NOTE 3

SUPPLEMENTAL FINANCIAL INFORMATION

The components of property, plant and equipment were as follows:



June 30	2014			2013
PROPERTY, PLANT AND EQUIPMENT
Buildings	$	8,022		$	7,829
Machinery and equipment	32,398			31,070
Land	893			878
Construction in progress	3,114			3,235
TOTAL PROPERTY, PLANT AND EQUIPMENT	44,427			43,012
Accumulated depreciation	(22,123		)	(21,346		)
PROPERTY, PLANT AND EQUIPMENT, NET	22,304			21,666

Selected components of current and noncurrent liabilities were as follows:



June 30	2014		2013
ACCRUED AND OTHER LIABILITIES - CURRENT
Marketing and promotion	$	3,290	$	3,122
Compensation expenses	1,647		1,665
Restructuring reserves	381		323
Taxes payable	711		817
Legal and environmental	399		374
Other	2,571		2,527
TOTAL	8,999		8,828

OTHER NONCURRENT LIABILITIES
Pension benefits	$	5,984	$	6,027
Other postretirement benefits	1,906		1,713
Uncertain tax positions	1,843		2,002
Other	802		837
TOTAL	10,535		10,579

RESTRUCTURING PROGRAM

The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before-tax costs incurred under the ongoing program have generally ranged from $250 to $500 annually. In 2012, the Company initiated an incremental restructuring program as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing and overheads. The productivity and cost savings plan was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes in order to help fund the Company's growth strategy.

The Company expects to incur in excess of $4.5 billion in before-tax restructuring costs over a five year period (from fiscal 2012 through fiscal 2016), including costs incurred as part of the ongoing and incremental restructuring program. Through the end of fiscal 2014, we had incurred $2.8 billion of the total expected restructuring charges under the program. The restructuring program plans included a targeted net reduction in non-manufacturing overhead enrollment of approximately 16% - 22% through fiscal 2016, which we expect to exceed. Through fiscal 2014, the Company has reduced non-manufacturing enrollment by approximately 9,300, or approximately 15%. The reductions are enabled by the elimination of duplicate work, simplification through the use of technology, optimization of various functional and business organizations and the Company's global footprint. In addition, the plan includes integration of newly acquired companies and the optimization of the supply chain and other manufacturing processes.

Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs as outlined below. The Company incurred total restructuring charges of approximately $806 and $956 for the years ended June 30, 2014 and 2013, respectively. Approximately $373 and $591 of these charges were recorded in SG&A for the years ended June 30, 2014 and 2013, respectively. Approximately $399 and $354 of these charges were recorded in cost of products sold for the years ended June 30, 2014 and 2013, respectively. The remainder is included in discontinued operations. Since the inception of this restructuring program, the Company has incurred charges of approximately $2.8 billion. Approximately $1.5 billion of these charges were related to separations, $666 were asset-related and $680 were related to other restructuring-type costs. The following table presents restructuring activity for the years ended June 30, 2014 and 2013:



	Separations			Asset-Related Costs			Other			Total
RESERVE JUNE 30, 2012	$	316		$	—		$	27		$	343
Charges	595			109			252			956
Cash spent	(615		)	—			(252		)	(867		)
Charges against assets	—			(109		)	—			(109		)
RESERVE JUNE 30, 2013	296			—			27			323
Charges	378			179			249			806
Cash spent	(321		)	—			(248		)	(569		)
Charges against assets	—			(179		)	—			(179		)
RESERVE JUNE 30, 2014	353			—			28			381

Separation Costs

Employee separation charges for the years ended June 30, 2014 and 2013 relate to severance packages for approximately 2,730 and 3,450 employees, respectively. For the years ended June 30, 2014 and 2013, these severance packages include approximately 1,640 and 2,390 non-manufacturing employees, respectively. These separations are primarily in North America and Western Europe. The packages are predominantly voluntary and the amounts are calculated based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Since its inception, the restructuring program has incurred separation charges related to approximately 9,480 employees, of which approximately 6,280 are non-manufacturing overhead personnel.

Asset-Related Costs

Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or disposal. These assets were written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardization. The asset-related charges will not have a significant impact on future depreciation charges.

Other Costs

Other restructuring-type charges are incurred as a direct result of the restructuring program. Such charges primarily include employee relocation related to separations and office consolidations, termination of contracts related to supply chain redesign and the cost to change internal systems and processes to support the underlying organizational changes.

Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges are funded by and included within Corporate for both management and segment reporting. Accordingly, all charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:



Years Ended June 30	2014		2013
Beauty	$	83	$	132
Grooming	20		50
Health Care	10		14
Fabric Care and Home Care	121		140
Baby, Feminine and Family Care	155		129
Corporate ⁽¹⁾	417		491
Total Company	806		956

⁽¹⁾ Corporate includes costs related to allocated overheads, including charges related to our SMO, Global Business Services and Corporate Functions activities and costs related to discontinued operations from our divested Pet Care business.