Charges Related to Business Realignment (Notes)

9 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Business realignment charges

The Company incurred business realignment charges in fiscal 2016 and fiscal 2015.

Business realignment charges presented in the Business Segment Information are as follows:



	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2016		2015		2016		2015
Diversified Industrial	$	24,406	$	7,203	$	67,405	$	22,136
Aerospace Systems	624		563		2,604		563
Corporate general and administrative expenses	2,049		—		2,129		—
Other expense (income)	—		484		116		2,399

Work force reductions in connection with such business realignment charges in the Business Segment Information are as follows:



	Three Months Ended		Nine Months Ended
	March 31,		March 31,
	2016	2015	2016	2015
Diversified Industrial	875	176	2,929	350
Aerospace Systems	15	21	81	21
Corporate general and administrative expenses	50	—	52	—

8. Business realignment charges, cont'd

The charges primarily consist of severance costs related to actions taken under the Company's Simplification initiative aimed at reducing organizational and process complexity, as well as plant closures, with the majority of the charges incurred in Europe and North America. In connection with a plant closure during the nine months ended March 31, 2016, the Company recognized an expense associated with enhanced retirement benefits (refer to Note 11 for further discussion). 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				Nine Months Ended
	March 31,				March 31,
	2016		2015		2016		2015
Cost of sales	$	21,628	$	4,823	$	54,559	$	15,430
Selling, general and administrative expenses	5,451		2,943		17,579		7,269
Other (income), net	—		484		116		2,399

As of March 31, 2016, approximately $42 million in severance payments had been made relating to charges incurred during fiscal 2016, the remainder of which are expected to be paid by March 31, 2017. 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 $33 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.