Employee Termination, Asset Impairment and Other Charges

12 Months Ended

Jun. 30, 2023

Employee Termination, Asset Impairment and Other Charges

Employee Termination, Asset Impairment, and Other Charges

Business Realignment

The Company periodically incurs charges to realign its operations with anticipated market demand, primarily consisting of organization rationalization designed to streamline its business, reduce its cost structure and focus its resources. The Company may also record credits related to gains upon sale of property in connection with these activities. The Company recognized gains related to the disposition of assets associated with these activities of $8 million, $7 million and $75 million for 2023, 2022 and 2021, respectively. The Company recorded the following charges related to these actions:



	2023		2022		2021
	(in millions)




Employee termination benefits	$	176	$	50	$	28












Asset impairments and other charges (gains)	17		(7)		(75)
Total employee termination, asset impairment, and other charges	$	193	$	43	$	(47)

The following table presents an analysis of the components of these activities against the reserve during the year ended June 30, 2023:


	Employee Termination Benefits
	(in millions)












Accrual balance at July 1, 2022	$	17
Charges	176
Cash payments	(162)

Accrual balance at June 30, 2023	$	31