XML 38 R13.htm IDEA: XBRL DOCUMENT v3.25.2
Business Realignment and Acquisition Integration Charges
 12 Months Ended
Jun. 30, 2025
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 2025, 2024 and 2023. 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. In 2025, 2024 and 2023, a majority of the business realignment charges were incurred in 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 by business segment are as follows:
202520242023
Diversified Industrial$53 $51 $24 
Aerospace Systems— — 3 
Corporate general and administrative expenses1 — — 
Other (income) expense, net2 2 — 
Workforce reductions in connection with such business realignment charges by business segment are as follows:
(Headcount in single units)202520242023
Diversified Industrial1,092 1,064 728 
Aerospace Systems61 1 30 
Corporate general and administrative expenses13 — — 
The business realignment charges are presented in the Consolidated Statement of Income as follows:
202520242023
Cost of sales$31 $30 $16 
Selling, general and administrative expenses23 21 11 
Gain on sale of businesses and assets, net2 2 — 
During 2025, approximately $45 million in payments were made relating to business realignment charges. Remaining payments related to current-year and prior-year business realignment actions of approximately $26 million, a majority of which are expected to be paid by December 31, 2025, are primarily reflected within the accrued payrolls and other compensation and other accrued liabilities captions 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 acquisition integration charges related to the Meggitt acquisition. Charges by business segment are as follows:
 202520242023
Diversified Industrial$3 $4 $9 
Aerospace Systems19 34 86 
In 2025, 2024 and 2023, acquisition integration charges relate to the acquisition of Meggitt. These charges were primarily included in selling, general and administrative expenses in the Consolidated Statement of Income.