Restructuring and Employee Severance

9 Months Ended

Mar. 31, 2024

4. Restructuring and Employee Severance

The following tables summarize restructuring and employee severance:


	Three Months Ended March 31,
(in millions)	2024		2023
Employee-related	$	36	$	3
Facility exit and other	17		13
Total restructuring and employee severance	$	53	$	16


	Nine Months Ended March 31,
(in millions)	2024		2023
Employee-related	$	51	$	32
Facility exit and other	55		30
Total restructuring and employee severance	$	106	$	62

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. Facility exit and other costs primarily consist of project consulting fees, accelerated depreciation, professional, project management and other service fees to support divestitures, costs associated with vacant facilities, and certain other divestiture-related costs.

Restructuring and employee severance costs during the three and nine months ended March 31, 2024 and 2023 include costs related to the implementation of certain enterprise-wide cost-savings measures, which include certain initiatives to rationalize our manufacturing operations. The increase in restructuring costs during the three and nine months ended March 31, 2024 was primarily due to these initiatives and certain projects resulting from the review of our strategy portfolio, capital-allocation framework and operations. During the three and nine months ended March 31, 2023, restructuring and employee severance costs also included costs related to the divestiture of the Cordis business.

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, 2023	$	44	$	2	$	46
Additions	38		13		51
Payments and other adjustments	(21)		(6)		(27)
Balance at March 31, 2024	$	61	$	9	$	70