

Payments and other adjustments
(44
)
 
(4
)
 
(48
)
Balance at June 30, 2019
$
64

 
$
8

 
$
72