Charges Related to Business Realignment

6 Months Ended

Dec. 31, 2012

Restructuring and Related Activities [Abstract]

Business realignment charges

To structure its businesses in light of current and anticipated customer demand, the Company incurred business realignment charges in fiscal 2013 and fiscal 2012.

Business realignment charges by business segment are as follows:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2012		2011		2012		2011
Industrial	$	2,610	$	1,194	$	5,138	$	6,898
Climate & Industrial Controls	156		—		367		148

Work force reductions in connection with such business realignment charges by business segment are as follows:



	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2012	2011	2012	2011
Industrial	167	33	318	204
Climate & Industrial Controls	29	—	30	4

The charges primarily consist of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. In addition, $1,918 of severance costs for 98 people have been recognized in connection with the divestiture of the Turkey refrigeration components business and is reflected in the other expense caption in the Business Segment Information. The Company believes the realignment actions will positively impact future results of operations but will not have a material effect on liquidity and sources and uses of capital.

The business realignment charges are presented in the Consolidated Statement of Income as follows:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2012		2011		2012		2011
Cost of sales	$	2,098	$	1,194	$	4,104	$	6,652
Selling, general and administrative expenses	668		—		1,401		394
Other (income), net	1,918		—		1,918		—

As of December 31, 2012, approximately $4.0 million in severance payments have been made relating to charges incurred during fiscal 2013, with the majority of the remaining payments expected to be made by June 30, 2013. All required severance payments have been made relating to charges incurred in fiscal 2012. Additional charges to be recognized in future periods related to the realignment actions described above are not expected to be material.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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