Business realignment charges (Notes)

9 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

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				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Diversified Industrial	$	14,605	$	24,406	$	32,164	$	67,405
Aerospace Systems	1,713		624		2,796		2,604
Corporate general and administrative expenses	—		2,049		—		2,129
Other expense	—		—		—		116

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,
	2017	2016	2017	2016
Diversified Industrial	312	875	642	2,929
Aerospace Systems	52	15	89	81
Corporate general and administrative expenses	—	50	—	52

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				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Cost of sales	$	10,342	$	21,628	$	24,968	$	54,559
Selling, general and administrative expenses	5,976		5,451		9,992		17,579
Other (income), net	—		—		—		116

As of March 31, 2017, approximately $12 million in severance payments had been made relating to charges incurred during fiscal 2017, the remainder of which are expected to be paid by March 31, 2018. 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 $28 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.