Document and Entity Information
Document and Entity Information | 9 Months Ended |
Mar. 31, 2017shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | PH |
Entity Registrant Name | PARKER HANNIFIN CORP |
Entity Central Index Key | 76,334 |
Current Fiscal Year End Date | --06-30 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 133,183,359 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,119,139 | $ 2,828,665 | $ 8,533,074 | $ 8,403,603 |
Cost of sales | 2,383,790 | 2,209,401 | 6,534,280 | 6,550,929 |
Gross profit | 735,349 | 619,264 | 1,998,794 | 1,852,674 |
Selling, general and administrative expenses | 392,036 | 335,908 | 1,051,583 | 1,020,788 |
Interest expense | 42,057 | 33,745 | 109,649 | 103,802 |
Other (income), net | (13,807) | (23,382) | (90,468) | (50,438) |
Income before income taxes | 315,063 | 272,993 | 928,030 | 778,522 |
Income taxes | 76,216 | 85,851 | 237,545 | 213,217 |
Net income | 238,847 | 187,142 | 690,485 | 565,305 |
Less: Noncontrolling interest in subsidiaries' earnings | 174 | 58 | 378 | 261 |
Net income attributable to common shareholders | $ 238,673 | $ 187,084 | $ 690,107 | $ 565,044 |
Earnings per share attributable to common shareholders: | ||||
Basic (in usd per share) | $ 1.79 | $ 1.39 | $ 5.17 | $ 4.16 |
Diluted (in usd per share) | 1.75 | 1.37 | 5.09 | 4.12 |
Cash dividends per common share (in usd per share) | $ 0.66 | $ 0.63 | $ 1.92 | $ 1.89 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 238,847 | $ 187,142 | $ 690,485 | $ 565,305 |
Less: Noncontrolling interests in subsidiaries' earnings | 174 | 58 | 378 | 261 |
Net income attributable to common shareholders | 238,673 | 187,084 | 690,107 | 565,044 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment and other | 83,100 | 130,766 | (170,634) | (72,592) |
Retirement benefits plan activity | 35,512 | 28,422 | 105,847 | 85,539 |
Other comprehensive income (loss) | 118,612 | 159,188 | (64,787) | 12,947 |
Less: Other comprehensive income (loss) for noncontrolling interests | 301 | (2) | 281 | (133) |
Other comprehensive income (loss) attributable to common shareholders | 118,311 | 159,190 | (65,068) | 13,080 |
Total comprehensive income attributable to common shareholders | $ 356,984 | $ 346,274 | $ 625,039 | $ 578,124 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 819,563 | $ 1,221,653 |
Marketable securities and other investments | 36,758 | 882,342 |
Trade accounts receivable, net | 1,869,303 | 1,593,920 |
Non-trade and notes receivable | 235,924 | 232,183 |
Inventories | 1,538,644 | 1,173,329 |
Prepaid expenses | 118,962 | 104,360 |
Total current assets | 4,619,154 | 5,207,787 |
Plant and equipment | 5,130,954 | 4,737,141 |
Less: Accumulated depreciation | 3,185,215 | 3,169,041 |
Plant and equipment, net | 1,945,739 | 1,568,100 |
Deferred income taxes | 65,152 | 605,155 |
Other assets | 848,212 | 827,492 |
Intangible assets, net | 2,338,364 | 922,571 |
Goodwill | 5,508,712 | 2,903,037 |
Total assets | 15,325,333 | 12,034,142 |
Current liabilities: | ||
Notes payable and long-term debt payable within one year | 776,159 | 361,787 |
Accounts payable, trade | 1,209,351 | 1,034,589 |
Accrued payrolls and other compensation | 376,177 | 382,945 |
Accrued domestic and foreign taxes | 158,634 | 127,597 |
Other accrued liabilities | 528,120 | 458,970 |
Total current liabilities | 3,048,441 | 2,365,888 |
Long-term debt | 5,255,156 | 2,652,457 |
Pensions and other postretirement benefits | 1,787,311 | 2,076,143 |
Deferred income taxes | 159,666 | 54,395 |
Other liabilities | 327,033 | 306,581 |
Total liabilities | 10,577,607 | 7,455,464 |
Shareholders’ equity: | ||
Serial preferred stock, $.50 par value; authorized 3,000,000 shares; none issued | 0 | 0 |
Common stock, $.50 par value; authorized 600,000,000 shares; issued 181,046,128 shares at March 31 and June 30 | 90,523 | 90,523 |
Additional capital | 577,562 | 628,451 |
Retained earnings | 10,725,262 | 10,302,866 |
Accumulated other comprehensive (loss) | (2,292,833) | (2,227,765) |
Treasury shares, at cost; 47,862,769 shares at March 31 and 47,033,896 shares at June 30 | (4,358,375) | (4,218,820) |
Total shareholders’ equity | 4,742,139 | 4,575,255 |
Noncontrolling interests | 5,587 | 3,423 |
Total equity | 4,747,726 | 4,578,678 |
Total liabilities and equity | $ 15,325,333 | $ 12,034,142 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Mar. 31, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Serial preferred stock, par value (in USD per share) | $ 0.50 | $ 0.50 |
Serial preferred stock, authorized (in shares) | 3,000,000 | 3,000,000 |
Serial preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.50 | $ 0.50 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 181,046,128 | 181,046,128 |
Treasury shares, shares (in shares) | 47,862,769 | 47,033,896 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 690,485 | $ 565,305 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation | 142,959 | 143,663 |
Amortization | 93,584 | 88,114 |
Share incentive plan compensation | 60,916 | 53,735 |
Deferred income taxes | 43,530 | (25,925) |
Foreign currency transaction loss | 6,204 | 25,663 |
Loss on sale of plant and equipment | 513 | 76 |
Gain on sale of businesses | (42,994) | (10,668) |
Gain on sale of marketable securities | (1,032) | (535) |
Changes in assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable, net | (45,442) | 21,167 |
Inventories | (91,170) | 53,120 |
Prepaid expenses | (1,329) | 117,203 |
Other assets | 1,384 | (19,246) |
Accounts payable, trade | 101,143 | (93,948) |
Accrued payrolls and other compensation | (46,755) | (69,179) |
Accrued domestic and foreign taxes | 28,823 | (10,759) |
Other accrued liabilities | (21,686) | (25,209) |
Pensions and other postretirement benefits | (140,154) | (75,540) |
Other liabilities | 10,314 | (32,471) |
Net cash provided by operating activities | 789,293 | 704,566 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisitions (net of cash acquired of $157,426 in 2017 and $3,814 in 2016) | (4,067,755) | (67,552) |
Capital expenditures | (145,236) | (110,804) |
Proceeds from sale of plant and equipment | 8,452 | 14,112 |
Proceeds from sale of businesses | 85,610 | 24,325 |
Purchases of marketable securities and other investments | (451,561) | (1,188,594) |
Maturities of marketable securities and other investments | 1,264,721 | 974,417 |
Other | (2,590) | (40,364) |
Net cash used in investing activities | (3,308,359) | (394,460) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of stock options | 2,095 | 89 |
Payments for common shares | (264,343) | (464,456) |
Proceeds from notes payable, net | 447,799 | 523,336 |
Proceeds from long-term borrowings | 2,614,756 | 2,287 |
Payments for long-term borrowings | (374,794) | (220,068) |
Dividends | (257,161) | (256,890) |
Net cash provided by (used in) financing activities | 2,168,352 | (415,702) |
Effect of exchange rate changes on cash | (51,376) | (40,017) |
Net decrease in cash and cash equivalents | (402,090) | (145,613) |
Cash and cash equivalents at beginning of year | 1,221,653 | 1,180,584 |
Cash and cash equivalents at end of period | $ 819,563 | $ 1,034,971 |
Consolidated Statement of Cash7
Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Acquisitions, cash acquired | $ 157,426 | $ 3,814 |
Business Segment Information (N
Business Segment Information (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | The Company operates in two reportable business segments: Diversified Industrial and Aerospace Systems. Diversified Industrial - This segment produces a broad range of motion-control and fluid systems and components used in all kinds of manufacturing, packaging, processing, transportation, mobile construction, refrigeration and air conditioning, agricultural and military machinery and equipment and has a significant portion of international operations. Sales are made directly to major original equipment manufacturers (OEMs) and through a broad distribution network to smaller OEMs and the aftermarket. Aerospace Systems - This segment designs and manufactures products and provides aftermarket support for commercial, business jet, military and general aviation aircraft, missile and spacecraft markets. The Aerospace Systems Segment provides a full range of systems and components for hydraulic, pneumatic and fuel applications. Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Net sales Diversified Industrial: North America $ 1,413,302 $ 1,247,904 $ 3,701,326 $ 3,695,008 International 1,128,886 1,019,776 3,149,777 3,050,687 Aerospace Systems 576,951 560,985 1,681,971 1,657,908 Total net sales $ 3,119,139 $ 2,828,665 $ 8,533,074 $ 8,403,603 Segment operating income Diversified Industrial: North America $ 227,419 $ 202,180 $ 612,043 $ 568,509 International 152,995 105,161 417,708 329,823 Aerospace Systems 79,967 84,238 225,764 240,005 Total segment operating income 460,381 391,579 1,255,515 1,138,337 Corporate general and administrative expenses 45,747 42,322 120,707 126,583 Income before interest expense and other expense 414,634 349,257 1,134,808 1,011,754 Interest expense 42,057 33,745 109,649 103,802 Other expense 57,514 42,519 97,129 129,430 Income before income taxes $ 315,063 $ 272,993 $ 928,030 $ 778,522 |
Management representation (Note
Management representation (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Management representation [Abstract] | |
Management representation | Management representation In the opinion of the management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company's financial position as of March 31, 2017 , the results of operations for the three and nine months ended March 31, 2017 and 2016 and cash flows for the nine months then ended. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2016 Annual Report on Form 10-K. Interim period results are not necessarily indicative of the results to be expected for the full fiscal year. The Company has evaluated subsequent events that have occurred through the date these financial statements were issued. No subsequent events have occurred that required adjustment to these financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 also provides that only the service cost component is eligible for capitalization, when applicable. ASU 2017-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued. ASU 2017-07 should be applied retrospectively for the income statement presentation of net periodic pension cost and net periodic postretirement benefit cost and prospectively, on or after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost. The Company has not yet determined the effect that ASU 2017-07 will have on its financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not believe the adoption of ASU 2017-04 will have a material effect on its financial statements. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-16 provides that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in ASU 2016-16 eliminate the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-16 will have on its financial statements. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides specific guidance on several cash flow classification issues to reduce diversity in practice in how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-15 will have on its financial statements. 2. New Accounting Pronouncements, cont'd In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-13 will have on its financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." Under ASU 2016-09, all excess tax benefits and deficiencies arising from employee share-based payment awards, and dividends on those awards, will be recognized in the income statement during the period in which they occur. ASU 2016-09 allows companies to make an accounting policy election to estimate forfeitures, as required today, or record them when they occur and allows companies to withhold an amount up to the maximum statutory tax rate without causing the award to be classified as a liability. Within the statement of cash flows, ASU 2016-09 requires excess tax benefits to be classified as an operating activity and cash payments to tax authorities in connection with shares withheld to be classified as a financing activity. The Company adopted ASU 2016-09 in the first quarter of fiscal 2017. In fiscal 2017, the Company applied the recognition of the excess tax benefits and deficiencies requirement on a prospective basis and recognized a discrete income tax benefit, which was recorded as a reduction to income tax expense, of $13,664 and $30,763 for the three and nine months ended March 31, 2017 , respectively. Prior to the adoption of ASU 2016-09, this excess tax benefit was recorded as an increase to additional capital. The cash flow classification requirements of ASU 2016-09 were applied retrospectively. As a result, for the nine months ended March 31, 2016 cash flows from operating activities was increased by $23,067 and cash flows from financing activities was decreased by $23,067 . The Company elected to continue to estimate forfeitures expected to occur rather than electing to account for forfeitures as they occur. The other provisions of ASU 2016-09 related to accounting for income taxes and minimum statutory share withholding tax requirements had no impact on the Company's financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet by recognizing a liability to make lease payments and an asset representing their right to use the asset during the lease term. Lessee recognition, measurement, and presentation of expenses and cash flows will not change significantly from existing guidance. Lessor accounting is also largely unchanged from existing guidance. ASU 2016-02 requires qualitative and quantitative disclosures that provide information about the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-02 will have on its financial statements. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Liabilities." ASU 2016-01 requires equity investments (excluding equity method investments and investments that are consolidated) to be measured at fair value with changes in fair value recognized in net income. Equity investments that do not have a readily determinable fair value may be measured at cost, adjusted for impairment and observable price changes. The ASU also simplifies the impairment assessment of equity investments, eliminates the disclosure of the assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at cost on the balance sheet and requires the exit price to be used when measuring fair value of financial instruments for disclosure purposes. Under ASU 2016-01, changes in fair value (resulting from instrument-specific credit risk) will be presented separately in other comprehensive income for liabilities measured using the fair value option and financial assets and liabilities will be presented separately by measurement category and type either on the balance sheet or in the financial statement disclosures. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has not yet determined the effect that ASU 2016-01 will have on its financial statements. 2. New Accounting Pronouncements, cont'd In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in the ASU. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. During the first quarter of fiscal 2017, the Company retrospectively adopted ASU 2015-03 and has revised the following captions within the Consolidated Balance Sheet at June 30, 2016: As Previously Revised Other assets $ 850,088 $ 827,492 Notes payable and long-term debt payable within one year 361,840 361,787 Long-term debt 2,675,000 2,652,457 In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company has not yet determined the effect that ASU 2014-09 and ASU 2016-10 will have on its financial statements. |
Acquisitions and divestiture (N
Acquisitions and divestiture (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and divestiture | Acquisitions and divestiture Acquisitions - During the first nine months of fiscal 2017, the Company completed three acquisitions, including the acquisition of a 100 percent equity interest in CLARCOR Inc ("Clarcor") for approximately $4,110 million in cash, including the assumption of debt. The remaining disclosures in Note 3 pertain only to Clarcor as the other two acquisitions completed during the first nine months of fiscal 2017 were deemed immaterial for further disclosure. Clarcor is a major manufacturer of filtration products under more than a dozen respected brands including CLARCOR, Baldwin, Fuel Manager, PECOFacet, Airguard, Altair, BHA, Clearcurrent, Clark Filter, Hastings, United Air Specialists, Keddeg and Purolator. Clarcor had annual sales of approximately $1,400 million for its fiscal 2016. For segment reporting purposes, Clarcor will be part of the Diversified Industrial Segment. The Company believes that Clarcor is a highly complementary acquisition that provides the Company with additional proprietary media, industrial and process filtration products and technologies, as well as a broad portfolio of replacement filters. The acquisition of Clarcor also offers significant expected operating synergies. The Clarcor assets acquired and liabilities assumed will be recognized at their respective fair values as of the acquisition date. The process of estimating the fair values of certain tangible assets, identifiable intangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. The following presents the preliminary estimated fair values of Clarcor's assets acquired and liabilities assumed on the acquisition date. These preliminary estimates are based on available information and will be revised during the measurement period, not to exceed 12 months, as third-party valuations are finalized, additional information becomes available and as additional analysis is performed. Such revisions may have a material impact on the Company's results of operations and financial position. 3. Acquisitions and divestiture, cont'd February 28, 2017 Assets: Cash and cash equivalents $ 145,491 Accounts receivable 249,045 Inventories 278,060 Prepaid expenses 13,903 Plant and equipment 373,698 Deferred income taxes 4,558 Other assets 8,367 Intangible assets 1,497,280 Goodwill 2,649,456 5,219,858 Liabilities: Notes payable 20,162 Accounts payable, trade 82,436 Accrued payrolls and other compensation 42,653 Accrued domestic and foreign taxes 4,379 Other accrued liabilities 79,066 Long-term debt 288,336 Pensions and other postretirement benefits 33,928 Deferred income taxes 542,698 Other liabilities 13,878 Noncontrolling interests 1,843 1,109,379 Net assets acquired $ 4,110,479 Goodwill is calculated as the excess of the purchase price over the net assets acquired and is not deductible for tax purposes. With respect to the Clarcor acquisition, goodwill represents cost synergies and enhancements to the Company's existing filtration technologies. See Note 11 for additional information about intangible assets. The Company's results of operations for the first nine months of fiscal 2017 include Clarcor's results of operations from the date of acquisition, February 28, 2017, through March 31, 2017. Net sales and segment operating (loss) attributable to Clarcor during this period was $135,986 and $(13,582) , respectively. The following unaudited pro forma information gives effect to the Company's acquisition of Clarcor as if the acquisition had occurred on July 1, 2015 and Clarcor had been included in the Company's results of operations for the first nine months of fiscal 2017 and the twelve months ended June 30, 2016. Nine months ended Twelve months ended March 31, 2017 June 30, 2016 Net sales $ 9,562,307 $ 12,772,097 Net income attributable to common shareholders 754,323 780,421 Diluted earnings per share 5.57 5.70 3. Acquisitions and divestiture, cont'd The unaudited pro forma financial information in the table above includes adjustments related to amortization expense, depreciation, interest expense and transaction costs incurred as well as adjustments to cost of sales for the step-up in inventory to estimated acquisition-date fair value and related income tax effects and is based on a preliminary purchase price allocation using currently available information. Transaction costs incurred and the adjustment to cost of sales for the step-up in inventory to estimated acquisition-date fair value are considered to be non-recurring. Adjustments for non-recurring items increased pro forma net income attributable to common shareholders by $72,006 for the nine months ended March 31, 2017 and decreased pro forma net income attributable to common shareholders by $29,106 for the twelve months ended June 30, 2016. The unaudited pro forma financial information does not give effect to any synergies, operating efficiencies or cost savings that may result from the Clarcor acquisition. Divestiture - During the second quarter of fiscal 2017, the Company divested its Autoline product line, which was part of the Diversified Industrial Segment. The operating results and net assets of the Autoline product line were immaterial to the Company's consolidated results of operations and financial position. The Company recorded a net pre-tax gain in the second quarter of fiscal 2017 of approximately $45 million related to the divestiture. The gain is reflected in the other (income), net caption in the Consolidated Statement of Income and the other expense caption in the Business Segment Information for the nine months ended March 31, 2017. |
Earnings per share (Notes)
Earnings per share (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended March 31, 2017 and 2016 . Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Numerator: Net income attributable to common shareholders $ 238,673 $ 187,084 $ 690,107 $ 565,044 Denominator: Basic - weighted average common shares 133,232,378 134,809,610 133,410,622 135,675,823 Increase in weighted average common shares from dilutive effect of equity-based awards 2,870,596 1,743,159 2,116,573 1,636,025 Diluted - weighted average common shares, assuming exercise of equity-based awards 136,102,974 136,552,769 135,527,195 137,311,848 Basic earnings per share $ 1.79 $ 1.39 $ 5.17 $ 4.16 Diluted earnings per share $ 1.75 $ 1.37 $ 5.09 $ 4.12 For the three months ended March 31, 2017 and 2016 , 717 and 3,087,061 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the nine months ended March 31, 2017 and 2016 , 1,608,245 and 3,062,752 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earning per share because the effect of their exercise would be anti-dilutive. |
Share repurchase program (Notes
Share repurchase program (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Share Repurchase Program | Share repurchase program The Company has a program to repurchase its common shares. On October 22, 2014, the Board of Directors of the Company approved an increase in the overall number of shares authorized for repurchase under the program so that, beginning on such date, the aggregate number of shares authorized for repurchase was 35 million . There is no limitation on the number of shares that can be repurchased in a fiscal year. Repurchases may be funded primarily from operating cash flows and commercial paper borrowings and the shares are initially held as treasury stock. During the three-month period ended March 31, 2017 , the Company repurchased 332,113 shares at an average price, including commissions, of $150.55 per share. During the nine-month period ended March 31, 2017 , the Company repurchased 1,661,459 shares at an average price, including commissions, of $129.22 per share. |
Trade accounts receivable, net
Trade accounts receivable, net (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Trade accounts receivable, net | Trade accounts receivable, net Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible due to the insolvency of the debtor. Allowance for doubtful accounts was $15,719 and $8,010 at March 31, 2017 and June 30, 2016 , respectively. Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 105,865 $ 102,400 Accounts receivable, other 130,059 129,783 Total $ 235,924 $ 232,183 |
Non-trade and notes receivable
Non-trade and notes receivable (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Non-trade and notes receivable | Trade accounts receivable, net Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible due to the insolvency of the debtor. Allowance for doubtful accounts was $15,719 and $8,010 at March 31, 2017 and June 30, 2016 , respectively. Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 105,865 $ 102,400 Accounts receivable, other 130,059 129,783 Total $ 235,924 $ 232,183 |
Inventories (Notes)
Inventories (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The inventories caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Finished products $ 616,363 $ 458,657 Work in process 736,697 639,907 Raw materials 185,584 74,765 Total $ 1,538,644 $ 1,173,329 |
Business realignment charges (N
Business realignment charges (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Business realignment charges | Business realignment charges The Company incurred business realignment charges in fiscal 2017 and fiscal 2016 . Business realignment charges presented in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Diversified Industrial $ 14,605 $ 24,406 $ 32,164 $ 67,405 Aerospace Systems 1,713 624 2,796 2,604 Corporate general and administrative expenses — 2,049 — 2,129 Other expense — — — 116 Work force reductions in connection with such business realignment charges in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Diversified Industrial 312 875 642 2,929 Aerospace Systems 52 15 89 81 Corporate general and administrative expenses — 50 — 52 The charges primarily consist of severance costs related to actions taken under the Company's Simplification initiative aimed at reducing organizational and process complexity, as well as plant closures, with the majority of the charges incurred in Europe and North America. 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 business realignment charges are presented in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Cost of sales $ 10,342 $ 21,628 $ 24,968 $ 54,559 Selling, general and administrative expenses 5,976 5,451 9,992 17,579 Other (income), net — — — 116 As of March 31, 2017 , approximately $12 million in severance payments had been made relating to charges incurred during fiscal 2017 , the remainder of which are expected to be paid by March 31, 2018 . Severance payments relating to prior-year actions are being made as required. Remaining severance payments related to current-year and prior-year actions of approximately $28 million are primarily reflected within the other accrued liabilities caption in the Consolidated Balance Sheet. Additional charges may be recognized in future periods related to the realignment actions described above, the timing and amount of which are not known at this time. |
Equity (Notes)
Equity (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Equity | Equity Changes in equity for the three months ended March 31, 2017 and 2016 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2016 $ 4,527,709 $ 3,269 $ 4,530,978 Net income 238,673 174 238,847 Other comprehensive income 118,311 301 118,612 Dividends paid (88,171 ) — (88,171 ) Stock incentive plan activity (4,383 ) — (4,383 ) Acquisition activity — 1,843 1,843 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2015 $ 4,799,406 $ 3,315 $ 4,802,721 Net income 187,084 58 187,142 Other comprehensive income (loss) 159,190 (2 ) 159,188 Dividends paid (85,182 ) — (85,182 ) Stock incentive plan activity 13,114 — 13,114 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2016 $ 5,023,612 $ 3,371 $ 5,026,983 10. Equity, cont'd Changes in equity for the nine months ended March 31, 2017 and 2016 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2016 $ 4,575,255 $ 3,423 $ 4,578,678 Net income 690,107 378 690,485 Other comprehensive income (loss) (65,068 ) 281 (64,787 ) Dividends paid (256,823 ) (338 ) (257,161 ) Stock incentive plan activity 13,360 — 13,360 Acquisition activity — 1,843 1,843 Shares purchased at cost (214,692 ) — (214,692 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2015 $ 5,104,287 $ 3,282 $ 5,107,569 Net income 565,044 261 565,305 Other comprehensive income (loss) 13,080 (133 ) 12,947 Dividends paid (256,851 ) (39 ) (256,890 ) Stock incentive plan activity 48,052 — 48,052 Shares purchased at cost (450,000 ) — (450,000 ) Balance at March 31, 2016 $ 5,023,612 $ 3,371 $ 5,026,983 Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the nine months ended March 31, 2017 and 2016 are as follows: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) Other comprehensive (loss) before reclassifications (169,883 ) — (169,883 ) Amounts reclassified from accumulated other comprehensive (loss) (1,032 ) 105,847 104,815 Balance at March 31, 2017 $ (1,015,036 ) $ (1,277,797 ) $ (2,292,833 ) Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2015 $ (641,018 ) $ (1,097,600 ) $ (1,738,618 ) Other comprehensive (loss) before reclassifications (71,989 ) — (71,989 ) Amounts reclassified from accumulated other comprehensive (loss) (470 ) 85,539 85,069 Balance at March 31, 2016 $ (713,477 ) $ (1,012,061 ) $ (1,725,538 ) 10. Equity, cont'd Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and nine months ended March 31, 2017 and 2016 are as follows: Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2017 March 31, 2017 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,735 ) $ (5,202 ) See Note 12 Recognized actuarial loss (53,727 ) (159,946 ) See Note 12 Total before tax (55,462 ) (165,148 ) Tax benefit 19,950 59,301 Income taxes Net of tax $ (35,512 ) $ (105,847 ) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2016 March 31, 2016 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,842 ) $ (5,528 ) See Note 12 Recognized actuarial loss (42,714 ) (128,538 ) See Note 12 Total before tax (44,556 ) (134,066 ) Tax benefit 16,134 48,527 Income taxes Net of tax $ (28,422 ) $ (85,539 ) |
Goodwill and intangible assets
Goodwill and intangible assets (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets The changes in the carrying amount of goodwill for the nine months ended March 31, 2017 are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance at June 30, 2016 $ 2,804,403 $ 98,634 $ 2,903,037 Acquisitions 2,677,271 — 2,677,271 Divestitures (22,618 ) — (22,618 ) Foreign currency translation and other (48,966 ) (12 ) (48,978 ) Balance at March 31, 2017 $ 5,410,090 $ 98,622 $ 5,508,712 Acquisitions represent the original goodwill allocation and final adjustments to purchase price allocations during the measurement period subsequent to the applicable acquisition dates (see Note 3 for further discussion). Divestitures primarily represent goodwill associated with the sale of a product line during the first nine months of fiscal 2017 (see Note 3 for further discussion). 11. Goodwill and intangible assets, cont'd Intangible assets are amortized on the straight-line method over their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets: March 31, 2017 June 30, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 258,979 $ 94,826 $ 150,914 $ 95,961 Trademarks 588,978 188,117 340,805 179,156 Customer lists and other 2,477,945 704,595 1,362,521 656,552 Total $ 3,325,902 $ 987,538 $ 1,854,240 $ 931,669 Total intangible amortization expense for the nine months ended March 31, 2017 was $87,724 . The estimated amortization expense for the five years ending June 30, 2017 through 2021 is $138,099 , $220,921 , $214,725 , $207,500 and $199,525 , respectively. The following is a summary of the identifiable intangible assets acquired as part of the Clarcor acquisition, the fair values of which were determined using an income valuation approach. The weighted-average life is based on the Company's historical experience. The fair value of the identifiable intangible assets is subject to change upon completion of the final valuation, some of which may be material. Fair value Weighted-Average Life Patents $ 113,760 18 years Trademarks 251,600 12 years Customer lists and other 1,131,920 11 years Total $ 1,497,280 12 years Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No such events or circumstances occurred during the nine months ended March 31, 2017 . |
Retirement benefits (Notes)
Retirement benefits (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement benefits | Retirement benefits Net pension benefit cost recognized included the following components: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Service cost $ 23,632 $ 23,680 $ 70,971 $ 71,199 Interest cost 31,734 45,138 93,202 136,872 Special termination cost — — — 7,088 Expected return on plan assets (59,480 ) (55,418 ) (177,277 ) (166,633 ) Amortization of prior service cost 1,702 1,868 5,101 5,606 Amortization of net actuarial loss 52,805 42,573 158,557 127,841 Amortization of initial net obligation 4 4 14 12 Net pension benefit cost $ 50,397 $ 57,845 $ 150,568 $ 181,985 During the three months ended March 31, 2017 and 2016 , the Company recognized $1,034 and $1,001 , respectively, in expense related to other postretirement benefits. During the nine months ended March 31, 2017 and 2016 , the Company recognized $3,266 and $7,696 , respectively, in expense related to other postretirement benefits. 12. Retirement benefits, cont'd During the nine months ended March 31, 2016, the Company provided enhanced retirement benefits in connection with a plant closure, which resulted in an increase in net pension benefit cost of $ 7,088 and an increase in expense related to other postretirement benefits of $4,521 . Beginning in fiscal 2017, the Company changed the method used to estimate the service and interest cost components of net periodic pension and other postretirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant cash outflows. Previously, these costs were determined using a single-weighted average discount rate. The change does not affect the measurement of the Company's benefit obligations. The new method provides a more precise measure of service and interest costs by improving the correlation between projected benefit cash flows and the discrete spot yield curve rates and is accounted for as a change in estimate prospectively beginning the first quarter of fiscal 2017. As a result of the method change, net pension benefit cost for the current-year quarter and first nine months of fiscal 2017 is lower than the prior-year quarter and first nine months of fiscal 2016 by approximately $8 million and $25 million , respectively, |
Debt (Notes)
Debt (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt During the current-year quarter, the Company issued the following long-term debt: Notional Amount Senior notes 3.25%, due 2027 $ 700,000 Senior notes 4.10%, due 2047 $ 600,000 Term loan Libor plus 100 bps, due 2020 $ 500,000 Senior notes 1.125%, due 2025 € 700,000 Term loan Libor plus 150 bps, due 2022 € 100,000 Interest payments are paid semi-annually for the Senior notes due 2027 and 2047, paid annually for the Senior notes due 2025 and are generally paid quarterly for the term loans. Total debt issuance costs were approximately $27,515 and will be amortized over the respective debt terms. The Company primarily used the net proceeds from all debt issuances for the Clarcor acquisition (see Note 3 for further discussion). |
Income taxes (Notes)
Income taxes (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company and its subsidiaries file income tax returns in the United States and in various foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is open to assessment of its federal income tax returns by the U.S. Internal Revenue Service for fiscal years after 2011, and its state and local returns for fiscal years after 2011. The Company is also open to assessment for foreign jurisdictions for fiscal years after 2007. Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts reflected in the financial statements. As of March 31, 2017 , the Company had gross unrecognized tax benefits of $141,931 . The total amount of gross unrecognized tax benefits that, if recognized, would affect the effective tax rate was $85,293 . If recognized, a significant portion of the gross unrecognized tax benefits would be offset against an asset currently recorded in the Consolidated Balance Sheet. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, is $14,770 . It is reasonably possible that within the next 12 months the amount of gross unrecognized tax benefits could be reduced by up to approximately $100,000 as a result of the revaluation of existing uncertain tax positions arising from developments in the examination process or the closure of tax statutes. Any increase in the amount of gross unrecognized tax benefits within the next 12 months is expected to be insignificant. |
Financial instruments (Notes)
Financial instruments (Notes) | 9 Months Ended |
Mar. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial instruments | Financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, marketable securities and other investments, accounts receivable and long-term investments as well as obligations under accounts payable, trade, notes payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, accounts receivable, accounts payable, trade and notes payable approximate fair value. Marketable securities and other investments include deposits, which are recorded at cost, and investments classified as available-for-sale, which are recorded at fair value with unrealized gains and losses recorded in accumulated other comprehensive (loss). Gross unrealized gains and losses were not material as of March 31, 2017 and June 30, 2016 . All of the available-for-sale investments in an unrealized loss position have been in that position for less than 12 months. There were no facts or circumstances that indicated the unrealized losses were other than temporary. The contractual maturities of available-for-sale investments at March 31, 2017 and June 30, 2016 are as follows: March 31, 2017 June 30, 2016 Amortized Cost Fair Value Amortized Fair Less than one year $ 325 $ 327 $ 29,960 $ 29,990 One to three years 7,870 7,917 144,100 144,625 Above three years 2,018 2,024 34,276 34,275 Actual maturities of available-for-sale investments may differ from their contractual maturities as the Company has the ability to liquidate the available-for-sale investments after giving appropriate notice to the issuer. The carrying value of long-term debt and estimated fair value of long-term debt are as follows: March 31, June 30, Carrying value of long-term debt $ 5,327,952 $ 2,733,140 Estimated fair value of long-term debt 5,517,317 3,133,989 The fair value of long-term debt was determined based on observable market prices in the active market in which the security is traded and is classified within level 2 of the fair value hierarchy. The Company utilizes derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign denominated debt designated as net investment hedges, to manage foreign currency transaction and translation risk. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not hold or issue derivative financial instruments for trading purposes. The Company’s Senior Notes due 2025, Euro bonds, which matured in November 2015, and Japanese Yen credit facility, which matured in March 2017, have each been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Senior Notes due 2025, Euro bonds and Japanese Yen credit facility into U.S. dollars is recorded in accumulated other comprehensive (loss) and remains there until the underlying net investment is sold or substantially liquidated. Derivative financial instruments are recognized on the Consolidated Balance Sheet as either assets or liabilities and are measured at fair value. 15. Financial instruments, cont'd The following summarizes the location and fair value of significant derivative financial instruments reported in the Consolidated Balance Sheet as of March 31, 2017 and June 30, 2016 : Balance Sheet Caption March 31, June 30, Net investment hedges Cross-currency swap contracts Other assets $ 30,775 $ 24,771 Cash flow hedges Costless collar contracts Non-trade and notes receivable 670 — Costless collar contracts Other accrued liabilities 5,786 8,368 The cross-currency swap and costless collar contracts are reflected on a gross basis in the Consolidated Balance Sheet. The Company has not entered into any master netting arrangements. Gains or losses on derivatives that are not hedges are adjusted to fair value through the cost of sales caption in the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through accumulated other comprehensive (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings. Cross-currency swap contracts have been designated as hedging instruments. Costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income for the three and nine months ended March 31, 2017 and 2016 were not material. Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Cross-currency swap contracts $ (1,278 ) $ 10,934 $ 3,741 $ 3,140 Foreign denominated debt (11,009 ) (2,131 ) (11,005 ) 2,202 There was no ineffectiveness of the cross-currency swap contracts or foreign denominated debt, nor was any portion of these financial instruments excluded from the effectiveness testing, during the nine months ended March 31, 2017 and 2016 . 15. Financial instruments, cont'd A summary of financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2017 and June 30, 2016 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs March 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 2,302 $ 2,302 $ — $ — Corporate bonds 5,587 5,587 — — Asset-backed and mortgage-backed securities 4,680 — 4,680 — Derivatives 34,799 — 34,799 — Investments measured at net asset value 6,599 Liabilities: Derivatives 9,600 — 9,600 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2016 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 1,296 $ 1,296 $ — $ — Government bonds 15,764 15,764 — — Corporate bonds 184,380 184,380 — — Asset-backed and mortgage-backed securities 8,746 — 8,746 — Derivatives 25,303 — 25,303 — Investments measured at net asset value 361,770 Liabilities: Derivatives 13,028 — 13,028 — The fair values of the equity securities, government bonds, corporate bonds and asset-backed and mortgage-backed securities are determined using the closing market price reported in the active market in which the fund is traded or the market price for similar assets that are traded in an active market. Derivatives consist of forward exchange, costless collar and cross-currency swap contracts, the fair values of which are calculated using market observable inputs including both spot and forward prices for the same underlying currencies. The calculation of fair value of the cross-currency swap contracts also utilizes a present value cash flow model that has been adjusted to reflect the credit risk of either the Company or the counterparty. Investments measured at net asset value primarily consist of investments in fixed income mutual funds, which are measured at fair value using the net asset value per share practical expedient. These investments have not been categorized in the fair value hierarchy. The Company has the ability to liquidate these investments after giving appropriate notice to the issuer. The primary investment objective for all investments is the preservation of principal and liquidity while earning income. There are no other financial assets or financial liabilities that are marked to market on a recurring basis. Fair values are transferred between levels of the fair value hierarchy when facts and circumstances indicate that a change in the method of estimating the fair value of a financial asset or financial liability is warranted. |
New Accounting Pronouncements24
New Accounting Pronouncements (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 also provides that only the service cost component is eligible for capitalization, when applicable. ASU 2017-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued. ASU 2017-07 should be applied retrospectively for the income statement presentation of net periodic pension cost and net periodic postretirement benefit cost and prospectively, on or after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost. The Company has not yet determined the effect that ASU 2017-07 will have on its financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not believe the adoption of ASU 2017-04 will have a material effect on its financial statements. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-16 provides that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in ASU 2016-16 eliminate the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-16 will have on its financial statements. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides specific guidance on several cash flow classification issues to reduce diversity in practice in how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-15 will have on its financial statements. 2. New Accounting Pronouncements, cont'd In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-13 will have on its financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." Under ASU 2016-09, all excess tax benefits and deficiencies arising from employee share-based payment awards, and dividends on those awards, will be recognized in the income statement during the period in which they occur. ASU 2016-09 allows companies to make an accounting policy election to estimate forfeitures, as required today, or record them when they occur and allows companies to withhold an amount up to the maximum statutory tax rate without causing the award to be classified as a liability. Within the statement of cash flows, ASU 2016-09 requires excess tax benefits to be classified as an operating activity and cash payments to tax authorities in connection with shares withheld to be classified as a financing activity. The Company adopted ASU 2016-09 in the first quarter of fiscal 2017. In fiscal 2017, the Company applied the recognition of the excess tax benefits and deficiencies requirement on a prospective basis and recognized a discrete income tax benefit, which was recorded as a reduction to income tax expense, of $13,664 and $30,763 for the three and nine months ended March 31, 2017 , respectively. Prior to the adoption of ASU 2016-09, this excess tax benefit was recorded as an increase to additional capital. The cash flow classification requirements of ASU 2016-09 were applied retrospectively. As a result, for the nine months ended March 31, 2016 cash flows from operating activities was increased by $23,067 and cash flows from financing activities was decreased by $23,067 . The Company elected to continue to estimate forfeitures expected to occur rather than electing to account for forfeitures as they occur. The other provisions of ASU 2016-09 related to accounting for income taxes and minimum statutory share withholding tax requirements had no impact on the Company's financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet by recognizing a liability to make lease payments and an asset representing their right to use the asset during the lease term. Lessee recognition, measurement, and presentation of expenses and cash flows will not change significantly from existing guidance. Lessor accounting is also largely unchanged from existing guidance. ASU 2016-02 requires qualitative and quantitative disclosures that provide information about the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-02 will have on its financial statements. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Liabilities." ASU 2016-01 requires equity investments (excluding equity method investments and investments that are consolidated) to be measured at fair value with changes in fair value recognized in net income. Equity investments that do not have a readily determinable fair value may be measured at cost, adjusted for impairment and observable price changes. The ASU also simplifies the impairment assessment of equity investments, eliminates the disclosure of the assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at cost on the balance sheet and requires the exit price to be used when measuring fair value of financial instruments for disclosure purposes. Under ASU 2016-01, changes in fair value (resulting from instrument-specific credit risk) will be presented separately in other comprehensive income for liabilities measured using the fair value option and financial assets and liabilities will be presented separately by measurement category and type either on the balance sheet or in the financial statement disclosures. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has not yet determined the effect that ASU 2016-01 will have on its financial statements. 2. New Accounting Pronouncements, cont'd In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in the ASU. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. During the first quarter of fiscal 2017, the Company retrospectively adopted ASU 2015-03 and has revised the following captions within the Consolidated Balance Sheet at June 30, 2016: As Previously Revised Other assets $ 850,088 $ 827,492 Notes payable and long-term debt payable within one year 361,840 361,787 Long-term debt 2,675,000 2,652,457 In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company has not yet determined the effect that ASU 2014-09 and ASU 2016-10 will have on its financial statements. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Net sales Diversified Industrial: North America $ 1,413,302 $ 1,247,904 $ 3,701,326 $ 3,695,008 International 1,128,886 1,019,776 3,149,777 3,050,687 Aerospace Systems 576,951 560,985 1,681,971 1,657,908 Total net sales $ 3,119,139 $ 2,828,665 $ 8,533,074 $ 8,403,603 Segment operating income Diversified Industrial: North America $ 227,419 $ 202,180 $ 612,043 $ 568,509 International 152,995 105,161 417,708 329,823 Aerospace Systems 79,967 84,238 225,764 240,005 Total segment operating income 460,381 391,579 1,255,515 1,138,337 Corporate general and administrative expenses 45,747 42,322 120,707 126,583 Income before interest expense and other expense 414,634 349,257 1,134,808 1,011,754 Interest expense 42,057 33,745 109,649 103,802 Other expense 57,514 42,519 97,129 129,430 Income before income taxes $ 315,063 $ 272,993 $ 928,030 $ 778,522 |
New Accounting Pronouncements26
New Accounting Pronouncements (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Adoption of ASU 2015-03 | During the first quarter of fiscal 2017, the Company retrospectively adopted ASU 2015-03 and has revised the following captions within the Consolidated Balance Sheet at June 30, 2016: As Previously Revised Other assets $ 850,088 $ 827,492 Notes payable and long-term debt payable within one year 361,840 361,787 Long-term debt 2,675,000 2,652,457 |
Acquisitions and divestiture (T
Acquisitions and divestiture (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following presents the preliminary estimated fair values of Clarcor's assets acquired and liabilities assumed on the acquisition date. These preliminary estimates are based on available information and will be revised during the measurement period, not to exceed 12 months, as third-party valuations are finalized, additional information becomes available and as additional analysis is performed. Such revisions may have a material impact on the Company's results of operations and financial position. 3. Acquisitions and divestiture, cont'd February 28, 2017 Assets: Cash and cash equivalents $ 145,491 Accounts receivable 249,045 Inventories 278,060 Prepaid expenses 13,903 Plant and equipment 373,698 Deferred income taxes 4,558 Other assets 8,367 Intangible assets 1,497,280 Goodwill 2,649,456 5,219,858 Liabilities: Notes payable 20,162 Accounts payable, trade 82,436 Accrued payrolls and other compensation 42,653 Accrued domestic and foreign taxes 4,379 Other accrued liabilities 79,066 Long-term debt 288,336 Pensions and other postretirement benefits 33,928 Deferred income taxes 542,698 Other liabilities 13,878 Noncontrolling interests 1,843 1,109,379 Net assets acquired $ 4,110,479 |
Pro Forma Information | The following unaudited pro forma information gives effect to the Company's acquisition of Clarcor as if the acquisition had occurred on July 1, 2015 and Clarcor had been included in the Company's results of operations for the first nine months of fiscal 2017 and the twelve months ended June 30, 2016. Nine months ended Twelve months ended March 31, 2017 June 30, 2016 Net sales $ 9,562,307 $ 12,772,097 Net income attributable to common shareholders 754,323 780,421 Diluted earnings per share 5.57 5.70 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended March 31, 2017 and 2016 . Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Numerator: Net income attributable to common shareholders $ 238,673 $ 187,084 $ 690,107 $ 565,044 Denominator: Basic - weighted average common shares 133,232,378 134,809,610 133,410,622 135,675,823 Increase in weighted average common shares from dilutive effect of equity-based awards 2,870,596 1,743,159 2,116,573 1,636,025 Diluted - weighted average common shares, assuming exercise of equity-based awards 136,102,974 136,552,769 135,527,195 137,311,848 Basic earnings per share $ 1.79 $ 1.39 $ 5.17 $ 4.16 Diluted earnings per share $ 1.75 $ 1.37 $ 5.09 $ 4.12 |
Non-trade and notes receivabl29
Non-trade and notes receivable (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Non-trade and Notes Receivable | The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 105,865 $ 102,400 Accounts receivable, other 130,059 129,783 Total $ 235,924 $ 232,183 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | The inventories caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Finished products $ 616,363 $ 458,657 Work in process 736,697 639,907 Raw materials 185,584 74,765 Total $ 1,538,644 $ 1,173,329 |
Business realignment charges (T
Business realignment charges (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of business realignment charges | The business realignment charges are presented in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Cost of sales $ 10,342 $ 21,628 $ 24,968 $ 54,559 Selling, general and administrative expenses 5,976 5,451 9,992 17,579 Other (income), net — — — 116 Business realignment charges presented in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Diversified Industrial $ 14,605 $ 24,406 $ 32,164 $ 67,405 Aerospace Systems 1,713 624 2,796 2,604 Corporate general and administrative expenses — 2,049 — 2,129 Other expense — — — 116 Work force reductions in connection with such business realignment charges in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Diversified Industrial 312 875 642 2,929 Aerospace Systems 52 15 89 81 Corporate general and administrative expenses — 50 — 52 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in equity for the three months ended March 31, 2017 and 2016 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2016 $ 4,527,709 $ 3,269 $ 4,530,978 Net income 238,673 174 238,847 Other comprehensive income 118,311 301 118,612 Dividends paid (88,171 ) — (88,171 ) Stock incentive plan activity (4,383 ) — (4,383 ) Acquisition activity — 1,843 1,843 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2015 $ 4,799,406 $ 3,315 $ 4,802,721 Net income 187,084 58 187,142 Other comprehensive income (loss) 159,190 (2 ) 159,188 Dividends paid (85,182 ) — (85,182 ) Stock incentive plan activity 13,114 — 13,114 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2016 $ 5,023,612 $ 3,371 $ 5,026,983 10. Equity, cont'd Changes in equity for the nine months ended March 31, 2017 and 2016 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2016 $ 4,575,255 $ 3,423 $ 4,578,678 Net income 690,107 378 690,485 Other comprehensive income (loss) (65,068 ) 281 (64,787 ) Dividends paid (256,823 ) (338 ) (257,161 ) Stock incentive plan activity 13,360 — 13,360 Acquisition activity — 1,843 1,843 Shares purchased at cost (214,692 ) — (214,692 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2015 $ 5,104,287 $ 3,282 $ 5,107,569 Net income 565,044 261 565,305 Other comprehensive income (loss) 13,080 (133 ) 12,947 Dividends paid (256,851 ) (39 ) (256,890 ) Stock incentive plan activity 48,052 — 48,052 Shares purchased at cost (450,000 ) — (450,000 ) Balance at March 31, 2016 $ 5,023,612 $ 3,371 $ 5,026,983 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the nine months ended March 31, 2017 and 2016 are as follows: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) Other comprehensive (loss) before reclassifications (169,883 ) — (169,883 ) Amounts reclassified from accumulated other comprehensive (loss) (1,032 ) 105,847 104,815 Balance at March 31, 2017 $ (1,015,036 ) $ (1,277,797 ) $ (2,292,833 ) Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2015 $ (641,018 ) $ (1,097,600 ) $ (1,738,618 ) Other comprehensive (loss) before reclassifications (71,989 ) — (71,989 ) Amounts reclassified from accumulated other comprehensive (loss) (470 ) 85,539 85,069 Balance at March 31, 2016 $ (713,477 ) $ (1,012,061 ) $ (1,725,538 ) |
Schedule of Reclassification out of AOCI | Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and nine months ended March 31, 2017 and 2016 are as follows: Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2017 March 31, 2017 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,735 ) $ (5,202 ) See Note 12 Recognized actuarial loss (53,727 ) (159,946 ) See Note 12 Total before tax (55,462 ) (165,148 ) Tax benefit 19,950 59,301 Income taxes Net of tax $ (35,512 ) $ (105,847 ) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2016 March 31, 2016 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,842 ) $ (5,528 ) See Note 12 Recognized actuarial loss (42,714 ) (128,538 ) See Note 12 Total before tax (44,556 ) (134,066 ) Tax benefit 16,134 48,527 Income taxes Net of tax $ (28,422 ) $ (85,539 ) |
Goodwill and intangible asset33
Goodwill and intangible assets (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill for the nine months ended March 31, 2017 are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance at June 30, 2016 $ 2,804,403 $ 98,634 $ 2,903,037 Acquisitions 2,677,271 — 2,677,271 Divestitures (22,618 ) — (22,618 ) Foreign currency translation and other (48,966 ) (12 ) (48,978 ) Balance at March 31, 2017 $ 5,410,090 $ 98,622 $ 5,508,712 |
Schedule of finite-lived intangible assets by major class | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets: March 31, 2017 June 30, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 258,979 $ 94,826 $ 150,914 $ 95,961 Trademarks 588,978 188,117 340,805 179,156 Customer lists and other 2,477,945 704,595 1,362,521 656,552 Total $ 3,325,902 $ 987,538 $ 1,854,240 $ 931,669 |
Schedule of acquired finite-lived intangible assets by major class | The following is a summary of the identifiable intangible assets acquired as part of the Clarcor acquisition, the fair values of which were determined using an income valuation approach. The weighted-average life is based on the Company's historical experience. The fair value of the identifiable intangible assets is subject to change upon completion of the final valuation, some of which may be material. Fair value Weighted-Average Life Patents $ 113,760 18 years Trademarks 251,600 12 years Customer lists and other 1,131,920 11 years Total $ 1,497,280 12 years |
Retirement benefits (Tables)
Retirement benefits (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Net pension benefit cost recognized included the following components: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Service cost $ 23,632 $ 23,680 $ 70,971 $ 71,199 Interest cost 31,734 45,138 93,202 136,872 Special termination cost — — — 7,088 Expected return on plan assets (59,480 ) (55,418 ) (177,277 ) (166,633 ) Amortization of prior service cost 1,702 1,868 5,101 5,606 Amortization of net actuarial loss 52,805 42,573 158,557 127,841 Amortization of initial net obligation 4 4 14 12 Net pension benefit cost $ 50,397 $ 57,845 $ 150,568 $ 181,985 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | During the current-year quarter, the Company issued the following long-term debt: Notional Amount Senior notes 3.25%, due 2027 $ 700,000 Senior notes 4.10%, due 2047 $ 600,000 Term loan Libor plus 100 bps, due 2020 $ 500,000 Senior notes 1.125%, due 2025 € 700,000 Term loan Libor plus 150 bps, due 2022 € 100,000 |
Financial instruments (Tables)
Financial instruments (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Investments Classified by Contractual Maturity Date | The contractual maturities of available-for-sale investments at March 31, 2017 and June 30, 2016 are as follows: March 31, 2017 June 30, 2016 Amortized Cost Fair Value Amortized Fair Less than one year $ 325 $ 327 $ 29,960 $ 29,990 One to three years 7,870 7,917 144,100 144,625 Above three years 2,018 2,024 34,276 34,275 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying value of long-term debt and estimated fair value of long-term debt are as follows: March 31, June 30, Carrying value of long-term debt $ 5,327,952 $ 2,733,140 Estimated fair value of long-term debt 5,517,317 3,133,989 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following summarizes the location and fair value of significant derivative financial instruments reported in the Consolidated Balance Sheet as of March 31, 2017 and June 30, 2016 : Balance Sheet Caption March 31, June 30, Net investment hedges Cross-currency swap contracts Other assets $ 30,775 $ 24,771 Cash flow hedges Costless collar contracts Non-trade and notes receivable 670 — Costless collar contracts Other accrued liabilities 5,786 8,368 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Cross-currency swap contracts $ (1,278 ) $ 10,934 $ 3,741 $ 3,140 Foreign denominated debt (11,009 ) (2,131 ) (11,005 ) 2,202 |
Schedule of Financial Assets & Liabilities Measured at Fair Value | A summary of financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2017 and June 30, 2016 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs March 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 2,302 $ 2,302 $ — $ — Corporate bonds 5,587 5,587 — — Asset-backed and mortgage-backed securities 4,680 — 4,680 — Derivatives 34,799 — 34,799 — Investments measured at net asset value 6,599 Liabilities: Derivatives 9,600 — 9,600 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2016 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 1,296 $ 1,296 $ — $ — Government bonds 15,764 15,764 — — Corporate bonds 184,380 184,380 — — Asset-backed and mortgage-backed securities 8,746 — 8,746 — Derivatives 25,303 — 25,303 — Investments measured at net asset value 361,770 Liabilities: Derivatives 13,028 — 13,028 — |
Business Segment Information (D
Business Segment Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | |
Segment Reporting Information | ||||
Number of reportable business segments | segment | 2 | |||
Net sales | $ 3,119,139 | $ 2,828,665 | $ 8,533,074 | $ 8,403,603 |
Segment operating income | 414,634 | 349,257 | 1,134,808 | 1,011,754 |
Interest expense | 42,057 | 33,745 | 109,649 | 103,802 |
Other expense | 57,514 | 42,519 | 97,129 | 129,430 |
Income before income taxes | 315,063 | 272,993 | 928,030 | 778,522 |
Diversified Industrial | North America | ||||
Segment Reporting Information | ||||
Net sales | 1,413,302 | 1,247,904 | 3,701,326 | 3,695,008 |
Diversified Industrial | International | ||||
Segment Reporting Information | ||||
Net sales | 1,128,886 | 1,019,776 | 3,149,777 | 3,050,687 |
Aerospace Systems | ||||
Segment Reporting Information | ||||
Net sales | 576,951 | 560,985 | 1,681,971 | 1,657,908 |
Operating Segments | ||||
Segment Reporting Information | ||||
Segment operating income | 460,381 | 391,579 | 1,255,515 | 1,138,337 |
Operating Segments | Diversified Industrial | North America | ||||
Segment Reporting Information | ||||
Segment operating income | 227,419 | 202,180 | 612,043 | 568,509 |
Operating Segments | Diversified Industrial | International | ||||
Segment Reporting Information | ||||
Segment operating income | 152,995 | 105,161 | 417,708 | 329,823 |
Operating Segments | Aerospace Systems | ||||
Segment Reporting Information | ||||
Segment operating income | 79,967 | 84,238 | 225,764 | 240,005 |
Corporate general and administrative expenses | ||||
Segment Reporting Information | ||||
Segment operating income | $ 45,747 | $ 42,322 | $ 120,707 | $ 126,583 |
New Accounting Pronouncements -
New Accounting Pronouncements - Adoption of ASU 2016-09 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax benefit | $ 13,664 | $ 30,763 | |
Cash flows from operating activities, increase | 789,293 | $ 704,566 | |
Cash flows from financing activities, decrease | $ (2,168,352) | 415,702 | |
Accounting Standards Update 2016-09, Excess Tax Benefit Component | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash flows from operating activities, increase | 23,067 | ||
Cash flows from financing activities, decrease | $ 23,067 |
New Accounting Pronouncements39
New Accounting Pronouncements - Adoption of ASU 2015-03 (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 848,212 | $ 827,492 |
Notes payable and long-term debt payable within one year | 776,159 | 361,787 |
Long-term debt | $ 5,255,156 | 2,652,457 |
As Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | 850,088 | |
Notes payable and long-term debt payable within one year | 361,840 | |
Long-term debt | $ 2,675,000 |
Acquisitions and divestiture -
Acquisitions and divestiture - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)acquisition | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Number of businesses acquired | acquisition | 3 | |||||
Increase (decrease) in pro forma net income attributable to common shareholders | $ 238,673 | $ 187,084 | $ 690,107 | $ 565,044 | ||
Gain on disposal | $ 45,000 | |||||
Fair Value Adjustments and Transaction, Operating and Acquisition Costs | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Increase (decrease) in pro forma net income attributable to common shareholders | $ 72,006 | $ (29,106) | ||||
CLARCOR, Inc | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Equity interest (as a percent) | 100.00% | 100.00% | ||||
Purchase price, cash payments | $ 4,110,000 | |||||
Aggregate annual sales for businesses acquired for their most recent fiscal year prior to acquisition | 1,400,000 | |||||
Net sales, from date of acquisition | 135,986 | |||||
Operating loss, from date of acquisition | $ (13,582) |
Acquisitions and divestiture 41
Acquisitions and divestiture - Schedule of assets and liabilities assumed on acquisition date (Details) - CLARCOR, Inc $ in Thousands | Feb. 28, 2017USD ($) |
Assets: | |
Cash and cash equivalents | $ 145,491 |
Accounts receivable | 249,045 |
Inventories | 278,060 |
Prepaid expenses | 13,903 |
Plant and equipment | 373,698 |
Deferred income taxes | 4,558 |
Other assets | 8,367 |
Intangible assets | 1,497,280 |
Goodwill | 2,649,456 |
Assets acquired | 5,219,858 |
Liabilities: | |
Notes payable | 20,162 |
Accounts payable, trade | 82,436 |
Accrued payrolls and other compensation | 42,653 |
Accrued domestic and foreign taxes | 4,379 |
Other accrued liabilities | 79,066 |
Long-term debt | 288,336 |
Pensions and other postretirement benefits | 33,928 |
Deferred income taxes | 542,698 |
Other liabilities | 13,878 |
Noncontrolling interests | 1,843 |
Liabilities acquired, including noncontrolling interest | 1,109,379 |
Net assets acquired | $ 4,110,479 |
Acquisitions and divestiture 42
Acquisitions and divestiture - Pro forma information (Details) - CLARCOR, Inc - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 9,562,307 | $ 12,772,097 |
Net income attributable to common shareholders | $ 754,323 | $ 780,421 |
Diluted earnings per share (in usd per share) | $ 5.57 | $ 5.70 |
Earnings per share - Reconcilia
Earnings per share - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||||
Net income attributable to common shareholders | $ 238,673 | $ 187,084 | $ 690,107 | $ 565,044 |
Denominator: | ||||
Basic - weighted average common shares (in shares) | 133,232,378 | 134,809,610 | 133,410,622 | 135,675,823 |
Increase in weighted average common shares from dilutive effect of equity-based awards (in shares) | 2,870,596 | 1,743,159 | 2,116,573 | 1,636,025 |
Diluted - weighted average common shares, assuming exercise of equity-based awards (in shares) | 136,102,974 | 136,552,769 | 135,527,195 | 137,311,848 |
Basic (in usd per share) | $ 1.79 | $ 1.39 | $ 5.17 | $ 4.16 |
Diluted (in usd per share) | $ 1.75 | $ 1.37 | $ 5.09 | $ 4.12 |
Earnings per share - Anti-dilut
Earnings per share - Anti-dilutive (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||||
Number of common shares excluded from the computation of diluted earnings per share since anti-dilutive (in shares) | 717 | 3,087,061 | 1,608,245 | 3,062,752 |
Share repurchase program (Detai
Share repurchase program (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | Oct. 22, 2014 | |
Equity [Abstract] | |||
Number of shares authorized to be repurchased (in shares) | 35,000,000 | ||
Shares repurchased (in shares) | 332,113 | 1,661,459 | |
Shares repurchased, average price (in usd per share) | $ 150.55 | $ 129.22 |
Trade accounts receivable, ne46
Trade accounts receivable, net (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Receivables [Abstract] | ||
Allowance for doubtful accounts | $ 15,719 | $ 8,010 |
Non-trade and notes receivabl47
Non-trade and notes receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Receivables [Abstract] | ||
Notes receivable | $ 105,865 | $ 102,400 |
Accounts receivable, other | 130,059 | 129,783 |
Total | $ 235,924 | $ 232,183 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Inventory, Net [Abstract] | ||
Finished products | $ 616,363 | $ 458,657 |
Work in process | 736,697 | 639,907 |
Raw materials | 185,584 | 74,765 |
Total | $ 1,538,644 | $ 1,173,329 |
Business realignment charges -
Business realignment charges - Business realignment charges (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017USD ($)employee | Mar. 31, 2016USD ($)employee | Mar. 31, 2017USD ($)employee | Mar. 31, 2016USD ($)employee | |
Operating Segments | Diversified Industrial | ||||
Realignment charges | ||||
Realignment charges | $ 14,605 | $ 24,406 | $ 32,164 | $ 67,405 |
Realignment charges, number of positions eliminated | employee | 312 | 875 | 642 | 2,929 |
Operating Segments | Aerospace Systems | ||||
Realignment charges | ||||
Realignment charges | $ 1,713 | $ 624 | $ 2,796 | $ 2,604 |
Realignment charges, number of positions eliminated | employee | 52 | 15 | 89 | 81 |
Corporate general and administrative expenses | ||||
Realignment charges | ||||
Realignment charges | $ 0 | $ 2,049 | $ 0 | $ 2,129 |
Realignment charges, number of positions eliminated | employee | 0 | 50 | 0 | 52 |
Other expense | ||||
Realignment charges | ||||
Realignment charges | $ 0 | $ 0 | $ 0 | $ 116 |
Business realignment charges 50
Business realignment charges - Income Statement Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cost of sales | ||||
Realignment charges | ||||
Realignment charges | $ 10,342 | $ 21,628 | $ 24,968 | $ 54,559 |
Selling, general and administrative expenses | ||||
Realignment charges | ||||
Realignment charges | 5,976 | 5,451 | 9,992 | 17,579 |
Other (income), net | ||||
Realignment charges | ||||
Realignment charges | $ 0 | $ 0 | $ 0 | $ 116 |
Business realignment charges 51
Business realignment charges - Narrative (Details) - Employee severance $ in Millions | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Realignment charges | |
Severance payments made relating to charges incurred during the fiscal year | $ 12 |
Remaining severance payments related to current-year and prior-year actions | $ 28 |
Equity - Changes in Equity (Det
Equity - Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 4,530,978 | $ 4,802,721 | $ 4,578,678 | $ 5,107,569 |
Net income | 238,847 | 187,142 | 690,485 | 565,305 |
Other comprehensive income (loss) | 118,612 | 159,188 | (64,787) | 12,947 |
Dividends paid | (88,171) | (85,182) | (257,161) | (256,890) |
Stock incentive plan activity | (4,383) | 13,114 | 13,360 | 48,052 |
Acquisition activity | 1,843 | 1,843 | ||
Shares purchased at cost | (50,000) | (50,000) | (214,692) | (450,000) |
Ending balance | 4,747,726 | 5,026,983 | 4,747,726 | 5,026,983 |
Shareholders’ Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 4,527,709 | 4,799,406 | 4,575,255 | 5,104,287 |
Net income | 238,673 | 187,084 | 690,107 | 565,044 |
Other comprehensive income (loss) | 118,311 | 159,190 | (65,068) | 13,080 |
Dividends paid | (88,171) | (85,182) | (256,823) | (256,851) |
Stock incentive plan activity | (4,383) | 13,114 | 13,360 | 48,052 |
Acquisition activity | 0 | 0 | ||
Shares purchased at cost | (50,000) | (50,000) | (214,692) | (450,000) |
Ending balance | 4,742,139 | 5,023,612 | 4,742,139 | 5,023,612 |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 3,269 | 3,315 | 3,423 | 3,282 |
Net income | 174 | 58 | 378 | 261 |
Other comprehensive income (loss) | 301 | (2) | 281 | (133) |
Dividends paid | 0 | 0 | (338) | (39) |
Stock incentive plan activity | 0 | 0 | 0 | 0 |
Acquisition activity | 1,843 | 1,843 | ||
Shares purchased at cost | 0 | 0 | 0 | 0 |
Ending balance | $ 5,587 | $ 3,371 | $ 5,587 | $ 3,371 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 4,530,978 | $ 4,802,721 | $ 4,578,678 | $ 5,107,569 |
Amounts reclassified from other comprehensive (loss) | 35,512 | 28,422 | 105,847 | 85,539 |
Ending balance | 4,747,726 | 5,026,983 | 4,747,726 | 5,026,983 |
Foreign Currency Translation Adjustment and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (844,121) | (641,018) | ||
Other comprehensive income before reclassifications | (169,883) | (71,989) | ||
Amounts reclassified from other comprehensive (loss) | (1,032) | (470) | ||
Ending balance | (1,015,036) | (713,477) | (1,015,036) | (713,477) |
Retirement Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1,383,644) | (1,097,600) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified from other comprehensive (loss) | 105,847 | 85,539 | ||
Ending balance | (1,277,797) | (1,012,061) | (1,277,797) | (1,012,061) |
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (2,227,765) | (1,738,618) | ||
Other comprehensive income before reclassifications | (169,883) | (71,989) | ||
Amounts reclassified from other comprehensive (loss) | 104,815 | 85,069 | ||
Ending balance | $ (2,292,833) | $ (1,725,538) | $ (2,292,833) | $ (1,725,538) |
Equity - Reclassifications out
Equity - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ (55,462) | $ (44,556) | $ (165,148) | $ (134,066) |
Tax benefit | 19,950 | 16,134 | 59,301 | 48,527 |
Net of tax | (35,512) | (28,422) | (105,847) | (85,539) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (1,735) | (1,842) | (5,202) | (5,528) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ 53,727 | $ 42,714 | 159,946 | 128,538 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net of tax | $ (105,847) | $ (85,539) |
Goodwill and intangible asset55
Goodwill and intangible assets - Changes in carrying amount of goodwill (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill | |
Beginning balance | $ 2,903,037 |
Acquisitions | 2,677,271 |
Divestitures | (22,618) |
Foreign currency translation and other | (48,978) |
Ending balance | 5,508,712 |
Diversified Industrial | |
Goodwill | |
Beginning balance | 2,804,403 |
Acquisitions | 2,677,271 |
Divestitures | (22,618) |
Foreign currency translation and other | (48,966) |
Ending balance | 5,410,090 |
Aerospace Systems | |
Goodwill | |
Beginning balance | 98,634 |
Acquisitions | 0 |
Divestitures | 0 |
Foreign currency translation and other | (12) |
Ending balance | $ 98,622 |
Goodwill and intangible asset56
Goodwill and intangible assets - Intangible assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Asset | ||
Gross Carrying Amount | $ 3,325,902 | $ 1,854,240 |
Accumulated Amortization | 987,538 | 931,669 |
Intangible amortization expense | 87,724 | |
Estimated amortization expense, year ending June 30, 2017 | 138,099 | |
Estimated amortization expense, year ending June 30, 2018 | 220,921 | |
Estimated amortization expense, year ending June 30, 2019 | 214,725 | |
Estimated amortization expense, year ending June 30, 2020 | 207,500 | |
Estimated amortization expense, year ending June 30, 2021 | 199,525 | |
Patents | ||
Finite-Lived Intangible Asset | ||
Gross Carrying Amount | 258,979 | 150,914 |
Accumulated Amortization | 94,826 | 95,961 |
Trademarks | ||
Finite-Lived Intangible Asset | ||
Gross Carrying Amount | 588,978 | 340,805 |
Accumulated Amortization | 188,117 | 179,156 |
Customer lists and other | ||
Finite-Lived Intangible Asset | ||
Gross Carrying Amount | 2,477,945 | 1,362,521 |
Accumulated Amortization | $ 704,595 | $ 656,552 |
Goodwill and intangible asset57
Goodwill and intangible assets - Summary of identifiable intangible assets acquired (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 1,497,280 |
Weighted-average life (in years) | 12 years |
Patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 113,760 |
Weighted-average life (in years) | 18 years |
Trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 251,600 |
Weighted-average life (in years) | 12 years |
Customer lists and other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 1,131,920 |
Weighted-average life (in years) | 11 years |
Retirement benefits - Net pensi
Retirement benefits - Net pension benefit cost recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Plans | ||||
Defined Benefit Plans Disclosure | ||||
Service cost | $ 23,632 | $ 23,680 | $ 70,971 | $ 71,199 |
Interest cost | 31,734 | 45,138 | 93,202 | 136,872 |
Special termination cost | 0 | 0 | 0 | 7,088 |
Expected return on plan assets | (59,480) | (55,418) | (177,277) | (166,633) |
Amortization of prior service cost | 1,702 | 1,868 | 5,101 | 5,606 |
Amortization of net actuarial loss | 52,805 | 42,573 | 158,557 | 127,841 |
Amortization of initial net obligation | 4 | 4 | 14 | 12 |
Net pension benefit cost | 50,397 | 57,845 | 150,568 | 181,985 |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans Disclosure | ||||
Special termination cost | 4,521 | |||
Net pension benefit cost | $ 1,034 | $ 1,001 | $ 3,266 | $ 7,696 |
Retirement benefits - Narrative
Retirement benefits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Change to spot yield curve approach, effect on pension expense | $ 8,000 | $ 25,000 | ||
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net pension benefit cost | 1,034 | $ 1,001 | 3,266 | $ 7,696 |
Special termination cost | 4,521 | |||
Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net pension benefit cost | 50,397 | 57,845 | 150,568 | 181,985 |
Special termination cost | $ 0 | $ 0 | $ 0 | $ 7,088 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) € in Thousands, $ in Thousands | 9 Months Ended | ||
Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 5,327,952 | $ 2,733,140 | |
Debt issuance costs | 27,515 | ||
Senior Note Three Point Twenty Five Percent Due Two Thousand Twenty Seven | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 700,000 | ||
Interest rate (as a percent) | 3.25% | 3.25% | |
Senior Note Four Point Ten Percent Due Two Thousand Forty Seven | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 600,000 | ||
Interest rate (as a percent) | 4.10% | 4.10% | |
Term Loan Libor Plus One Hundred BPS Due Two Thousand Twenty | Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500,000 | ||
Basis spread on variable rate (as a percent) | 1.00% | ||
Senior Note One Point One Hundred Twenty Five Percent Due Two Thousand Twenty Five | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | € | € 700,000 | ||
Interest rate (as a percent) | 1.125% | 1.125% | |
Term Loan Libor Plus 150 BPS Due Two Thousand Twenty Two | Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | € | € 100,000 | ||
Basis spread on variable rate (as a percent) | 1.50% |
Income taxes - Narrative (Detai
Income taxes - Narrative (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 141,931 |
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 85,293 |
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits | 14,770 |
Significant decrease in unrecognized tax benefits that is reasonably possible | $ 100,000 |
Financial instruments - Availab
Financial instruments - Available-for-Sale Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Investments, All Other Investments [Abstract] | ||
Less than one year, Amortized Cost | $ 325 | $ 29,960 |
Less than one year, Fair Value | 327 | 29,990 |
One to three years, Amortized Cost | 7,870 | 144,100 |
One to three years, Fair Value | 7,917 | 144,625 |
Above three years, Amortized Cost | 2,018 | 34,276 |
Above three years, Fair Value | $ 2,024 | $ 34,275 |
Financial instruments - Estimat
Financial instruments - Estimated Fair Value of Long Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Investments, All Other Investments [Abstract] | ||
Carrying value of long-term debt | $ 5,327,952 | $ 2,733,140 |
Fair value of long-term debt | $ 5,517,317 | $ 3,133,989 |
Financial instruments - Summary
Financial instruments - Summary of the Location and Fair Value of Derivative Financial Instruments Reported in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Cross-currency swap contracts | Other assets | ||
Derivatives, Fair Value | ||
Net investment hedge | $ 30,775 | $ 24,771 |
Costless collar contracts | Non-trade and notes receivable | ||
Derivatives, Fair Value | ||
Cash flow hedge, assets | 670 | 0 |
Costless collar contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Cash flow hedge, liability | $ 5,786 | $ 8,368 |
Financial instruments - Gain (L
Financial instruments - Gain (Losses) on Derivative Financial Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cross-currency swap contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative and non derivative instruments gain (loss) recognized in accumulated oher comprehensive income (loss) | $ (1,278) | $ 10,934 | $ 3,741 | $ 3,140 |
Foreign denominated debt | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative and non derivative instruments gain (loss) recognized in accumulated oher comprehensive income (loss) | $ (11,009) | $ (2,131) | $ (11,005) | $ 2,202 |
Financial instruments - Financi
Financial instruments - Financial Assets & Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Derivatives | ||
Liabilities: | ||
Derivative liability | $ 9,600 | $ 13,028 |
Derivatives | Quoted Prices In Active Markets (Level 1) | ||
Liabilities: | ||
Derivative liability | 0 | 0 |
Derivatives | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Derivative liability | 9,600 | 13,028 |
Derivatives | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Derivative liability | 0 | 0 |
Equity securities | ||
Assets: | ||
Investments | 2,302 | 1,296 |
Equity securities | Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Investments | 2,302 | 1,296 |
Equity securities | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Equity securities | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Government bonds | ||
Assets: | ||
Investments | 15,764 | |
Government bonds | Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Investments | 15,764 | |
Government bonds | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | |
Government bonds | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | |
Corporate bonds | ||
Assets: | ||
Investments | 5,587 | 184,380 |
Corporate bonds | Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Investments | 5,587 | 184,380 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Asset-backed and mortgage-backed securities | ||
Assets: | ||
Investments | 4,680 | 8,746 |
Asset-backed and mortgage-backed securities | Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Investments | 0 | 0 |
Asset-backed and mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 4,680 | 8,746 |
Asset-backed and mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Derivatives | ||
Assets: | ||
Derivative asset | 34,799 | 25,303 |
Derivatives | Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Derivative asset | 0 | 0 |
Derivatives | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivative asset | 34,799 | 25,303 |
Derivatives | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivative asset | 0 | 0 |
Investments measured at net asset value | ||
Assets: | ||
Investments | $ 6,599 | $ 361,770 |