Charges Related to Business Realignment (Notes)

9 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Business Realignment Charges

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				Nine Months Ended
	March 31,				March 31,
	2015		2014		2015		2014
Diversified Industrial	$	7,203	$	59,582	$	22,136	$	83,420
Aerospace Systems	563		299		563		925

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

	Three Months Ended		Nine Months Ended
	March 31,		March 31,
	2015	2014	2015	2014
Diversified Industrial	176	572	350	1,154
Aerospace Systems	21	17	21	44

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 $484 and $2,399 for the three and nine months ended March 31, 2015, respectively, and $1,331 for the nine months ended March 31, 2014 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.

9. Business realignment charges, cont'd

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

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2015		2014		2015		2014
Cost of sales	$	4,823	$	31,053	$	15,430	$	46,297
Selling, general and administrative expenses	2,943		28,828		7,269		38,048
Other (income), net	484		—		2,399		1,331

As of March 31, 2015, approximately $9 million in severance payments have been made relating to charges incurred during fiscal 2015, the remainder of which are expected to be paid by March 31, 2016. Severance payments relating to prior year actions are being made as required. Remaining severance payments related to current-year and prior-year actions of approximately $37 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.