Charges Related to Business Realignment (Notes)

6 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Business realignment charges

The Company incurred business realignment charges in fiscal 2017 and fiscal 2016.

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



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2016		2015		2016		2015
Diversified Industrial	$	6,814	$	22,956	$	17,559	$	42,999
Aerospace Systems	1,083		235		1,083		1,980
Corporate general and administrative expenses	—		80		—		80
Other (income) expense	—		—		—		116

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



	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2016	2015	2016	2015
Diversified Industrial	157	890	330	2,054
Aerospace Systems	37	9	37	66
Corporate general and administrative expenses	—	2	—	2

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. 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,
	2016		2015		2016		2015
Cost of sales	$	6,606	$	18,258	$	14,626	$	32,931
Selling, general and administrative expenses	1,291		5,013		4,016		12,128
Other (income), net	—		—		—		116

As of December 31, 2016, approximately $5 million in severance payments had been made relating to charges incurred during fiscal 2017, the remainder of which are expected to be paid by December 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 $30 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.