v3.26.1
Business Realignment
 12 Months Ended
Jun. 30, 2026
Restructuring and Related Activities [Abstract]  
Business Realignment Business Realignment
The Company incurred business realignment charges in 2026, 2025 and 2024. 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 2026, 2025 and 2024, a majority of the business realignment charges were incurred in EMEA. 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:
For the years ended June 30,202620252024
Diversified Industrial$71 $53 $51 
Aerospace Systems1 — — 
Corporate general and administrative expenses— 1 — 
Other expense (income), net— 2 2 
The business realignment charges are presented in the Consolidated Statements of Income as follows:
For the years ended June 30,202620252024
Cost of sales$43 $31 $30 
Selling, general and administrative expenses29 23 21 
Other expense (income), net
— 2 2 
During 2026, approximately $66 million in payments were made relating to business realignment charges. Remaining payments related to current-year and prior-year business realignment actions of approximately $32 million, a majority of which are expected to be paid by March 31, 2027, are primarily reflected within the accrued payrolls and other compensation and other current liabilities captions in the Consolidated Balance Sheets. 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.