Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jul. 31, 2017 | Dec. 31, 2016 | |
Document Document and Entity Information [Abstract] | |||
Entity Registrant Name | PARKER HANNIFIN CORP | ||
Entity Central Index Key | 76,334 | ||
Trading Symbol | PH | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 133,129,936 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 18,577,753,996 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | |||
Net Sales | $ 12,029,312 | $ 11,360,753 | $ 12,711,744 |
Cost of sales | 9,188,962 | 8,823,384 | 9,655,245 |
Gross profit | 2,840,350 | 2,537,369 | 3,056,499 |
Selling, general and administrative expenses | 1,453,935 | 1,359,360 | 1,544,746 |
Interest expense | 162,436 | 136,517 | 118,406 |
Other (income), net | (61,401) | (62,199) | (43,374) |
(Gain) loss on disposal of assets (Note 2) | (43,261) | (11,037) | 4,481 |
Income before income taxes | 1,328,641 | 1,114,728 | 1,432,240 |
Income taxes (Note 4) | 344,797 | 307,512 | 419,687 |
Net Income | 983,844 | 807,216 | 1,012,553 |
Less: Noncontrolling interest in subsidiaries' earnings | 432 | 376 | 413 |
Net Income Attributable to Common Shareholders | $ 983,412 | $ 806,840 | $ 1,012,140 |
Earnings per Share Attributable to Common Shareholders (Note 5) | |||
Basic earnings per share (in USD per share) | $ 7.37 | $ 5.96 | $ 7.08 |
Diluted earnings per share (in USD per share) | $ 7.25 | $ 5.89 | $ 6.97 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 983,844 | $ 807,216 | $ 1,012,553 |
Less: Noncontrolling interest in subsidiaries' earnings | 432 | 376 | 413 |
Net Income Attributable to Common Shareholders | 983,412 | 806,840 | 1,012,140 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustment and other (net of tax of $40,935, $(2,342) and $(31,024) in 2017, 2016 and 2015) | (80,865) | (203,299) | (765,659) |
Retirement benefits plan activity (net of tax of $(218,590), $152,203 and $88,547 in 2017, 2016 and 2015) | 384,784 | (286,044) | (149,710) |
Other comprehensive income (loss) | 303,919 | (489,343) | (915,369) |
Less: Other comprehensive income (loss) for noncontrolling interests | 358 | (196) | (249) |
Other comprehensive income (loss) attributable to common shareholders | 303,561 | (489,147) | (915,120) |
Total Comprehensive Income Attributable to Common Shareholders | $ 1,286,973 | $ 317,693 | $ 97,020 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income (Paranthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation and other, tax | $ 40,935 | $ (2,342) | $ (31,024) |
Retirement benefits plan activity, tax | $ (218,590) | $ 152,203 | $ 88,547 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current Assets | ||
Cash and cash equivalents (Note 1) | $ 884,886 | $ 1,221,653 |
Marketable securities and other investments (Note 1) | 39,318 | 882,342 |
Trade accounts receivable, net (Note 1) | 1,930,751 | 1,593,920 |
Non-trade and notes receivable (Note 1) | 254,987 | 232,183 |
Inventories (Note 6) | 1,549,494 | 1,173,329 |
Prepaid expenses | 120,282 | 104,360 |
Total Current Assets | 4,779,718 | 5,207,787 |
Plant and equipment (Note 1) | 5,186,748 | 4,737,141 |
Less: Accumulated depreciation | 3,249,456 | 3,169,041 |
Plant and equipment, net | 1,937,292 | 1,568,100 |
Deferred income taxes (Notes 1 and 4) | 36,057 | 605,155 |
Investments and other assets (Note 1) | 842,475 | 827,492 |
Intangible assets, net (Notes 1 and 7) | 2,307,484 | 922,571 |
Goodwill (Notes 1 and 7) | 5,586,878 | 2,903,037 |
Total Assets | 15,489,904 | 12,034,142 |
Current Liabilities | ||
Notes payable and long-term debt payable within one year (Notes 8 and 9) | 1,008,465 | 361,787 |
Accounts payable, trade | 1,300,496 | 1,034,589 |
Accrued payrolls and other compensation | 435,911 | 382,945 |
Accrued domestic and foreign taxes | 153,137 | 127,597 |
Other accrued liabilities | 497,851 | 458,970 |
Total Current Liabilities | 3,395,860 | 2,365,888 |
Long-term debt (Note 9) | 4,861,895 | 2,652,457 |
Pensions and other postretirement benefits (Note 10) | 1,406,082 | 2,076,143 |
Deferred income taxes (Notes 1 and 4) | 221,790 | 54,395 |
Other liabilities | 336,931 | 306,581 |
Total Liabilities | 10,222,558 | 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 in 2017 and 2016 | 90,523 | 90,523 |
Additional capital | 543,879 | 628,451 |
Retained earnings | 10,930,348 | 10,302,866 |
Accumulated other comprehensive (loss) | (1,924,204) | (2,227,765) |
Treasury shares at cost: 47,854,475 in 2017 and 47,033,896 in 2016 | (4,378,897) | (4,218,820) |
Total Shareholders' Equity | 5,261,649 | 4,575,255 |
Noncontrolling interests | 5,697 | 3,423 |
Total Equity | 5,267,346 | 4,578,678 |
Total Liabilities and Equity | $ 15,489,904 | $ 12,034,142 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 30, 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 (in shares) | 47,854,475 | 47,033,896 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows From Operating Activities | |||
Net income | $ 983,844 | $ 807,216 | $ 1,012,553 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 202,868 | 190,308 | 202,776 |
Amortization | 152,361 | 116,535 | 114,715 |
Stock incentive plan compensation | 80,339 | 71,293 | 96,093 |
Deferred income taxes | 37,024 | (65,686) | 18,865 |
Foreign currency transaction loss (gain) | 8,060 | 22,750 | (77,784) |
Loss on sale of plant and equipment | 1,494 | 414 | 14,953 |
(Gain) on sale of businesses | (41,285) | (10,666) | (6,420) |
(Gain) loss on sale of marketable securities | (1,032) | (723) | 3,817 |
Changes in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | (95,347) | 17,549 | 143,179 |
Inventories | (73,673) | 120,243 | (70,377) |
Prepaid expenses | 2,410 | 136,034 | (116,561) |
Other assets | (3,887) | (5,033) | 20,976 |
Accounts payable, trade | 174,761 | (52,378) | (86,750) |
Accrued payrolls and other compensation | 5,922 | (22,865) | (12,657) |
Accrued domestic and foreign taxes | 18,165 | (6,285) | (43,441) |
Other accrued liabilities | (59,738) | (31,633) | (8,770) |
Pensions and other postretirement benefits | (103,866) | (45,796) | 156,859 |
Other liabilities | 14,051 | (30,499) | 1,207 |
Net cash provided by operating activities | 1,302,471 | 1,210,778 | 1,363,233 |
Cash Flows From Investing Activities | |||
Acquisitions (less cash acquired of $157,426 in 2017, $3,814 in 2016 and $8,332 in 2015) | (4,069,197) | (67,552) | (18,618) |
Capital expenditures | (203,748) | (149,407) | (215,527) |
Proceeds from sale of plant and equipment | 14,648 | 18,821 | 19,655 |
Proceeds from sale of businesses | 85,610 | 24,325 | 37,265 |
Purchase of marketable securities and other investments | (465,666) | (1,351,464) | (1,747,333) |
Maturities and sales of marketable securities and other investments | 1,279,318 | 1,300,633 | 1,391,396 |
Other | (6,113) | (39,995) | (46,001) |
Net cash (used in) investing activities | (3,365,148) | (264,639) | (579,163) |
Cash Flows From Financing Activities | |||
Proceeds from exercise of stock options | 2,202 | 126 | 3,355 |
Payments for common shares | (338,078) | (587,365) | (1,436,309) |
Proceeds from (payments for) notes payable, net | 230,499 | 303,624 | (815,171) |
Proceeds from long-term borrowings | 2,614,463 | 2,287 | 1,483,015 |
Payments for long-term borrowings | (381,078) | (220,068) | (537) |
Dividends paid | (345,380) | (341,962) | (340,389) |
Net cash provided by (used in) financing activities | 1,782,628 | (843,358) | (1,106,036) |
Effect of exchange rate changes on cash | (56,718) | (61,712) | (111,005) |
Net (decrease) increase in cash and cash equivalents | (336,767) | 41,069 | (432,971) |
Cash and cash equivalents at beginning of year | 1,221,653 | 1,180,584 | 1,613,555 |
Cash and cash equivalents at end of year | 884,886 | 1,221,653 | 1,180,584 |
Cash paid during the year for: | |||
Interest | 131,937 | 133,999 | 105,202 |
Income taxes | $ 268,127 | $ 250,155 | $ 515,350 |
Consolidated Statement of Cash8
Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | |||
Acquisitions, cash acquired | $ 157,426 | $ 3,814 | $ 8,332 |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Shares | Noncontrolling Interests |
Beginning Balance at Jun. 30, 2014 | $ 6,662,808 | $ 90,523 | $ 595,498 | $ 9,174,189 | $ (823,498) | $ (2,377,284) | $ 3,380 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,012,553 | 1,012,140 | 413 | ||||
Other comprehensive income (loss) | (915,369) | (915,120) | (249) | ||||
Dividends paid | (340,389) | (340,132) | (257) | ||||
Stock incentive plan activity | 81,549 | 27,231 | (4,312) | 58,630 | |||
Liquidation Activity | (5) | (5) | |||||
Shares purchased at cost | (1,393,578) | (1,393,578) | |||||
Ending Balance at Jun. 30, 2015 | 5,107,569 | 90,523 | 622,729 | 9,841,885 | (1,738,618) | (3,712,232) | 3,282 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 807,216 | 806,840 | 376 | ||||
Other comprehensive income (loss) | (489,343) | (489,147) | (196) | ||||
Dividends paid | (341,962) | (341,923) | (39) | ||||
Stock incentive plan activity | 52,702 | 5,722 | (3,936) | 50,916 | |||
Shares purchased at cost | (557,504) | (557,504) | |||||
Ending Balance at Jun. 30, 2016 | 4,578,678 | 90,523 | 628,451 | 10,302,866 | (2,227,765) | (4,218,820) | 3,423 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 983,844 | 983,412 | 432 | ||||
Other comprehensive income (loss) | 303,919 | 303,561 | 358 | ||||
Dividends paid | (345,380) | (345,042) | (338) | ||||
Stock incentive plan activity | 9,155 | (84,572) | (10,888) | 104,615 | |||
Acquisition activity | 1,822 | 1,822 | |||||
Shares purchased at cost | (264,692) | (264,692) | |||||
Ending Balance at Jun. 30, 2017 | $ 5,267,346 | $ 90,523 | $ 543,879 | $ 10,930,348 | $ (1,924,204) | $ (4,378,897) | $ 5,697 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information (Dollars in thousands) 2017 2016 2015 Net Sales: Diversified Industrial: North America $ 5,366,809 $ 4,955,211 $ 5,715,742 International 4,377,776 4,145,272 4,741,376 Aerospace Systems 2,284,727 2,260,270 2,254,626 $ 12,029,312 $ 11,360,753 $ 12,711,744 Segment Operating Income: Diversified Industrial: North America $ 873,552 $ 789,667 $ 955,501 International 579,207 448,457 583,937 Aerospace Systems 337,496 337,531 298,994 Total segment operating income 1,790,255 1,575,655 1,838,432 Corporate administration 172,632 173,203 215,396 Income before interest expense and other 1,617,623 1,402,452 1,623,036 Interest expense 162,436 136,517 118,406 Other expense 126,546 151,207 72,390 Income before income taxes $ 1,328,641 $ 1,114,728 $ 1,432,240 Assets: Diversified Industrial $ 13,366,981 $ 8,728,671 $ 8,734,942 Aerospace Systems (a) 1,412,707 1,430,577 1,375,845 Corporate (b) 710,216 1,874,894 2,143,492 $ 15,489,904 $ 12,034,142 $ 12,254,279 Property Additions: Diversified Industrial $ 148,765 $ 134,618 $ 190,580 Aerospace Systems 16,929 10,857 18,427 Corporate 38,054 3,932 6,520 $ 203,748 $ 149,407 $ 215,527 Depreciation: Diversified Industrial $ 176,823 $ 163,014 $ 174,102 Aerospace Systems 17,484 18,469 19,509 Corporate 8,561 8,825 9,165 $ 202,868 $ 190,308 $ 202,776 (Dollars in thousands) 2017 2016 2015 By Geographic Area (c) Net Sales: North America $ 7,585,689 $ 7,144,481 $ 7,891,571 International 4,443,623 4,216,272 4,820,173 $ 12,029,312 $ 11,360,753 $ 12,711,744 Long-Lived Assets: North America $ 1,145,127 $ 817,872 $ 856,947 International 792,165 750,228 807,075 $ 1,937,292 $ 1,568,100 $ 1,664,022 The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote except that the business segment results are prepared on a basis that is consistent with the manner in which the Company’s management disaggregates financial information for internal review and decision-making. (a) Includes an investment in a joint venture in which ownership is 50 percent or less and in which the Company does not have operating control ( 2017 - $240,182 ; 2016 - $241,728 ; 2015 - $251,365 ). (b) Amounts in 2016 and 2015 have been adjusted to reflect the retrospective adoption of Accounting Standards Update 2015-03 in the first quarter of 2017. Corporate assets are principally cash and cash equivalents, marketable securities and other investments, domestic deferred income taxes, deferred compensation plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment. (c) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The significant accounting policies followed in the preparation of the accompanying consolidated financial statements are summarized below. Nature of Operations - The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. The Company evaluates performance based on segment operating income before corporate administrative expenses, interest expense and income taxes. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Diversified Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Diversified Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Diversified Industrial International operations provide Parker products and services to 47 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and also performs a vital role in naval vessels and land-based weapons systems. This segment serves original equipment and maintenance, repair and overhaul customers worldwide. Aerospace Systems Segment products are marketed by field sales employees and are sold directly to manufacturers and end-users. There are no individual customers to whom sales are more than three percent of the Company's consolidated sales. Due to the diverse group of customers throughout the world, the Company does not consider itself exposed to any concentration of credit risks. The Company manufactures and markets its products throughout the world. Although certain risks and uncertainties exist, the diversity and breadth of the Company's products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect the Company's operating results. Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Basis of Consolidation - The consolidated financial statements include the accounts of all majority-owned domestic and foreign subsidiaries. All intercompany transactions and profits have been eliminated in the consolidated financial statements. The Company does not have off-balance sheet arrangements. Within the Business Segment Information, intersegment and interarea sales have been eliminated. Revenue Recognition - Revenue is recognized when persuasive evidence of an arrangement exists, product has shipped and the risks and rewards of ownership have transferred or services have been rendered, the price to the customer is fixed and determinable and collectibility is reasonably assured, which is generally at the time the product is shipped. Shipping and handling costs billed to customers are included in net sales and the related costs in cost of sales. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. Long-term Contracts - The Company enters into long-term contracts primarily for the production of aerospace products. For financial statement purposes, revenues are primarily recognized using the percentage-of-completion method. The extent of progress toward completion is primarily measured using the units-of-delivery method. Unbilled costs on these contracts are included in inventory. Progress payments are netted against the inventory balances. The Company estimates costs to complete long-term contracts for purposes of evaluating and establishing contract reserves. Adjustments to cost estimates are made on a consistent basis and a contract reserve is established when the estimated costs to complete a contract exceed the expected contract revenues. Cash - Cash equivalents consist of short-term highly liquid investments, with a three-month or less maturity, carried at cost plus accrued interest, which are readily convertible into cash. Marketable Securities and Other Investments - Consist of short-term highly liquid investments, with stated maturities of greater than three months from the date of purchase, carried at cost plus accrued interest, and investments classified as available-for-sale, which are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive (loss). Gains and losses on available-for-sale investments are calculated based on the first-in, first-out method. The Company has the ability to liquidate the available-for-sale investments after giving appropriate notice to the issuer. 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 $14,336 and $8,010 at June 30, 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: June 30, 2017 2016 Notes receivable $ 118,351 $ 102,400 Accounts receivable, other 136,636 129,783 Total $ 254,987 $ 232,183 Plant, Equipment and Depreciation - Plant and equipment are recorded at cost and are depreciated principally using the straight-line method for financial reporting purposes. Depreciation rates are based on estimated useful lives of the assets, generally 40 years for buildings, 15 years for land improvements and building equipment, seven to 10 years for machinery and equipment, and three to eight years for vehicles and office equipment. Improvements, which extend the useful life of property, are capitalized, and maintenance and repairs are expensed. The Company reviews plant and equipment for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included in current income. The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2017 2016 Land and land improvements $ 321,331 $ 291,122 Buildings and building equipment 1,575,464 1,437,601 Machinery and equipment 3,167,885 2,933,818 Construction in progress 122,068 74,600 Total $ 5,186,748 $ 4,737,141 Investments and Other Assets - Investments in joint-venture companies in which ownership is 50 percent or less and in which the Company does not have operating control are stated at cost plus the Company's equity in undistributed earnings and amounted to $341,869 and $355,876 at June 30, 2017 and June 30, 2016 , respectively. A significant portion of the underlying net assets of the joint ventures are related to goodwill. The Company's share of earnings from investments in joint-venture companies were $42,352 , $25,650 and $23,204 in 2017 , 2016 and 2015 , respectively. Intangible Assets - Intangible assets primarily include patents, trademarks and customer lists and are recorded at cost and amortized on a straight-line method. Patents are amortized over the shorter of their remaining useful or legal life. Trademarks are amortized over the estimated time period over which an economic benefit is expected to be received. Customer lists are amortized over a period based on anticipated customer attrition rates. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Goodwill - The Company conducts a formal impairment test of goodwill on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Income Taxes - Income taxes are provided based upon income for financial reporting purposes. Tax credits and similar tax incentives are applied to reduce the provision for income taxes in the year in which the credits arise. The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, are recognized in income tax expense. Deferred income taxes arise from temporary differences in the recognition of income and expense for tax purposes. Foreign Currency Translation - Assets and liabilities of foreign subsidiaries are translated at current exchange rates, and income and expenses are translated using weighted-average exchange rates. The effects of these translation adjustments, as well as gains and losses from certain intercompany transactions, are reported in the accumulated other comprehensive (loss) component of shareholders' equity. Such adjustments will affect net income only upon sale or liquidation of the underlying foreign investments, which is not contemplated at this time. Exchange losses (gains) from transactions in a currency other than the local currency of the entity involved are included within the cost of sales caption in the Consolidated Statement of Income and were $8,060 , $22,750 and $(77,784) , in 2017, 2016 and 2015, respectively. Subsequent Events - The Company has evaluated subsequent events that have occurred through the date of filing of this Annual Report on Form 10-K for the year ended June 30, 2017 . No subsequent events occurred that required adjustment to or disclosure in these financial statements. Recent Accounting Pronouncements - In May 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-09, "Scope of Modification Accounting." ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as fair value of the original award; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 31, 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 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company has not historically modified share-based payments awards after their original issuance so the impact of adopting ASU 2017-09 on the Company's financial statements is not expected to be material. In March 2017, the FASB issued 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 is evaluating ASU 2016-16 for potential early adoption in the first quarter of fiscal 2018 and currently estimates that the adoption of ASU 2016-16 will eliminate a $57 million income tax deferred charge recorded in the Consolidated Balance Sheet as of June 30, 2017. 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. 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 $35,589 in 2017. 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 2016 and 2015, cash flows from operating activities was increased by $40,935 and $61,292 , respectively, and cash flows from financing activities was decreased by $40,935 and $61,292 , respectively. 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. 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 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 Investments and 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 currently anticipates using the modified retrospective method to adopt ASU 2014-09. The Company is still in the process of quantifying the impact of the adoption of ASU 2014-09, but at this time the Company does not expect the adoption to have a material impact on its financial statements. |
Acquisitions and Divestiture
Acquisitions and Divestiture | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestiture | Acquisitions and Divestiture Acquisitions - During 2017 , the Company completed three acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were approximately $1,522 million . Total purchase price for the three acquisitions was approximately $4,227 million in cash and $316 million in assumed debt. During 2016 , the Company completed two acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were approximately $48 million . Total purchase price for the two acquisitions was approximately $71 million in cash and $2 million in assumed debt. During 2015 , the Company completed four acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were approximately $27 million . Total purchase price for the four acquisitions was approximately $27 million in cash. The results of operations for all acquisitions are included as of the respective dates of acquisition. Assets acquired and liabilities assumed were 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 assets acquired and liabilities assumed presented in the table below are based on available information and may be revised during the measurement period, not to exceed 12 months, as 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. The initial purchase price allocation and subsequent purchase price adjustments for acquisitions in 2017 , 2016 and 2015 are as follows. 2017 2016 2015 Assets: Accounts receivable $ 263,616 $ 6,793 $ 7,656 Inventories 302,422 12,041 3,099 Prepaid expenses 18,342 1,350 91 Deferred income taxes 4,658 — 5 Plant and equipment 376,826 5,647 1,123 Intangible and other assets 1,526,909 26,849 7,794 Goodwill 2,677,489 31,134 10,430 5,170,262 83,814 30,198 Liabilities: Notes payable 20,162 720 — Accounts payable, trade 84,753 2,536 2,689 Accrued payrolls and other compensation 45,942 1,310 243 Accrued domestic and foreign taxes 5,435 604 777 Other accrued liabilities 80,515 1,804 5,267 Long-term debt 296,240 1,743 — Pensions and other postretirement benefits 33,929 — — Deferred income taxes 520,389 7,545 2,604 Other liabilities 11,878 — — Noncontrolling interests 1,822 — — 1,101,065 16,262 11,580 Net assets acquired $ 4,069,197 $ 67,552 $ 18,618 Goodwill is calculated as the excess of the purchase price over the net assets acquired, primarily all of which 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 7 for additional information about intangible assets. The remaining disclosures in Note 2 pertain only to the Clarcor acquisition as the other two acquisitions completed during 2017 were immaterial. 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 is 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 Company's results of operations for 2017 include Clarcor's results of operations from the date of acquisition, February 28, 2017, through June 30, 2017. Net sales and segment operating (loss) attributable to Clarcor during this period was $487,388 and $(16,164) , 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 2017 and 2016. 2017 2016 Net sales $ 12,935,834 $ 12,772,097 Net income attributable to common shareholders 1,027,693 748,634 Diluted earnings per share 7.58 5.47 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 (which are reflected in the selling, general and administrative expenses caption in the Consolidated Statement of Income) 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 $108,078 for 2017 and decreased pro forma net income attributable to common shareholders by $39,121 for 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 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 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. |
Charges Related to Business Rea
Charges Related to Business Realignment | 12 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Charges Related to Business Realignment | Charges Related to Business Realignment To structure its businesses in light of current and anticipated customer demand, the Company incurred business realignment charges in 2017 , 2016 and 2015 . Business realignment charges presented in the Business Segment Information are as follows: 2017 2016 2015 Diversified Industrial $ 52,939 $ 91,404 $ 30,882 Aerospace Systems 2,674 3,629 967 Corporate administration — 2,215 458 Other expense 784 116 2,399 Work force reductions related to the business realignment charges in the Business Segment Information are as follows: 2017 2016 2015 Diversified Industrial 1,102 3,515 668 Aerospace Systems 89 81 21 Corporate administration — 53 18 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 charges incurred in Europe and North America. In connection with a plant closure during 2016, the Company recognized an expense associated with enhanced retirement benefits (refer to Note 10 for further discussion). The Company believes the realignment actions taken 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: 2017 2016 2015 Cost of sales $ 35,932 $ 76,197 $ 19,419 Selling, general and administrative expenses 19,681 21,051 12,888 (Gain) loss on disposal of assets 784 116 2,399 As of June 30, 2017 , approximately $23 million in severance payments have been made relating to charges incurred during 2017 , the remainder of which are expected to be paid by June 30, 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 $33 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes was derived from the following sources: 2017 2016 2015 United States $ 722,925 $ 672,907 $ 779,782 Foreign 605,716 441,821 652,458 $ 1,328,641 $ 1,114,728 $ 1,432,240 Income taxes include the following: 2017 2016 2015 Federal Current $ 132,420 $ 235,557 $ 185,761 Deferred 37,316 (45,797 ) 28,108 Foreign Current 157,518 113,146 189,826 Deferred (5,319 ) (7,006 ) (11,208 ) State and local Current 17,835 24,495 25,235 Deferred 5,027 (12,883 ) 1,965 $ 344,797 $ 307,512 $ 419,687 A reconciliation of the Company's effective income tax rate to the statutory Federal rate follows: 2017 2016 2015 Statutory Federal income tax rate 35.0 % 35.0 % 35.0 % State and local income taxes 1.7 0.6 1.1 Tax related to international activities (5.5 ) (5.2 ) (4.5 ) Cash surrender value of life insurance (0.9 ) 0.2 (0.1 ) Federal manufacturing deduction (0.9 ) (1.0 ) (1.6 ) Research tax credit (0.8 ) (1.9 ) (0.8 ) Share-based compensation (2.7 ) — — Other 0.1 (0.1 ) 0.2 Effective income tax rate 26.0 % 27.6 % 29.3 % Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities. The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows: 2017 2016 Retirement benefits $ 571,022 $ 815,545 Other liabilities and reserves 144,885 126,524 Long-term contracts 61,375 64,371 Stock-based compensation 59,725 67,138 Loss carryforwards 678,486 326,707 Unrealized currency exchange gains and losses 22,212 (19,491 ) Inventory 17,809 14,693 Foreign tax credit carryforward 23,050 24,051 Depreciation and amortization (1,080,218 ) (536,070 ) Valuation allowance (684,079 ) (332,708 ) Net deferred tax (liability) asset $ (185,733 ) $ 550,760 Change in net deferred tax asset: Provision for deferred tax $ (37,024 ) $ 65,686 Items of other comprehensive (loss) (177,655 ) 149,861 Acquisitions and other (521,814 ) (7,832 ) Total change in net deferred tax $ (736,493 ) $ 207,715 As of June 30, 2017 , the Company has recorded deferred tax assets of $678,486 resulting from $2,529,303 in loss carryforwards. A valuation allowance of $665,399 related to the loss carryforwards has been established due to the uncertainty of their realization. Of this valuation allowance, $633,581 relates to non-operating entities whose loss carryforward utilization is considered to be remote. Some of the loss carryforwards can be carried forward indefinitely; others can be carried forward from three years to 20 years . In addition, a valuation allowance of $18,680 related to future deductible items has been established due to the uncertainty of their realization. These future deductible items are recorded in the other liabilities and reserves line in the table above. Provision has not been made for additional U.S. or foreign taxes on undistributed earnings of certain international operations as those earnings will continue to be reinvested. It is not practicable to estimate the additional taxes, including applicable foreign withholding taxes, that might be payable on the eventual remittance of such earnings. Accumulated undistributed earnings reinvested in international operations amounted to approximately $2,900,000 at June 30, 2017 . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 2015 Balance July 1 $ 139,907 $ 145,688 $ 164,813 Additions for tax positions related to current year 4,735 7,025 6,090 Additions for tax positions of prior years 2,618 2,582 14,989 Additions for acquisitions 3,939 — — Reductions for tax positions of prior years (1,175 ) (627 ) (6,945 ) Reductions for settlements (3,020 ) (10,284 ) — Reductions for expiration of statute of limitations (2,792 ) (4,142 ) (6,251 ) Effect of foreign currency translation 3,294 (335 ) (27,008 ) Balance June 30 $ 147,506 $ 139,907 $ 145,688 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $95,460 , $80,722 and $83,471 as of June 30, 2017 , 2016 and 2015 , respectively. If recognized, a significant portion of the gross unrecognized tax benefits as of June 30, 2017 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, was $15,432 , $12,357 and $9,514 as of June 30, 2017 , 2016 and 2015 , respectively. 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 unrecognized tax benefits within the next 12 months is expected to be insignificant. 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 years after 2011, and its state and local tax returns for years after 2011. The Company is open to assessment for significant foreign jurisdictions for years after 2007. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed using the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted-average number of common shares and common share equivalents outstanding during the year. Common share equivalents represent the dilutive effect of outstanding stock-based awards. The computation of net income per share was as follows: 2017 2016 2015 Numerator: Net income attributable to common shareholders $ 983,412 $ 806,840 $ 1,012,140 Denominator: Basic - weighted-average common shares 133,377,547 135,353,321 142,925,327 Increase in weighted-average common shares from dilutive effect of stock-based awards 2,182,217 1,558,369 2,186,823 Diluted - weighted-average common shares, assuming exercise of stock-based awards 135,559,764 136,911,690 145,112,150 Basic earnings per share $ 7.37 $ 5.96 $ 7.08 Diluted earnings per share $ 7.25 $ 5.89 $ 6.97 For 2017 , 2016 and 2015 , 1.4 million , 3.1 million and 1.1 million common shares, respectively, subject to stock-based awards were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The majority of domestic inventories are valued by the last-in, first-out (LIFO) cost method and the balance of the Company's inventories are valued by the first-in, first-out (FIFO) cost method. Inventories valued by the FIFO cost method are stated at the lower of cost or net realizable value. Inventories valued by the LIFO cost method are stated at lower of cost or market. Inventories valued on the LIFO cost method were approximately 39 percent of total inventories in 2017 and 30 percent of total inventories in 2016 . The current cost of these inventories exceeds their valuation determined on the LIFO basis by $193,933 in 2017 and $200,247 in 2016 . Progress payments of $44,231 in 2017 and $51,104 in 2016 are netted against inventories. The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2017 2016 Finished products $ 642,788 $ 458,657 Work in process 723,133 639,907 Raw materials 183,573 74,765 Total $ 1,549,494 $ 1,173,329 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance June 30, 2015 $ 2,844,045 $ 98,634 $ 2,942,679 Acquisitions 31,134 — 31,134 Foreign currency translation and other (70,776 ) — (70,776 ) Balance June 30, 2016 $ 2,804,403 $ 98,634 $ 2,903,037 Acquisitions 2,677,489 — 2,677,489 Divestitures (22,618 ) — (22,618 ) Foreign currency translation and other 28,962 8 28,970 Balance June 30, 2017 $ 5,488,236 $ 98,642 $ 5,586,878 Acquisitions represent the original goodwill allocation, purchase price adjustments and final adjustments to the purchase price allocation for the acquisitions during the measurement period subsequent to the applicable acquisition dates. The impact of the purchase price adjustments and final adjustments to the purchase price allocation on the Company's results of operations and financial position were immaterial. Divestitures primarily represent goodwill associated with the sale of a product line (see Note 2 for further discussion). The Company's annual impairment tests performed in 2017 , 2016 and 2015 resulted in no impairment loss being recognized. Intangible assets are amortized on a straight-line method over their legal or estimated useful life. The gross carrying value and accumulated amortization for each major category of intangible asset at June 30 are as follows: 2017 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 254,049 $ 100,860 $ 150,914 $ 95,961 Trademarks 553,691 200,413 340,805 179,156 Customer lists and other 2,566,983 765,966 1,362,521 656,552 Total $ 3,374,723 $ 1,067,239 $ 1,854,240 $ 931,669 During 2017 , the Company acquired intangible assets, either individually or as part of a group of assets, with an initial purchase price allocation and weighted-average life as follows: Purchase Price Allocation Weighted-Average Life Patents $ 108,810 13 years Trademarks 212,060 17 years Customer lists and other 1,197,573 11 years Total $ 1,518,443 12 years Total intangible asset amortization expense in 2017 , 2016 and 2015 was $145,128 , $108,019 and $109,887 , respectively. Estimated intangible asset amortization expense for the five years ending June 30, 2018 through 2022 is $219,238 , $209,047 , $200,242 , $191,520 and $155,482 , respectively. 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 occurred in 2017, 2016 or 2015. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jun. 30, 2017 | |
Financing Arrangements [Abstract] | |
Financing Arrangements | Financing Arrangements The Company has a line of credit totaling $2,000,000 through a multi-currency revolving credit agreement with a group of banks, $1,465,800 of which was available at June 30, 2017 . The credit agreement expires in October 2021; however, the Company has the right to request a one -year extension of the expiration date on an annual basis, which request may result in changes to the current terms and conditions of the credit agreement. Advances from the credit agreement can be used for general corporate purposes, including acquisitions, and for the refinancing of existing indebtedness. The credit agreement requires the payment of an annual facility fee, the amount of which may increase in the event the Company's credit ratings are lowered. Although a lowering of the Company's credit ratings would likely increase the cost of future debt, it would not limit the Company's ability to use the credit agreement nor would it accelerate the repayment of any outstanding borrowings. The Company is currently authorized to sell up to $2,000,000 of short-term commercial paper notes. At June 30, 2017 , $534,200 of commercial paper notes were outstanding and $303,700 commercial paper notes were outstanding at June 30, 2016 . In addition to commercial paper notes, notes payable includes short-term lines of credit and borrowings from foreign banks. At June 30, 2017 , the Company had $62,946 in lines of credit from various foreign banks, none of which had amounts outstanding at June 30, 2017 or at June 30, 2016 . Most of these agreements are renewed annually. The weighted-average interest rate on notes payable during both 2017 and 2016 was 0.3 percent . The Company's foreign locations in the ordinary course of business may enter into financial guarantees through financial institutions which enable customers to be reimbursed in the event of nonperformance by the Company. The Company's credit agreements and indentures governing certain debt agreements contain various covenants, the violation of which would limit or preclude the use of the applicable agreements for future borrowings, or might accelerate the maturity of the related outstanding borrowings covered by the applicable agreements. Based on the Company's rating level at June 30, 2017 , the most restrictive financial covenant provides that the ratio of debt to debt-shareholders' equity cannot exceed 0.60 to 1.0. As of June 30, 2017 , the Company's debt to debt-shareholders' equity ratio was 0.529 to 1.0. The Company is in compliance with all covenants. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt June 30, 2017 2016 Domestic: Fixed rate medium-term notes, 3.30% to 6.55%, due 2018-2045 $ 2,675,000 $ 2,675,000 Senior Notes, 3.25% to 4.10%, due 2027 - 2047 1,300,000 — Term loan, Libor plus 100 bps, due 2020 493,750 — Foreign: Euro Senior Notes, 1.125%, due 2025 799,890 — Euro Term loan, Libor plus 150 bps, due 2022 114,270 — Japanese Yen credit facility, JPY Libor plus 55 bps, due 2017 — 58,140 Other long-term debt 433 — Deferred debt issuance costs (47,183 ) (22,596 ) Total long-term debt 5,336,160 2,710,544 Less: Long-term debt payable within one year 474,265 58,087 Long-term debt, net $ 4,861,895 $ 2,652,457 The Company issued the Senior Notes and entered into term loans during 2017. 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 $27,782 and will be amortized over the respective debt terms. The Company primarily used the proceeds from these debt issuances for the Clarcor acquisition. Principal amounts of long-term debt payable in the five years ending June 30, 2018 through 2022 are $475,143 , $100,107 , $468,822 , $32 and $114,280 , respectively. The principal amounts of long-term debt payable exclude the impact of the amortization of debt issuance costs. Lease Commitments - Future minimum rental commitments as of June 30, 2017 , under non-cancelable operating leases, which expire at various dates, are as follows: 2018 - $81,400 ; 2019 - $56,974 ; 2020 - $35,467 ; 2021 - $21,189 ; 2022 - $13,220 and after 2022 - $31,994 . Rental expense in 2017 , 2016 and 2015 was $118,723 , $119,004 and $125,657 , respectively. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits Pensions - The Company has noncontributory defined benefit pension plans covering eligible employees, including certain employees in foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat-dollar amounts and years of service. The Company also has arrangements for certain key employees which provide for supplemental retirement benefits. In general, the Company's policy is to fund these plans based on legal requirements, tax considerations, local practices and investment opportunities. The Company also sponsors defined contribution plans and participates in government-sponsored programs in certain foreign countries. A summary of the Company's defined benefit pension plans follows: 2017 2016 2015 Benefit cost Service cost $ 94,356 $ 94,650 $ 97,960 Interest cost 126,131 181,469 176,556 Special termination cost — 7,088 21,174 Settlement cost — 5,102 — Expected return on plan assets (239,537 ) (221,629 ) (218,938 ) Amortization of prior service cost 8,116 7,470 9,437 Amortization of unrecognized actuarial loss 212,433 170,407 152,664 Amortization of initial net obligation 18 17 17 Net periodic benefit cost $ 201,517 $ 244,574 $ 238,870 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 5,315,655 $ 4,867,703 Service cost 94,356 94,650 Interest cost 126,131 181,469 Acquisition 201,283 — Special termination cost — 7,088 Plan amendments 3,265 2,992 Divestiture (851 ) — Actuarial (gain) loss (268,370 ) 487,523 Benefits paid (250,289 ) (230,551 ) Foreign currency translation and other (3,323 ) (95,219 ) Benefit obligation at end of year $ 5,217,857 $ 5,315,655 Change in plan assets Fair value of plan assets at beginning of year $ 3,307,047 $ 3,238,307 Actual gain on plan assets 341,344 97,165 Acquisition 168,264 — Employer contributions 330,932 279,140 Benefits paid (250,289 ) (230,551 ) Foreign currency translation and other (1,297 ) (77,014 ) Fair value of plan assets at end of year $ 3,896,001 $ 3,307,047 Funded status $ (1,321,856 ) $ (2,008,608 ) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (12,793 ) $ (42,763 ) Pensions and other postretirement benefits (1,309,063 ) (1,965,845 ) Net amount recognized $ (1,321,856 ) $ (2,008,608 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 1,461,017 $ 2,047,103 Prior service cost 22,761 27,723 Transition obligation 77 103 Net amount recognized $ 1,483,855 $ 2,074,929 The presentation of the amounts recognized on the Consolidated Balance Sheet and in accumulated other comprehensive (loss) is on a debit (credit) basis and excludes the effect of income taxes. Beginning in 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 2017 is lower than the net pension benefit cost for 2016 by $29,777 . During 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 . During 2015, the Company initiated a voluntary retirement program under which certain participants in its U.S. qualified defined benefit pension plan were offered enhanced retirement benefits, which resulted in an increase in net pension benefit cost of $21,174 . The estimated amount of net actuarial loss, prior service cost and transition obligation that will be amortized from accumulated other comprehensive (loss) into net periodic benefit pension cost in 2018 is $141,399 , $6,055 and $17 , respectively. The accumulated benefit obligation for all defined benefit plans was $4,890,058 and $4,884,985 at June 30, 2017 and 2016 , respectively. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $5,120,268 , $4,805,485 and $3,793,696 , respectively, at June 30, 2017 , and $5,211,768 , $4,796,860 and $3,206,287 , respectively, at June 30, 2016 . The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were $5,142,881 and $3,815,815 , respectively, at June 30, 2017 , and $5,310,979 and $3,302,370 , respectively, at June 30, 2016 . The Company expects to make cash contributions of approximately $68 million to its defined benefit pension plans in 2018 , the majority of which relate to its non-U.S. defined benefit plans. Estimated future benefit payments in the five years ending June 30, 2018 through 2022 are $231,732 , $236,968 , $243,956 , $260,645 and $296,949 , respectively and $1,448,318 in the aggregate for the five years ending June 30, 2023 through June 30, 2027. The assumptions used to measure net periodic benefit cost for the Company's significant defined benefit plans are: 2017 2016 2015 U.S. defined benefit plans Discount rate 3.33 % 4.19 % 4.05 % Average increase in compensation 5.02 % 5.14 % 5.12 % Expected return on plan assets 7.5 % 7.5 % 7.5 % Non-U.S. defined benefit plans Discount rate 0.23 to 7.75% 0.7 to 6.0% 0.9 to 4.2% Average increase in compensation 2.0 to 5.5% 2.0 to 5.5% 2.0 to 5.0% Expected return on plan assets 1.0 to 5.75% 1.0 to 5.75% 1.0 to 6.25% The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2017 2016 U.S. defined benefit plans Discount rate 3.64 % 3.33 % Average increase in compensation 3.89 % 5.02 % Non-U.S. defined benefit plans Discount rate 0.30 to 7.57% 0.23 to 7.75% Average increase in compensation 2.0 to 5.5% 2.0 to 5.5% The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same estimated time period that benefit payments will be required to be made. The expected return on plan assets assumption is based on the weighted-average expected return of the various asset classes in the plans' portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows: 2017 2016 Equity securities 45 % 39 % Debt securities 47 % 51 % Other investments 8 % 10 % 100 % 100 % The weighted-average target asset allocation as of June 30, 2017 is 41 percent equity securities, 47 percent debt securities and 12 percent other investments. The investment strategy for the Company's worldwide defined benefit pension plan assets focuses on achieving prudent actuarial funding ratios while maintaining acceptable levels of risk in order to provide adequate liquidity to meet immediate and future benefit requirements. This strategy requires investment portfolios that are broadly diversified across various asset classes and external investment managers. Assets held in the U.S. defined benefit plans account for approximately 75 percent of the Company's total defined benefit plan assets. The Company's overall investment strategy with respect to the Company's U.S. defined benefit plans is to opportunistically migrate from its traditional mix between growth seeking assets (primarily consisting of global public equities in developed and emerging countries and hedge fund of fund strategies) and income generating assets (primarily consisting of high quality bonds, both domestic and global, emerging market bonds, high yield bonds and Treasury Inflation Protected Securities) to an allocation more heavily weighted toward income generating assets. Over time, long duration fixed income assets are being added to the portfolio. These securities are highly correlated with the Company's pension liabilities and will serve to hedge a portion of the Company's interest rate risk. The fair values of pension plan assets at June 30, 2017 and at June 30, 2016 , by asset class, are as follows: June 30, 2017 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 76,057 $ 75,370 $ 687 $ — Equity securities U.S. based companies 416,830 416,830 — — Non-U.S. based companies 236,134 236,134 — — Fixed income securities Corporate bonds 176,135 91,982 84,153 — Government issued securities 199,389 144,616 54,773 — Mutual funds Equity funds 306,168 306,168 — — Fixed income funds 204,628 204,628 — — Mutual funds measured at net asset value 233,234 Common/Collective trusts Equity funds 70,389 70,389 — — Fixed income funds 46,003 46,003 — — Common/Collective trusts measured at net asset value 1,677,942 Limited Partnerships measured at net asset value 262,092 Miscellaneous (9,000 ) — (9,000 ) — Total at June 30, 2017 $ 3,896,001 $ 1,592,120 $ 130,613 $ — June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 46,052 $ 45,474 $ 578 $ — Equity securities U.S. based companies 292,138 292,138 — — Non-U.S. based companies 191,647 191,647 — — Fixed income securities Corporate bonds 141,549 73,685 67,864 — Government issued securities 203,000 141,935 61,065 — Mutual funds Equity funds 149,807 149,807 — — Fixed income funds 151,649 151,649 — — Mutual funds measured at net asset value 246,075 Common/Collective trusts Equity funds 65,404 65,404 — — Fixed income funds 43,981 43,981 — — Common/Collective trusts measured at net asset value 1,487,170 Limited Partnerships measured at net asset value 280,248 Miscellaneous 8,327 — 8,327 — Total at June 30, 2016 $ 3,307,047 $ 1,155,720 $ 137,834 $ — Cash and cash equivalents, which include repurchase agreements and other short-term investments, are valued at cost, which approximates fair value. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded. U.S. based companies include Company stock with a fair value of $212,480 as of June 30, 2017 and $143,652 as of June 30, 2016 . Fixed income securities are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded. Mutual funds are valued using the closing market price reported on the active market on which the fund is traded or at net asset value per share and primarily consist of equity and fixed income funds. The equity funds primarily provide exposure to U.S. and international equities, real estate and commodities. The fixed income funds primarily provide exposure to high-yield securities and emerging market fixed income instruments. Mutual funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. Common/Collective trusts primarily consist of equity and fixed income funds and are valued using the closing market price reported on the active market on which the fund is traded or at net asset value per share. Common/Collective trust investments can be redeemed without restriction after giving appropriate notice to the issuer. Generally, redemption of the entire investment balance requires a 60 -day notice period. The equity funds provide exposure to large, mid and small cap U.S. equities, international large and small cap equities and emerging market equities. The fixed income funds provide exposure to U.S., international and emerging market debt securities. Common/Collective trusts measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. Limited Partnerships primarily consist of hedge funds valued using a net asset value per share and provide exposure to a variety of hedging strategies including long/short equity, relative value, event driven and global macro. Limited Partnership investments can be redeemed either monthly or quarterly and without restriction after giving appropriate notice to the issuer. Redemption of the entire investment balance generally requires no more than a 95 -day notice period. Limited Partnerships measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. Miscellaneous primarily includes real estate funds, insurance contracts held in the asset portfolio of the Company's non-U.S. defined benefit pension plans, and net payables for securities purchased but not settled in the asset portfolio of the Company's U.S. defined benefit pension plans. Insurance contracts are valued at the present value of future cash flows promised under the terms of the insurance contracts. The primary investment objective of equity securities and equity funds, within both the mutual fund and common/collective trust asset class, is to obtain capital appreciation in an amount that at least equals various market-based benchmarks. The primary investment objective of fixed income securities and fixed income funds, within both the mutual fund and common/collective trust asset class, is to provide for a constant stream of income while preserving capital. The primary investment objective of limited partnerships is to achieve capital appreciation through an investment program focused on specialized investment strategies. The primary investment objective of insurance contracts, included in the miscellaneous asset class, is to provide a stable rate of return over a specified period of time. Employee Savings Plan - The Company sponsors an employee stock ownership plan (ESOP) as part of its existing savings and investment 401(k) plan. The ESOP is available to eligible domestic employees. Company matching contributions, up to a maximum of four percent of an employee's annual compensation, are recorded as compensation expense. Participants may direct company matching contributions to any investment option within the savings and investment 401(k) plan. 2017 2016 2015 Shares held by ESOP 6,911,436 7,728,332 8,407,858 Company matching contributions $ 57,766 $ 58,922 $ 63,914 In addition to shares within the ESOP, as of June 30, 2017 , employees have elected to invest in 1,883,024 shares of common stock within a company stock fund of the savings and investment 401(k) plan. The Company has a retirement income account (RIA) within the employee savings plan. The Company makes a cash contribution to the participant's RIA each year, the amount of which is based on the participant's age and years of service. Participants do not contribute to the RIA. The Company recognized $29,309 , $25,780 and $29,570 in expense related to the RIA in 2017 , 2016 and 2015 , respectively. During 2017 , the Company assumed various defined contribution plans previously sponsored by Clarcor. The Company recognized expense of $2,199 in 2017 related to these defined contribution plans. Other Postretirement Benefits - The Company provides postretirement medical and life insurance benefits to certain retirees and eligible dependents. Most plans are contributory, with retiree contributions adjusted annually. The plans are unfunded and pay stated percentages of covered medically necessary expenses incurred by retirees, after subtracting payments by Medicare or other providers and after stated deductibles have been met. For most plans, the Company has established cost maximums to more effectively control future medical costs. The Company has reserved the right to change these benefit plans. The Company recognized $4,357 , $8,754 and $4,340 in expense related to other postretirement benefits in 2017 , 2016 and 2015 , respectively. During 2016, the Company provided enhanced retirement benefits in connection with a plant closure, which resulted in an increase in expense related to other postretirement benefits of $4,521 . 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 89,785 $ 75,953 Service cost 469 591 Interest cost 1,922 2,834 Acquisition 291 — Special termination cost — 4,521 Actuarial (gain) loss (8,235 ) 10,217 Benefits paid (4,299 ) (4,331 ) Benefit obligation at end of year $ 79,933 $ 89,785 Funded status $ (79,933 ) $ (89,785 ) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (6,532 ) $ (6,216 ) Pensions and other postretirement benefits (73,401 ) (83,569 ) Net amount recognized $ (79,933 ) $ (89,785 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 12,828 $ 22,914 Prior service credit (435 ) (556 ) Net amount recognized $ 12,393 $ 22,358 The presentation of the amounts recognized on the Consolidated Balance Sheet and in accumulated other comprehensive (loss) is on a debit (credit) basis and is before the effect of income taxes. The amount of net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive (loss) into net periodic postretirement cost in 2018 is $1,095 and $(121) , respectively. The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2017 2016 2015 Discount rate 3.15 % 3.96 % 3.74 % Current medical cost trend rate (Pre-65 participants) 7.35 % 7.61 % 7.75 % Current medical cost trend rate (Post-65 participants) 8.68 % 9.00 % 7.75 % Ultimate medical cost trend rate 4.50 % 4.50 % 5.00 % Medical cost trend rate decreases to ultimate in year 2025 2025 2021 The discount rate assumption used to measure the benefit obligation was 3.46 percent in 2017 and 3.15 percent in 2016 . Estimated future benefit payments for other postretirement benefits in the five years ending June 30, 2018 through 2022 are $6,532 , $6,426 , $6,034 , $5,870 and $5,629 , respectively, and $25,142 in the aggregate for the five years ending June 30, 2023 through June 30, 2027. A one percentage point change in assumed health care cost trend rates would not have a material effect on the benefit cost or benefit obligation. Other - The Company has established nonqualified deferred compensation programs, which permit officers, directors and certain management employees annually to elect to defer a portion of their compensation, on a pre-tax basis, until their retirement. The retirement benefit to be provided is based on the amount of compensation deferred, Company matching contributions and earnings on the deferrals. In addition, the Company maintains a defined contribution nonqualified supplemental executive pension plan in which the Company is the only contributor. During 2017 , 2016 and 2015 , the Company recorded expense (income) relating to these programs of $20,400 , $(2,917) and $5,676 , respectively. The Company has invested in corporate-owned life insurance policies to assist in meeting the obligation under these programs. The policies are held in a rabbi trust and are recorded as assets of the Company. |
Equity
Equity | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Equity | Equity Changes in accumulated other comprehensive (loss) in shareholders' equity by component: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance June 30, 2015 $ (641,018 ) $ (1,097,600 ) $ (1,738,618 ) Other comprehensive (loss) before reclassifications (202,444 ) (400,053 ) (602,497 ) Amounts reclassified from accumulated other comprehensive (loss) (659 ) 114,009 113,350 Balance June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) Other comprehensive (loss) before reclassifications (80,189 ) 242,414 162,225 Amounts reclassified from accumulated other comprehensive (loss) (1,032 ) 142,368 141,336 Balance June 30, 2017 $ (925,342 ) $ (998,862 ) $ (1,924,204 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2017 : Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Retirement benefit plans Amortization of prior service cost and initial net obligation $ (8,014 ) See Note 10 Recognized actuarial loss (214,284 ) See Note 10 Total before tax (222,298 ) Tax benefit 79,930 Income taxes Net of tax $ (142,368 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2016 : Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Retirement benefit plans Amortization of prior service cost and initial net obligation $ (7,366 ) See Note 10 Recognized actuarial loss (171,337 ) See Note 10 Total before tax (178,703 ) Tax benefit 64,694 Income taxes Net of tax $ (114,009 ) Share Repurchases - 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 to 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 year. Repurchases may be funded primarily from operating cash flows and commercial paper borrowings and the shares are initially held as treasury shares. The number of common shares repurchased at the average purchase price follows: 2017 2016 2015 Shares repurchased 1,976,778 5,121,051 11,091,759 Average price per share $ 133.90 $ 108.87 $ 125.64 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans The Company's 2016 Omnibus Stock Incentive Plan provides for the granting of share-based incentive awards in the form of nonqualified stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and restricted and unrestricted stock to officers and key employees of the Company. The aggregate number of shares authorized for issuance under the 2016 Omnibus Stock Incentive Plan is 16 million . At June 30, 2017 , 14.7 million common shares were available for future issuance. As of October 26, 2016, the Company terminated the 2009 Omnibus Stock Incentive Plan and all available shares remaining for grant were canceled. The Company satisfies share-based incentive award obligations by issuing shares of common stock out of treasury, which have been repurchased pursuant to the Company's share repurchase program described in Note 11, or through the issuance of previously unissued common stock. SARs - Upon exercise, SARs entitle the participant to receive shares of common stock equal to the increase in value of the award between the grant date and the exercise date. SARs are exercisable from one to three years after the date of grant and expire no more than 10 years after grant. The fair value of each SAR award granted in 2017 , 2016 and 2015 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2017 2016 2015 Risk-free interest rate 1.4 % 1.9 % 2.0 % Expected life of award 5.3 yrs 5.4 yrs 5.4 yrs Expected dividend yield of stock 2.0 % 1.9 % 1.8 % Expected volatility of stock 28.5 % 28.7 % 32.3 % Weighted-average fair value $ 27.39 $ 26.88 $ 30.50 The risk-free interest rate was based on U.S. Treasury yields with a term similar to the expected life of the award . The expected life of the award was derived by referring to actual exercise and post-vesting employment termination experience. The expected dividend yield was based on the Company's historical dividend rate and stock price over a period similar to the expected life of the award. The expected volatility of stock was derived by referring to changes in the Company's historical common stock prices over a time-frame similar to the expected life of the award. SAR activity during 2017 is as follows (aggregate intrinsic value in millions): Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding June 30, 2016 8,056,448 $ 84.93 Granted 1,065,739 $ 124.36 Exercised (2,510,398 ) $ 76.58 Canceled (78,383 ) $ 117.28 Outstanding June 30, 2017 6,533,406 $ 94.18 5.7 years $ 428.8 Exercisable June 30, 2017 4,585,837 $ 83.62 4.5 years $ 349.4 A summary of the status and changes of shares subject to SAR awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2016 2,037,896 $ 29.46 Granted 1,065,739 $ 27.39 Vested (1,083,278 ) $ 30.55 Canceled (72,788 ) $ 27.60 Nonvested June 30, 2017 1,947,569 $ 27.80 At June 30, 2017 , $15,194 of expense with respect to nonvested SAR awards has yet to be recognized and will be amortized into expense over a weighted-average period of approximately 16 months . The total fair value of shares vested during 2017 , 2016 and 2015 was $33,094 , $34,706 and $34,064 , respectively. Information related to SAR awards exercised during 2017 , 2016 and 2015 is as follows: 2017 2016 2015 Net cash proceeds $ 2,202 $ 126 $ 3,355 Intrinsic value 153,908 40,612 72,140 Income tax benefit 31,193 7,188 17,355 During 2017 , 2016 and 2015 , the Company recognized stock-based compensation expense of $28,535 , $28,129 and $34,617 , respectively, relating to SAR awards. The Company derives a tax deduction measured by the excess of the market value over the grant price at the date stock-based awards are exercised. The related income tax benefit was credited to income tax expense in 2017 and to additional capital in 2016 and 2015. Shares surrendered upon exercise of SARs: 2017 - 371,246 ; 2016 - 158,808 ; 2015 - 243,799 . RSUs - RSUs constitute an agreement to deliver shares of common stock to the participant at the end of a vesting period. Generally, the RSUs granted to employees vest and the underlying stock is issued ratably over a three -year graded vesting period. Unvested RSUs may not be transferred and do not have dividend or voting rights. For each unvested RSU, recipients are entitled to receive a dividend equivalent, payable in cash or common shares, equal to the cash dividend per share paid to common shareholders. The fair value of each RSU award granted in 2017 , 2016 and 2015 was based on the fair market value of the Company's common stock on the date of grant. A summary of the status and changes of shares subject to RSU awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2016 374,168 $ 111.82 Granted 249,892 $ 128.30 Vested (194,844 ) $ 110.74 Canceled (34,887 ) $ 133.12 Nonvested June 30, 2017 394,329 $ 120.92 During 2017 , 2016 and 2015 , the Company recognized stock-based compensation expense of $ 23,025 , $ 21,190 and $22,547 respectively, relating to RSU awards. At June 30, 2017 , $19,915 of expense with respect to nonvested RSU awards has yet to be recognized and will be amortized into expense over a weighted-average period of approximately 24 months . The total fair value of RSU awards vested during 2017 , 2016 and 2015 was $ 21,576 , $ 21,173 and $18,953 , respectively. The Company recognized an income tax benefit of $ 939 , $870 and $704 relating to the issuance of common stock for RSU awards that vested during 2017 , 2016 and 2015 , respectively. In 2017 and 2016 , 12,430 and 14,404 RSU awards, with a one -year vesting period, were granted to certain non-employee members of the Board of Directors. Although unvested shares do not have dividend or voting rights, recipients receive a dividend equivalent payable in common shares, equal to the cash dividend per share paid to common shareholders. In 2017 and 2016 , the Company recognized expense of $1,560 and $824 , respectively, with respect to these awards. At June 30, 2017 , $505 of expense with respect to nonvested RSU awards granted to the Board of Directors has yet to be recognized and will be amortized into expense over a weighted-average period of approximately four months . During 2017 , the Company recognized an income tax benefit of $105 related to these RSU awards. LTIP - The Company's Long Term Incentive Plans (LTIP) provide for the issuance of unrestricted stock to certain officers and key employees based on the attainment of certain goals relating to the Company's revenue growth, earnings per share growth and return on invested capital during the three -year performance period. No dividends or dividend equivalents are paid on unearned shares. Stock issued for LTIP 2017 2016 2015 LTIP three-year plan 2014-15-16 2013-14-15 2012-13-14 Number of shares issued 227,707 175,291 185,063 Average share value on date of issuance $ 157.07 $ 113.91 $ 119.06 Total value $ 35,766 $ 19,967 $ 22,034 Under the Company's 2015-16-17 LTIP, a payout of unrestricted stock will be issued in April 2018 . The fair value of each LTIP award granted in 2017 , 2016 and 2015 was based on the fair market value of the Company's common stock on the date of grant. A summary of the status and changes of shares relating to the LTIP and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2016 813,762 $ 108.37 Granted 248,076 $ 147.87 Vested (305,176 ) $ 114.00 Canceled (21,918 ) $ 101.86 Nonvested June 30, 2017 734,744 $ 119.56 During 2017 , 2016 and 2015 , the Company recorded stock-based compensation expense of $27,219 , $21,150 and $38,929 , respectively, relating to the LTIP. During 2017 , 2016 and 2015 , the Company recognized an income tax benefit of $1,701 , $3,119 and $5,373 , respectively, relating to the LTIP. Shares surrendered in connection with the LTIP: 2017 - 113,074 ; 2016 - 78,173 ; 2015 - 42,394 . Restricted Shares - In 2015 , 12,716 restricted shares were issued to non-employee members of the Board of Directors. Transferability of the restricted shares is restricted for one to three years following issuance, and they vest ratably, on an annual basis, over the term of office of the director. The fair value of the restricted shares was based on the fair market value of the Company's common stock on the date of grant. During 2016 and 2015 , the Company recognized expense of $468 and $1,401 , respectively, related to the restricted shares. During 2016 and 2015 , the Company recognized a tax cost of $(32) and $(3) , respectively, related to restricted shares. |
Shareholders' Protection Rights
Shareholders' Protection Rights Agreement | 12 Months Ended |
Jun. 30, 2017 | |
Shareholders Protection Rights Agreement [Abstract] | |
Shareholders' Protection Rights Agreement | Shareholders' Protection Rights Agreement The Company's Shareholders Protection Rights Agreement dated as of February 8, 2007, between the Company and Wells Fargo Bank, N.A. (as successor to National City Bank), as Rights Agent, expired on its own terms on February 17, 2017, and was not renewed or replaced. |
Research and Development
Research and Development | 12 Months Ended |
Jun. 30, 2017 | |
Research and Development [Abstract] | |
Research and Development | Research and Development Research and development costs amounted to $336,675 in 2017 , $359,796 in 2016 and $403,085 in 2015 . These amounts include both costs incurred by the Company related to independent research and development initiatives as well as costs incurred in connection with research and development contracts. Costs incurred in connection with research and development contracts amounted to $65,292 in 2017 , $57,999 in 2016 and $57,799 in 2015 . These costs are included in the total research and development cost for each of the respective years. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [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 June 30, 2017 and 2016 . Substantially 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 June 30, 2017 and 2016 are as follows: June 30, 2017 June 30, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Less than one year $ 690 $ 693 $ 29,960 $ 29,990 One to three years 7,865 7,924 144,100 144,625 Over three years 2,108 2,113 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 at June 30 are as follows: 2017 2016 Carrying value of long-term debt $ 5,383,343 $ 2,733,140 Estimated fair value of long-term debt 5,645,529 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. The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption 2017 2016 Net investment hedges Cross-currency swap contracts Other assets $ 15,135 $ 24,771 Cash flow hedges Costless collar contracts Non-trade and notes receivable 430 — Costless collar contracts Other accrued liabilities 2,027 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. The cross-currency swap contracts have been designated as hedging instruments. The costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. Gains or losses on derivative financial instruments that were recorded in the Consolidated Statement of Income during 2017 , 2016 and 2015 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: 2017 2016 Cross-currency swap contracts $ (6,003 ) $ 6,869 Foreign denominated debt (16,175 ) (8,180 ) There was no ineffectiveness of the cross-currency swap contracts or foreign denominated debt, nor were any portion of these financial instruments excluded from the effectiveness testing, during 2017 , 2016 and 2015 . A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2017 and 2016 are as follows: June 30, 2017 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Equity securities $ 3,008 $ 3,008 $ — $ — Corporate bonds 5,968 5,968 — — Asset-backed and mortgage-backed securities 4,762 — 4,762 — Derivatives 16,496 — 16,496 — Investments measured at net asset value 7,073 Liabilities: Derivatives 16,064 — 16,064 — June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (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 and are presented in the table above to permit reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. 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. |
Contingencies
Contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is involved in various litigation matters arising in the normal course of business, including proceedings based on product liability claims, workers' compensation claims and alleged violations of various environmental laws. The Company is self-insured in the United States for health care, workers' compensation, general liability and product liability up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage and the established accruals for liabilities. While the outcome of pending proceedings cannot be predicted with certainty, management believes that any liabilities that may result from these proceedings will not have a material adverse effect on the Company's liquidity, financial condition or results of operations. Environmental - The Company is currently responsible for environmental remediation at various manufacturing facilities presently or formerly operated by the Company and has been named as a “potentially responsible party,” along with other companies, at off-site waste disposal facilities and regional sites. As of June 30, 2017 , the Company had an accrual of $20,810 for environmental matters, which are probable and reasonably estimable. The accrual is recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company's liability in proportion to other responsible parties. The Company's estimated total liability for environmental matters ranges from a minimum of $20.8 million to a maximum of $83.3 million . The largest range for any one site is approximately $7.4 million . The actual costs to be incurred by the Company will be dependent on final determination of contamination and required remedial action, negotiations with governmental authorities with respect to cleanup levels, changes in regulatory requirements, innovations in investigatory and remedial technologies, effectiveness of remedial technologies employed, the ability of other responsible parties to pay, and any insurance or other third-party recoveries. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | Quarterly Information (Unaudited) 2017 1st 2nd 3rd 4th Total Net sales $ 2,743,131 $ 2,670,804 $ 3,119,139 $ 3,496,238 $ 12,029,312 Gross profit 637,125 626,320 735,349 841,556 2,840,350 Net income attributable to common shareholders 210,129 241,305 238,673 293,305 983,412 Diluted earnings per share 1.55 1.78 1.75 2.15 7.25 2016 1st 2nd 3rd 4th Total Net sales $ 2,869,348 $ 2,705,590 $ 2,828,665 $ 2,957,150 $ 11,360,753 Gross profit 668,444 564,966 619,264 684,695 2,537,369 Net income attributable to common shareholders 194,978 182,982 187,084 241,796 806,840 Diluted earnings per share 1.41 1.33 1.37 1.77 5.89 Earnings per share amounts are computed independently for each of the quarters presented, therefore, the sum of the quarterly earnings per share amounts may not equal the total computed for the year. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED June 30, 2015 , 2016 and 2017 (Dollars in Thousands) Column A Column B Column C Column D Column E Description Balance at Beginning Of Period Additions Charged to Costs and Expenses Other (Deductions)/ Additions (A) Balance At End Of Period Allowance for doubtful accounts: Year ended June 30, 2015 $ 16,040 $ 2,685 $ (9,441 ) $ 9,284 Year ended June 30, 2016 $ 9,284 $ 1,419 $ (2,693 ) $ 8,010 Year ended June 30, 2017 $ 8,010 $ 3,559 $ 2,767 $ 14,336 Deferred tax asset valuation allowance: Year ended June 30, 2015 $ 348,837 $ (18,831 ) $ — $ 330,006 Year ended June 30, 2016 $ 330,006 $ 2,702 $ — $ 332,708 Year ended June 30, 2017 $ 332,708 $ 349,803 $ 1,568 $ 684,079 (A) For allowance for doubtful accounts, net balance is comprised of deductions due to uncollectible accounts charged off, additions due to acquisitions or recoveries, and currency translation adjustments. For deferred tax asset valuation allowance, the balance primarily represents adjustments due to acquisitions. |
Significant Accounting Polici29
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations - The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. The Company evaluates performance based on segment operating income before corporate administrative expenses, interest expense and income taxes. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Diversified Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Diversified Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Diversified Industrial International operations provide Parker products and services to 47 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and also performs a vital role in naval vessels and land-based weapons systems. This segment serves original equipment and maintenance, repair and overhaul customers worldwide. Aerospace Systems Segment products are marketed by field sales employees and are sold directly to manufacturers and end-users. There are no individual customers to whom sales are more than three percent of the Company's consolidated sales. Due to the diverse group of customers throughout the world, the Company does not consider itself exposed to any concentration of credit risks. The Company manufactures and markets its products throughout the world. Although certain risks and uncertainties exist, the diversity and breadth of the Company's products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect the Company's operating results. |
Use of Estimates | Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Basis of Consolidation | Basis of Consolidation - The consolidated financial statements include the accounts of all majority-owned domestic and foreign subsidiaries. All intercompany transactions and profits have been eliminated in the consolidated financial statements. The Company does not have off-balance sheet arrangements. Within the Business Segment Information, intersegment and interarea sales have been eliminated. |
Revenue Recognition | Revenue Recognition - Revenue is recognized when persuasive evidence of an arrangement exists, product has shipped and the risks and rewards of ownership have transferred or services have been rendered, the price to the customer is fixed and determinable and collectibility is reasonably assured, which is generally at the time the product is shipped. Shipping and handling costs billed to customers are included in net sales and the related costs in cost of sales. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. |
Long-term Contracts | Long-term Contracts - The Company enters into long-term contracts primarily for the production of aerospace products. For financial statement purposes, revenues are primarily recognized using the percentage-of-completion method. The extent of progress toward completion is primarily measured using the units-of-delivery method. Unbilled costs on these contracts are included in inventory. Progress payments are netted against the inventory balances. The Company estimates costs to complete long-term contracts for purposes of evaluating and establishing contract reserves. Adjustments to cost estimates are made on a consistent basis and a contract reserve is established when the estimated costs to complete a contract exceed the expected contract revenues. |
Cash | Cash - Cash equivalents consist of short-term highly liquid investments, with a three-month or less maturity, carried at cost plus accrued interest, which are readily convertible into cash. |
Marketable Securities and Other Investments | Marketable Securities and Other Investments - Consist of short-term highly liquid investments, with stated maturities of greater than three months from the date of purchase, carried at cost plus accrued interest, and investments classified as available-for-sale, which are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive (loss). Gains and losses on available-for-sale investments are calculated based on the first-in, first-out method. The Company has the ability to liquidate the available-for-sale investments after giving appropriate notice to the issuer. |
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 $14,336 and $8,010 at June 30, 2017 and June 30, 2016 , respectively. |
Non-Trade and Notes Receivable | Non-Trade and Notes Receivable - The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2017 2016 Notes receivable $ 118,351 $ 102,400 Accounts receivable, other 136,636 129,783 Total $ 254,987 $ 232,183 |
Plant, Equipment and Depreciation | Plant, Equipment and Depreciation - Plant and equipment are recorded at cost and are depreciated principally using the straight-line method for financial reporting purposes. Depreciation rates are based on estimated useful lives of the assets, generally 40 years for buildings, 15 years for land improvements and building equipment, seven to 10 years for machinery and equipment, and three to eight years for vehicles and office equipment. Improvements, which extend the useful life of property, are capitalized, and maintenance and repairs are expensed. The Company reviews plant and equipment for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included in current income. The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2017 2016 Land and land improvements $ 321,331 $ 291,122 Buildings and building equipment 1,575,464 1,437,601 Machinery and equipment 3,167,885 2,933,818 Construction in progress 122,068 74,600 Total $ 5,186,748 $ 4,737,141 |
Investments and Other Assets | Investments and Other Assets - Investments in joint-venture companies in which ownership is 50 percent or less and in which the Company does not have operating control are stated at cost plus the Company's equity in undistributed earnings and amounted to $341,869 and $355,876 at June 30, 2017 and June 30, 2016 , respectively. A significant portion of the underlying net assets of the joint ventures are related to goodwill. The Company's share of earnings from investments in joint-venture companies were $42,352 , $25,650 and $23,204 in 2017 , 2016 and 2015 , respectively. |
Intangible Assets | Intangible Assets - Intangible assets primarily include patents, trademarks and customer lists and are recorded at cost and amortized on a straight-line method. Patents are amortized over the shorter of their remaining useful or legal life. Trademarks are amortized over the estimated time period over which an economic benefit is expected to be received. Customer lists are amortized over a period based on anticipated customer attrition rates. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. |
Goodwill | Goodwill - The Company conducts a formal impairment test of goodwill on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. |
Income Taxes | Income Taxes - Income taxes are provided based upon income for financial reporting purposes. Tax credits and similar tax incentives are applied to reduce the provision for income taxes in the year in which the credits arise. The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, are recognized in income tax expense. Deferred income taxes arise from temporary differences in the recognition of income and expense for tax purposes. |
Foreign Currency Translation | Foreign Currency Translation - Assets and liabilities of foreign subsidiaries are translated at current exchange rates, and income and expenses are translated using weighted-average exchange rates. The effects of these translation adjustments, as well as gains and losses from certain intercompany transactions, are reported in the accumulated other comprehensive (loss) component of shareholders' equity. Such adjustments will affect net income only upon sale or liquidation of the underlying foreign investments, which is not contemplated at this time. Exchange losses (gains) from transactions in a currency other than the local currency of the entity involved are included within the cost of sales caption in the Consolidated Statement of Income and were $8,060 , $22,750 and $(77,784) , in 2017, 2016 and 2015, respectively. |
Subsequent Events | Subsequent Events - The Company has evaluated subsequent events that have occurred through the date of filing of this Annual Report on Form 10-K for the year ended June 30, 2017 . No subsequent events occurred that required adjustment to or disclosure in these financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In May 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-09, "Scope of Modification Accounting." ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as fair value of the original award; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 31, 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 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company has not historically modified share-based payments awards after their original issuance so the impact of adopting ASU 2017-09 on the Company's financial statements is not expected to be material. In March 2017, the FASB issued 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 is evaluating ASU 2016-16 for potential early adoption in the first quarter of fiscal 2018 and currently estimates that the adoption of ASU 2016-16 will eliminate a $57 million income tax deferred charge recorded in the Consolidated Balance Sheet as of June 30, 2017. 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. 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 $35,589 in 2017. 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 2016 and 2015, cash flows from operating activities was increased by $40,935 and $61,292 , respectively, and cash flows from financing activities was decreased by $40,935 and $61,292 , respectively. 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. 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 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 Investments and 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 currently anticipates using the modified retrospective method to adopt ASU 2014-09. The Company is still in the process of quantifying the impact of the adoption of ASU 2014-09, but at this time the Company does not expect the adoption to have a material impact on its financial statements. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | (Dollars in thousands) 2017 2016 2015 Net Sales: Diversified Industrial: North America $ 5,366,809 $ 4,955,211 $ 5,715,742 International 4,377,776 4,145,272 4,741,376 Aerospace Systems 2,284,727 2,260,270 2,254,626 $ 12,029,312 $ 11,360,753 $ 12,711,744 Segment Operating Income: Diversified Industrial: North America $ 873,552 $ 789,667 $ 955,501 International 579,207 448,457 583,937 Aerospace Systems 337,496 337,531 298,994 Total segment operating income 1,790,255 1,575,655 1,838,432 Corporate administration 172,632 173,203 215,396 Income before interest expense and other 1,617,623 1,402,452 1,623,036 Interest expense 162,436 136,517 118,406 Other expense 126,546 151,207 72,390 Income before income taxes $ 1,328,641 $ 1,114,728 $ 1,432,240 Assets: Diversified Industrial $ 13,366,981 $ 8,728,671 $ 8,734,942 Aerospace Systems (a) 1,412,707 1,430,577 1,375,845 Corporate (b) 710,216 1,874,894 2,143,492 $ 15,489,904 $ 12,034,142 $ 12,254,279 Property Additions: Diversified Industrial $ 148,765 $ 134,618 $ 190,580 Aerospace Systems 16,929 10,857 18,427 Corporate 38,054 3,932 6,520 $ 203,748 $ 149,407 $ 215,527 Depreciation: Diversified Industrial $ 176,823 $ 163,014 $ 174,102 Aerospace Systems 17,484 18,469 19,509 Corporate 8,561 8,825 9,165 $ 202,868 $ 190,308 $ 202,776 (Dollars in thousands) 2017 2016 2015 By Geographic Area (c) Net Sales: North America $ 7,585,689 $ 7,144,481 $ 7,891,571 International 4,443,623 4,216,272 4,820,173 $ 12,029,312 $ 11,360,753 $ 12,711,744 Long-Lived Assets: North America $ 1,145,127 $ 817,872 $ 856,947 International 792,165 750,228 807,075 $ 1,937,292 $ 1,568,100 $ 1,664,022 The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote except that the business segment results are prepared on a basis that is consistent with the manner in which the Company’s management disaggregates financial information for internal review and decision-making. (a) Includes an investment in a joint venture in which ownership is 50 percent or less and in which the Company does not have operating control ( 2017 - $240,182 ; 2016 - $241,728 ; 2015 - $251,365 ). (b) Amounts in 2016 and 2015 have been adjusted to reflect the retrospective adoption of Accounting Standards Update 2015-03 in the first quarter of 2017. Corporate assets are principally cash and cash equivalents, marketable securities and other investments, domestic deferred income taxes, deferred compensation plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment. (c) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location. |
Significant Accounting Polici31
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Non-trade and notes receivable | The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2017 2016 Notes receivable $ 118,351 $ 102,400 Accounts receivable, other 136,636 129,783 Total $ 254,987 $ 232,183 |
Plant and equipment | The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2017 2016 Land and land improvements $ 321,331 $ 291,122 Buildings and building equipment 1,575,464 1,437,601 Machinery and equipment 3,167,885 2,933,818 Construction in progress 122,068 74,600 Total $ 5,186,748 $ 4,737,141 |
Adoption of ASU 2015-03 | During the first quarter of 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 Investments and 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) | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Initial purchase price allocation and subsequent purchase price adjustments for acquisitions | The initial purchase price allocation and subsequent purchase price adjustments for acquisitions in 2017 , 2016 and 2015 are as follows. 2017 2016 2015 Assets: Accounts receivable $ 263,616 $ 6,793 $ 7,656 Inventories 302,422 12,041 3,099 Prepaid expenses 18,342 1,350 91 Deferred income taxes 4,658 — 5 Plant and equipment 376,826 5,647 1,123 Intangible and other assets 1,526,909 26,849 7,794 Goodwill 2,677,489 31,134 10,430 5,170,262 83,814 30,198 Liabilities: Notes payable 20,162 720 — Accounts payable, trade 84,753 2,536 2,689 Accrued payrolls and other compensation 45,942 1,310 243 Accrued domestic and foreign taxes 5,435 604 777 Other accrued liabilities 80,515 1,804 5,267 Long-term debt 296,240 1,743 — Pensions and other postretirement benefits 33,929 — — Deferred income taxes 520,389 7,545 2,604 Other liabilities 11,878 — — Noncontrolling interests 1,822 — — 1,101,065 16,262 11,580 Net assets acquired $ 4,069,197 $ 67,552 $ 18,618 |
Business acquisition, 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 2017 and 2016. 2017 2016 Net sales $ 12,935,834 $ 12,772,097 Net income attributable to common shareholders 1,027,693 748,634 Diluted earnings per share 7.58 5.47 |
Charges Related to Business R33
Charges Related to Business Realignment (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Business realignment charges | Business realignment charges presented in the Business Segment Information are as follows: 2017 2016 2015 Diversified Industrial $ 52,939 $ 91,404 $ 30,882 Aerospace Systems 2,674 3,629 967 Corporate administration — 2,215 458 Other expense 784 116 2,399 Work force reductions related to the business realignment charges in the Business Segment Information are as follows: 2017 2016 2015 Diversified Industrial 1,102 3,515 668 Aerospace Systems 89 81 21 Corporate administration — 53 18 The business realignment charges are presented in the Consolidated Statement of Income as follows: 2017 2016 2015 Cost of sales $ 35,932 $ 76,197 $ 19,419 Selling, general and administrative expenses 19,681 21,051 12,888 (Gain) loss on disposal of assets 784 116 2,399 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes | Income before income taxes was derived from the following sources: 2017 2016 2015 United States $ 722,925 $ 672,907 $ 779,782 Foreign 605,716 441,821 652,458 $ 1,328,641 $ 1,114,728 $ 1,432,240 |
Income Taxes | Income taxes include the following: 2017 2016 2015 Federal Current $ 132,420 $ 235,557 $ 185,761 Deferred 37,316 (45,797 ) 28,108 Foreign Current 157,518 113,146 189,826 Deferred (5,319 ) (7,006 ) (11,208 ) State and local Current 17,835 24,495 25,235 Deferred 5,027 (12,883 ) 1,965 $ 344,797 $ 307,512 $ 419,687 |
Effective income tax rate reconciliation to statutory federal rate | A reconciliation of the Company's effective income tax rate to the statutory Federal rate follows: 2017 2016 2015 Statutory Federal income tax rate 35.0 % 35.0 % 35.0 % State and local income taxes 1.7 0.6 1.1 Tax related to international activities (5.5 ) (5.2 ) (4.5 ) Cash surrender value of life insurance (0.9 ) 0.2 (0.1 ) Federal manufacturing deduction (0.9 ) (1.0 ) (1.6 ) Research tax credit (0.8 ) (1.9 ) (0.8 ) Share-based compensation (2.7 ) — — Other 0.1 (0.1 ) 0.2 Effective income tax rate 26.0 % 27.6 % 29.3 % |
Differences comprising the net deferred taxes shown on consolidated balance sheet | The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows: 2017 2016 Retirement benefits $ 571,022 $ 815,545 Other liabilities and reserves 144,885 126,524 Long-term contracts 61,375 64,371 Stock-based compensation 59,725 67,138 Loss carryforwards 678,486 326,707 Unrealized currency exchange gains and losses 22,212 (19,491 ) Inventory 17,809 14,693 Foreign tax credit carryforward 23,050 24,051 Depreciation and amortization (1,080,218 ) (536,070 ) Valuation allowance (684,079 ) (332,708 ) Net deferred tax (liability) asset $ (185,733 ) $ 550,760 Change in net deferred tax asset: Provision for deferred tax $ (37,024 ) $ 65,686 Items of other comprehensive (loss) (177,655 ) 149,861 Acquisitions and other (521,814 ) (7,832 ) Total change in net deferred tax $ (736,493 ) $ 207,715 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 2015 Balance July 1 $ 139,907 $ 145,688 $ 164,813 Additions for tax positions related to current year 4,735 7,025 6,090 Additions for tax positions of prior years 2,618 2,582 14,989 Additions for acquisitions 3,939 — — Reductions for tax positions of prior years (1,175 ) (627 ) (6,945 ) Reductions for settlements (3,020 ) (10,284 ) — Reductions for expiration of statute of limitations (2,792 ) (4,142 ) (6,251 ) Effect of foreign currency translation 3,294 (335 ) (27,008 ) Balance June 30 $ 147,506 $ 139,907 $ 145,688 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | The computation of net income per share was as follows: 2017 2016 2015 Numerator: Net income attributable to common shareholders $ 983,412 $ 806,840 $ 1,012,140 Denominator: Basic - weighted-average common shares 133,377,547 135,353,321 142,925,327 Increase in weighted-average common shares from dilutive effect of stock-based awards 2,182,217 1,558,369 2,186,823 Diluted - weighted-average common shares, assuming exercise of stock-based awards 135,559,764 136,911,690 145,112,150 Basic earnings per share $ 7.37 $ 5.96 $ 7.08 Diluted earnings per share $ 7.25 $ 5.89 $ 6.97 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory components | The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2017 2016 Finished products $ 642,788 $ 458,657 Work in process 723,133 639,907 Raw materials 183,573 74,765 Total $ 1,549,494 $ 1,173,329 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance June 30, 2015 $ 2,844,045 $ 98,634 $ 2,942,679 Acquisitions 31,134 — 31,134 Foreign currency translation and other (70,776 ) — (70,776 ) Balance June 30, 2016 $ 2,804,403 $ 98,634 $ 2,903,037 Acquisitions 2,677,489 — 2,677,489 Divestitures (22,618 ) — (22,618 ) Foreign currency translation and other 28,962 8 28,970 Balance June 30, 2017 $ 5,488,236 $ 98,642 $ 5,586,878 |
Gross carrying value and accumulated amortization of intangible assets | The gross carrying value and accumulated amortization for each major category of intangible asset at June 30 are as follows: 2017 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 254,049 $ 100,860 $ 150,914 $ 95,961 Trademarks 553,691 200,413 340,805 179,156 Customer lists and other 2,566,983 765,966 1,362,521 656,552 Total $ 3,374,723 $ 1,067,239 $ 1,854,240 $ 931,669 |
Acquired intangible assets with purchase price allocation and weighted-average life | During 2017 , the Company acquired intangible assets, either individually or as part of a group of assets, with an initial purchase price allocation and weighted-average life as follows: Purchase Price Allocation Weighted-Average Life Patents $ 108,810 13 years Trademarks 212,060 17 years Customer lists and other 1,197,573 11 years Total $ 1,518,443 12 years |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | June 30, 2017 2016 Domestic: Fixed rate medium-term notes, 3.30% to 6.55%, due 2018-2045 $ 2,675,000 $ 2,675,000 Senior Notes, 3.25% to 4.10%, due 2027 - 2047 1,300,000 — Term loan, Libor plus 100 bps, due 2020 493,750 — Foreign: Euro Senior Notes, 1.125%, due 2025 799,890 — Euro Term loan, Libor plus 150 bps, due 2022 114,270 — Japanese Yen credit facility, JPY Libor plus 55 bps, due 2017 — 58,140 Other long-term debt 433 — Deferred debt issuance costs (47,183 ) (22,596 ) Total long-term debt 5,336,160 2,710,544 Less: Long-term debt payable within one year 474,265 58,087 Long-term debt, net $ 4,861,895 $ 2,652,457 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of employee stock ownership plan (ESOP) | 2017 2016 2015 Shares held by ESOP 6,911,436 7,728,332 8,407,858 Company matching contributions $ 57,766 $ 58,922 $ 63,914 |
Pension Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of defined benefit plans | A summary of the Company's defined benefit pension plans follows: 2017 2016 2015 Benefit cost Service cost $ 94,356 $ 94,650 $ 97,960 Interest cost 126,131 181,469 176,556 Special termination cost — 7,088 21,174 Settlement cost — 5,102 — Expected return on plan assets (239,537 ) (221,629 ) (218,938 ) Amortization of prior service cost 8,116 7,470 9,437 Amortization of unrecognized actuarial loss 212,433 170,407 152,664 Amortization of initial net obligation 18 17 17 Net periodic benefit cost $ 201,517 $ 244,574 $ 238,870 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 5,315,655 $ 4,867,703 Service cost 94,356 94,650 Interest cost 126,131 181,469 Acquisition 201,283 — Special termination cost — 7,088 Plan amendments 3,265 2,992 Divestiture (851 ) — Actuarial (gain) loss (268,370 ) 487,523 Benefits paid (250,289 ) (230,551 ) Foreign currency translation and other (3,323 ) (95,219 ) Benefit obligation at end of year $ 5,217,857 $ 5,315,655 Change in plan assets Fair value of plan assets at beginning of year $ 3,307,047 $ 3,238,307 Actual gain on plan assets 341,344 97,165 Acquisition 168,264 — Employer contributions 330,932 279,140 Benefits paid (250,289 ) (230,551 ) Foreign currency translation and other (1,297 ) (77,014 ) Fair value of plan assets at end of year $ 3,896,001 $ 3,307,047 Funded status $ (1,321,856 ) $ (2,008,608 ) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (12,793 ) $ (42,763 ) Pensions and other postretirement benefits (1,309,063 ) (1,965,845 ) Net amount recognized $ (1,321,856 ) $ (2,008,608 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 1,461,017 $ 2,047,103 Prior service cost 22,761 27,723 Transition obligation 77 103 Net amount recognized $ 1,483,855 $ 2,074,929 |
Assumptions used to measure periodic benefit cost/benefit obligation | The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2017 2016 U.S. defined benefit plans Discount rate 3.64 % 3.33 % Average increase in compensation 3.89 % 5.02 % Non-U.S. defined benefit plans Discount rate 0.30 to 7.57% 0.23 to 7.75% Average increase in compensation 2.0 to 5.5% 2.0 to 5.5% The assumptions used to measure net periodic benefit cost for the Company's significant defined benefit plans are: 2017 2016 2015 U.S. defined benefit plans Discount rate 3.33 % 4.19 % 4.05 % Average increase in compensation 5.02 % 5.14 % 5.12 % Expected return on plan assets 7.5 % 7.5 % 7.5 % Non-U.S. defined benefit plans Discount rate 0.23 to 7.75% 0.7 to 6.0% 0.9 to 4.2% Average increase in compensation 2.0 to 5.5% 2.0 to 5.5% 2.0 to 5.0% Expected return on plan assets 1.0 to 5.75% 1.0 to 5.75% 1.0 to 6.25% |
Allocation of plan assets | The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows: 2017 2016 Equity securities 45 % 39 % Debt securities 47 % 51 % Other investments 8 % 10 % 100 % 100 % The fair values of pension plan assets at June 30, 2017 and at June 30, 2016 , by asset class, are as follows: June 30, 2017 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 76,057 $ 75,370 $ 687 $ — Equity securities U.S. based companies 416,830 416,830 — — Non-U.S. based companies 236,134 236,134 — — Fixed income securities Corporate bonds 176,135 91,982 84,153 — Government issued securities 199,389 144,616 54,773 — Mutual funds Equity funds 306,168 306,168 — — Fixed income funds 204,628 204,628 — — Mutual funds measured at net asset value 233,234 Common/Collective trusts Equity funds 70,389 70,389 — — Fixed income funds 46,003 46,003 — — Common/Collective trusts measured at net asset value 1,677,942 Limited Partnerships measured at net asset value 262,092 Miscellaneous (9,000 ) — (9,000 ) — Total at June 30, 2017 $ 3,896,001 $ 1,592,120 $ 130,613 $ — June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 46,052 $ 45,474 $ 578 $ — Equity securities U.S. based companies 292,138 292,138 — — Non-U.S. based companies 191,647 191,647 — — Fixed income securities Corporate bonds 141,549 73,685 67,864 — Government issued securities 203,000 141,935 61,065 — Mutual funds Equity funds 149,807 149,807 — — Fixed income funds 151,649 151,649 — — Mutual funds measured at net asset value 246,075 Common/Collective trusts Equity funds 65,404 65,404 — — Fixed income funds 43,981 43,981 — — Common/Collective trusts measured at net asset value 1,487,170 Limited Partnerships measured at net asset value 280,248 Miscellaneous 8,327 — 8,327 — Total at June 30, 2016 $ 3,307,047 $ 1,155,720 $ 137,834 $ — |
Other Postretirement Benefit Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of defined benefit plans | 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 89,785 $ 75,953 Service cost 469 591 Interest cost 1,922 2,834 Acquisition 291 — Special termination cost — 4,521 Actuarial (gain) loss (8,235 ) 10,217 Benefits paid (4,299 ) (4,331 ) Benefit obligation at end of year $ 79,933 $ 89,785 Funded status $ (79,933 ) $ (89,785 ) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (6,532 ) $ (6,216 ) Pensions and other postretirement benefits (73,401 ) (83,569 ) Net amount recognized $ (79,933 ) $ (89,785 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 12,828 $ 22,914 Prior service credit (435 ) (556 ) Net amount recognized $ 12,393 $ 22,358 |
Assumptions used to measure periodic benefit cost/benefit obligation | The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2017 2016 2015 Discount rate 3.15 % 3.96 % 3.74 % Current medical cost trend rate (Pre-65 participants) 7.35 % 7.61 % 7.75 % Current medical cost trend rate (Post-65 participants) 8.68 % 9.00 % 7.75 % Ultimate medical cost trend rate 4.50 % 4.50 % 5.00 % Medical cost trend rate decreases to ultimate in year 2025 2025 2021 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive (loss) | Changes in accumulated other comprehensive (loss) in shareholders' equity by component: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance June 30, 2015 $ (641,018 ) $ (1,097,600 ) $ (1,738,618 ) Other comprehensive (loss) before reclassifications (202,444 ) (400,053 ) (602,497 ) Amounts reclassified from accumulated other comprehensive (loss) (659 ) 114,009 113,350 Balance June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) Other comprehensive (loss) before reclassifications (80,189 ) 242,414 162,225 Amounts reclassified from accumulated other comprehensive (loss) (1,032 ) 142,368 141,336 Balance June 30, 2017 $ (925,342 ) $ (998,862 ) $ (1,924,204 ) |
Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity | Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2017 : Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Retirement benefit plans Amortization of prior service cost and initial net obligation $ (8,014 ) See Note 10 Recognized actuarial loss (214,284 ) See Note 10 Total before tax (222,298 ) Tax benefit 79,930 Income taxes Net of tax $ (142,368 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2016 : Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Retirement benefit plans Amortization of prior service cost and initial net obligation $ (7,366 ) See Note 10 Recognized actuarial loss (171,337 ) See Note 10 Total before tax (178,703 ) Tax benefit 64,694 Income taxes Net of tax $ (114,009 ) |
Schedule of share repurchases | The number of common shares repurchased at the average purchase price follows: 2017 2016 2015 Shares repurchased 1,976,778 5,121,051 11,091,759 Average price per share $ 133.90 $ 108.87 $ 125.64 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Weighted average assumptions used in fair value of each stock appreciation right award granted | The fair value of each SAR award granted in 2017 , 2016 and 2015 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2017 2016 2015 Risk-free interest rate 1.4 % 1.9 % 2.0 % Expected life of award 5.3 yrs 5.4 yrs 5.4 yrs Expected dividend yield of stock 2.0 % 1.9 % 1.8 % Expected volatility of stock 28.5 % 28.7 % 32.3 % Weighted-average fair value $ 27.39 $ 26.88 $ 30.50 |
Stock appreciation rights activity | SAR activity during 2017 is as follows (aggregate intrinsic value in millions): Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding June 30, 2016 8,056,448 $ 84.93 Granted 1,065,739 $ 124.36 Exercised (2,510,398 ) $ 76.58 Canceled (78,383 ) $ 117.28 Outstanding June 30, 2017 6,533,406 $ 94.18 5.7 years $ 428.8 Exercisable June 30, 2017 4,585,837 $ 83.62 4.5 years $ 349.4 |
Summary of the status and shares subject to stock appreciation rights awards and average price per share | A summary of the status and changes of shares subject to SAR awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2016 2,037,896 $ 29.46 Granted 1,065,739 $ 27.39 Vested (1,083,278 ) $ 30.55 Canceled (72,788 ) $ 27.60 Nonvested June 30, 2017 1,947,569 $ 27.80 |
Information related to stock appreciation rights awards exercised | Information related to SAR awards exercised during 2017 , 2016 and 2015 is as follows: 2017 2016 2015 Net cash proceeds $ 2,202 $ 126 $ 3,355 Intrinsic value 153,908 40,612 72,140 Income tax benefit 31,193 7,188 17,355 |
Summary of the status and shares subject to restricted stock units and average price per share | A summary of the status and changes of shares subject to RSU awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2016 374,168 $ 111.82 Granted 249,892 $ 128.30 Vested (194,844 ) $ 110.74 Canceled (34,887 ) $ 133.12 Nonvested June 30, 2017 394,329 $ 120.92 |
Status and changes of shares of long term incentive plans shares | Stock issued for LTIP 2017 2016 2015 LTIP three-year plan 2014-15-16 2013-14-15 2012-13-14 Number of shares issued 227,707 175,291 185,063 Average share value on date of issuance $ 157.07 $ 113.91 $ 119.06 Total value $ 35,766 $ 19,967 $ 22,034 A summary of the status and changes of shares relating to the LTIP and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2016 813,762 $ 108.37 Granted 248,076 $ 147.87 Vested (305,176 ) $ 114.00 Canceled (21,918 ) $ 101.86 Nonvested June 30, 2017 734,744 $ 119.56 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Contractual maturities of available-for-sale investments | The contractual maturities of available-for-sale investments at June 30, 2017 and 2016 are as follows: June 30, 2017 June 30, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Less than one year $ 690 $ 693 $ 29,960 $ 29,990 One to three years 7,865 7,924 144,100 144,625 Over three years 2,108 2,113 34,276 34,275 |
Carrying value of long-term debt and estimated fair value of long-term debt | The carrying value of long-term debt and estimated fair value of long-term debt at June 30 are as follows: 2017 2016 Carrying value of long-term debt $ 5,383,343 $ 2,733,140 Estimated fair value of long-term debt 5,645,529 3,133,989 |
Location and fair value of derivative financial instruments reported in the consolidated balance sheet | The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption 2017 2016 Net investment hedges Cross-currency swap contracts Other assets $ 15,135 $ 24,771 Cash flow hedges Costless collar contracts Non-trade and notes receivable 430 — Costless collar contracts Other accrued liabilities 2,027 8,368 |
Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) | 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: 2017 2016 Cross-currency swap contracts $ (6,003 ) $ 6,869 Foreign denominated debt (16,175 ) (8,180 ) |
Summary of financial assets and liabilities that were measured at fair value on a recurring basis | A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2017 and 2016 are as follows: June 30, 2017 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Equity securities $ 3,008 $ 3,008 $ — $ — Corporate bonds 5,968 5,968 — — Asset-backed and mortgage-backed securities 4,762 — 4,762 — Derivatives 16,496 — 16,496 — Investments measured at net asset value 7,073 Liabilities: Derivatives 16,064 — 16,064 — June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (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 — |
Quarterly Information (Unaudi43
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | 2017 1st 2nd 3rd 4th Total Net sales $ 2,743,131 $ 2,670,804 $ 3,119,139 $ 3,496,238 $ 12,029,312 Gross profit 637,125 626,320 735,349 841,556 2,840,350 Net income attributable to common shareholders 210,129 241,305 238,673 293,305 983,412 Diluted earnings per share 1.55 1.78 1.75 2.15 7.25 2016 1st 2nd 3rd 4th Total Net sales $ 2,869,348 $ 2,705,590 $ 2,828,665 $ 2,957,150 $ 11,360,753 Gross profit 668,444 564,966 619,264 684,695 2,537,369 Net income attributable to common shareholders 194,978 182,982 187,084 241,796 806,840 Diluted earnings per share 1.41 1.33 1.37 1.77 5.89 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 3,496,238 | $ 3,119,139 | $ 2,670,804 | $ 2,743,131 | $ 2,957,150 | $ 2,828,665 | $ 2,705,590 | $ 2,869,348 | $ 12,029,312 | $ 11,360,753 | $ 12,711,744 | |
Segment operating income | 1,790,255 | 1,575,655 | 1,838,432 | |||||||||
Corporate administration | 172,632 | 173,203 | 215,396 | |||||||||
Income before interest expense and other | 1,617,623 | 1,402,452 | 1,623,036 | |||||||||
Interest expense | 162,436 | 136,517 | 118,406 | |||||||||
Other expense | 126,546 | 151,207 | 72,390 | |||||||||
Income before income taxes | 1,328,641 | 1,114,728 | 1,432,240 | |||||||||
Assets | 15,489,904 | 12,034,142 | 15,489,904 | 12,034,142 | 12,254,279 | |||||||
Property Additions | [1] | 203,748 | 149,407 | 215,527 | ||||||||
Depreciation | 202,868 | 190,308 | 202,776 | |||||||||
Net Sales | [2] | 12,029,312 | 11,360,753 | 12,711,744 | ||||||||
Long-Lived Assets | [2] | 1,937,292 | 1,568,100 | 1,937,292 | 1,568,100 | 1,664,022 | ||||||
North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | [2] | 7,585,689 | 7,144,481 | 7,891,571 | ||||||||
Long-Lived Assets | [2] | 1,145,127 | 817,872 | 1,145,127 | 817,872 | 856,947 | ||||||
International | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | [2] | 4,443,623 | 4,216,272 | 4,820,173 | ||||||||
Long-Lived Assets | [2] | 792,165 | 750,228 | 792,165 | 750,228 | 807,075 | ||||||
Operating Segments | Diversified Industrial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 13,366,981 | 8,728,671 | 13,366,981 | 8,728,671 | 8,734,942 | |||||||
Property Additions | [1] | 148,765 | 134,618 | 190,580 | ||||||||
Depreciation | 176,823 | 163,014 | 174,102 | |||||||||
Operating Segments | Aerospace Systems | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,284,727 | 2,260,270 | 2,254,626 | |||||||||
Segment operating income | 337,496 | 337,531 | 298,994 | |||||||||
Assets | [1] | 1,412,707 | 1,430,577 | 1,412,707 | 1,430,577 | 1,375,845 | ||||||
Property Additions | [1] | 16,929 | 10,857 | 18,427 | ||||||||
Depreciation | 17,484 | 18,469 | 19,509 | |||||||||
Operating Segments | North America | Diversified Industrial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 5,366,809 | 4,955,211 | 5,715,742 | |||||||||
Segment operating income | 873,552 | 789,667 | 955,501 | |||||||||
Operating Segments | International | Diversified Industrial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 4,377,776 | 4,145,272 | 4,741,376 | |||||||||
Segment operating income | 579,207 | 448,457 | 583,937 | |||||||||
Corporate, Non-Segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | [3] | $ 710,216 | $ 1,874,894 | 710,216 | 1,874,894 | 2,143,492 | ||||||
Property Additions | [1] | 38,054 | 3,932 | 6,520 | ||||||||
Depreciation | $ 8,561 | $ 8,825 | $ 9,165 | |||||||||
[1] | Includes an investment in a joint venture in which ownership is 50 percent or less and in which the Company does not have operating control (2017 - $240,182; 2016 - $241,728; 2015 - $251,365). | |||||||||||
[2] | Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location. | |||||||||||
[3] | Amounts in 2016 and 2015 have been adjusted to reflect the retrospective adoption of Accounting Standards Update 2015-03 in the first quarter of 2017. Corporate assets are principally cash and cash equivalents, marketable securities and other investments, domestic deferred income taxes, deferred compensation plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment. |
Business Segment Information -
Business Segment Information - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Segment Reporting Information [Line Items] | |||
Investment in a joint venture | $ 341,869 | $ 355,876 | |
Aerospace Systems | |||
Segment Reporting Information [Line Items] | |||
Investment in a joint venture | $ 240,182 | $ 241,728 | $ 251,365 |
Maximum | |||
Segment Reporting Information [Line Items] | |||
Ownership percentage (or less) | 50.00% |
Significant Accounting Polici46
Significant Accounting Policies - Nature of operations (Details) | 12 Months Ended |
Jun. 30, 2017Country | |
Diversified Industrial | International | |
Concentration Risk [Line Items] | |
Number of countries that the Diversified Industrial International operations provide Parker products and services to | 47 |
Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Sales level from major customers | 3.00% |
Significant Accounting Polici47
Significant Accounting Policies - Trade accounts receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 14,336 | $ 8,010 |
Significant Accounting Polici48
Significant Accounting Policies - Non-trade and notes receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accounting Policies [Abstract] | ||
Notes receivable | $ 118,351 | $ 102,400 |
Accounts receivable, other | 136,636 | 129,783 |
Total | $ 254,987 | $ 232,183 |
Significant Accounting Polici49
Significant Accounting Policies - Plant, equipment and depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Land and land improvements | $ 321,331 | $ 291,122 |
Buildings and building equipment | 1,575,464 | 1,437,601 |
Machinery and equipment | 3,167,885 | 2,933,818 |
Construction in progress | 122,068 | 74,600 |
Total | $ 5,186,748 | $ 4,737,141 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 40 years | |
Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 15 years | |
Building Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 15 years | |
Minimum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 7 years | |
Minimum | Vehicles and Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 3 years | |
Maximum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 10 years | |
Maximum | Vehicles and Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 8 years |
Significant Accounting Polici50
Significant Accounting Policies - Investment and other assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in joint-venture companies and company's equity in undistributed earnings | $ 341,869 | $ 355,876 | |
Share of earnings from investments in joint-venture companies | $ 42,352 | $ 25,650 | $ 23,204 |
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (or less) | 50.00% |
Significant Accounting Polici51
Significant Accounting Policies - Foreign currency translation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Currency Translation [Abstract] | |||
Exchange (gains) and losses from transactions in a currency other than the local currency of the entity | $ 8,060 | $ 22,750 | $ (77,784) |
Significant Accounting Polici52
Significant Accounting Policies - Recent accounting pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax deferred charge | $ (36,057) | $ (605,155) | |
Income tax benefit | 35,589 | ||
Cash flows from operating activities, increase | 1,302,471 | 1,210,778 | $ 1,363,233 |
Cash flows from financing activities, decrease | (1,782,628) | 843,358 | 1,106,036 |
Investments and other assets | 842,475 | 827,492 | |
Notes payable and long-term debt payable within one year | 1,008,465 | 361,787 | |
Long-term debt | 4,861,895 | 2,652,457 | |
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 | 40,935 | 61,292 | |
Cash flows from financing activities, decrease | 40,935 | $ 61,292 | |
As Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investments and other assets | 850,088 | ||
Notes payable and long-term debt payable within one year | 361,840 | ||
Long-term debt | $ 2,675,000 | ||
New Accounting Pronouncement, Early Adoption, Effect | Pro Forma | Accounting Standard Update 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax deferred charge | $ 57,000 |
Acquisitions and Divestiture (D
Acquisitions and Divestiture (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017USD ($)acquisition | Jun. 30, 2016USD ($)acquisition | Jun. 30, 2015USD ($)acquisition | |
Significant Acquisitions | |||
Number of businesses acquired | acquisition | 3 | ||
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition | $ 1,522,000 | ||
Cash paid to acquire businesses | 4,227,000 | ||
Assumed debt | 316,000 | ||
Gain on disposal | $ 45,000 | ||
Series of Individually Immaterial Business Acquisitions | |||
Significant Acquisitions | |||
Number of businesses acquired | acquisition | 2 | 2 | 4 |
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition | $ 48,000 | $ 27,000 | |
Cash paid to acquire businesses | 71,000 | $ 27,000 | |
Assumed debt | 2,000 | ||
CLARCOR, Inc | |||
Significant Acquisitions | |||
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition | $ 1,400,000 | ||
Net sales, from date of acquisition | $ 487,388 | ||
Operating loss, from date of acquisition | $ (16,164) |
Acquisitions and Divestiture -
Acquisitions and Divestiture - Initial purchase price allocation and subsequent purchase price adjustments for acquisitions (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Assets: | |||
Accounts receivable | $ 263,616 | $ 6,793 | $ 7,656 |
Inventories | 302,422 | 12,041 | 3,099 |
Prepaid expenses | 18,342 | 1,350 | 91 |
Deferred income taxes | 4,658 | 5 | |
Plant and equipment | 376,826 | 5,647 | 1,123 |
Intangible and other assets | 1,526,909 | 26,849 | 7,794 |
Goodwill | 2,677,489 | 31,134 | 10,430 |
Total | 5,170,262 | 83,814 | 30,198 |
Liabilities: | |||
Notes payable | 20,162 | 720 | 0 |
Accounts payable, trade | 84,753 | 2,536 | 2,689 |
Accrued payrolls and other compensation | 45,942 | 1,310 | 243 |
Accrued domestic and foreign taxes | 5,435 | 604 | 777 |
Other accrued liabilities | 80,515 | 1,804 | 5,267 |
Long-term debt | 296,240 | 1,743 | 0 |
Pensions and other postretirement benefits | 33,929 | ||
Deferred income taxes | 520,389 | 7,545 | 2,604 |
Other liabilities | 11,878 | 0 | |
Noncontrolling interests | 1,822 | 0 | 0 |
Total | 1,101,065 | 16,262 | 11,580 |
Net assets acquired | $ 4,069,197 | $ 67,552 | $ 18,618 |
Acquisitions and Divestiture 55
Acquisitions and Divestiture - Pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | |||||||||||
Increase (decrease) in pro forma net income attributable to common shareholders | $ 293,305 | $ 238,673 | $ 241,305 | $ 210,129 | $ 241,796 | $ 187,084 | $ 182,982 | $ 194,978 | $ 983,412 | $ 806,840 | $ 1,012,140 |
Fair Value Adjustments and Transaction, Operating and Acquisition Costs | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Increase (decrease) in pro forma net income attributable to common shareholders | 108,078 | (39,121) | |||||||||
CLARCOR, Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 12,935,834 | 12,772,097 | |||||||||
Net income attributable to common shareholders | $ 1,027,693 | $ 748,634 | |||||||||
Diluted earnings per share (in USD per share) | $ 7.58 | $ 5.47 |
Charges Related to Business R56
Charges Related to Business Realignment (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017USD ($)employee | Jun. 30, 2016USD ($)employee | Jun. 30, 2015USD ($)employee | |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 35,932 | $ 76,197 | $ 19,419 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 19,681 | 21,051 | 12,888 |
(Gain) loss on disposal of assets | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 784 | 116 | 2,399 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance payments relating to charges incurred during the current fiscal year | 23,000 | ||
Remaining severance payments related to current-year and prior-year actions | 33,000 | ||
Diversified Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 52,939 | $ 91,404 | $ 30,882 |
Work force reduction in employess | employee | 1,102 | 3,515 | 668 |
Aerospace Systems | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 2,674 | $ 3,629 | $ 967 |
Work force reduction in employess | employee | 89 | 81 | 21 |
Corporate administration | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 0 | $ 2,215 | $ 458 |
Work force reduction in employess | employee | 0 | 53 | 18 |
Other expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 784 | $ 116 | $ 2,399 |
Income Taxes - Income before in
Income Taxes - Income before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 722,925 | $ 672,907 | $ 779,782 |
Foreign | 605,716 | 441,821 | 652,458 |
Income before income taxes | $ 1,328,641 | $ 1,114,728 | $ 1,432,240 |
Income Taxes - Schedule of inco
Income Taxes - Schedule of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Federal | |||
Current | $ 132,420 | $ 235,557 | $ 185,761 |
Deferred | 37,316 | (45,797) | 28,108 |
Foreign | |||
Current | 157,518 | 113,146 | 189,826 |
Deferred | (5,319) | (7,006) | (11,208) |
State and local | |||
Current | 17,835 | 24,495 | 25,235 |
Deferred | 5,027 | (12,883) | 1,965 |
Income taxes | $ 344,797 | $ 307,512 | $ 419,687 |
Income Taxes - Effective income
Income Taxes - Effective income tax rate reconciliation to statutory federal rate (Details) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes | 1.70% | 0.60% | 1.10% |
Tax related to international activities | (5.50%) | (5.20%) | (4.50%) |
Cash surrender value of life insurance - tax exempt income | (0.90%) | (0.10%) | |
Cash surrender value of life insurance - nondeductible expense | 0.20% | ||
Federal manufacturing deduction | (0.90%) | (1.00%) | (1.60%) |
Research tax credit | (0.80%) | (1.90%) | (0.80%) |
Share-based compensation | (2.70%) | 0.00% | 0.00% |
Other | 0.10% | (0.10%) | 0.20% |
Effective income tax rate | 26.00% | 27.60% | 29.30% |
Income Taxes - Differences comp
Income Taxes - Differences comprising the net deferred taxes shown on consolidated balance sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Retirement benefits | $ 571,022 | $ 815,545 | |
Other liabilities and reserves | 144,885 | 126,524 | |
Long-term contracts | 61,375 | 64,371 | |
Stock-based compensation | 59,725 | 67,138 | |
Loss carryforwards | 678,486 | 326,707 | |
Unrealized currency exchange gains and losses | 22,212 | ||
Unrealized currency exchange gains and losses | (19,491) | ||
Inventory | 17,809 | 14,693 | |
Foreign tax credit carryforward | 23,050 | 24,051 | |
Depreciation and amortization | (1,080,218) | (536,070) | |
Valuation allowance | (684,079) | (332,708) | |
Net deferred tax (liability) asset | (185,733) | ||
Net deferred tax (liability) asset | 550,760 | ||
Change in net deferred tax asset: | |||
Provision for deferred tax | (37,024) | 65,686 | $ (18,865) |
Items of other comprehensive (loss) | (177,655) | 149,861 | |
Acquisitions and other | (521,814) | (7,832) | |
Total change in net deferred tax | $ (736,493) | $ 207,715 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets resulting from loss carryforwards | $ 678,486 | $ 326,707 | |
Loss carryforwards | 2,529,303 | ||
Valuation allowance related to the loss carryforwards | 665,399 | ||
Amount of valuation allowance relating to non-operating entity whose loss carryforward utilization is considered to be remote | $ 633,581 | ||
Operating loss carryforward minimum period before expiration (in years) | 3 years | ||
Operating loss carryforward maximum period before expiration (in years) | 20 years | ||
Valuation allowance related to future deductible items | $ 18,680 | ||
Accumulated undistributed earnings reinvested in international operations | 2,900,000 | ||
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 95,460 | 80,722 | $ 83,471 |
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits | 15,432 | $ 12,357 | $ 9,514 |
Amount of gross unrecognized tax benefits could be reduced by as a result of the revaluation of existing uncertain tax positions | $ 100,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 139,907 | $ 145,688 | $ 164,813 |
Additions for tax positions related to current year | 4,735 | 7,025 | 6,090 |
Additions for tax positions of prior years | 2,618 | 2,582 | 14,989 |
Additions for acquisitions | 3,939 | 0 | |
Reductions for tax positions of prior years | (1,175) | (627) | (6,945) |
Reductions for settlements | (3,020) | (10,284) | 0 |
Reductions for expiration of statute of limitations | (2,792) | (4,142) | (6,251) |
Effect of foreign currency translation - increase | 3,294 | ||
Effect of foreign currency translation - decrease | (335) | (27,008) | |
Ending Balance | $ 147,506 | $ 139,907 | $ 145,688 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | |||||||||||
Net income attributable to common shareholders | $ 983,412 | $ 806,840 | $ 1,012,140 | ||||||||
Denominator: | |||||||||||
Basic - weighted-average common shares | 133,377,547 | 135,353,321 | 142,925,327 | ||||||||
Increase in weighted-average common shares from dilutive effect of stock-based awards | 2,182,217 | 1,558,369 | 2,186,823 | ||||||||
Diluted - weighted-average common shares, assuming exercise of stock-based awards | 135,559,764 | 136,911,690 | 145,112,150 | ||||||||
Basic earnings per share (in USD per share) | $ 7.37 | $ 5.96 | $ 7.08 | ||||||||
Diluted earnings per share (in USD per share) | $ 2.15 | $ 1.75 | $ 1.78 | $ 1.55 | $ 1.77 | $ 1.37 | $ 1.33 | $ 1.41 | $ 7.25 | $ 5.89 | $ 6.97 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |||
Number of common shares subject to stock-based awards that were excluded from the computation of diluted earnings per share | 1.4 | 3.1 | 1.1 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory to total inventory | 39.00% | 30.00% |
Current cost of inventories exceeds their valuation determined on the LIFO basis, amount | $ 193,933 | $ 200,247 |
Progress payments netted against inventories | $ 44,231 | $ 51,104 |
Inventories - Inventory compone
Inventories - Inventory components (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Inventory, Net [Abstract] | ||
Finished products | $ 642,788 | $ 458,657 |
Work in process | 723,133 | 639,907 |
Raw materials | 183,573 | 74,765 |
Total | $ 1,549,494 | $ 1,173,329 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets - Changes in the carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 2,903,037 | $ 2,942,679 |
Acquisitions | 2,677,489 | 31,134 |
Divestitures | (22,618) | |
Foreign currency translation and other | 28,970 | (70,776) |
Ending Balance | 5,586,878 | 2,903,037 |
Diversified Industrial Segment | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,804,403 | 2,844,045 |
Acquisitions | 2,677,489 | 31,134 |
Divestitures | (22,618) | |
Foreign currency translation and other | 28,962 | (70,776) |
Ending Balance | 5,488,236 | 2,804,403 |
Aerospace Systems Segment | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 98,634 | 98,634 |
Acquisitions | 0 | 0 |
Divestitures | 0 | |
Foreign currency translation and other | 8 | 0 |
Ending Balance | $ 98,642 | $ 98,634 |
Goodwill and Intangible Asset68
Goodwill and Intangible Assets - Gross carrying value and accumulated amortization of intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,374,723 | $ 1,854,240 |
Accumulated Amortization | 1,067,239 | 931,669 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 254,049 | 150,914 |
Accumulated Amortization | 100,860 | 95,961 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 553,691 | 340,805 |
Accumulated Amortization | 200,413 | 179,156 |
Customer lists and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,566,983 | 1,362,521 |
Accumulated Amortization | $ 765,966 | $ 656,552 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets - Acquired intangible assets with purchase price allocation and weighted-average life (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 1,518,443 |
Weighted- Average Life (in years) | 12 years |
Patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 108,810 |
Weighted- Average Life (in years) | 13 years |
Trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 212,060 |
Weighted- Average Life (in years) | 17 years |
Customer lists and other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 1,197,573 |
Weighted- Average Life (in years) | 11 years |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment loss recognized | $ 0 | $ 0 | $ 0 |
Intangible amortization expense | 145,128,000 | $ 108,019,000 | $ 109,887,000 |
Estimated amortization expense, year ending June 30, 2018 | 219,238,000 | ||
Estimated amortization expense, year ending June 30, 2019 | 209,047,000 | ||
Estimated amortization expense, year ending June 30, 2020 | 200,242,000 | ||
Estimated amortization expense, year ending June 30, 2021 | 191,520,000 | ||
Estimated amortization expense, year ending June 30, 2022 | $ 155,482,000 |
Financing Arrangements (Details
Financing Arrangements (Details) | Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | |||
Line of credit available | $ 1,465,800,000 | $ 1,465,800,000 | |
Commercial paper notes outstanding | $ 534,200,000 | 534,200,000 | $ 303,700,000 |
Debt to debt-shareholders' equity ratio | 0.529 | ||
Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt to debt-shareholders' equity ratio, covenant, maximum | 0.60 | ||
Commercial Paper | |||
Line of Credit Facility [Line Items] | |||
Line of credit | $ 2,000,000,000 | 2,000,000,000 | |
Domestic Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit | 2,000,000,000 | $ 2,000,000,000 | |
Extension option, term (in years) | 1 year | ||
Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit | 62,946,000 | $ 62,946,000 | |
Line of credit outstanding | $ 0 | $ 0 | $ 0 |
Weighted-average interest rate of notes payable | 0.30% | 0.30% | 0.30% |
Debt - Schedule of long-term de
Debt - Schedule of long-term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,383,343 | $ 2,733,140 |
Other long-term debt | 433 | 0 |
Debt issuance costs | (47,183) | (22,596) |
Total long-term debt | 5,336,160 | 2,710,544 |
Less: Long-term debt payable within one year | 474,265 | 58,087 |
Long-term debt, net | 4,861,895 | 2,652,457 |
Senior Notes and Term Loan Issued During 2017 | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (27,782) | |
Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.55%, due 2018-2045 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,675,000 | 2,675,000 |
Senior Notes | Senior Notes, 3.25% to 4.10%, due 2027 - 2047 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,300,000 | 0 |
Senior Notes | Euro Senior Notes, 1.125%, due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.125% | |
Long-term debt | $ 799,890 | 0 |
Term Loan | Term loan, Libor plus 100 bps, due 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Long-term debt | $ 493,750 | 0 |
Term Loan | Euro Term loan, Libor plus 150 bps, due 2022 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Long-term debt | $ 114,270 | $ 0 |
Foreign | Japanese Yen credit facility, JPY Libor plus 55 bps, due 2017 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.55% | 0.55% |
Long-term debt | $ 0 | $ 58,140 |
Minimum | Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.55%, due 2018-2045 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.30% | 3.30% |
Minimum | Senior Notes | Senior Notes, 3.25% to 4.10%, due 2027 - 2047 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.25% | |
Maximum | Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.55%, due 2018-2045 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.55% | 6.55% |
Maximum | Senior Notes | Senior Notes, 3.25% to 4.10%, due 2027 - 2047 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.10% |
Debt - Long-term debt payable i
Debt - Long-term debt payable in the next five years (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Long-term debt payable in 2018 | $ 475,143 |
Long-term debt payable in 2019 | 100,107 |
Long-term debt payable in 2020 | 468,822 |
Long-term debt payable in 2021 | 32 |
Long-term debt payable in 2022 | $ 114,280 |
Debt - Lease commitments (Detai
Debt - Lease commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Future minimum rental commitments due in 2018 | $ 81,400 | ||
Future minimum rental commitments due in 2019 | 56,974 | ||
Future minimum rental commitments due in 2020 | 35,467 | ||
Future minimum rental commitments due in 2021 | 21,189 | ||
Future minimum rental commitments due in 2022 | 13,220 | ||
Future minimum rental commitments due after 2022 | 31,994 | ||
Rental expense | $ 118,723 | $ 119,004 | $ 125,657 |
Retirement Benefits - Net perio
Retirement Benefits - Net periodic pension cost recognized (Details) - Pension Plans, Defined Benefit - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 94,356 | $ 94,650 | $ 97,960 |
Interest cost | 126,131 | 181,469 | 176,556 |
Special termination cost | 0 | 7,088 | 21,174 |
Settlement cost | 0 | 5,102 | 0 |
Expected return on plan assets | (239,537) | (221,629) | (218,938) |
Amortization of prior service cost | 8,116 | 7,470 | 9,437 |
Amortization of unrecognized actuarial loss | 212,433 | 170,407 | 152,664 |
Amortization of initial net obligation | 18 | 17 | 17 |
Net periodic benefit cost | $ 201,517 | $ 244,574 | $ 238,870 |
Retirement Benefits - Summary o
Retirement Benefits - Summary of defined benefit pension plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 3,307,047 | ||
Fair value of plan assets at end of year | 3,896,001 | $ 3,307,047 | |
Amounts recognized on the Consolidated Balance Sheet | |||
Pensions and other postretirement benefits | (1,406,082) | (2,076,143) | |
Pension Plans, Defined Benefit | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 5,315,655 | 4,867,703 | |
Service cost | 94,356 | 94,650 | $ 97,960 |
Interest cost | 126,131 | 181,469 | 176,556 |
Acquisition | 201,283 | 0 | |
Special termination cost | 0 | 7,088 | 21,174 |
Plan amendments | 3,265 | 2,992 | |
Divestiture | (851) | 0 | |
Actuarial (gain) loss | (268,370) | 487,523 | |
Benefits paid | (250,289) | (230,551) | |
Foreign currency translation and other | (3,323) | (95,219) | |
Benefit obligation at end of year | 5,217,857 | 5,315,655 | 4,867,703 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 3,307,047 | 3,238,307 | |
Actual gain on plan assets | 341,344 | 97,165 | |
Acquisition | 168,264 | 0 | |
Employer contributions | 330,932 | 279,140 | |
Benefits paid | (250,289) | (230,551) | |
Foreign currency translation and other | (1,297) | (77,014) | |
Fair value of plan assets at end of year | 3,896,001 | 3,307,047 | $ 3,238,307 |
Funded status | (1,321,856) | (2,008,608) | |
Amounts recognized on the Consolidated Balance Sheet | |||
Other accrued liabilities | (12,793) | (42,763) | |
Pensions and other postretirement benefits | (1,309,063) | (1,965,845) | |
Net amount recognized | (1,321,856) | (2,008,608) | |
Amounts recognized in Accumulated Other Comprehensive (Loss) | |||
Net actuarial loss | 1,461,017 | 2,047,103 | |
Prior service cost | 22,761 | 27,723 | |
Transition obligation | 77 | 103 | |
Net amount recognized | $ 1,483,855 | $ 2,074,929 |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net pension benefit cost decrease in fiscal period when compared to prior year | $ (201,517) | $ (244,574) | $ (238,870) |
Special termination cost | 0 | 7,088 | 21,174 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 141,399 | ||
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 6,055 | ||
Estimated amount of transition asset that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 17 | ||
Accumulated benefit obligation for all defined benefit plans | 4,890,058 | 4,884,985 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets | 5,120,268 | 5,211,768 | |
Accumulated benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets | 4,805,485 | 4,796,860 | |
Fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | 3,793,696 | 3,206,287 | |
Projected benefit obligation for pension plans with projected benefit obligations in excess of plan assets | 5,142,881 | 5,310,979 | |
Fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets | 3,815,815 | 3,302,370 | |
Expected cash contributions to defined benefit pension plans in 2018 | 68,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
Estimated future benefit payments in the year ending June 30, 2018 | 231,732 | ||
Estimated future benefit payments in the year ending June 30, 2019 | 236,968 | ||
Estimated future benefit payments in the year ending June 30, 2020 | 243,956 | ||
Estimated future benefit payments in the year ending June 30, 2021 | 260,645 | ||
Estimated future benefit payments in the year ending June 30, 2022 | 296,949 | ||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2023 through June 30, 2027 | 1,448,318 | ||
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net pension benefit cost decrease in fiscal period when compared to prior year | (4,357) | (8,754) | $ (4,340) |
Special termination cost | 0 | $ 4,521 | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 1,095 | ||
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | (121) | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
Estimated future benefit payments in the year ending June 30, 2018 | 6,532 | ||
Estimated future benefit payments in the year ending June 30, 2019 | 6,426 | ||
Estimated future benefit payments in the year ending June 30, 2020 | 6,034 | ||
Estimated future benefit payments in the year ending June 30, 2021 | 5,870 | ||
Estimated future benefit payments in the year ending June 30, 2022 | 5,629 | ||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2023 through June 30, 2027 | 25,142 | ||
Change in Assumptions for Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net pension benefit cost decrease in fiscal period when compared to prior year | $ 29,777 |
Retirement Benefits - Assumptio
Retirement Benefits - Assumptions used to measure periodic benefit cost (Details) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
U.S. defined benefit plans | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 3.33% | 4.19% | 4.05% |
Average increase in compensation | 5.02% | 5.14% | 5.12% |
Expected return on plan assets | 7.50% | 7.50% | 7.50% |
Minimum | Non-U.S. defined benefit plans | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 0.23% | 0.70% | 0.90% |
Average increase in compensation | 2.00% | 2.00% | 2.00% |
Expected return on plan assets | 1.00% | 1.00% | 1.00% |
Maximum | Non-U.S. defined benefit plans | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 7.75% | 6.00% | 4.20% |
Average increase in compensation | 5.50% | 5.50% | 5.00% |
Expected return on plan assets | 5.75% | 5.75% | 6.25% |
Retirement Benefits - Assumpt79
Retirement Benefits - Assumptions used to measure benefit obligations (Details) | Jun. 30, 2017 | Jun. 30, 2016 |
Domestic Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.64% | 3.33% |
Average increase in compensation | 3.89% | 5.02% |
Minimum | Non-U.S. defined benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.30% | 0.23% |
Average increase in compensation | 2.00% | 2.00% |
Maximum | Non-U.S. defined benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.57% | 7.75% |
Average increase in compensation | 5.50% | 5.50% |
Retirement Benefits - Weighted-
Retirement Benefits - Weighted-average allocation of the majority of the assets related to defined benefit plans (Details) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities (as a percent) | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities (as a percent) | 45.00% | 39.00% |
Debt securities (as a percent) | 41.00% | |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities (as a percent) | 47.00% | 51.00% |
Debt securities (as a percent) | 47.00% | |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities (as a percent) | 8.00% | 10.00% |
Debt securities (as a percent) | 12.00% | |
Domestic Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other investments (as a percent) | 75.00% |
Retirement Benefits - Fair valu
Retirement Benefits - Fair values of pension plan assets by asset class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 3,896,001 | $ 3,307,047 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 76,057 | 46,052 | |
Equity Securities | U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 416,830 | 292,138 | |
Equity Securities | Non-U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 236,134 | 191,647 | |
Fixed income securities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 176,135 | 141,549 | |
Fixed income securities | Government issued securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 199,389 | 203,000 | |
Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 233,234 | 246,075 | |
Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 306,168 | 149,807 | |
Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 204,628 | 151,649 | |
Common/Collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 1,677,942 | 1,487,170 | |
Investments valued using a net asset value per share, redemption notice period (in days) | 60 days | ||
Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 70,389 | 65,404 | |
Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 46,003 | 43,981 | |
Limited Partnerships measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 262,092 | 280,248 | |
Investments valued using a net asset value per share, redemption notice period (in days) | 95 days | ||
Miscellaneous | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ (9,000) | 8,327 | |
Quoted Prices In Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1,592,120 | 1,155,720 | |
Quoted Prices In Active Markets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 75,370 | 45,474 | |
Quoted Prices In Active Markets (Level 1) | Equity Securities | U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 416,830 | 292,138 | |
Quoted Prices In Active Markets (Level 1) | Equity Securities | Non-U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 236,134 | 191,647 | |
Quoted Prices In Active Markets (Level 1) | Fixed income securities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 91,982 | 73,685 | |
Quoted Prices In Active Markets (Level 1) | Fixed income securities | Government issued securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 144,616 | 141,935 | |
Quoted Prices In Active Markets (Level 1) | Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 306,168 | 149,807 | |
Quoted Prices In Active Markets (Level 1) | Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 204,628 | 151,649 | |
Quoted Prices In Active Markets (Level 1) | Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 70,389 | 65,404 | |
Quoted Prices In Active Markets (Level 1) | Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 46,003 | 43,981 | |
Quoted Prices In Active Markets (Level 1) | Miscellaneous | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 130,613 | 137,834 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 687 | 578 | |
Significant Other Observable Inputs (Level 2) | Equity Securities | U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Significant Other Observable Inputs (Level 2) | Equity Securities | Non-U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Significant Other Observable Inputs (Level 2) | Fixed income securities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 84,153 | 67,864 | |
Significant Other Observable Inputs (Level 2) | Fixed income securities | Government issued securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 54,773 | 61,065 | |
Significant Other Observable Inputs (Level 2) | Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Miscellaneous | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | (9,000) | 8,327 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity Securities | U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity Securities | Non-U.S. based companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed income securities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed income securities | Government issued securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Miscellaneous | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3,896,001 | 3,307,047 | $ 3,238,307 |
Company stock included in U.S. based company equity securities | $ 212,480 | $ 143,652 |
Retirement Benefits - Employee
Retirement Benefits - Employee stock ownership plan (ESOP) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares held by ESOP (in shares) | 6,911,436 | 7,728,332 | 8,407,858 |
Company matching contributions | $ 57,766 | $ 58,922 | $ 63,914 |
Number of shares invested by employees in company stock (in shares) | 1,883,024 | ||
Defined contribution plan expense recognized | $ 29,309 | $ 25,780 | $ 29,570 |
CLARCOR, Inc | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined contribution plan expense recognized | $ 2,199 | ||
Maximum | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Maximum percentage of employer 401K matching contribution | 4.00% |
Retirement Benefits - Other pos
Retirement Benefits - Other postretirement benefit plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amounts recognized on the Consolidated Balance Sheet | |||
Pensions and other postretirement benefits | $ (1,406,082) | $ (2,076,143) | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense related to other postretirement benefits | 4,357 | 8,754 | $ 4,340 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 89,785 | 75,953 | |
Service cost | 469 | 591 | |
Interest cost | 1,922 | 2,834 | |
Acquisition | 291 | 0 | |
Special termination cost | 0 | 4,521 | |
Actuarial (gain) loss | (8,235) | 10,217 | |
Benefits paid | (4,299) | (4,331) | |
Benefit obligation at end of year | 79,933 | 89,785 | $ 75,953 |
Funded status | (79,933) | (89,785) | |
Amounts recognized on the Consolidated Balance Sheet | |||
Other accrued liabilities | (6,532) | (6,216) | |
Pensions and other postretirement benefits | (73,401) | (83,569) | |
Net amount recognized | (79,933) | (89,785) | |
Amounts recognized in Accumulated Other Comprehensive (Loss) | |||
Net actuarial loss | 12,828 | 22,914 | |
Prior service (credit) | (435) | (556) | |
Net amount recognized | 12,393 | $ 22,358 | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic postretirement cost | 1,095 | ||
Estimated amount of prior service credit that will be amortized from accumulated other comprehensive (loss) income into net periodic postretirement cost | $ (121) |
Retirement Benefits - Assumpt84
Retirement Benefits - Assumptions used to measure net periodic benefit cost for postretirement plans (Details) - Other Postretirement Benefit Plans, Defined Benefit | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.15% | 3.96% | 3.74% |
Ultimate medical cost trend rate | 4.50% | 4.50% | 5.00% |
Medical cost trend rate decreases to ultimate in year | 2,025 | 2,025 | 2,021 |
Discount rate used to measure benefit obligation | 3.46% | 3.15% | |
Defined benefit plan, participant age range, Pre-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current medical cost trend rate | 7.35% | 7.61% | 7.75% |
Defined benefit plan, participant age range, Post-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current medical cost trend rate | 8.68% | 9.00% | 7.75% |
Retirement Benefits - Postretir
Retirement Benefits - Postretirement benefit plans - expected future benefit payments (Details) - Other Postretirement Benefit Plans, Defined Benefit $ in Thousands | Jun. 30, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future benefit payments in the year ending June 30, 2018 | $ 6,532 |
Estimated future benefit payments in the year ending June 30, 2019 | 6,426 |
Estimated future benefit payments in the year ending June 30, 2020 | 6,034 |
Estimated future benefit payments in the year ending June 30, 2021 | 5,870 |
Estimated future benefit payments in the year ending June 30, 2022 | 5,629 |
Estimated future benefit payments in the aggregate for the five years ending June 30, 2023 through June 30, 2027 | $ 25,142 |
Retirement Benefits - Nonqualif
Retirement Benefits - Nonqualified deferred compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation expense | $ 20,400 | $ (2,917) | $ 5,676 |
Equity - Changes in accumulated
Equity - Changes in accumulated other comprehensive (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Beginning Balance | $ 4,578,678 | $ 5,107,569 |
Amounts reclassified from accumulated other comprehensive (loss) | 142,368 | 114,009 |
Ending Balance | 5,267,346 | 4,578,678 |
Foreign Currency Translation Adjustment and Other | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Beginning Balance | (844,121) | (641,018) |
Other comprehensive (loss) before reclassifications | (80,189) | (202,444) |
Amounts reclassified from accumulated other comprehensive (loss) | (1,032) | (659) |
Ending Balance | (925,342) | (844,121) |
Retirement Benefit Plans | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Beginning Balance | (1,383,644) | (1,097,600) |
Other comprehensive (loss) before reclassifications | 242,414 | (400,053) |
Amounts reclassified from accumulated other comprehensive (loss) | 142,368 | 114,009 |
Ending Balance | (998,862) | (1,383,644) |
AOCI Attributable to Parent | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Beginning Balance | (2,227,765) | (1,738,618) |
Other comprehensive (loss) before reclassifications | 162,225 | (602,497) |
Amounts reclassified from accumulated other comprehensive (loss) | 141,336 | 113,350 |
Ending Balance | $ (1,924,204) | $ (2,227,765) |
Equity - Significant reclassifi
Equity - Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from accumulated other comprehensive income | $ (222,298) | $ (178,703) |
Tax benefit, retirement benefit plans | 79,930 | 64,694 |
Net of tax | (142,368) | (114,009) |
Amortization of prior service cost and initial net obligation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from accumulated other comprehensive income | (8,014) | (7,366) |
Recognized actuarial loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from accumulated other comprehensive income | $ (214,284) | $ (171,337) |
Equity - Share Repurchases (Det
Equity - Share Repurchases (Details) - $ / shares | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Oct. 22, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased | 1,976,778 | 5,121,051 | 11,091,759 | |
Average price per share (in USD per share) | $ 133.90 | $ 108.87 | $ 125.64 | |
Maximum | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares authorized for repurchase | 35,000,000 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2017shares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock appreciation rights exercisable period after the date of grant (in years) | 3 years |
Minimum | Stock Appreciation Rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock appreciation rights exercisable period after the date of grant (in years) | 1 year |
Maximum | Stock Appreciation Rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock appreciation rights exercisable period after the date of grant (in years) | 3 years |
Stock appreciation rights expiration period (in years) | 10 years |
Omnibus Stock Incentive Plan 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate number of shares authorized for issuance under stock incentive plan | 16,000,000 |
Number of shares available for future issuance | 14,700,000 |
Stock Incentive Plans - Weighte
Stock Incentive Plans - Weighted average assumptions used in fair value of each stock appreciation right award granted (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.40% | 1.90% | 2.00% |
Expected life of award | 5 years 3 months 18 days | 5 years 4 months 24 days | 5 years 4 months 24 days |
Expected dividend yield of stock (as a percent) | 2.00% | 1.90% | 1.80% |
Expected volatility of stock (as a percent) | 28.50% | 28.70% | 32.30% |
Weighted-average fair value (in USD per share) | $ 27.39 | $ 26.88 | $ 30.50 |
Stock Incentive Plans - Stock a
Stock Incentive Plans - Stock appreciation rights activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance, outstanding (in shares) | shares | 8,056,448 |
Granted (in shares) | shares | 1,065,739 |
Exercised (in shares) | shares | (2,510,398) |
Canceled (in shares) | shares | (78,383) |
Ending balance, outstanding (in shares) | shares | 6,533,406 |
Exercisable (in shares) | shares | 4,585,837 |
Weighted-Average Exercise Price | |
Beginning balance, outstanding (in USD per share) | $ / shares | $ 84.93 |
Granted (in USD per share) | $ / shares | 124.36 |
Exercised (in USD per share) | $ / shares | 76.58 |
Canceled (in USD per share) | $ / shares | 117.28 |
Ending balance, outstanding (in USD per share) | $ / shares | 94.18 |
Exercisable (in USD per share) | $ / shares | $ 83.62 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, weighted average remaining contractual term | 5 years 8 months 12 days |
Exercisable, weighted average remaining contractual term | 4 years 6 months |
Outstanding, aggregate intrinsic value | $ | $ 428.8 |
Exercisable, aggregate intrinsic value | $ | $ 349.4 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of the status and shares subject to stock appreciation rights awards and average price per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Number of Shares | |||
Beginning balance, nonvested (in shares) | 2,037,896 | ||
Granted (in shares) | 1,065,739 | ||
Vested (in shares) | (1,083,278) | ||
Canceled (in shares) | (72,788) | ||
Ending balance, nonvested (in shares) | 1,947,569 | 2,037,896 | |
Weighted-Average Grant Date Fair Value | |||
Beginning balance, nonvested (in USD per share) | $ 29.46 | ||
Granted (in USD per share) | 27.39 | $ 26.88 | $ 30.50 |
Vested (in USD per share) | 30.55 | ||
Canceled (in USD per share) | 27.60 | ||
Ending balance, nonvested (in USD per share) | $ 27.80 | $ 29.46 | |
Stock Appreciation Rights (SARs) | |||
Stock Options and SARs - Additional Information | |||
Expense for nonvested stock appreciation rights awards has yet to be recognized | $ 15,194 | ||
Expense for nonvested stock appreciation rights awards has yet to be recognized, amortized over a weighted-average period (in months) | 16 months | ||
Total fair value of shares vested | $ 33,094 | $ 34,706 | $ 34,064 |
Stock Incentive Plans - Informa
Stock Incentive Plans - Information related to stock appreciation rights awards exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Net cash proceeds | $ 2,202 | $ 126 | $ 3,355 |
Intrinsic value | 153,908 | 40,612 | 72,140 |
Income tax benefit | 31,193 | 7,188 | 17,355 |
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 28,535 | $ 28,129 | $ 34,617 |
Shares surrendered upon exercise of stock | 371,246 | 158,808 | 243,799 |
Stock Incentive Plans - Summa95
Stock Incentive Plans - Summary of the status and shares subject to restricted stock units and average price per share (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit, vesting period (in years) | 3 years | ||
Number of Shares | |||
Beginning balance, nonvested (in shares) | 374,168 | ||
Granted (in shares) | 249,892 | ||
Vested (in shares) | (194,844) | ||
Canceled (in shares) | (34,887) | ||
Ending balance, nonvested (in shares) | 394,329 | 374,168 | |
Weighted-Average Grant Date Fair Value | |||
Beginning balance, nonvested (in USD per share) | $ 111.82 | ||
Granted (in USD per share) | 128.30 | ||
Vested (in USD per share) | 110.74 | ||
Canceled (in USD per share) | 133.12 | ||
Ending balance, nonvested (in USD per share) | $ 120.92 | $ 111.82 | |
RSUs - Additional Disclosures | |||
Stock-based compensation expense | $ 23,025 | $ 21,190 | $ 22,547 |
Expense for nonvested restricted stock units has yet to be recognized | $ 19,915 | ||
Expense for nonvested restricted stock units has yet to be recognized, amortized over a weighted-average period (in months) | 24 months | ||
Total fair value of shares vested | $ 21,576 | 21,173 | 18,953 |
Tax benefit relating to issuance of common stock for restricted stock units | $ 939 | $ 870 | $ 704 |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit, vesting period (in years) | 1 year | ||
Number of Shares | |||
Granted (in shares) | 12,430,000 | 14,404,000 | |
RSUs - Additional Disclosures | |||
Stock-based compensation expense | $ 1,560 | $ 824 | |
Expense for nonvested restricted stock units has yet to be recognized | $ 505 | ||
Expense for nonvested restricted stock units has yet to be recognized, amortized over a weighted-average period (in months) | 4 months | ||
Tax benefit relating to issuance of common stock for restricted stock units | $ 105 |
Stock Incentive Plans - Long te
Stock Incentive Plans - Long term incentive plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Performance period (in years) | 3 years | ||
Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
LTIP three-year plan | . 16, 2014 | . 15, 2013 | . 14, 2012 |
Number of shares issued | 227,707 | 175,291 | 185,063 |
Average share value on date of issuance (in USD per share) | $ 157.07 | $ 113.91 | $ 119.06 |
Total value | $ 35,766 | $ 19,967 | $ 22,034 |
Stock Incentive Plans - Status
Stock Incentive Plans - Status and changes of shares of long term incentive plans shares (Details) - Long Term Incentive Plans - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Number of Shares | |||
Beginning balance, nonvested (in shares) | 813,762 | ||
Granted (in shares) | 248,076 | ||
Vested (in shares) | (305,176) | ||
Canceled (in shares) | (21,918) | ||
Ending balance, nonvested (in shares) | 734,744 | 813,762 | |
Weighted-Average Grant Date Fair Value | |||
Beginning balance, nonvested (in USD per share) | $ 108.37 | ||
Granted (in USD per share) | 147.87 | ||
Vested (in USD per share) | 114 | ||
Canceled (in USD per share) | 101.86 | ||
Ending balance, nonvested (in USD per share) | $ 119.56 | $ 108.37 | |
LTIP - Additional Disclosures | |||
Stock-based compensation expense | $ 27,219 | $ 21,150 | $ 38,929 |
Tax benefit (cost) | $ 1,701 | $ 3,119 | $ 5,373 |
Shares surrendered upon exercise of stock | 113,074 | 78,173 | 42,394 |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted shares (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted shares issued to directors | 12,716 | |
Director | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 468 | $ 1,401 |
Tax benefit (cost) | $ (32) | $ (3) |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Transferability period of restricted stock units (in years) | 1 year | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Transferability period of restricted stock units (in years) | 3 years |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Research and Development [Abstract] | |||
Research and development costs | $ 336,675 | $ 359,796 | $ 403,085 |
Costs incurred in connection with research and development contracts | $ 65,292 | $ 57,999 | $ 57,799 |
Financial Instruments - Contrac
Financial Instruments - Contractual maturities of available-for-sale investments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Less than one year, amortized cost | $ 690 | $ 29,960 |
Less than one year, fair value | 693 | 29,990 |
One to three years, amortized cost | 7,865 | 144,100 |
One to three years, fair value | 7,924 | 144,625 |
Over three years, amortized cost | 2,108 | 34,276 |
Over three years, fair value | $ 2,113 | $ 34,275 |
Financial Instruments - Carryin
Financial Instruments - Carrying value of long-term debt and estimated fair value of long-term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying value of long-term debt | $ 5,383,343 | $ 2,733,140 |
Estimated fair value of long-term debt | $ 5,645,529 | $ 3,133,989 |
Financial Instruments - Locatio
Financial Instruments - Location and fair value of derivative financial instruments reported in the consolidated balance sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Cross-currency swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Net investment hedges | $ 15,135 | $ 24,771 |
Costless collar contracts | Non-trade and notes receivable | ||
Derivatives, Fair Value [Line Items] | ||
Cash flow hedges | 430 | 0 |
Costless collar contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Cash flow hedges | $ 2,027 | $ 8,368 |
Financial Instruments - Gains (
Financial Instruments - Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cross-currency swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive (loss) on derivatives and non-derivatives | $ (6,003) | $ 6,869 |
Foreign denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive (loss) on derivatives and non-derivatives | $ (16,175) | $ (8,180) |
Financial Instruments - Summary
Financial Instruments - Summary of financial assets and liabilities that were measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, fair value | $ 16,064 | $ 13,028 |
Derivatives | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, fair value | 16,064 | 13,028 |
Derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 3,008 | 1,296 |
Equity Securities | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 3,008 | 1,296 |
Equity Securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | 0 |
Equity Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | 0 |
Government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 15,764 | |
Government bonds | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 15,764 | |
Government bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | |
Government bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 5,968 | 184,380 |
Corporate bonds | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 5,968 | 184,380 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | 0 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | 0 |
Asset-backed and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 4,762 | 8,746 |
Asset-backed and mortgage-backed securities | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | 0 |
Asset-backed and mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 4,762 | 8,746 |
Asset-backed and mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | 0 | 0 |
Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, fair value | 16,496 | 25,303 |
Derivatives | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, fair value | 0 | 0 |
Derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, fair value | 16,496 | 25,303 |
Derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, fair value | 0 | 0 |
Investments measured at net asset value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial asset, fair value | $ 7,073 | $ 361,770 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |
Reserve for environmental matters | $ 20,810 |
Environmental Issue | |
Loss Contingencies [Line Items] | |
Largest range for any one site | 7,400 |
Minimum | Environmental Issue | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | 20,800 |
Maximum | Environmental Issue | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | $ 83,300 |
Quarterly Information (Unaud106
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 3,496,238 | $ 3,119,139 | $ 2,670,804 | $ 2,743,131 | $ 2,957,150 | $ 2,828,665 | $ 2,705,590 | $ 2,869,348 | $ 12,029,312 | $ 11,360,753 | $ 12,711,744 |
Gross profit | 841,556 | 735,349 | 626,320 | 637,125 | 684,695 | 619,264 | 564,966 | 668,444 | 2,840,350 | 2,537,369 | 3,056,499 |
Net income attributable to common shareholders | $ 293,305 | $ 238,673 | $ 241,305 | $ 210,129 | $ 241,796 | $ 187,084 | $ 182,982 | $ 194,978 | $ 983,412 | $ 806,840 | $ 1,012,140 |
Diluted earnings per share (in USD per share) | $ 2.15 | $ 1.75 | $ 1.78 | $ 1.55 | $ 1.77 | $ 1.37 | $ 1.33 | $ 1.41 | $ 7.25 | $ 5.89 | $ 6.97 |
Schedule II - Valuation and 107
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning Of Period | $ 8,010 | $ 9,284 | $ 16,040 |
Additions Charged to Costs and Expenses | 3,559 | 1,419 | 2,685 |
Other (Deductions)/ Additions | (2,693) | (9,441) | |
Other (Deductions)/ Additions | 2,767 | ||
Balance At End Of Period | 14,336 | 8,010 | 9,284 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning Of Period | 332,708 | 330,006 | 348,837 |
Additions Charged to Costs and Expenses | 349,803 | 2,702 | (18,831) |
Other (Deductions)/ Additions | 1,568 | 0 | 0 |
Balance At End Of Period | $ 684,079 | $ 332,708 | $ 330,006 |