Charges Related to Business Realignment (Notes)

12 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]

To structure its businesses in light of current and anticipated customer demand, the Company incurred business realignment charges in 2016, 2015 and 2014.

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



	2016		2015		2014
Diversified Industrial	$	91,404	$	30,882	$	101,524
Aerospace Systems	3,629		967		925
Corporate administration	2,215		458		—
Other expense (income)	116		2,399		1,331

Work force reductions related to the business realignment charges in the Business Segment Information are as follows:



	2016	2015	2014
Diversified Industrial	3,515	668	1,581
Aerospace Systems	81	21	44
Corporate administration	53	18	—

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 charges incurred in Europe and North America. In connection with a plant closure during 2016, the Company recognized an expense associated with enhanced retirement benefits (refer to Note 10 for further discussion). The Company believes the realignment actions taken 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:



	2016		2015		2014
Cost of sales	$	76,197	$	19,419	$	63,575
Selling, general and administrative expenses	21,051		12,888		38,874
(Gain) loss on disposal of assets	116		2,399		1,331

As of June 30, 2016, approximately $55 million in severance payments have been made relating to charges incurred during 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 $40 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.