Charges Related to Business Realignment (Notes)

6 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Business realignment charges

The Company incurred business realignment charges in fiscal 2015 and fiscal 2014.

Business realignment charges by business segment are as follows:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
Diversified Industrial	$	9,084	$	13,215	$	14,933	$	23,838
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,
	2014	2013	2014	2013
Diversified Industrial	72	312	174	582
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, with the majority of the charges relating to realignment initiatives in Europe. In addition, asset write-downs of $1,915 for the six months ended December 31, 2014 and $257 and $1,331 for the three and six months ended December 31, 2013, respectively, were recognized in connection with plant closures in the Diversified Industrial Segment and are reflected in the other expense (income) 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,
	2014		2013		2014		2013
Cost of sales	$	5,489	$	9,051	$	10,607	$	15,244
Selling, general and administrative expenses	3,595		4,164		4,326		9,220
Other (income), net	—		257		1,915		1,331

As of December 31, 2014, approximately $4 million in severance payments have been made relating to charges incurred during fiscal 2015, the remainder of which are expected to be paid by December 31, 2015. All required severance payments relating to prior year actions have been made. Remaining severance payments related to current-year and prior-year actions of approximately $42 million are primarily reflected within the other accrued liabilities caption in the Consolidated Balance Sheet. 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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