Business realignment charges

6 Months Ended

Dec. 31, 2011

Business realignment charges

7. Business realignment charges

To structure its businesses in light of current and anticipated customer demand, the Company incurred business realignment charges in fiscal 2012 and fiscal 2011.

Business realignment charges by business segment are as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Industrial	$	1,194	$	1,688	$	6,898	$	4,437
Aerospace								320
Climate & Industrial Controls						148

Work force reductions by business segment are as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Industrial		33		41		204		208
Aerospace								22
Climate & Industrial Controls						4

The charges primarily consist of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. The Company believes 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. The charges are presented primarily in the Cost of sales caption in the Consolidated Statement of Income for the three and six months ended December 31, 2011 and December 31, 2010. As of December 31, 2011, approximately $1.2 million in severance payments have been made relating to charges incurred during fiscal 2012, with the remaining payments expected to be made by March 31, 2012. All required severance payments have been made relating to charges incurred in fiscal 2011.

Additional charges to be recognized in future periods related to the realignment actions described above are not expected to be material.