Restructuring and Employee Severance

3 Months Ended

Sep. 30, 2024

4. Restructuring and Employee Severance

The following table summarizes restructuring and employee severance costs:


	Three Months Ended September 30,
(in millions)	2024		2023
Employee-related costs	$	16	$	7
Facility exit and other costs	8		18
Total restructuring and employee severance	$	24	$	25

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 costs associated with vacant facilities.

During the three months ended September 30, 2024, restructuring and employee severance costs were primarily related to the implementation of certain enterprise-wide cost-savings measures and certain initiatives to rationalize our manufacturing operations. During the three months ended September 30, 2023, restructuring and employee severance costs were primarily related to certain

projects resulting from reviews of our strategy, portfolio, capital-allocation framework, and operations and the implementation of certain enterprise-wide cost-savings measures.

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, 2024	$	92	$	5	$	97
Additions	7		—		7
Payments and other adjustments	(5)		(5)		(10)
Balance at September 30, 2024	$	94	$	—	$	94