Charges Related to Business Realignment

12 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

The Company incurred business realignment charges and acquisition integration costs in 2019, 2018 and 2017. The acquisition integration costs relate to the 2017 acquisition of Clarcor.

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



	2019		2018		2017
Diversified Industrial	$	27,830	$	78,558	$	52,939
Aerospace Systems	—		3,428		2,674
Other expense	305		1,009		784

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



	2019	2018	2017
Diversified Industrial	598	1,757	1,102
Aerospace Systems	—	265	89

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. 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:



	2019		2018		2017
Cost of sales	$	14,650	$	44,949	$	35,932
Selling, general and administrative expenses	13,180		36,813		19,681
Loss (gain) on disposal of assets	305		1,233		784

As of June 30, 2019, approximately $14 million in severance payments have been made relating to business realignment and acquisition integration charges incurred during 2019, the remainder of which are expected to be paid by June 30, 2020. 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 $13 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.