Restructuring and Employee Severance

6 Months Ended

Dec. 31, 2019

2. Restructuring and Employee Severance

The following table summarizes restructuring and employee severance costs:



	Three Months Ended December 31,
(in millions)	2019		2018
Employee-related costs (1)	$	42	$	12
Facility exit and other costs (2)	14		—
Total restructuring and employee severance	$	56	$	12



	Six Months Ended December 31,
(in millions)	2019		2018
Employee-related costs (1)	$	62	$	41
Facility exit and other costs (2)	24		3
Total restructuring and employee severance	$	86	$	44


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


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

During fiscal 2020 and 2019, we implemented certain enterprise-wide cost-saving initiatives affecting various functional and commercial areas intended to optimize and simplify our operating model and cost structure. We incurred $42 million and $8 million during the three months ended December 31, 2019 and 2018, respectively, and $62 million and $34 million for the six months ended December 31, 2019 and 2018, respectively, in expenses related to these cost savings initiatives, which are reflected in restructuring and employee severance in the condensed consolidated statements of earnings/(loss).

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, 2019	$	64		$	8		$	72
Additions	56			8			64
Payments and other adjustments	(21		)	(3		)	(24		)
Balance at December 31, 2019	$	99		$	13		$	112