Proctor and Gamble 2015 Annual Report Download - page 56

The Procter & Gamble Company 54
Amounts in millions of dollars except per share amounts or as otherwise specified.
 
SUPPLEMENTAL FINANCIAL INFORMATION
The components of property, plant and equipment were as
follows:
Years ended une 0 2015 2014
PROPERTY, PLANT AND EUIPMENT
uildings  ,209 $ 8,022
Machinery and equipment 0,4 32,398
Land 95 893
Construction in progress 2,99 3,114
TOTAL PROPERTY, PLANT
AND EUIPMENT 41,4 44,427
Accumulated depreciation 21,09 (22,123)
PROPERTY, PLANT AND
EUIPMENT, NET  20,2 $ 22,304
Selected components of current and noncurrent liabilities were
as follows:
Years ended une 0 2015 2014
ACCRUED AND OTHER LIABILITIES - CURRENT
Marketing and promotion  2,901 $ 3,290
Compensation expenses 1,455 1,647
Restructuring reserves 9 381
Taxes payable 45 711
Legal and environmental 20 399
Other 2,52 2,571
TOTAL  ,25 $ 8,999
OTHER NONCURRENT LIABILITIES
Pension benefits  5,5 $ 5,984
Other postretirement benefits 1,414 1,906
Uncertain tax positions 1,01 1,843
Other 2 802
TOTAL  ,95 $ 10,535
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. efore-tax costs incurred under the ongoing
program have generally ranged from $250 to $500 annually.
In fiscal 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 $5 billion in before-
tax restructuring costs over a six year period (from fiscal 2012
through fiscal 2017), including costs incurred as part of the
ongoing and incremental restructuring program. Through the
end of fiscal 2015, we have incurred $3.9 billion of the total
expected restructuring charges under the program. The
program includes a non-manufacturing overhead enrollment
reduction target of approximately 25 - 30 through fiscal
2017. This has been updated from the previous non-
manufacturing overhead enrollment reduction target of
approximately 16 - 22 through fiscal 2016, which we
expect to exceed. Through fiscal 2015, the Company has
reduced non-manufacturing enrollment by approximately
12,600, or approximately 21 (22 as of July 1, 2015). The
reductions are enabled by the elimination of duplicate work,
simplification through the use of technology and 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 $1,068 and $806 for
the years ended June 30, 2015 and 2014, respectively.
Approximately $427 and $358 of these charges were recorded
in SG&A for the years ended June 30, 2015 and 2014,
respectively and approximately $628 and $399 of these charges
were recorded in Cost of products sold, respectively. The
remainder is included in discontinued operations. Since the
inception of this restructuring program, the Company has
incurred charges of approximately $3.9 billion. Approximately
$2.0 billion of these charges were related to separations, $954
were asset-related and $944 were related to other restructuring-
type costs. The following table presents restructuring activity
for the years ended June 30, 2015 and 2014:
Amounts in millions Searations
Asset-
Related
Costs Other Total
RESERVE
UNE 0, 201 $ 296 $  $ 27 $ 323
Charges 378 179 249 806
Cash spent (321)  (248) (569)
Charges against
assets  (179)  (179)
RESERVE
UNE 0, 2014 353  28 381
Charges 51 29 2 1,0
Cash spent 50  24 1
Charges against
assets  29  29
RESERVE
UNE 0, 2015  2    2  9
Searation Costs
Employee separation charges for the years ended June 30, 2015
and 2014 related to severance packages for approximately
4,820 and 2,730 employees, respectively. For the years ended
June 30, 2015 and 2014, these severance packages included