SUPPLEMENTAL FINANCIAL INFORMATION

Selected components of current and noncurrent liabilities were as follows:



June 30	2012		2011
ACCRUED AND OTHER LIABILITIES - CURRENT
Marketing and promotion	$	2,880	$	3,058
Compensation expenses	1,660		1,753
Restructuring reserves	343		151
Taxes payable	414		786
Legal and environmental	264		885
Other	2,728		2,657
TOTAL	8,289		9,290

OTHER NONCURRENT LIABILITIES
Pension benefits	$	5,684	$	4,388
Other postretirement benefits	3,270		1,887
Uncertain tax positions	2,245		2,326
Other	891		1,356
TOTAL	12,090		9,957

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 the ongoing program have generally ranged from $250 to $500 annually. In February 2012, the Company announced a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing and overheads. The program was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes in order to help fund the Company's growth strategy. The Company expects to incur approximately $3.5 billion in before-tax restructuring costs over a four year period, including costs incurred as part of this plan and the ongoing plan. The Company expects to incur more than half of the costs under this plan by the end of fiscal 2013, with the remainder incurred in fiscal years 2014 and 2015.

The restructuring activities will be executed across the Company's centralized organization as well as across virtually all of its MDO and GBU organizations. These restructuring activities include a plan for a net reduction in non-manufacturing overhead personnel of approximately 5,700 by the end of fiscal 2013. This is being done via the elimination of duplicate work, simplification through the use of technology, and the optimization of the various functional organizations, the number of business units and of the Company's global footprint. In addition, the plan includes integration of newly acquired companies, optimization of the supply chain and other manufacturing processes.

Costs incurred under the plan will consist primarily of costs to separate employees and asset-related costs to exit facilities. The Company will also incur other types of costs outlined below as a direct result of the plan. For the year ended June 30, 2012, the Company incurred charges of $1.1 billion. Approximately $746 of these charges were recorded in selling, general and administrative expense. The remainder is included in cost of products sold.

The following table presents accrued restructuring activity for the year ended June 30, 2012:



	Separations			Asset Related Costs			Other			Total
Reserve Balance June 30, 2011	$	121		$	—		$	30		$	151
Charges	495			378			179			1,052
Cash Spent	(300		)	—			(182		)	(482		)
Charges against Assets	—			(378		)	—			(378		)
Reserve Balance June 30, 2012	316			—			27			343

Separation Costs

Employee separation charges for the year ended June 30, 2012 relate to severance packages for approximately 3,300 employees, of which 1,600 will exit the Company after June 30, 2012. These severance packages include approximately 2,250 related to non-manufacturing overhead personnel, occurring primarily in North America and Western Europe. The packages are predominantly voluntary and the amounts are calculated based on salary levels and past years of service. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer.

Asset-Related Costs

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 disposal. These assets were 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 shortened-lived assets relate primarily to manufacturing consolidations and technology standardization. The asset-related charges will not have a significant impact on future depreciation charges. The majority of asset-related charges for the year ended June 30, 2012 are related to the decision to relocate operations from the Company's offices in Kobe, Japan.

Other Costs

Other restructuring-type charges are incurred as a direct result of the productivity and cost savings plan. Such charges primarily include employee relocation related to separations and office consolidations, termination of contracts related to supply chain redesign and the cost to change internal systems and processes to support the underlying organizational changes.

Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges will be funded by and included within Corporate for both management and segment reporting. Accordingly, 100% of the charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments.



	Year Ended June 30, 2012
Beauty	$	120
Grooming	20
Health Care	25
Fabric Care and Home Care	184
Baby Care and Family Care	63
Corporate ⁽¹⁾	640
Total Company	1,052

⁽¹⁾ Corporate includes costs related to allocated overheads, including charges related to our MDO, GBS and Corporate Functions activities.