Business realignment charges

The Company incurred business realignment charges in fiscal 2018 and fiscal 2017. The Company also incurred acquisition integration costs in fiscal 2018 related to the fiscal 2017 acquisition of CLARCOR, Inc.

Business realignment charges and acquisition integration costs presented in the Business Segment Information are as follows:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2017		2016		2017		2016
Diversified Industrial	$	24,684	$	6,814	$	37,947	$	17,559
Aerospace Systems	692		1,083		1,455		1,083

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



	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2017	2016	2017	2016
Diversified Industrial	723	157	1,265	330
Aerospace Systems	19	37	56	37

8. Business realignment charges, cont'd

The business realignment 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 and acquisition integration costs are presented in the Consolidated Statement of Income as follows:



	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2017		2016		2017		2016
Cost of sales	$	13,657	$	6,606	$	22,772	$	14,626
Selling, general and administrative expenses	11,719		1,291		16,630		4,016

As of December 31, 2017, approximately $12 million in severance payments had been made relating to business realignment charges incurred during fiscal 2018, the remainder of which are expected to be paid by December 31, 2018. Severance payments relating to prior-year business realignment actions are being made as required. Remaining severance payments related to current-year and prior-year business realignment actions of approximately $36 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 business realignment actions described above, the timing and amount of which are not known at this time.