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Business realignment charges
3 Months Ended
Sep. 30, 2018
Restructuring and Related Activities [Abstract]  
Business realignment charges
Business realignment charges
The Company incurred business realignment charges and acquisition integration costs in fiscal 2019 and fiscal 2018. The acquisition integration costs 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
 
September 30,
 
2018
 
2017
Diversified Industrial
$
8,558

 
$
13,263

Aerospace Systems

 
763

Other expense
55

 

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
 
September 30,
 
2018
 
2017
Diversified Industrial
201

 
542

Aerospace Systems

 
37


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
 
September 30,
 
2018
 
2017
Cost of sales
$
4,399

 
$
9,115

Selling, general and administrative expenses
4,159

 
4,911

Other (income), net
55

 


As of September 30, 2018, approximately $2 million in severance payments had been made relating to business realignment charges and acquisition integration charges incurred during fiscal 2019, the remainder of which are expected to be paid by September 30, 2019. Severance payments relating to prior-year business realignment and acquisition integration actions are being made as required. Remaining severance payments related to current-year and prior-year business realignment actions of approximately $24 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.