v3.25.4
Business realignment
 6 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Business realignment Business realignment
We incurred business realignment charges in the first six months of fiscal 2026 and 2025, which 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 both fiscal 2026 and 2025, 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:
Three Months EndedSix Months Ended
 December 31,December 31,
 2025202420252024
Diversified Industrial$13 $20 $27 $29 
Aerospace Systems— — 1 — 
Corporate general and administrative expenses— 1 — 1 
Other expense, net— — — 1 
Reductions to our workforce made in connection with such business realignment charges by business segment are as follows:
Three Months EndedSix Months Ended
 December 31,December 31,
(Headcount in single units)2025202420252024
Diversified Industrial409 393 599 720 
Aerospace Systems2 16 27 16 
Corporate general and administrative expenses— 14 — 14 
The business realignment charges are presented in the Consolidated Statements of Income as follows:
Three Months EndedSix Months Ended
 December 31,December 31,
 2025202420252024
Cost of sales$8 $12 $17 $17 
Selling, general and administrative expenses5 9 11 13 
Other income, net— — — 1 
During the first six months of fiscal 2026, approximately $28 million in payments were made relating to business realignment charges. Remaining payments related to business realignment actions of approximately $26 million, a majority of which are expected to be paid by June 30, 2026, 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.