Charges Related to Business Realignment

The Company incurred business realignment charges in 2018, 2017 and 2016. The Company also incurred acquisition integration costs in 2018 and 2017 related to the 2017 acquisition of Clarcor.

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



	2018		2017		2016
Diversified Industrial	$	78,558	$	52,939	$	91,404
Aerospace Systems	3,428		2,674		3,629
Corporate administration	—		—		2,215
Other expense	1,009		784		116

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



	2018	2017	2016
Diversified Industrial	1,757	1,102	3,515
Aerospace Systems	265	89	81
Corporate administration	—	—	53

The business realignment charges primarily relate to actions taken under the Company's simplification initiative aimed at reducing organizational and process complexity. Business realignment charges and acquisition integration costs primarily consist of severance costs 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 and acquisition integration 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 and acquisition integration costs are presented in the Consolidated Statement of Income as follows:



	2018		2017		2016
Cost of sales	$	44,949	$	35,932	$	76,197
Selling, general and administrative expenses	36,813		19,681		21,051
(Gain) on disposal of assets	1,233		784		116

As of June 30, 2018, approximately $40 million in severance payments have been made relating to business realignment and acquisition integration charges incurred during 2018, the remainder of which are expected to be paid by June 30, 2019. Severance payments relating to prior-year actions are being made as required. Remaining severance payments related to current-year and prior-year business realignment and acquisition integration actions of approximately $26 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 and acquisition integration actions described above, the timing and amount of which are not known at this time.