Business realignment and acquisition integration charges

9 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Business realignment and acquisition integration charges

We incurred business realignment and acquisition integration charges in fiscal 2020 and 2019. 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. The prior-year acquisition integration charges relate to the fiscal 2017 acquisition of CLARCOR, Inc. ("Clarcor") and primarily consist of severance costs and expenses related to plant closures and relocations. A majority of the business realignment charges were incurred in North America and Europe. We believe 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.

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



	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Diversified Industrial	$	12,720	$	4,599	$	27,112	$	20,539
Aerospace Systems	613		—		658		—
Corporate general and administrative expenses	71		—		193		—
Other expense	50		—		50		275

Workforce reductions in connection with business realignment and Clarcor acquisition integration charges in the Business Segment Information are as follows:



	Three Months Ended		Nine Months Ended
	March 31,		March 31,
	2020	2019	2020	2019
Diversified Industrial	336	144	1,154	509
Aerospace Systems	34	—	50	—
Corporate general and administrative expenses	3	—	8	—

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



	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Cost of sales	$	10,201	$	2,804	$	21,225	$	10,872
Selling, general and administrative expenses	3,203		1,795		6,738		9,667
Other (income), net	50		—		50		275

During the first nine months of fiscal 2020, approximately $25 million in payments were made relating to business realignment and Clarcor acquisition integration charges. Remaining payments related to current-year and prior-year business realignment and acquisition integration actions of approximately $14 million, a majority of which are expected to be paid by March 31, 2021, 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 described above, the timing and amount of which are not known at this time.

We also incurred the following acquisition integration charges related to the Lord and Exotic acquisitions:



	Three Months Ended		Nine Months Ended
	March 31,		March 31,
	2020		2020
Diversified Industrial	$	8,364	$	18,503
Aerospace Systems	486		1,570

These charges are primarily included in selling, general and administrative expenses within the Consolidated Statement of Income.