Charges Related to Business Realignment

6 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Business realignment charges

The Company incurred business realignment charges in fiscal 2014 and fiscal 2013.

Business realignment charges by business segment are as follows:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2013		2012		2013		2012
Diversified Industrial	$	13,215	$	2,766	$	23,838	$	5,505
Aerospace Systems	—		—		626		—

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,
	2013	2012	2013	2012
Diversified Industrial	312	196	582	348
Aerospace Systems	—	—	27	—

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, $257 and $1,331 of fixed asset write-downs were recognized in connection with plant closures in the Diversified Industrial Segment and are reflected in the other (income) expense caption in the Business Segment Information for the three and six months ended December 31, 2013, respectively. During the three months ended December 31, 2012, $1,918 of severance costs for 98 people were recognized in connection with the divestiture of the Turkey refrigeration components business and are reflected in the other (income) 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.

6. Business realignment charges, cont'd

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



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2013		2012		2013		2012
Cost of sales	$	9,051	$	2,098	$	15,244	$	4,104
Selling, general and administrative expenses	4,164		668		9,220		1,401
Other (income), net	257		1,918		1,331		1,918

As of December 31, 2013, approximately $8.8 million in severance payments have been made relating to charges incurred during fiscal 2014, with the majority of the remaining payments expected to be made by December 31, 2014. All required severance payments have been made relating to charges incurred in fiscal 2013. Additional charges may be recognized in future periods related to the realignment actions described above, the timing and amount of which are not known at this time.

- 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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