SUPPLEMENTAL FINANCIAL INFORMATION

12 Months Ended

Jun. 30, 2023

Supplemental Balance Sheet Disclosures [Text Block]

SUPPLEMENTAL FINANCIAL INFORMATION

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


As of June 30	2023		2022
PROPERTY, PLANT AND EQUIPMENT
Buildings	$	8,277	$	8,087
Machinery and equipment	36,521		35,098
Land	867		756
Construction in progress	2,980		2,756
TOTAL PROPERTY, PLANT AND EQUIPMENT	48,645		46,697
Accumulated depreciation	(26,736)		(25,502)
PROPERTY, PLANT AND EQUIPMENT, NET	$	21,909	$	21,195

Selected components of current and noncurrent liabilities were as follows:


As of June 30	2023		2022
ACCRUED AND OTHER LIABILITIES - CURRENT
Marketing and promotion	$	3,894	$	3,878
Compensation expenses	2,030		1,797
Taxes payable	828		587
Derivative liabilities	631		1
Leases	222		205
Restructuring reserves	174		147
Other	3,150		2,939
TOTAL	$	10,929	$	9,554

OTHER NONCURRENT LIABILITIES
Pension benefits	$	3,116	$	3,139
U.S. Tax Act transitional tax payable	1,154		1,661
Other retiree benefits	690		672
Uncertain tax positions	622		752
Long term operating leases	595		595
Derivative liabilities	445		307
Other	530		490
TOTAL	$	7,152	$	7,616

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 ongoing programs have generally ranged from $250 to $500 annually.

Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are 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 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 are 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 restructuring-type charges primarily include asset removal and termination of contracts related to supply chain and overhead optimization. The Company incurred total restructuring charges of $329 and $253 for the fiscal years ended June 30, 2023 and 2022. Of the charges incurred for fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net. Of the

charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022:


	Separations		Asset-Related Costs		Other		Total
RESERVE JUNE 30, 2021	$	176	$	—	$	102	$	278
Cost incurred and charged to expense	88		87		78		253
Cost paid/settled	(143)		(87)		(154)		(384)
RESERVE JUNE 30, 2022	121		—		26		147
Cost incurred and charged to expense	175		43		111		329
Cost paid/settled	(141)		(43)		(118)		(302)
RESERVE JUNE 30, 2023	$	155	$	—	$	19	$	174

Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting.

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


Fiscal years ended June 30	2023		2022		2021
Beauty	$	15	$	11	$	13
Grooming	17		14		25
Health Care	28		32		51
Fabric & Home Care	87		42		22
Baby, Feminine & Family Care	21		83		29
Corporate (1)	161		71		190
Total Company	$	329	$	253	$	330

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