Restructuring and Employee Severance

9 Months Ended

Mar. 31, 2018

3. Restructuring and Employee Severance

The following table summarizes restructuring and employee severance costs:



	Three Months Ended March 31,
(in millions)	2018			2017
Employee-related costs (1)	$	(1	)	$	14
Facility exit and other costs (2)	3			1
Total restructuring and employee severance	$	2		$	15



	Nine Months Ended March 31,
(in millions)	2018		2017
Employee-related costs (1)	$	18	$	27
Facility exit and other costs (2)	137		4
Total restructuring and employee severance	$	155	$	31


(1)	Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs during transition periods and changes to related estimates.


(2)	Facility exit and other costs primarily consist of product distribution and lease contract termination costs, accelerated depreciation, equipment relocation costs, project consulting fees and costs associated with restructuring our delivery of information technology infrastructure services.

In September 2017, we entered into an agreement to transition the distribution of our Medical segment's surgeon gloves in certain international markets from a third-party distribution arrangement to a direct distribution model. The costs with this restructuring include $125 million, on a pre-tax basis, in contract termination costs.

These costs are reflected in facility exit and other costs in the condensed consolidated statement of earnings during the nine months ended March 31, 2018. We paid $65 million of the contract termination fee during November 2017 and we paid the remaining $60 million of the contract termination fee in January 2018.

The following table summarizes activity related to liabilities associated with restructuring and employee severance:



(in millions)	Employee- Related Costs			Facility Exit and Other Costs			Total
Balance at June 30, 2017	$	41		$	—		$	41
Additions	8			131			139
Payments and other adjustments	(31		)	(127		)	(158		)
Balance at March 31, 2018	$	18		$	4		$	22