Restructuring and Employee Severance

12 Months Ended

Jun. 30, 2025

4. Restructuring and Employee Severance

The following table summarizes restructuring and employee severance costs:


(in millions)	2025		2024		2023
Employee-related costs	$	61	$	95	$	39
Facility exit and other costs	27		80		56
Total restructuring and employee severance	$	88	$	175	$	95

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 in fiscal 2025, 2024, and 2023 include costs related to certain initiatives to rationalize our manufacturing operations and the implementation of certain enterprise-wide cost-savings measures. The increase in restructuring and employee severance in fiscal 2024 was primarily due to estimated severance costs related to these cost-savings measures and costs related to certain projects resulting from the reviews of our strategy, portfolio, capital-allocation framework, and operations. During fiscal 2023, restructuring and employee severance 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	74		13		87
Payments and other adjustments	(26)		(10)		(36)
Balance at June 30, 2024	92		5		97
Additions	40		—		40
Payments and other adjustments	(53)		(5)		(58)
Balance at June 30, 2025	$	79	$	—	$	79