Proctor and Gamble 2014 Annual Report Download - page 58

56 The Procter & Gamble Company
Amounts in millions of dollars except per share amounts or as otherwise specified.
Estimated amortization expense over the next five fiscal
years is as follows:
Years ended June 30 2015 2016 2017 2018 2019
Estimated
amortization
expense $ 432 $ 393 $ 360 $ 332 $ 309
These estimates do not reflect the impact of future foreign
exchange rate changes.
NOTE 3
SUPPLEMENTAL FINANCIAL INFORMATION
The components of property, plant and equipment were as
follows:
June 30 2014 2013
PROPERTY, PLANT AND
EQUIPMENT
Buildings $ 8,022 $ 7,829
Machinery and equipment 32,398 31,070
Land 893 878
Construction in progress 3,114 3,235
TOTAL PROPERTY, PLANT
AND EQUIPMENT 44,427 43,012
Accumulated depreciation (22,123) (21,346)
PROPERTY, PLANT AND
EQUIPMENT, NET 22,304 21,666
Selected components of current and noncurrent liabilities
were as follows:
June 30 2014 2013
ACCRUED AND OTHER
LIABILITIES - CURRENT
Marketing and promotion $ 3,290 $ 3,122
Compensation expenses 1,647 1,665
Restructuring reserves 381 323
Taxes payable 711 817
Legal and environmental 399 374
Other 2,571 2,527
TOTAL 8,999 8,828
OTHER NONCURRENT
LIABILITIES
Pension benefits $ 5,984 $ 6,027
Other postretirement benefits 1,906 1,713
Uncertain tax positions 1,843 2,002
Other 802 837
TOTAL 10,535 10,579
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 2012, the Company initiated an incremental
restructuring program as part of a productivity and cost
savings plan to reduce costs in the areas of supply chain,
research and development, marketing and overheads. The
productivity and cost savings plan 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 in excess of $4.5 billion in
before-tax restructuring costs over a five year period (from
fiscal 2012 through fiscal 2016), including costs incurred as
part of the ongoing and incremental restructuring program.
Through the end of fiscal 2014, we had incurred $2.8 billion
of the total expected restructuring charges under the
program. The restructuring program plans included a
targeted net reduction in non-manufacturing overhead
enrollment of approximately 16% - 22% through fiscal 2016,
which we expect to exceed. Through fiscal 2014, the
Company has reduced non-manufacturing enrollment by
approximately 9,300, or approximately 15%. The
reductions are enabled by the elimination of duplicate work,
simplification through the use of technology, optimization of
various functional and business organizations and the
Company's global footprint. In addition, the plan includes
integration of newly acquired companies and the
optimization of the supply chain and other manufacturing
processes.
Restructuring costs incurred consist primarily of costs to
separate employees, asset-related costs to exit facilities and
other costs as outlined below. The Company incurred total
restructuring charges of approximately $806 and $956 for
the years ended June 30, 2014 and 2013, respectively.
Approximately $373 and $591 of these charges were
recorded in SG&A for the years ended June 30, 2014 and
2013, respectively. Approximately $399 and $354 of these
charges were recorded in cost of products sold for the years
ended June 30, 2014 and 2013, respectively. The remainder
is included in discontinued operations. Since the inception
of this restructuring program, the Company has incurred
charges of approximately $2.8 billion. Approximately $1.5
billion of these charges were related to separations, $666
were asset-related and $680 were related to other
restructuring-type costs. The following table presents
restructuring activity for the years ended June 30, 2014 and
2013: