Business realignment and acquisition integration charges

3 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Business realignment and acquisition integration charges

We incurred business realignment and acquisition integration charges in fiscal 2021 and 2020. During fiscal 2021, business realignment charges primarily consisted of actions taken to address the impact of COVID-19 on our business. In both fiscal 2021 and 2020, business realignment charges included severance costs related to actions taken under the Company's simplification initiative aimed at reducing organizational and process complexity as well as plant closures. 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 charges presented in the Business Segment Information are as follows:



	Three Months Ended
	September 30,
	2020		2019
Diversified Industrial	$	10,572	$	4,725
Aerospace Systems	3,951		(7		)
Corporate general and administrative expenses	614		5
Other expense	564		—

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



	Three Months Ended
	September 30,
	2020	2019
Diversified Industrial	384	219
Aerospace Systems	240	—
Corporate general and administrative expenses	13	1

The business realignment charges are presented in the Consolidated Statement of Income as follows:



	Three Months Ended
	September 30,
	2020		2019
Cost of sales	$	12,150	$	3,345
Selling, general and administrative expenses	2,987		1,378
Other (income), net	564		—

During the first three months of fiscal 2021, approximately $20 million in payments were made relating to business realignment charges. Remaining payments related to business realignment actions of approximately $18 million, a majority of which are expected to be paid by September 30, 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 fiscal 2020 acquisitions of LORD Corporation ("Lord") and Exotic Metals Forming Company ("Exotic"):



	Three Months Ended
	September 30,
	2020		2019
Diversified Industrial	$	3,615	$	3,414
Aerospace Systems	332		595

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