SUPPLEMENTAL FINANCIAL INFORMATION

12 Months Ended

Jun. 30, 2020

Supplemental Balance Sheet Disclosures [Text Block]

SUPPLEMENTAL FINANCIAL INFORMATION

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


As of June 30	2020		2019
PROPERTY, PLANT AND EQUIPMENT
Buildings	$	7,700	$	7,746
Machinery and equipment	33,260		32,263
Land	777		805
Construction in progress	2,034		2,579
TOTAL PROPERTY, PLANT AND EQUIPMENT	43,771		43,393
Accumulated depreciation	(23,079)		(22,122)
PROPERTY, PLANT AND EQUIPMENT, NET	$	20,692	$	21,271

Selected components of current and noncurrent liabilities were as follows:


As of June 30	2020		2019
ACCRUED AND OTHER LIABILITIES - CURRENT
Marketing and promotion	$	3,531	$	4,299
Compensation expenses	1,921		1,623
Restructuring reserves	472		468
Taxes payable	693		341
Other	3,105		2,323
TOTAL	$	9,722	$	9,054

OTHER NONCURRENT LIABILITIES
Pension benefits	$	6,223	$	5,622
Other postretirement benefits	965		1,098
U.S. Tax Act transitional tax payable	2,121		2,343
Uncertain tax positions	580		472
Long term operating leases	652		—
Other	569		676
TOTAL	$	11,110	$	10,211

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 fiscal 2012, the Company initiated an incremental restructuring program (covering fiscal 2012 through 2017) as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing activities and overhead expenses. 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.

In fiscal 2017, the Company announced specific elements of an additional incremental multi-year productivity and cost savings plan to further reduce costs in the areas of supply chain, certain marketing activities and overhead expenses. This program is resulting in incremental targeted enrollment reductions, along with further 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. The Company incurred total restructuring charges of $782 and $754 for the years ended June 30, 2020 and 2019, respectively. Of the charges incurred for fiscal year 2020, $155 were recorded in SG&A, $614 in Costs of products sold, and $13 in Other non-operating income/(expense), net. Of the charges incurred for fiscal year 2019, $213 were recorded in SG&A, $521 in Costs of products sold, and $20 in Other non-operating income/(expense), net. The following table presents restructuring activity for the years ended June 30, 2020 and 2019:


	Separations		Asset-Related Costs		Other		Total
RESERVE JUNE 30, 2018	$	259	$	—	$	254	$	513
Charges	260		252		242		754
Cash spent	(239)		—		(308)		(547)
Charges against assets	—		(252)		—		(252)
RESERVE JUNE 30, 2019	280		—		188		468
Charges	221		372		189		782
Cash spent	(216)		—		(190)		(406)
Charges against assets	—		(372)		—		(372)
RESERVE JUNE 30, 2020	$	285	$	—	$	187	$	472

Separation Costs

Employee separation charges for the years ended June 30, 2020 and 2019 relate to severance packages for approximately 1,200 and 1,810 employees, respectively. The packages were primarily voluntary and the amounts were 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.

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 for 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 standardizations. 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 asset removal and termination of contracts related to supply chain optimization.

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 of the charges under the program are included within the Corporate reportable segment.

However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments:


Years ended June 30	2020		2019		2018
Beauty	$	54	$	49	$	60
Grooming	102		65		38
Health Care	136		23		21
Fabric & Home Care	75		84		115
Baby, Feminine & Family Care	192		226		547
Corporate ⁽¹⁾	223		307		289
Total Company	$	782	$	754	$	1,070

⁽¹⁾Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities.