Business realignment and acquisition integration charges

3 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Business realignment and acquisition integration charges

We incurred business realignment and acquisition integration charges in the first three months of fiscal 2022 and 2021. In both the first three months of fiscal 2022 and 2021, 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. During fiscal 2021, business realignment charges primarily consisted of actions taken to address the impact of COVID-19 on our business. 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,
		2021		2020
Diversified Industrial		$	3,017	$	10,572
Aerospace Systems		(3)		3,951
Corporate general and administrative expenses		—		614
Other expense		—		564

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


	Three Months Ended
	September 30,
		2021	2020
Diversified Industrial		35	384
Aerospace Systems		—	240
Corporate general and administrative expenses		—	13

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


	Three Months Ended
	September 30,
		2021		2020
Cost of sales		$	1,001	$	12,150
Selling, general and administrative expenses		2,013		2,987
Other expense (income), net		—		564

During the first three months of fiscal 2022, approximately $9 million in payments were made relating to business realignment charges. Remaining payments related to business realignment actions of approximately $9 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 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 fiscal 2020 acquisitions of LORD Corporation ("Lord") and Exotic Metals Forming Company ("Exotic"):


	Three Months Ended
	September 30,
		2021		2020
Diversified Industrial		$	1,202	$	3,615
Aerospace Systems		—		332

In the first three months of fiscal 2022, these charges are evenly split between cost of sales and selling, general and administrative expenses within the Consolidated Statement of Income. In fiscal 2021, these charges were primarily included in selling, general and administrative expenses within the Consolidated Statement of Income.