
As of June 30	2026		2025
PROPERTY, PLANT AND EQUIPMENT
Machinery and equipment	$	42,001	$	40,077
Buildings	9,760		9,190
Construction in progress	4,448		3,935
Land	963		979
TOTAL PROPERTY, PLANT AND EQUIPMENT	57,172		54,181
Accumulated depreciation	(31,811)		(30,284)
PROPERTY, PLANT AND EQUIPMENT, NET	$	25,360	$	23,897

Selected components of current and noncurrent liabilities were as follows:


As of June 30	2026		2025
ACCRUED AND OTHER LIABILITIES - CURRENT
Accrued marketing and promotion	$	4,141	$	3,851
Accrued compensation	2,043		2,007
Taxes payable	778		1,177
Restructuring reserves	336		189
Accrued interest	301		293
Lease liabilities	246		255
Derivative liabilities	206		627
Other	3,040		2,920
TOTAL	$	11,091	$	11,318

OTHER NONCURRENT LIABILITIES
Pension benefit obligations	$	2,204	$	3,026
Other retiree benefit obligations	736		691
Uncertain tax positions	654		701
Lease liabilities	641		701
Derivative liabilities	195		435
Other	484		566
TOTAL	$	4,914	$	6,120

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 the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina and recorded $801 after tax of incremental charges, comprised primarily of non-cash charges for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss). The total incremental restructuring charges incurred under the program beginning in the three-month period ended December 31, 2023, through the three-month period ended September 30, 2024, were $1.2 billion after tax.

In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over two years. The Company incurred over half of the costs under this plan in fiscal 2026, with the remainder expected to be incurred in fiscal 2027. The restructuring activities will be executed across the Sector Business Units as well as the Enterprise Markets, Corporate Functions and Global Business Services. These restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027. In addition, the plan includes brand and market exits as well as the 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.

The Company incurred total before tax restructuring charges of $1.2 billion and $1.1 billion for the fiscal years ended June 30, 2026 and 2025, respectively. Of the charges incurred in fiscal year 2026, $606 were recorded in Costs of products sold, $460 in SG&A and $165 in Other non-operating income/(expense), net. Of the charges incurred in fiscal year 2025, $150 were recorded in Costs of products sold, $171 in SG&A and $793 in Other non-operating income/(expense), net.


	Separation Costs		Asset-Related Costs		Other Costs		Total
RESERVE JUNE 30, 2024	$	133	$	—	$	32	$	166
Cost incurred	145		55		914		1,114
Cost paid/settled	(158)		(55)		(877)		(1,090)
RESERVE JUNE 30, 2025	120		—		69		189
Cost incurred	608		231		391		1,230
Cost paid/settled	(500)		(231)		(353)		(1,084)
RESERVE JUNE 30, 2026	$	229	$	—	$	107	$	336

Asset-related costs consist of both asset write-downs and accelerated depreciation for manufacturing and office consolidations. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are 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.

Other restructuring-type charges are incurred as a direct result of the restructuring plan. Such charges include accumulated foreign currency translation losses, asset removal and termination of contracts. In the period ended September 30, 2024, the Company substantially liquidated its operations in Argentina and recorded a non-cash charge of $752 for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss). In the period ended June 30, 2026, the Company substantially liquidated its operations in Pakistan and recorded a non-cash charge of $131 for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss).

Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total before tax restructuring costs related to our reportable segments:


Fiscal years ended June 30	2026		2025		2024
Beauty	$	76	$	43	$	43
Grooming	47		32		76
Health Care	132		30		33
Fabric & Home Care	220		24		84
Baby, Feminine & Family Care	201		40		50
Corporate (1)	556		945		371
TOTAL	$	1,230	$	1,114	$	659