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 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 Consolidated Statements of Earnings (Loss) in fiscal 2026.

On January 30, 2026, the Company completed the sale of its product division based in Munich, Germany that makes tools for materials processing, which is part of the Industrial segment. The transaction resulted in a loss of $96 million. The loss was primarily attributable to impairment charges of $105 million recognized within Impairment of assets held-for-sale in the 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. These impairment charges were partially offset by a gain of $9 million recorded within Gain on sale of business in the Consolidated Statements of Earnings (Loss) in fiscal 2026.

In the year ended June 30, 2026, the Company recorded additional non-cash impairment charges of $64 million within the Industrial segment related to three entities. Two of these entities had already been classified as held-for-sale as of the prior fiscal year-end and remained classified as held-for-sale during the first and second quarters of fiscal 2026, while the third entity was classified as held-for-sale during the fourth quarter of fiscal 2026. The charges were recorded in Impairment of assets held-for-sale in the Consolidated Statements of Earnings (Loss) in fiscal 2026 to reduce the carrying value of entities classified as held-for-sale to their estimated fair value.

Current assets and current liabilities held for sale are recorded in Prepaid and other current assets and Other accrued liabilities, respectively, in our Consolidated Balance Sheets. Noncurrent assets and noncurrent liabilities held for sale are recorded in Other assets and Other liabilities, respectively, in our Consolidated Balance Sheets. Assets and liabilities held-for-sale are in the Industrial segment at both June 30, 2026 and June 30, 2025.



	June 30, 2026		June 30, 2025

Accounts receivable	$	628	$	43,353
Inventories	31,755		97,236
Prepaid and refundable income taxes	119		9,023
Prepaid and other current assets	3,127		3,067
Less: Impairment of assets held for sale	(7,015)		—
Total current assets held-for-sale	$	28,614	$	152,679

Property, plant & equipment, net	$	21,286	$	103,863
Goodwill	3,624		174,373
Intangible assets	—		141,647
Other assets	12,368		32
Less: Impairment of assets held-for-sale	(37,278)		(84,988)
Total noncurrent assets held-for-sale	$	—	$	334,927

Accounts payable	$	3,328	$	19,209
Accrued compensation and benefits	3,289		16,768
Operating lease current liabilities	387		2,441
Accrued income taxes payable	(510)		(226)
Other accrued liabilities	4,512		19,202
Total current liabilities held-for-sale	$	11,006	$	57,394

Deferred income taxes	$	—	$	14,785
Operating lease liabilities	1,076		5,980
Other liabilities	1,318		7,870
Total noncurrent liabilities held-for-sale	$	2,394	$	28,635