XML 29 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Business Realignment and Acquisition Integration Charges
 12 Months Ended
Jun. 30, 2021
Restructuring and Related Activities [Abstract]  
Business Realignment and Acquisition Integration Charges Business Realignment and Acquisition Integration Charges
The Company incurred business realignment and acquisition integration charges in 2021, 2020 and 2019. During 2021, business realignment charges primarily consisted of actions taken to address the impact of COVID-19 on our business. Such charges were also incurred in 2020, especially within the Aerospace Systems Segment. In 2021, 2020, and 2019 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. The 2019 acquisition integration charges relate to the 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 acquisition integration charges presented in the Business Segment Information are as follows:
202120202019
Diversified Industrial$38,557 $52,288 $27,830 
Aerospace Systems6,680 22,101 — 
Corporate administration1,399 1,175 — 
Other expense 1,226 50 305 

Workforce reductions in connection with such business realignment and acquisition integration charges in the Business Segment Information are as follows:
202120202019
Diversified Industrial820 2,394 598 
Aerospace Systems327 1,254 — 
Corporate administration20 31 — 

The business realignment and acquisition integration charges are presented in the Consolidated Statement of Income as follows:
202120202019
Cost of sales$33,746 $58,791 $14,650 
Selling, general and administrative expenses12,890 16,773 13,180 
(Gain) loss on disposal of assets1,226 50 305 
As of June 30, 2021, approximately $56 million in severance payments were made relating to business realignment charges. Remaining payments related to current-year and prior-year business realignment actions of approximately $15 million, a majority of which are expected to be paid by June 30, 2022, 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.
We also incurred the following acquisition integration charges related to the Lord and Exotic acquisitions:
 20212020
Diversified Industrial$11,222 $20,669 
Aerospace Systems719 1,908 
These charges are primarily included in selling, general and administrative expenses within the Consolidated Statement of Income.