Assets Held-for-Sale and Sale of Business

9 Months Ended

Mar. 31, 2026

Discontinued Operations and Disposal Groups [Abstract]

Assets Held-for-Sale and Sale of Business

In the fourth quarter of fiscal 2025, management entered into non-binding agreements to sell several entities. As a result of classifying these entities as held-for-sale, the Company recorded non-cash impairment charges of $85 million within the Industrial segment. These charges were recognized in Impairment of assets held-for-sale in our Condensed Consolidated Statements of Earnings (Loss) in the fourth quarter of fiscal 2025 to reduce the carrying values of the entities to their estimated fair value.

On September 2, 2025, the Company completed the sale of its aerospace and defense business, which was part of the Industrial segment, for approximately $400 million, subject to customary post-closing adjustments. In connection with the sale, the Company recorded a gain of $115 million and incurred approximately $9 million in transaction related costs which were recorded in Gain on sale of business and SG&A expenses, respectively, in the Condensed Consolidated Statements of Earnings (Loss) for the first quarter of fiscal 2026.

In the nine months ended March 31, 2026, the Company recorded additional non-cash impairment charges of $20 million within the Industrial segment related to two entities that were classified as held-for-sale during the first and second quarters of fiscal 2026. The charges were recorded in Impairment of assets held-for-sale in the Condensed Consolidated Statements of Earnings (Loss) for the first and second quarters of fiscal 2026 to reduce the carrying value of entities classified as held-for-sale to their estimated fair value.

On January 30, 2026, the Company completed the sale of its product division based in Munich, Germany that makes tools for materials processing. In connection with the sale, the Company recorded a gain of $9 million which was recorded in Gain on sale of business in the Condensed Consolidated Statements of Earnings (Loss) for the third quarter of fiscal 2026. The total loss associated with the sale was $96 million, substantially all of which was recognized in Impairment of assets held-for-sale in the Condensed Consolidated Statements of Earnings (Loss), including $81 million in the fourth quarter of fiscal 2025, $13 million in the first quarter of fiscal 2026 and $11 million in the second quarter of fiscal 2026.

Current assets and current liabilities held for sale are recorded in Prepaid and other current assets and Other accrued liabilities, respectively, in our Condensed Consolidated Balance Sheets. Noncurrent assets and noncurrent liabilities held for sale are recorded in Other assets and Other liabilities, respectively, in our Condensed Consolidated Balance Sheets. Assets and liabilities held-for-sale are in the Industrial segment. There were no assets or liabilities held for sale as of March 31, 2026.

Current and noncurrent assets and liabilities classified as held-for-sale as June 30, 2025 are as follows ($000):



	June 30, 2025

Accounts receivable	$	43,353
Inventories	97,236
Prepaid and refundable income taxes	9,023
Prepaid and other current assets	3,067
Total current assets held-for-sale	$	152,679

Property, plant & equipment, net	$	103,863
Goodwill	174,373
Intangible assets	141,647
Other assets	32
Less: Impairment of assets held-for-sale	(84,988)
Total noncurrent assets held-for-sale	$	334,927

Accounts payable	$	19,209
Accrued compensation and benefits	16,768
Operating lease current liabilities	2,441
Accrued income taxes payable	(226)
Other accrued liabilities	19,202
Total current liabilities held-for-sale	$	57,394

Deferred income taxes	$	14,785
Operating lease liabilities	5,980
Other liabilities	7,870
Total noncurrent liabilities held-for-sale	$	28,635