SUPPLEMENTAL FINANCIAL INFORMATION

12 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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


As of June 30	2024		2023
PROPERTY, PLANT AND EQUIPMENT
Machinery and equipment	$	37,507	$	36,521
Buildings	8,534		8,277
Construction in progress	3,126		2,980
Land	895		867
TOTAL PROPERTY, PLANT AND EQUIPMENT	50,063		48,645
Accumulated depreciation	(27,911)		(26,736)
PROPERTY, PLANT AND EQUIPMENT, NET	$	22,152	$	21,909

Selected components of current and noncurrent liabilities were as follows:


As of June 30	2024		2023
ACCRUED AND OTHER LIABILITIES - CURRENT
Accrued marketing and promotion	$	4,172	$	3,894
Accrued compensation	2,161		2,030
Taxes payable	1,042		828
Accrued interest	282		235
Lease liabilities	243		222
Restructuring reserves	166		174
Derivative liabilities	54		631
Other	2,953		2,915
TOTAL	$	11,073	$	10,929

OTHER NONCURRENT LIABILITIES
Pension benefit obligations	$	2,884	$	3,116
Uncertain tax positions	723		622
Lease liabilities	666		595
Other retiree benefit obligations	653		690
U.S. Tax Act transitional tax payable	592		1,154
Derivative liabilities	325		445
Other	555		530
TOTAL	$	6,398	$	7,152

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.

In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company expects to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.

The Company incurred total restructuring charges of $659 and $329 for the fiscal years ended June 30, 2024 and 2023. Of the charges incurred for fiscal year 2024, $248 were recorded in Costs of products sold, $155 in SG&A and $255 in Other non-operating income, net. Of the charges incurred in fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net.

The following table presents restructuring activity for the fiscal years ended June 30, 2024 and 2023:


	Separation Costs		Asset-Related Costs		Other Costs		Total
RESERVE JUNE 30, 2022	$	121	$	—	$	26	$	147
Cost incurred	175		43		111		329
Cost paid/settled	(141)		(43)		(118)		(302)
RESERVE JUNE 30, 2023	155		—		19		174
Cost incurred	202		101		355		659
Cost paid/settled	(224)		(101)		(342)		(667)
RESERVE JUNE 30, 2024	$	133	$	—	$	32	$	166

Separation 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.

Asset-Related Costs

Asset-related costs consist of both asset write-downs and accelerated depreciation for manufacturing and facilities consolidations. 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.

Other Costs

Other restructuring-type charges are incurred as a direct result of the restructuring plan. Such charges include accumulated foreign currency translation losses, asset removal and termination of contracts related to Enterprise Market portfolio restructuring. As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss).

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	2024		2023		2022
Beauty	$	43	$	15	$	11
Grooming	76		17		14
Health Care	33		28		32
Fabric & Home Care	84		87		42
Baby, Feminine & Family Care	50		21		83
Corporate (1)	371		161		71
TOTAL	$	659	$	329	$	253

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