Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2021 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-4982 | ||
Entity Registrant Name | PARKER-HANNIFIN CORPORATION | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-0451060 | ||
Entity Address, Address Line One | 6035 Parkland Boulevard, | ||
Entity Address, City or Town | Cleveland, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44124-4141 | ||
City Area Code | 216 | ||
Local Phone Number | 896-3000 | ||
Title of 12(b) Security | Common Shares, $.50 par value | ||
Trading Symbol | PH | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 34,984,991,426 | ||
Entity Common Stock, Shares Outstanding | 129,101,437 | ||
Documents Incorporated by Reference | Portions of the Definitive Proxy Statement for the Company’s 2021 Annual Meeting of Shareholders, to be held on October 27, 2021, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000076334 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Income Statement [Abstract] | ||||||
Net Sales | $ 14,347,640 | $ 13,695,520 | [1] | $ 14,320,324 | [1] | |
Cost of sales | 10,449,680 | 10,292,291 | [1] | 10,688,970 | [1] | |
Selling, general and administrative expenses | 1,527,302 | 1,656,553 | [1] | 1,543,939 | [1] | |
Interest expense | 250,036 | 308,161 | [1] | 190,138 | [1] | |
Other income, net | (17,003) | (67,112) | [1] | (61,247) | [1] | |
(Gain) loss on disposal of assets | (109,332) | (1,227) | [1] | 9,049 | [1] | |
Income before income taxes | 2,246,957 | 1,506,854 | [1] | 1,949,475 | [1] | |
Income taxes | 500,096 | 304,522 | [1] | 424,392 | [1] | |
Net Income | [2] | 1,746,861 | 1,202,332 | [3] | 1,525,083 | [4] |
Less: Noncontrolling interest in subsidiaries' earnings | 761 | 362 | [4] | 567 | [4] | |
Net Income Attributable to Common Shareholders | $ 1,746,100 | $ 1,201,970 | [4] | $ 1,524,516 | [4] | |
Earnings per Share Attributable to Common Shareholders | ||||||
Basic earnings per share (in USD per share) | $ 13.54 | $ 9.36 | [1] | $ 11.73 | [1] | |
Diluted earnings per share (in USD per share) | $ 13.35 | $ 9.26 | [1] | $ 11.57 | [1] | |
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||
[2] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | |||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||
[4] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | [3] | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net Income | [1] | $ 1,746,861 | $ 1,202,332 | [2] | $ 1,525,083 | |
Less: Noncontrolling interest in subsidiaries' earnings | 761 | 362 | [3] | 567 | ||
Net Income Attributable to Common Shareholders | 1,746,100 | 1,201,970 | [3] | 1,524,516 | ||
Other comprehensive income (loss), net of tax | ||||||
Foreign currency translation adjustment and other (net of tax of $(3,664), $4,820 and $709 in 2021, 2020 and 2019) | 328,792 | (182,957) | [3] | (66,392) | ||
Retirement benefits plan activity (net of tax of $(205,845), $97,477 and $71,821 in 2021, 2020 and 2019) | 664,076 | (317,546) | [3] | (227,783) | ||
Other comprehensive income (loss) | [1] | 992,868 | (500,503) | [3] | (294,175) | |
Less: Other comprehensive income (loss) for noncontrolling interests | 720 | (676) | [3] | 53 | ||
Other comprehensive income (loss) attributable to common shareholders | 992,148 | (499,827) | [3] | (294,228) | ||
Total Comprehensive Income Attributable to Common Shareholders | $ 2,738,248 | $ 702,143 | [3] | $ 1,230,288 | ||
[1] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | |||||
[2] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation and other, tax (expense) benefit | $ (3,664) | $ 4,820 | $ 709 |
Retirement benefits plan activity, tax (expense) benefit | $ (205,845) | $ 97,477 | $ 71,821 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | [1] | |
Current Assets | ||||
Cash and cash equivalents | $ 733,117 | $ 685,514 | ||
Marketable securities and other investments | 39,116 | 70,805 | ||
Trade accounts receivable, net | 2,183,594 | 1,854,398 | ||
Non-trade and notes receivable | 326,315 | 244,870 | ||
Inventories | 2,090,642 | 1,964,195 | ||
Prepaid expenses and other | 243,966 | 214,986 | ||
Total Current Assets | 5,616,750 | 5,034,768 | ||
Property, plant and equipment | 6,040,220 | 5,810,681 | ||
Less: Accumulated depreciation | 3,773,744 | 3,517,946 | ||
Property, plant and equipment, net | 2,266,476 | 2,292,735 | ||
Deferred income taxes | 104,251 | 126,839 | ||
Investments and other assets | 774,239 | 764,563 | ||
Intangible assets, net | 3,519,797 | 3,798,913 | ||
Goodwill | 8,059,687 | 7,869,935 | ||
Total Assets | 20,341,200 | 19,887,753 | ||
Current Liabilities | ||||
Notes payable and long-term debt payable within one year | 2,824 | 809,529 | ||
Accounts payable, trade | 1,667,878 | 1,111,759 | ||
Accrued payrolls and other compensation | 507,027 | 424,231 | ||
Accrued domestic and foreign taxes | 236,384 | 195,314 | ||
Other accrued liabilities | 682,390 | 607,540 | ||
Total Current Liabilities | 3,096,503 | 3,148,373 | ||
Long-term debt | 6,582,053 | 7,652,256 | ||
Pensions and other postretirement benefits | 1,055,638 | 1,887,414 | ||
Deferred income taxes | 553,981 | 418,851 | ||
Other liabilities | 639,355 | 539,089 | ||
Total Liabilities | 11,927,530 | 13,645,983 | ||
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 2021 and 2020 | 90,523 | 90,523 | ||
Additional capital | 329,619 | 416,585 | ||
Retained earnings | 14,915,497 | 13,643,907 | ||
Accumulated other comprehensive (loss) | (1,566,727) | (2,558,875) | ||
Treasury shares at cost: 51,900,460 in 2021 and 52,490,165 in 2020 | (5,370,605) | (5,364,916) | ||
Total Shareholders' Equity | 8,398,307 | 6,227,224 | ||
Noncontrolling interests | 15,363 | 14,546 | ||
Total Equity | [2] | 8,413,670 | 6,241,770 | |
Total Liabilities and Equity | $ 20,341,200 | $ 19,887,753 | ||
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||
[2] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
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) | 51,900,460 | 52,490,165 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Cash Flows From Operating Activities | ||||||
Net Income | [1] | $ 1,746,861 | $ 1,202,332 | [2] | $ 1,525,083 | [3] |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation | 269,943 | 252,899 | [2] | 225,675 | [2] | |
Amortization | 325,447 | 284,632 | [2] | 210,514 | [2] | |
Stock incentive plan compensation | 121,483 | 111,375 | [2] | 104,078 | [2] | |
Deferred income taxes | (51,500) | 12,290 | [2] | 36,435 | [2] | |
Foreign currency transaction (gain) loss | (10,948) | (10,018) | [2] | 5,888 | [2] | |
(Gain) loss on sale of property, plant and equipment | (109,332) | (1,850) | [2] | 5,091 | [2] | |
Loss on sale of businesses | 0 | 0 | [2] | 5,854 | [2] | |
Gain on sale and impairment of investments | (12,616) | (2,084) | [2] | (16,749) | [2] | |
(Gain) loss on marketable securities | (11,570) | (587) | [2] | 7,563 | [2] | |
Other | 14,424 | 17,984 | [2] | 0 | [2] | |
Changes in assets and liabilities, net of effects from acquisitions: | ||||||
Accounts receivable | (298,511) | 578,853 | [2] | 2,452 | [2] | |
Inventories | (85,597) | 206,937 | [2] | (67,867) | [2] | |
Prepaid expenses and other | (25,508) | (9,312) | [2] | (33,335) | [2] | |
Other assets | (8,779) | (23,547) | [2] | 2,677 | [2] | |
Accounts payable, trade | 526,781 | (370,765) | [2] | (12,397) | [2] | |
Accrued payrolls and other compensation | 72,412 | (62,715) | [2] | 2,088 | [2] | |
Accrued domestic and foreign taxes | 36,552 | 30,918 | [2] | (30,593) | [2] | |
Other accrued liabilities | 11,397 | (148,531) | [2] | 16,698 | [2] | |
Pensions and other postretirement benefits | 17,875 | 55,522 | [2] | (168,368) | [2] | |
Other liabilities | 46,187 | (53,384) | [2] | (90,647) | [2] | |
Net cash provided by operating activities | 2,575,001 | 2,070,949 | [2] | 1,730,140 | [2] | |
Cash Flows From Investing Activities | ||||||
Acquisitions (net of cash acquired of $82,192 in 2020 and $690 in 2019) | 0 | (5,076,064) | [2] | (2,042) | [2] | |
Capital expenditures | (209,957) | (232,591) | [2] | (195,089) | [2] | |
Proceeds from sale of property, plant and equipment | 140,590 | 26,345 | [2] | 46,592 | [2] | |
Proceeds from sale of businesses | 0 | 0 | [2] | 19,678 | [2] | |
Purchase of marketable securities and other investments | (34,809) | (194,742) | [2] | (181,780) | [2] | |
Maturities and sales of marketable securities and other investments | 79,419 | 275,483 | [2] | 74,908 | [2] | |
Other | 24,744 | 177,576 | [2] | 19,223 | [2] | |
Net cash used in investing activities | (13) | (5,023,993) | [2] | (218,510) | [2] | |
Cash Flows From Financing Activities | ||||||
Proceeds from exercise of stock options | 4,684 | 2,623 | [2] | 2,475 | [2] | |
Payments for common shares | (218,818) | (216,049) | [2] | (860,052) | [2] | |
Acquisition of noncontrolling interests | 0 | (1,200) | [2] | 0 | [2] | |
(Payments of) proceeds from notes payable, net | (723,496) | 136,744 | [2] | 48,828 | [2] | |
Proceeds from long-term borrowings | 1,213 | 1,721,211 | [2] | 2,336,749 | [2] | |
Payments for long-term borrowings | (1,211,748) | (740,181) | [2] | (213,226) | [2] | |
Dividends paid | (475,174) | (453,838) | [2] | (412,468) | [2] | |
Net cash (used in) provided by financing activities | (2,623,339) | 449,310 | [2] | 902,306 | [2] | |
Effect of exchange rate changes on cash | 95,954 | (30,519) | [2] | (16,306) | [2] | |
Net increase (decrease) in cash and cash equivalents | 47,603 | (2,534,253) | [2] | 2,397,630 | [2] | |
Cash and cash equivalents at beginning of year | [2] | 685,514 | 3,219,767 | 822,137 | ||
Cash and cash equivalents at end of year | 733,117 | 685,514 | [2] | 3,219,767 | [2] | |
Cash paid during the year for: | ||||||
Interest | 236,979 | 308,199 | [2] | 169,378 | [2] | |
Income taxes | $ 485,885 | $ 307,959 | [2] | $ 454,699 | [2] | |
[1] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | |||||
[2] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Acquisitions, cash acquired | $ 82,192 | $ 690 |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Thousands | Total | Previously Reported | Inventory accounting method change | Common Stock | Common StockPreviously Reported | Additional Capital | Additional CapitalPreviously Reported | Retained Earnings | Retained EarningsPreviously Reported | [1] | Retained EarningsInventory accounting method change | [1] | Accumulated Other Comprehensive (Loss) | Accumulated Other Comprehensive (Loss)Previously Reported | Treasury Shares | Treasury SharesPreviously Reported | Noncontrolling Interests | Noncontrolling InterestsPreviously Reported | Cumulative Effect, Period of Adoption, Adjustment | [1] | Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings | [1] | Cumulative Effect, Period of Adoption, AdjustmentAccumulated Other Comprehensive (Loss) | ||||||||||
Beginning balance at Jun. 30, 2018 | $ 5,970,953 | [1] | $ 5,865,493 | [1] | $ 105,460 | [1] | $ 90,523 | [1] | $ 90,523 | $ 496,592 | [1] | $ 496,592 | $ 11,731,435 | [1] | $ 11,625,975 | $ 105,460 | $ (1,763,086) | [1] | $ (1,763,086) | $ (4,590,138) | [1] | $ (4,590,138) | $ 5,627 | [1] | $ 5,627 | $ 49,869 | $ 51,603 | $ (1,734) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net income | 1,525,083 | [1],[2] | 1,512,931 | 12,152 | 1,524,516 | [1] | 567 | [1] | |||||||||||||||||||||||||
Other comprehensive (loss) | (294,175) | [1],[2] | (294,228) | 53 | |||||||||||||||||||||||||||||
Dividends paid | (412,468) | [1] | (412,404) | [1] | (64) | ||||||||||||||||||||||||||||
Stock incentive plan activity | 46,501 | [1] | (34,506) | 81,007 | |||||||||||||||||||||||||||||
Shares purchased at cost | (799,999) | [1] | (799,999) | ||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2019 | [1] | 6,085,764 | 90,523 | 462,086 | 12,895,150 | (2,059,048) | (5,309,130) | 6,183 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net income | 1,202,332 | [1],[3] | 1,206,703 | (4,371) | 1,201,970 | [1] | 362 | [1] | |||||||||||||||||||||||||
Other comprehensive (loss) | (500,503) | [1],[2] | (499,827) | (676) | |||||||||||||||||||||||||||||
Dividends paid | (453,838) | [1] | (453,213) | [1] | (625) | ||||||||||||||||||||||||||||
Stock incentive plan activity | 44,716 | [1] | (46,265) | 90,981 | |||||||||||||||||||||||||||||
Acquisition activity | 10,066 | [1] | 764 | 9,302 | |||||||||||||||||||||||||||||
Shares purchased at cost | (146,767) | [1] | (146,767) | ||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2020 | [1] | 6,241,770 | [4] | 90,523 | 416,585 | 13,643,907 | (2,558,875) | (5,364,916) | 14,546 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||
Net income | 1,746,861 | [1] | $ 1,732,873 | $ 13,988 | 1,746,100 | [1] | 761 | ||||||||||||||||||||||||||
Other comprehensive (loss) | 992,868 | [1] | 992,148 | 720 | |||||||||||||||||||||||||||||
Dividends paid | (475,174) | [1] | (474,510) | [1] | (664) | ||||||||||||||||||||||||||||
Stock incentive plan activity | 7,345 | [1] | (86,966) | 94,311 | |||||||||||||||||||||||||||||
Shares purchased at cost | (100,000) | [1] | (100,000) | ||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2021 | $ 8,413,670 | [1] | $ 90,523 | $ 329,619 | $ 14,915,497 | [1] | $ (1,566,727) | $ (5,370,605) | $ 15,363 | ||||||||||||||||||||||||
[1] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | ||||||||||||||||||||||||||||||||
[2] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||
[4] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in USD per share) | $ 3.67 | $ 3.52 | $ 3.16 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Dollars in thousands) 2021 2020* 2019* Net Sales: Diversified Industrial: North America $ 6,676,449 $ 6,456,298 $ 6,808,948 International 5,283,710 4,504,587 5,000,599 Aerospace Systems 2,387,481 2,734,635 2,510,777 $ 14,347,640 $ 13,695,520 $ 14,320,324 Segment Operating Income: Diversified Industrial: North America $ 1,247,419 $ 985,944 $ 1,138,586 International 988,054 674,763 804,890 Aerospace Systems 402,895 476,900 487,757 Total segment operating income 2,638,368 2,137,607 2,431,233 Corporate administration 178,427 170,903 194,994 Income before interest expense and other expense 2,459,941 1,966,704 2,236,239 Interest expense 250,036 308,161 190,138 Other (income) expense (37,052) 151,689 96,626 Income before income taxes $ 2,246,957 $ 1,506,854 $ 1,949,475 Assets: Diversified Industrial $ 16,518,688 $ 15,973,576 $ 13,189,204 Aerospace Systems (a) 3,077,395 3,251,522 1,546,053 Corporate 745,117 662,655 2,996,771 $ 20,341,200 $ 19,887,753 $ 17,732,028 Property Additions: Diversified Industrial $ 186,233 $ 183,981 $ 172,348 Aerospace Systems 20,705 44,546 20,748 Corporate 3,019 4,064 1,993 $ 209,957 $ 232,591 $ 195,089 Depreciation: Diversified Industrial $ 229,891 $ 218,092 $ 203,144 Aerospace Systems 32,151 27,749 16,268 Corporate 7,901 7,058 6,263 $ 269,943 $ 252,899 $ 225,675 Amortization: Diversified Industrial $ 274,368 $ 243,714 $ 196,680 Aerospace Systems 51,079 40,918 3,072 $ 325,447 $ 284,632 $ 199,752 (Dollars in thousands) 2021 2020 2019 By Geographic Area (b) Net Sales: North America $ 9,046,162 $ 9,166,773 $ 9,318,195 International 5,301,478 4,528,747 5,002,129 $ 14,347,640 $ 13,695,520 $ 14,320,324 Long-Lived Assets: North America $ 1,448,109 $ 1,494,858 $ 1,052,263 International 818,367 797,877 716,024 $ 2,266,476 $ 2,292,735 $ 1,768,287 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 (2021 - $219,081; 2020 - $237,911; 2019 - $234,703). (b) 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 property, plant and equipment based on physical location. *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | The term "year" and references to specific years refer to the applicable fiscal years.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. We evaluate 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 42 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 our diverse group of customers throughout the world, we do not consider ourself 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 our products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect our operating results. Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP 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. Change in Accounting Principle - During the fourth quarter of 2021, the Company changed its method of accounting for certain domestic inventory previously valued by the last-in, first-out ("LIFO") method to the first-in, first-out ("FIFO") method. All prior periods presented have been retrospectively adjusted to apply the new method of accounting. Refer to Note 7 for more information on the change in inventory accounting method. 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 - Revenues are recognized when control of performance obligations, which are distinct goods or services within the contract, is transferred to the customer. Control is transferred when the customer has the ability to direct the use of and obtain the benefits from the goods or services. When revenue is recognized at a point in time, control generally transfers at time of shipment. Revenues are recognized over time if the customer simultaneously receives control as the Company performs work under a contract, if the customer controls the asset as it is being produced, or if the product produced for the customer has no alternative use and the Company has a contractual right to payment. For contracts where revenue is recognized over time, we use the cost-to-cost, efforts expended or units of delivery method depending on the nature of the contract, including length of production time. The estimation of these costs and efforts expended requires judgment on the part of management due to the duration of the contractual agreements as well as the technical nature of the products involved. We make adjustments to these estimates on a consistent basis and establish a contract reserve when the estimated costs to complete a contract exceed the expected contract revenues. A contract’s transaction price is allocated to each distinct performance obligation. When there are multiple performance obligations within a contract, the transaction price is allocated to each performance obligation based on its standalone selling price. The primary method used to estimate a standalone selling price is the price observed in standalone sales to customers of the same product or service. Revenue is recognized when control of the individual performance obligations is transferred to the customer. We consider the contractual consideration payable by the customer and assesses variable consideration that may affect the total transaction price. Variable consideration primarily includes prompt pay discounts, rebates and volume discounts and is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained in order to avoid a significant reversal of revenue in a future period. These estimates are based on historical experience, anticipated performance under the terms of the contract and our best judgment at the time. Payment terms vary by customer and the geographic location of the customer. The time between when revenue is recognized and payment is due is not significant. Our contracts with customers generally do not include significant financing components or noncash consideration. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. The costs to obtain a contract where the amortization period for the related asset is one year or less are expensed as incurred. There is generally no unilateral right to return products. The Company primarily offers an assurance-type standard warranty that the product will conform to certain specifications for a defined period of time or usage after delivery. This type of warranty does not represent a separate performance obligation. Cash - Cash equivalents consist of short-term, highly liquid investments with a maturity of three months or less. These investments are carried at cost plus accrued interest and 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, which are carried at cost plus accrued interest. Marketable securities and other investments also include investments in equity securities which are carried at fair value. Changes in fair value related to equity securities are recorded in net income. We have the ability to liquidate these 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. We evaluate the collectibility of our receivables based on historical experience and current and forecasted economic conditions based on management's judgment. Additionally, receivables are written off to bad debt when management makes a final determination of uncollectibility. Allowance for credit losses was $12,078 and $11,644 at June 30, 2021 and 2020, 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, 2021 2020 Notes receivable $ 144,441 $ 97,370 Accounts receivable, other 181,874 147,500 Total $ 326,315 $ 244,870 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 three The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2021 2020 Land and land improvements $ 342,950 $ 345,746 Buildings and building equipment 1,848,141 1,773,041 Machinery and equipment 3,653,566 3,515,842 Construction in progress 195,563 176,052 Total $ 6,040,220 $ 5,810,681 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 $292,217 and $317,975 at June 30, 2021 and 2020, 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 $41,048, $74,517 and $93,239 in 2021, 2020 and 2019, respectively. Intangible Assets - Intangible assets primarily include patents and technology, trademarks and customer lists and contracts and are recorded at cost and amortized on a straight-line method. Patents and technology are amortized over the shorter of their remaining useful or legal life. Trademarks and customer contracts 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. We recognize 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. Income tax effects resulting from adjusting temporary differences recorded in accumulated other comprehensive (loss) are released when the circumstances on which they are based cease to exist. 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 accumulated other comprehensive (loss). Such adjustments will affect net income only upon sale or liquidation of the underlying foreign investments. Exchange (gains) losses 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 $(10,948), $(10,018) and $5,888, in 2021, 2020 and 2019, respectively. Subsequent Events - We 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, 2021. On August 2, 2021, the Company announced that it reached an agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Meggitt plc ("Meggitt") for 800 pence per share (the "Acquisition"), or approximately £6,308 million. We intend to fund the proposed Acquisition with cash and new debt. The proposed Acquisition remains subject to customary closing conditions, including regulatory clearances and approval by Meggitt’s shareholders. In connection with the proposed Acquisition, the Company entered into a bridge credit agreement (the "Bridge Credit Agreement") on August 2, 2021. Under the Bridge Credit Agreement, lenders are committed to provide senior, unsecured financing in the aggregate principal amount of £6,524 million. Any borrowings made under the Bridge Credit Agreement would mature 364 days from the initial funding date. The commitments are intended to be drawn to finance the proposed Acquisition only to the extent that we do not arrange for alternative financing prior to closing. Recent Accounting Pronouncements - In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. We adopted ASU 2016-13 on July 1, 2020. The adoption of this guidance, using the modified retrospective method, did not result in a cumulative-effect adjustment to retained earnings and did not have a material impact on the consolidated financial statements or related disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | Revenue recognition Revenue is derived primarily from the sale of products in a variety of mobile, industrial and aerospace markets. A majority of the Company’s revenues are recognized at a point in time. However, a portion of the Company’s revenues are recognized over time. Disaggregation of revenue Revenue from contracts with customers is disaggregated by technology platforms for the Diversified Industrial Segment, by product platforms for the Aerospace Systems Segment and by geographic location for the total Company. 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. Contracts consist of individual purchase orders for standard product, blanket purchase orders and production contracts. Blanket purchase orders are often associated with individual purchase orders and have terms and conditions which are subject to a master supply or distributor agreement. Individual production contracts, some of which may include multiple performance obligations, are typically for products manufactured to the customer's specifications. Revenue in the Diversified Industrial Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time for installation services or in situations where the product has no alternative use and we have an enforceable right to payment. Diversified Industrial Segment revenues by technology platform: 2021 2020 Motion Systems $ 3,081,366 $ 2,996,645 Flow and Process Control 4,108,080 3,795,952 Filtration and Engineered Materials 4,770,713 4,168,288 Total $ 11,960,159 $ 10,960,885 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. Aerospace Systems Segment products also perform a vital role in naval vessels and land-based weapon systems. Contracts generally consist of blanket purchase orders and individual long-term production contracts. Blanket purchase orders, which have terms and conditions subject to long-term supply agreements, are typically associated with individual purchase orders. Revenue in the Aerospace Systems Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time in situations where the customer controls the asset as it is produced or the product has no alternative use and we have an enforceable right to payment. Aerospace Systems Segment revenues by product platform: 2021 2020 Flight Control Actuation $ 698,877 $ 711,017 Fuel and Inerting 509,687 592,543 Hydraulics 308,835 411,823 Engines 575,804 616,747 Fluid Conveyance 196,348 304,769 Other 97,930 97,736 Total $ 2,387,481 $ 2,734,635 Total revenues by geographic region based on the Company's selling operation's location: 2021 2020 North America $ 9,046,162 $ 9,166,773 Europe 2,919,025 2,596,125 Asia Pacific 2,215,686 1,790,032 Latin America 166,767 142,590 Total $ 14,347,640 $ 13,695,520 The majority of revenues from the Aerospace Systems Segment is generated from sales to customers within North America. Contract balances Contract assets and contract liabilities are reported on a contract-by-contract basis. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. Payments from customers are received based on the terms established in the contract with the customer. Total contract assets and contract liabilities are as follows: 2021 2020 Contract assets, current (included within Prepaid expenses and other) $ 34,190 $ 30,827 Contract assets, noncurrent (included within Investments and other assets) 1,884 1,497 Total contract assets 36,074 32,324 Contract liabilities, current (included within Other accrued liabilities) (51,211) (51,278) Contract liabilities, noncurrent (included within Other liabilities) (3,080) (3,232) Total contract liabilities (54,291) (54,510) Net contract liabilities $ (18,217) $ (22,186) At June 30, 2021, the change in net contract liabilities was primarily due to timing differences between when revenue was recognized and the receipt of advance payments. During 2021, approximately $33 million of revenue was recognized that was included in the contract liabilities at June 30, 2020. Remaining performance obligations Our backlog represents written firm orders from a customer to deliver products and, in the case of blanket purchase orders, only includes the portion of the order for which a schedule or release has been agreed to with the customer. We believe our backlog represents our unsatisfied or partially unsatisfied performance obligations. Backlog at June 30, 2021 was $6,503 million, of which approximately 84 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Acquisitions - On October 29, 2019, we completed the acquisition of a 100 percent equity interest in LORD Corporation ("Lord") for approximately $3,455 million in cash, including the assumption of debt. On September 16, 2019, we completed the acquisition of a 100 percent equity interest in EMFCO Holdings Incorporated, parent company of Exotic Metals Forming Company LLC ("Exotic") for approximately $1,706 million in cash. Lord is a diversified technology and manufacturing company developing highly reliable adhesives and coatings, as well as vibration and motion control technologies, that significantly reduce risk and improve product performance. Lord’s products are used in mission-critical applications in the aerospace, automotive and industrial markets. Lord had annual sales of approximately $1,025 million for its fiscal 2018. For segment reporting purposes, approximately 95 percent of Lord's sales are included in the Diversified Industrial Segment, while the remaining five percent are included in the Aerospace Systems Segment. Lord’s unique and proprietary products, solutions and technologies for mission-critical applications are expected to increase the Company's overall engineered materials product and solutions offerings to enable a stronger value proposition for customers. Exotic designs and manufactures innovative and technically demanding, high temperature, high pressure air and exhaust management solutions for aircraft and engines. Exotic had annual sales of approximately $409 million for its fiscal 2019. For segment reporting purposes, Exotic is included in the Aerospace Systems Segment. We believe Exotic's products and proprietary manufacturing capabilities are complementary to our portfolio of flight control, fuel and inerting, hydraulics, fluid conveyance and engine components. Assets acquired and liabilities assumed are recognized at their respective fair values as of the acquisition date. The process of estimating the fair values of certain tangible assets, identifiable intangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. The following presents the estimated fair values of Lord's and Exotic's assets acquired and liabilities assumed on the respective acquisition dates. These estimates are based on available information and are revised during the measurement period, not to exceed 12 months from the acquisition date, as third-party valuations are finalized, additional information becomes available and as additional analysis is performed. All measurement period adjustments were completed within a year from the acquisition date, and such adjustments did not have a material impact on the Company's results of operations and financial position. The final purchase price allocations for acquisitions in 2020 is as follows: Lord Exotic October 29, 2019 September 16, 2019 Assets: Cash and cash equivalents $ 74,013 $ 8,179 Accounts receivable 153,765 81,336 Inventories 248,600 114,661 Prepaid expenses 24,230 1,343 Property, plant and equipment 409,163 178,393 Deferred income taxes — 2,057 Other assets 41,335 1,226 Intangible assets 1,446,660 874,470 Goodwill 1,970,603 503,725 Total assets acquired 4,368,369 1,765,390 Liabilities: Notes payable and long-term debt payable within one year 156 — Accounts payable, trade 56,186 23,176 Accrued payrolls and other compensation 57,571 8,863 Accrued domestic and foreign taxes 2,898 2,123 Other accrued liabilities 88,394 25,662 Long-term debt 221,161 — Pensions and other postretirement benefits 115,017 — Deferred income taxes 304,445 — Other liabilities 55,832 — Noncontrolling interests 11,266 — Total liabilities and noncontrolling interests assumed 912,926 59,824 Net assets acquired $ 3,455,443 $ 1,705,566 Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the Lord and Exotic acquisitions, goodwill represents cost synergies and enhancements to our existing technologies. For tax purposes, Lord's goodwill is not deductible, and Exotic's goodwill is deductible. Based upon an acquisition valuation, intangibles acquired as part of the Exotic acquisition include $502,470 of customer-related intangible assets, $281,400 of patents and technology and $90,600 of trademarks, with weighted average estimated useful lives of 18, 20 and 20 years, respectively. Similarly, the Lord acquisition includes $869,190 of customer-related intangible assets, $458,030 of patents and technology and $119,440 of trademarks, with weighted average estimated useful lives of 13, 21 and 20 years, respectively. These intangible assets were valued using the income approach, which includes significant assumptions around future revenue growth and discount rates. Such assumptions are classified as level 3 inputs within the fair value hierarchy. Our consolidated financial statements for 2020 include the results of operations of Lord and Exotic from their respective acquisition dates through June 30, 2020. Net sales and segment operating income attributable to these acquisitions during this period and included in our consolidated financial statements totaled $949,066 and $22,330, respectively. Acquisition-related transaction and integration costs totaled $119,214 in 2020. These costs are included in selling, general, and administrative expenses in the Consolidated Statement of Income. |
Business Realignment and Acquis
Business Realignment and Acquisition Integration Charges | 12 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Business Realignment and Acquisition Integration Charges | Business Realignment and Acquisition Integration Charges The Company incurred business realignment and acquisition integration charges in 2021, 2020 and 2019. During 2021, business realignment charges primarily consisted of actions taken to address the impact of COVID-19 on our business. Such charges were also incurred in 2020, especially within the Aerospace Systems Segment. In 2021, 2020, and 2019 business realignment charges included severance costs related to actions taken under the Company's simplification initiative aimed at reducing organizational and process complexity as well as plant closures. The 2019 acquisition integration charges relate to the 2017 acquisition of CLARCOR, Inc. ("Clarcor") and primarily consist of severance costs and expenses related to plant closures and relocations. A majority of the business realignment charges were incurred in North America and Europe. We believe the realignment actions will positively impact future results of operations but will not have a material effect on liquidity and sources and uses of capital. Business realignment and acquisition integration charges presented in the Business Segment Information are as follows: 2021 2020 2019 Diversified Industrial $ 38,557 $ 52,288 $ 27,830 Aerospace Systems 6,680 22,101 — Corporate administration 1,399 1,175 — Other expense 1,226 50 305 Workforce reductions in connection with such business realignment and acquisition integration charges in the Business Segment Information are as follows: 2021 2020 2019 Diversified Industrial 820 2,394 598 Aerospace Systems 327 1,254 — Corporate administration 20 31 — The business realignment and acquisition integration charges are presented in the Consolidated Statement of Income as follows: 2021 2020 2019 Cost of sales $ 33,746 $ 58,791 $ 14,650 Selling, general and administrative expenses 12,890 16,773 13,180 (Gain) loss on disposal of assets 1,226 50 305 As of June 30, 2021, approximately $56 million in severance payments were made relating to business realignment charges. Remaining payments related to current-year and prior-year business realignment actions of approximately $15 million, a majority of which are expected to be paid by June 30, 2022, 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 business realignment and acquisition integration actions described above, the timing and amount of which are not known at this time. We also incurred the following acquisition integration charges related to the Lord and Exotic acquisitions: 2021 2020 Diversified Industrial $ 11,222 $ 20,669 Aerospace Systems 719 1,908 These charges are primarily included in selling, general and administrative expenses within the Consolidated Statement of Income. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Certain amounts below have been adjusted to reflect the retrospective application of our change in inventory accounting method as described in Notes 1 and 7. Income before income taxes was derived from the following sources: 2021 2020 2019 United States $ 1,273,037 $ 828,160 $ 1,140,983 Foreign 973,920 678,694 808,492 $ 2,246,957 $ 1,506,854 $ 1,949,475 Income taxes include the following: 2021 2020 2019 Federal Current $ 247,094 $ 105,796 $ 160,858 Deferred (52,960) 24,905 18,133 Foreign Current 269,607 167,680 206,167 Deferred 8,851 (14,247) 3,202 State and local Current 34,895 18,756 20,932 Deferred (7,391) 1,632 15,100 $ 500,096 $ 304,522 $ 424,392 A reconciliation of the effective income tax rate to the statutory federal rate follows: 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes 1.0 1.4 1.7 Tax related to international activities 3.6 1.8 2.9 Transition tax related to the TCJ Act — (0.7) 0.8 Remeasurement of deferred tax assets and liabilities related to the TCJ Act — — (0.9) Cash surrender value of life insurance (0.6) (0.3) (0.1) Federal manufacturing deduction — — 0.1 Foreign derived intangible income deduction (1.0) (1.5) (1.0) Research tax credit (0.4) (0.6) (0.5) Share-based compensation (1.6) (1.5) (1.7) Other 0.3 0.6 (0.5) Effective income tax rate 22.3 % 20.2 % 21.8 % We made the accounting policy election to treat taxes related to Global Intangible Low-Taxed Income ("GILTI") as a current period expense when incurred. The tax rate impact of GILTI is included with tax related to international activities in the table above. On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, a significant tax-and-spending package intended to provide economic stimulus to address the impact of the COVID-19 pandemic. The CARES Act did not result in a material impact on our effective tax rate. On December 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law. In addition to providing funding for the government, this law provides further COVID-19 economic relief, and extends certain expiring tax provisions. This act did not result in a material impact on our effective tax rate. 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: 2021 2020 Retirement benefits $ 322,931 $ 504,747 Other liabilities and reserves 136,710 139,872 Long-term contracts 5,562 7,392 Stock-based compensation 30,165 35,483 Loss carryforwards 861,013 754,655 Unrealized currency exchange gains and losses 18,841 39,256 Inventory (11,753) (31,081) Tax credit carryforwards 19,709 33,176 Undistributed foreign earnings (21,722) (15,196) Depreciation and amortization (945,422) (988,886) Valuation allowance (865,764) (771,430) Net deferred tax (liability) $ (449,730) $ (292,012) Change in net deferred tax (liability): Provision for deferred tax $ 51,500 $ (12,290) Items of other comprehensive (loss) income (209,509) 102,297 Acquisitions and other 291 (301,690) Total change in net deferred tax $ (157,718) $ (211,683) As of June 30, 2021, we recorded deferred tax assets of $861,013 resulting from $3,473 million in loss carryforwards. A valuation allowance of $841,789 related to the loss carryforwards has been established due to the uncertainty of their realization. Of this valuation allowance, $816,388 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 $23,975 related to other future deductible items has been established due to the uncertainty of their realization. Although future distributions of foreign earnings to the United States should not be subject to U.S. federal income taxes, other U.S. or foreign taxes may be imposed on such earnings. We have analyzed existing factors and determined we will no longer permanently reinvest certain foreign earnings. On these undistributed foreign earnings of approximately $712 million that are no longer permanently reinvested outside of the United States, we have recorded a deferred tax liability of $16 million. The remaining undistributed foreign earnings of approximately $1,609 million remain permanently reinvested outside the United States at June 30, 2021. Of these undistributed earnings, we have recorded a deferred tax liability of $6 million where certain foreign holding companies are not permanently reinvested in their subsidiaries. It is not practicable to estimate the additional taxes, including applicable foreign withholding taxes, that might be payable on the potential distribution of such permanently reinvested foreign earnings. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2021 2020 2019 Balance July 1 $ 86,277 $ 140,662 $ 153,091 Additions for tax positions related to current year 10,145 4,955 2,272 Additions for tax positions of prior years 10,320 798 45 Additions for acquisitions 2,376 43,532 — Reductions for tax positions of prior years (1,996) (41,726) (927) Reductions for settlements (7,165) (53,520) (832) Reductions for expiration of statute of limitations (2,252) (3,820) (9,388) Effect of foreign currency translation 3,054 (4,604) (3,599) Balance June 30 $ 100,759 $ 86,277 $ 140,662 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $100,759, $86,277 and $140,662 as of June 30, 2021, 2020 and 2019, respectively. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, was $17,862, $14,247 and $25,214 as of June 30, 2021, 2020 and 2019, 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 $40,000 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2021 | |
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 equity-based awards. The reconciliation of the numerator and denominator of basic and diluted earnings per share was as follows: 2021 2020* 2019* Numerator: Net income attributable to common shareholders $ 1,746,100 $ 1,201,970 $ 1,524,516 Denominator: Basic - weighted-average common shares 128,999,879 128,418,495 129,997,640 Increase in weighted-average common shares from dilutive effect of equity-based awards 1,834,599 1,386,539 1,783,977 Diluted - weighted-average common shares, assuming exercise of equity-based awards 130,834,478 129,805,034 131,781,617 Basic earnings per share $ 13.54 $ 9.36 $ 11.73 Diluted earnings per share $ 13.35 $ 9.26 $ 11.57 * Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. For 2021, 2020 and 2019, 0.4 million, 0.6 million and 0.9 million common shares, respectively, subject to equity-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, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. During the fourth quarter of 2021, the Company voluntarily changed its method of accounting for certain domestic inventory previously valued by the LIFO method to the FIFO method. The cumulative effect of this change on periods presented prior to 2019 resulted in an increase in Retained earnings of $105,460 at July 1, 2018. The FIFO method of accounting for inventory is preferable because it conforms the Company's entire inventory to a single method of accounting, it aligns the inventory cost flow assumption with the physical flow of goods, and improves comparability within the industry. The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2021 2020* Finished products $ 733,744 $ 703,630 Work in process 1,089,976 988,564 Raw materials 266,922 272,001 Total $ 2,090,642 $ 1,964,195 * Year ended June 30, 2020 amounts have been revised to reflect the change in inventory accounting method, as described above and in Note 1 to the consolidated financial statements. As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying financial statements were adjusted, as follows: 2021 2020 2019 Dollars in thousands, except per share amounts As Computed Under LIFO As Reported Under FIFO Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Statements of Income Cost of sales $ 10,464,495 $ 10,449,680 $ (14,815) $ 10,286,518 $ 10,292,291 $ 5,773 $ 10,703,484 $ 10,688,970 $ (14,514) Income before income taxes 2,232,142 2,246,957 14,815 1,512,627 1,506,854 (5,773) 1,933,425 1,949,475 16,050 Income tax expense 499,269 500,096 827 305,924 304,522 (1,402) 420,494 424,392 3,898 Net income 1,732,873 1,746,861 13,988 1,206,703 1,202,332 (4,371) 1,512,931 1,525,083 12,152 Net income attributable to common shareholders 1,732,112 1,746,100 13,988 1,206,341 1,201,970 (4,371) 1,512,364 1,524,516 12,152 Earnings per share attributable to common shareholders: Basic $ 13.43 $ 13.54 $ 0.11 $ 9.39 $ 9.36 $ (0.03) $ 11.63 $ 11.73 $ 0.10 Diluted $ 13.24 $ 13.35 $ 0.11 $ 9.29 $ 9.26 $ (0.03) $ 11.48 $ 11.57 $ 0.09 Consolidated Statements of Comprehensive Income Net income $ 1,732,873 $ 1,746,861 $ 13,988 $ 1,206,703 $ 1,202,332 $ (4,371) $ 1,512,931 $ 1,525,083 $ 12,152 Net income attributable to common shareholders 1,732,112 1,746,100 13,988 1,206,341 1,201,970 (4,371) 1,512,364 1,524,516 12,152 Total comprehensive income attributable to common shareholders 2,724,260 2,738,248 13,988 706,514 702,143 (4,371) 1,218,136 1,230,288 12,152 2021 2020 2019 Dollars in thousands, except per share amounts As Computed Under LIFO As Reported Under FIFO Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Balance Sheets Inventories $ 1,926,263 $ 2,090,642 $ 164,379 $ 1,814,631 $ 1,964,195 $ 149,564 Deferred income taxes - noncurrent liability 516,831 553,981 37,150 382,528 418,851 36,323 Retained earnings 14,788,268 14,915,497 127,229 13,530,666 13,643,907 113,241 Consolidated Statements of Cash Flows Net income $ 1,732,873 $ 1,746,861 $ 13,988 $ 1,206,703 $ 1,202,332 $ (4,371) $ 1,512,931 $1,525,083 $ 12,152 Deferred income taxes (52,327) (51,500) 827 13,692 12,290 (1,402) 32,537 36,435 3,898 Inventories (70,782) (85,597) (14,815) 201,164 206,937 5,773 (51,817) (67,867) (16,050) The effect of change in inventory in 2020 represents the excess of gross FIFO inventories over the cost of such inventories valued on a LIFO basis of $219,854 less the related excess and obsolete reserve of $70,290. As a result of the retrospective application of this change in accounting principle, the following financial statement line items within the unaudited interim 2021 and 2020 quarterly condensed consolidated financial statements were adjusted, as follows: Three Months Ended (Unaudited) September 30, 2020 December 31, 2020 March 31, 2021 Dollars in thousands, except per share amounts As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Statements of Income Cost of sales $ 2,384,328 $ 2,386,449 $ 2,121 $ 2,519,545 $ 2,518,165 $ (1,380) $ 2,714,773 $ 2,712,785 $ (1,988) Income before income taxes 415,295 413,174 (2,121) 576,512 577,892 1,380 597,352 599,340 1,988 Income tax expense 93,578 93,063 (515) 129,015 129,350 335 125,619 126,101 482 Net income 321,717 320,111 (1,606) 447,497 448,542 1,045 471,733 473,239 1,506 Net income attributable to common shareholders 321,409 319,803 (1,606) 447,306 448,351 1,045 471,647 473,153 1,506 Earnings per share attributable to common shareholders: Basic $ 2.50 $ 2.48 $ (0.02) $ 3.47 $ 3.48 $ 0.01 $ 3.65 $ 3.67 $ 0.02 Diluted $ 2.47 $ 2.45 $ (0.02) $ 3.41 $ 3.42 $ 0.01 $ 3.59 $ 3.60 $ 0.01 Three Months Ended (Unaudited) September 30, 2019 December 31, 2019 March 31, 2020 Dollars in thousands, except per share amounts As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Statements of Income Cost of sales $ 2,479,741 $ 2,480,992 $ 1,251 $ 2,682,765 $2,686,131 $ 3,366 $2,766,693 $2,759,637 $ (7,056) Income before income taxes 433,156 431,905 (1,251) 254,746 251,380 (3,366) 454,157 461,213 7,056 Income tax expense 94,115 93,811 (304) 50,148 49,331 (817) 86,788 88,501 1,713 Net income 339,041 338,094 (947) 204,598 202,049 (2,549) 367,369 372,712 5,343 Net income attributable to common shareholders 338,898 337,951 (947) 204,474 201,925 (2,549) 367,253 372,596 5,343 Earnings per share attributable to common shareholders: Basic $ 2.64 $ 2.63 $ (0.01) $ 1.59 $ 1.57 $ (0.02) $ 2.86 $ 2.90 $ 0.04 Diluted $ 2.60 $ 2.60 $ — $ 1.57 $ 1.55 $ (0.02) $ 2.83 $ 2.87 $ 0.04 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2021 | |
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, 2019 $ 5,355,165 $ 98,640 $ 5,453,805 Acquisitions 1,966,865 503,725 2,470,590 Foreign currency translation and other (54,457) (3) (54,460) Balance June 30, 2020 $ 7,267,573 $ 602,362 $ 7,869,935 Acquisitions 3,738 — 3,738 Foreign currency translation and other 185,998 16 186,014 Balance June 30, 2021 $ 7,457,309 $ 602,378 $ 8,059,687 Acquisitions represent the goodwill allocation during the measurement period subsequent to the applicable acquisition dates. Refer to Note 3 for further discussion. We test goodwill for impairment at the reporting unit level on an annual basis and between annual tests whenever events or circumstances indicate that the carrying value of a reporting unit may exceed its fair value. Our annual impairment tests performed in 2021, 2020 and 2019 resulted in no impairment loss being recognized. We did not identify any events or circumstances during 2021 that required performance of an interim impairment test. Intangible assets are amortized on a straight-line method over their legal or estimated useful lives. The gross carrying value and accumulated amortization for each major category of intangible asset at June 30 are as follows: 2021 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents and technology $ 999,952 $ 216,314 $ 991,596 $ 162,528 Trademarks 762,130 331,905 748,326 285,197 Customer lists and other 3,869,772 1,563,838 3,791,505 1,284,789 Total $ 5,631,854 $ 2,112,057 $ 5,531,427 $ 1,732,514 Total intangible asset amortization expense in 2021, 2020 and 2019 was $325,447, $284,632 and $205,164, respectively. Estimated intangible asset amortization expense for the five years ending June 30, 2022 through 2026 is $319,900, $304,906, $297,945, $287,617 and $282,431, 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 material intangible asset impairments occurred in 2021, 2020 or 2019. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jun. 30, 2021 | |
Financing Arrangements [Abstract] | |
Financing Arrangements | Financing Arrangements The Company has a line of credit totaling $2,500 million through a multi-currency revolving credit agreement with a group of banks, of which $2,500 million was available as of June 30, 2021. The credit agreement expires in September 2024; 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 our credit ratings are lowered. Although a lowering of our credit ratings would likely increase the cost of future debt, it would not limit our 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 $2,500 million of short-term commercial paper notes. There were no commercial paper notes outstanding at June 30, 2021 and $723,500 outstanding at June 30, 2020. The Company had no outstanding borrowings from foreign banks at June 30, 2021 and 2020. The weighted-average interest rate on notes payable during 2021 and 2020 was 0.2 percent and 2.2 percent, respectively. In the ordinary course of business, some of our locations may enter into financial guarantees through financial institutions which enable customers to be reimbursed in the event of nonperformance by the Company. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt June 30, 2021 2020 Domestic: Fixed rate medium-term notes, 3.30% to 6.25%, due 2023 - 2045 $ 2,125,000 $ 2,125,000 Senior Notes, 2.70% to 4.10%, due 2024 - 2049 3,675,000 3,675,000 Term loans, Libor plus 112.5 bps, due 2023 - 2024 — 1,210,313 Foreign: Euro Senior Notes, 1.125%, due 2025 830,060 786,520 Other long-term debt 15,968 12,708 Deferred debt issuance costs (61,156) (71,256) Total long-term debt 6,584,872 7,738,285 Less: Long-term debt payable within one year 2,819 86,029 Long-term debt, net $ 6,582,053 $ 7,652,256 During 2021, we repaid the remaining $890 million and $320 million balances related to the $925 million and $800 million term loans, respectively. Principal amounts of long-term debt payable in the five years ending June 30, 2022 through 2026 are $2,819, $302,396, $576,224, $1,330,535 and $439, respectively. The principal amounts of long-term debt payable exclude the amortization of debt issuance costs. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases We primarily enter into lease agreements for office space, distribution centers, certain manufacturing facilities and equipment. The majority of our leases are operating leases. Finance leases are immaterial to our financial statements. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. Certain leases contain options that provide us with the ability to extend the lease term. Such options are included in the lease term when it is reasonably certain that the option will be exercised. When accounting for leases, we combine payments for leased assets, related services and other components of a lease. Payments within certain lease agreements are adjusted periodically for changes in an index or rate. The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and the currency in which lease payments are made. The components of lease expense are as follows: 2021 2020 Operating lease expense $ 48,171 $ 50,267 Short-term lease cost 7,674 8,566 Variable lease cost 5,835 5,108 Total lease cost $ 61,680 $ 63,941 Supplemental cash flow information related to operating leases are as follows: 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 47,080 $ 48,562 Right-of-use assets obtained in exchange for operating lease obligations 41,637 41,069 Supplemental balance sheet information related to operating leases is as follows: 2021 2020 Operating lease right-of-use assets (included within Investments and other assets) $ 131,880 $ 138,601 Current operating lease liabilities (included within Other accrued liabilities) $ 40,193 $ 43,327 Long-term operating lease liabilities (included within Other liabilities) 93,904 96,446 Total operating lease liabilities $ 134,097 $ 139,773 Weighted average remaining lease term 5.5 years 5.2 years Weighted average discount rate 1.8 % 2.1 % Maturities of lease liabilities at June 30, 2021 are as follows: Operating Leases 2022 $ 42,101 2023 29,349 2024 19,633 2025 15,068 2026 10,700 Thereafter 24,715 Total operating lease payments $ 141,566 Less imputed interest 7,469 Total operating lease liabilities $ 134,097 Rental expense in 2019 was $126,752. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [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. We also have 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. We also sponsor defined contribution plans and participate in government-sponsored programs in certain foreign countries. A summary of the Company's defined benefit pension plans follows: 2021 2020 2019 Benefit cost Service cost $ 84,188 $ 82,743 $ 76,647 Interest cost 102,475 142,479 160,542 Expected return on plan assets (267,579) (266,674) (251,072) Amortization of prior service cost 5,325 5,633 6,655 Amortization of unrecognized actuarial loss 207,897 165,815 121,823 Amortization of transition obligation 18 18 18 Net periodic benefit cost $ 132,324 $ 130,014 $ 114,613 Components of net pension benefit cost, other than service cost, are included in other (income), net in the Consolidated Statement of Income. 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 6,405,623 $ 5,487,574 Service cost 84,188 82,743 Interest cost 102,475 142,479 Acquisition — 380,237 Plan amendments 2,311 3,286 Actuarial (gain) loss (91,719) 569,306 Benefits paid (264,062) (232,048) Foreign currency translation and other 84,187 (27,954) Benefit obligation at end of year $ 6,323,003 $ 6,405,623 Change in plan assets Fair value of plan assets at beginning of year $ 4,594,106 $ 4,244,969 Actual gain on plan assets 831,762 253,684 Acquisition — 280,103 Employer contributions 76,936 72,753 Benefits paid (264,062) (232,048) Foreign currency translation and other 66,835 (25,355) Fair value of plan assets at end of year $ 5,305,577 $ 4,594,106 Funded status $ (1,017,426) $ (1,811,517) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (4,944) $ (1,423) Pensions and other postretirement benefits (1,012,482) (1,810,094) Net amount recognized $ (1,017,426) $ (1,811,517) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 1,090,343 $ 1,921,389 Prior service cost 15,006 17,184 Transition obligation 8 26 Net amount recognized $ 1,105,357 $ 1,938,599 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. At June 30, 2021, the benefit obligation decreased primarily due to slightly higher discount rates, partially offset by updated census data and assumptions. The benefit obligation increased in 2020 upon acquisition of the Lord pension plans. Significant reductions in the discount rates also contributed to the increase in the benefit obligation, which was partially offset by a reduced salary scale and updated mortality assumptions for the domestic qualified defined benefit plan. Investment gains are the primary contributing factor for the increase in plan assets' fair value during 2021. The increase in the plan assets' fair value in 2020 is attributable to the acquisition of the Lord pension plans and investment gains. The accumulated benefit obligation for all defined benefit plans was $6,069 million and $6,102 million at June 30, 2021 and 2020, respectively. Information for pension plans with accumulated benefit obligations in excess of plan assets: 2021 2020 Accumulated benefit obligation $ 5,358,817 $ 6,028,952 Fair value of plan assets 4,546,301 4,503,316 Information for pension plans with projected benefit obligations in excess of plan assets: 2021 2020 Projected benefit obligation $ 5,620,693 $ 6,348,500 Fair value of plan assets 4,568,113 4,523,545 We expect to make cash contributions of approximately $102 million to our defined benefit pension plans in 2022, the majority of which relates to our non-U.S. plans. Estimated future benefit payments in the five years ending June 30, 2022 through 2026 are $303,856, $283,530, $327,149, $302,877 and $305,135, respectively, and $1,644,821 in the aggregate for the five years ending June 30, 2027 through June 30, 2031. The assumptions used to measure net periodic benefit cost for the Company's significant defined benefit plans are: 2021 2020 2019 U.S. defined benefit plan Discount rate 2.36 % 3.28 % 4.01 % Average increase in compensation 2.98 % 3.60 % 3.65 % Expected return on plan assets 6.75 % 7.00 % 7.00 % Non-U.S. defined benefit plans Discount rate 0.2 to 3.03% 0.2 to 2.96% 0.3 to 3.37% Average increase in compensation 1.75 to 4.50% 1.75 to 3.90% 1.75 to 5.50% Expected return on plan assets 1.0 to 5.40% 1.0 to 5.75% 1.0 to 5.75% The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2021 2020 U.S. defined benefit plan Discount rate 2.55 % 2.36 % Average increase in compensation 3.05 % 2.98 % Non-U.S. defined benefit plans Discount rate 0.25 to 2.95% 0.2 to 3.03% Average increase in compensation 1.75 to 4.50% 1.75 to 4.50% 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: 2021 2020 Equity securities 38 % 41 % Debt securities 41 % 49 % Other investments 21 % 10 % 100 % 100 % The weighted-average target asset allocation as of June 30, 2021 is 40 percent equity securities, 43 percent debt securities and 17 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 plan account for approximately 75 percent of our total defined benefit plan assets. The overall investment strategy with respect to our U.S. defined benefit plan is to use a funding strategy more heavily weighted toward liability-hedging assets as the funded status improves. Over time, we will continue to add long duration fixed income investments to the portfolio. These securities are highly correlated with our pension liabilities and will be managed in a liability framework. The fair values of pension plan assets at June 30, 2021 and at June 30, 2020, by asset class, are as follows: June 30, 2021 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 248,525 $ 241,421 $ 7,104 $ — Equity securities U.S. based companies 408,301 408,301 — — Non-U.S. based companies 12,834 12,834 — — Fixed income securities Corporate debt securities 531,497 1,440 530,057 — Government issued securities 151,458 105,167 46,291 — Mutual funds Equity funds 6,768 6,768 — — Fixed income funds 6,506 6,506 — — Mutual funds measured at net asset value 368,340 Common/Collective trusts measured at net asset value 3,161,683 Limited Partnerships measured at net asset value 126,606 Miscellaneous 283,059 — 283,059 — Total at June 30, 2021 $ 5,305,577 $ 782,437 $ 866,511 $ — June 30, 2020 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 97,112 $ 96,004 $ 1,108 $ — Equity securities U.S. based companies 243,656 243,656 — — Non-U.S. based companies 9,152 9,152 — — Fixed income securities Corporate debt securities 616,582 1,477 615,105 — Government issued securities 471,059 379,128 91,931 — Mutual funds Equity funds 111,466 111,466 — — Fixed income funds 12,912 12,912 — — Mutual funds measured at net asset value 259,776 Common/Collective trusts Common/Collective trusts measured at net asset value 2,711,736 Limited Partnerships measured at net asset value 104,760 Miscellaneous (44,105) — (44,105) — Total at June 30, 2020 $ 4,594,106 $ 853,795 $ 664,039 $ — Cash and cash equivalents are valued at cost, which approximates fair value. During 2021, the U.S. defined benefit plan implemented a new liability-hedging initiative that requires the plan to maintain a certain cash balance. At June 30, 2021, this required cash balance totaled approximately $162 million. 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 Parker stock with a fair value of $408,301 and $243,656 as of June 30, 2021 and 2020, respectively. 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 presented in the tables above to permit reconciliation of the fair value hierarchy to total pension plan assets. Redemption of a certain mutual fund is subject to a lock-up period, lasting throughout its duration, scheduled to terminate July 2026. However, this mutual fund may extend its duration up to an additional two years under certain conditions. Common/Collective trusts primarily consist of equity, fixed income and real estate 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 of all common/collective trusts requires no more than a 90-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 presented in the tables above to permit reconciliation of the fair value hierarchy to total pension plan assets. Limited Partnerships' interest in venture capital investments are measured at fair value based on net asset value as determined by the respective fund investment. A certain limited partnership investment, subject to a one year lock-up period expiring June 30, 2022, is restricted to a maximum redemption of 20 percent of its account balance every six months upon a 90-day notification 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 presented in the tables above to permit reconciliation of the fair value hierarchy to total pension plan assets. Miscellaneous primarily includes 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 plan. 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 the investments in the miscellaneous category is to provide a stable rate of return over a specified period of time. Employee Savings Plan - We sponsor an employee stock ownership plan ("ESOP") as part of our legacy 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. 2021 2020 2019 Shares held by ESOP 4,497,902 5,306,643 6,134,280 Company matching contributions $ 66,249 $ 69,434 $ 72,032 In addition to shares within the ESOP, as of June 30, 2021, employees have elected to invest in 1,258,763 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 our legacy savings and investment 401(k) plan. We make a cash contribution to the participant's RIA each year and participants do not contribute to the RIA. Prior to January 1, 2021, the amount of the annual contribution was based on the participant's age and years of service. Beginning January 1, 2021, we amended the RIA ensuring most participants receive a flat three percent annual contribution of eligible compensation with some grandfathered participants receiving annual contribution calculated at a higher percent of eligible compensation. Under the amended RIA, no participant will receive less than the flat three percent contribution. The Company recognized $41,680, $38,387 and $30,603 in expense related to the RIA in 2021, 2020 and 2019, respectively. During 2020, we acquired several defined contribution plans comprised of similar company matching contributions and RIA features as our legacy plan. We recorded additional company matching expense of $4,623 and $4,190 and RIA expense of $5,425 and $7,439, respectively, for these acquired plans in 2021 and 2020. During 2021, these acquired plans were merged into our legacy savings and investment 401(k) plan. 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. We have reserved the right to change these benefit plans. The Company recognized $1,237, $1,551 and $1,838 in expense related to other postretirement benefits in 2021, 2020 and 2019, respectively. Components of net other postretirement benefit cost, other than service cost, are included in other (income), net in the Consolidated Statement of Income. 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 72,130 $ 60,998 Service cost 328 250 Interest cost 983 1,686 Acquisition — 12,638 Actuarial (gain) loss (4,139) 1,276 Benefits paid (5,563) (4,718) Benefit obligation at end of year $ 63,739 $ 72,130 Funded status $ (63,739) $ (72,130) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (5,634) $ (6,374) Pensions and other postretirement benefits (58,105) (65,756) Net amount recognized $ (63,739) $ (72,130) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial gain $ (4,311) $ (173) Prior service credit — (73) Net amount recognized $ (4,311) $ (246) 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 decrease in the benefit obligation in 2021, largely reflected in the net actuarial gain component, is primarily due to a slightly higher discount rate and updated census data and actuarial assumptions. The increase in the benefit obligation in 2020, primarily reflected in the acquisition component, is a result of assuming Lord's postretirement plans. The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2021 2020 2019 Discount rate 2.14 % 3.15 % 3.92 % Current medical cost trend rate (Pre-65 participants) 6.73 % 7.09 % 7.47 % Current medical cost trend rate (Post-65 participants) 7.03 % 7.43 % 7.87 % Ultimate medical cost trend rate 4.50 % 4.50 % 4.50 % Medical cost trend rate decreases to ultimate in year 2028 2028 2026 The discount rate assumption used to measure the benefit obligation was 2.36 percent and 2.14 percent in 2021 and 2020, respectively. Estimated future benefit payments for other postretirement benefits in the five years ending June 30, 2022 through 2026 are $5,634, $5,155, $4,828, $4,540 and $4,317, respectively, and $18,566 in the aggregate for the five years ending June 30, 2027 through June 30, 2031. Other - The Company has established nonqualified deferred compensation programs, which permit officers, directors and certain management employees to annually 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, we maintain a defined contribution nonqualified supplemental executive pension plan in which the Company is the only contributor. During 2021, 2020 and 2019, we recorded expense relating to these programs of $44,906, $5,863 and $5,916, respectively. The Company has invested in corporate-owned life insurance policies to assist in meeting the obligations 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, 2021 | |
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, 2019 $ (1,011,656) $ (1,047,392) $ (2,059,048) Other comprehensive (loss) before reclassifications (182,281) (447,161) (629,442) Amounts reclassified from accumulated other comprehensive (loss) — 129,615 129,615 Balance June 30, 2020 $ (1,193,937) $ (1,364,938) $ (2,558,875) Other comprehensive income before reclassifications 328,072 502,853 830,925 Amounts reclassified from accumulated other comprehensive (loss) — 161,223 161,223 Balance June 30, 2021 $ (865,865) $ (700,862) $ (1,566,727) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2021: 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 $ (5,270) Other (income) expense, net Recognized actuarial loss (207,896) Other (income) expense, net Total before tax (213,166) Tax benefit 51,943 Net of tax $ (161,223) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2020: 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 $ (5,531) Other (income) expense, net Recognized actuarial loss (165,550) Other (income) expense, net Total before tax (171,081) Tax benefit 41,466 Net of tax $ (129,615) 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. In March 2020, the Company suspended the share repurchase program in response to business uncertainty resulting from the COVID-19 pandemic. During 2021, the Company reinitiated the share repurchase program and began repurchasing shares under the program in February 2021. The number of common shares repurchased at the average purchase price follows: 2021 2020 2019 Shares repurchased 331,259 818,581 4,755,273 Average price per share including commissions $ 301.88 $ 179.29 $ 168.23 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans The Company's 2016 Omnibus Stock Incentive Plan ("2016 SIP") 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. On October 23, 2019, the number of shares of common stock authorized for issuance under the 2016 SIP increased to 23.8 million shares. At June 30, 2021, 11.3 million common stock shares were available for future issuance. We satisfy share-based incentive award obligations by issuing shares of common stock out of treasury, which have been repurchased pursuant to our share repurchase program described in Note 13, 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 The fair value of each SAR award granted in 2021, 2020 and 2019 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2021 2020 2019 Risk-free interest rate 0.4 % 1.5 % 2.8 % Expected life of award 5.4 years 5.1 years 5.1 years Expected dividend yield of stock 2.0 % 2.0 % 1.9 % Expected volatility of stock 35.2 % 25.9 % 24.2 % Weighted-average fair value $ 53.92 $ 31.68 $ 35.09 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 our 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 our historical common stock prices over a time-frame similar to the expected life of the award. SAR activity during 2021 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, 2020 5,183,970 $ 132.42 Granted 741,852 $ 209.56 Exercised (1,741,352) $ 116.51 Canceled (35,884) $ 185.29 Outstanding June 30, 2021 4,148,586 $ 152.44 6.3 years $ 641.7 Exercisable June 30, 2021 2,677,757 $ 134.55 5.1 years $ 462.1 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, 2020 1,539,502 $ 32.41 Granted 741,852 $ 53.92 Vested (774,721) $ 32.09 Canceled (35,804) $ 42.50 Nonvested June 30, 2021 1,470,829 $ 43.19 During 2021, 2020 and 2019, we recognized stock-based compensation expense of $35,212, $26,108 and $26,568, 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. At June 30, 2021, $13,089 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 2021, 2020 and 2019 was $24,857, $27,209 and $25,365, respectively. Information related to SAR awards exercised during 2021, 2020 and 2019 is as follows: 2021 2020 2019 Net cash proceeds $ 4,684 $ 2,623 $ 2,475 Intrinsic value 225,025 133,641 95,502 Income tax benefit $ 37,437 $ 21,132 $ 15,584 Number of shares surrendered 316,330 228,986 158,610 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. Nonvested RSUs may not be transferred and do not have dividend or voting rights. For each nonvested 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 2021, 2020 and 2019 was based on the fair market value of our common stock on the date of grant. A summary of the status and changes of shares subject to RSU awards for employees and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2020 350,573 $ 160.66 Granted 137,488 $ 218.17 Vested (130,121) $ 161.75 Canceled (8,354) $ 188.20 Nonvested June 30, 2021 349,586 $ 182.22 During 2021, 2020 and 2019, we recognized stock-based compensation expense of $26,009, $25,560 and $25,258, respectively, relating to RSU awards for employees. At June 30, 2021, $20,543 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 20 months. The total fair value of RSU awards vested during 2021, 2020 and 2019 was $21,048, $23,380 and $20,475, respectively. We recognized an income tax benefit of $796, $1,037 and $1,548 relating to the issuance of common stock for RSU awards that vested during 2021, 2020 and 2019, respectively. Additionally, we granted RSUs with a one-year vesting period to non-employee members of the Board of Directors. Recipients receive a dividend equivalent payable in common shares, equal to the cash dividend per share paid to common shareholders. A summary of the status and changes of shares subject to Board of Directors RSU awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2020 8,262 $ 187.49 Granted 8,122 $ 214.46 Vested (8,298) $ 187.49 Canceled (610) $ 203.23 Nonvested June 30, 2021 7,476 $ 215.51 The fair value of each RSU award granted to the Board of Directors in 2021, 2020 and 2019 was based on the fair market value of our common stock on the date of grant. In 2021, 2020 and 2019, we recognized stock-based compensation expense of $1,458, $1,434, and $1,345, respectively, relating to these awards. During 2021, 2020 and 2019, we recognized an income tax benefit (cost) of $2,115, $86 and $(82), respectively, related to the vesting of Board of Directors RSU awards. At June 30, 2021, $649 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 five months. 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 our revenue growth, earnings per share growth and return on invested capital during the three-year performance period. Stock issued and surrendered for LTIP 2021 2020 2019 LTIP three-year plan 2018-19-20 2017-18-19 2016-17-18 Number of shares issued 210,864 279,469 293,136 Number of shares surrendered 105,402 132,449 134,169 Share value on date of issuance $ 317.60 $ 134.95 $ 183.00 Total value of shares issued $ 66,970 $ 37,714 $ 53,644 Under the Company's 2019-20-21 LTIP, a payout of unrestricted stock will be issued in April 2022. The fair value of each LTIP award granted in 2021, 2020 and 2019 was based on the fair market value of our common stock on the date of grant. These nonvested LTIP awards entitle participants to earn a dividend equivalent unit, payable in common shares, equal to the cash dividend per share paid to common shareholders. These dividend equivalent units do not have dividend or voting rights and are subject to the same performance goals as the initial award granted. 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, 2020 539,059 $ 186.75 Granted 141,122 $ 242.80 Vested (173,582) $ 208.83 Canceled (11,548) $ 199.95 Nonvested June 30, 2021 495,051 $ 194.68 During 2021, 2020 and 2019, we recorded stock-based compensation expense of $58,804, $58,273 and $50,908, respectively, relating to the LTIP. During 2021, 2020 and 2019, we recognized an income tax benefit (cost) of $1,974, $(1,251) and $14,101, respectively, relating to the LTIP. |
Research and Development
Research and Development | 12 Months Ended |
Jun. 30, 2021 | |
Research and Development [Abstract] | |
Research and Development | Research and DevelopmentResearch and development costs amounted to $259,039 in 2021, $293,837 in 2020 and $294,852 in 2019. 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 $54,051 in 2021, $56,964 in 2020 and $44,484 in 2019. 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, 2021 | |
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 and equity investments. Deposits are recorded at cost, and equity investments are recorded at fair value. Changes in fair value of equity investments are recognized in net income. The carrying value of long-term debt, which excludes the impact of net unamortized debt issuance costs, and estimated fair value of long-term debt at June 30 are as follows: 2021 2020 Carrying value of long-term debt $ 6,646,029 $ 7,809,541 Estimated fair value of long-term debt 7,527,268 8,574,401 The fair value of long-term debt 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 €700 million aggregate principal amount of Senior Notes due 2025 have been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Senior Notes due 2025 into U.S. dollars is recorded in accumulated other comprehensive (loss) and remains there until the underlying net investment is sold or substantially liquidated. During 2020, we settled the cross-currency swap with an aggregate notional amount of €235 million, which was designated as a net investment hedge, for proceeds of $44 million. These proceeds are included in cash flows from investing activities in the Consolidated Statement of Cash Flows. Additionally, we entered into two cross-currency swaps with aggregate notional amounts of €359 million and ¥2,149 million due June 2029. These cross-currency swaps have been designated as hedges of net investments in certain foreign subsidiaries. During 2021, we amended the two cross-currency swaps with aggregate notional amounts of €359 million and ¥2,149 million due June 2029 to cross-currency swaps with aggregate notional amounts of €69 million due November 2034, €290 million due May 2038 and ¥2,149 million due November 2034. These cross-currency swaps are each subject to a credit support annex ("CSA") where either party is obligated to post collateral if the outstanding position exceeds a certain threshold governed by the CSA's starting in June 2029. These cross-currency swaps have been designated as hedges of net investments in certain foreign subsidiaries. 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 on the Consolidated Balance Sheet are as follows: Balance Sheet Caption 2021 2020 Net investment hedges Cross-currency swap contracts Other liabilities $ 71,798 $ 30,860 Cash flow hedges Forward exchange contracts Non-trade and notes receivable 5,376 5,311 Forward exchange contracts Other accrued liabilities 9,435 3,474 Costless collar contracts Non-trade and notes receivable 110 2,250 Costless collar contracts Other accrued liabilities 901 661 The cross-currency swap, forward exchange contracts 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. The cross-currency swap contracts have been designated as hedging instruments. The forward exchange and costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. Derivatives not designated as hedges are adjusted to fair value by recording gains and losses through the cost of sales caption in the Consolidated Statement of Income. Derivatives designated as hedges are adjusted to fair value by recording gains and losses through accumulated other comprehensive (loss) on the Consolidated Balance Sheet until the hedged item is recognized in earnings. We elected to assess the effectiveness of the €69 million, €290 million and ¥2,149 million cross-currency swap hedging instruments using the spot method. Under this method, the periodic interest settlements are recognized directly in earnings through interest expense. Net gains (losses) of $16 million and $(27) million relating to forward exchange contracts were recorded within cost of sales on the Consolidated Statement of Income for the year ended June 30, 2021 and 2020, respectively. All other gains or losses on derivative financial instruments that were recorded in the Consolidated Statement of Income during 2021, 2020 and 2019 were not material. (Losses) gains on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: 2021 2020 Cross-currency swap contracts $ (31,988) $ (9,435) Foreign denominated debt (32,882) 7,205 During 2021 and 2020, the periodic interest settlements related to the cross-currency swaps were not material. No portion of these financial instruments were excluded from the effectiveness testing during 2019. A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2021 and 2020 are as follows: June 30, 2021 Quoted Prices In Significant Other Significant Assets: Equity securities $ 20,517 $ 20,517 $ — $ — Derivatives 5,486 — 5,486 — Liabilities: Derivatives 82,134 — 82,134 — June 30, 2020 Quoted Prices In Significant Other Significant Assets: Equity securities $ 7,901 $ 7,901 $ — $ — Derivatives 7,561 — 7,561 — Liabilities: Derivatives 34,995 — 34,995 — The fair values of the equity securities are determined using the closing market price reported in the active market in which the fund is traded. 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. 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. |
Contingencies
Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe 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. We are 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 our 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, 2021, we had an accrual of $17,059 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 our liability in proportion to other responsible parties. Our estimated total liability for environmental matters ranges from a minimum of $17.1 million to a maximum of $73.5 million. The largest range for any one site is approximately $11.4 million. The actual costs we will incur are 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. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED JUNE 30, 2019, 2020 AND 2021 (Dollars in Thousands) Column A Column B Column C Column D Column E Description Balance at Additions Other Balance Allowance for credit losses: Year ended June 30, 2019 $ 9,672 $ 2,034 $ (2,832) $ 8,874 Year ended June 30, 2020 $ 8,874 $ 4,860 $ (2,090) $ 11,644 Year ended June 30, 2021 $ 11,644 $ 4,673 $ (4,239) $ 12,078 Deferred tax asset valuation allowance: Year ended June 30, 2019 $ 694,857 $ 102,835 $ — $ 797,692 Year ended June 30, 2020 $ 797,692 $ (42,217) $ 15,955 $ 771,430 Year ended June 30, 2021 $ 771,430 $ 94,781 $ (447) $ 865,764 (A) For allowance for credit losses, net balance is comprised of deductions due to divestitures or 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 Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
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. We evaluate 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 42 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 our diverse group of customers throughout the world, we do not consider ourself 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 our products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect our operating results. |
Use of Estimates | Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP 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 - Revenues are recognized when control of performance obligations, which are distinct goods or services within the contract, is transferred to the customer. Control is transferred when the customer has the ability to direct the use of and obtain the benefits from the goods or services. When revenue is recognized at a point in time, control generally transfers at time of shipment. Revenues are recognized over time if the customer simultaneously receives control as the Company performs work under a contract, if the customer controls the asset as it is being produced, or if the product produced for the customer has no alternative use and the Company has a contractual right to payment. For contracts where revenue is recognized over time, we use the cost-to-cost, efforts expended or units of delivery method depending on the nature of the contract, including length of production time. The estimation of these costs and efforts expended requires judgment on the part of management due to the duration of the contractual agreements as well as the technical nature of the products involved. We make adjustments to these estimates on a consistent basis and establish a contract reserve when the estimated costs to complete a contract exceed the expected contract revenues. A contract’s transaction price is allocated to each distinct performance obligation. When there are multiple performance obligations within a contract, the transaction price is allocated to each performance obligation based on its standalone selling price. The primary method used to estimate a standalone selling price is the price observed in standalone sales to customers of the same product or service. Revenue is recognized when control of the individual performance obligations is transferred to the customer. We consider the contractual consideration payable by the customer and assesses variable consideration that may affect the total transaction price. Variable consideration primarily includes prompt pay discounts, rebates and volume discounts and is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained in order to avoid a significant reversal of revenue in a future period. These estimates are based on historical experience, anticipated performance under the terms of the contract and our best judgment at the time. Payment terms vary by customer and the geographic location of the customer. The time between when revenue is recognized and payment is due is not significant. Our contracts with customers generally do not include significant financing components or noncash consideration. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. The costs to obtain a contract where the amortization period for the related asset is one year or less are expensed as incurred. There is generally no unilateral right to return products. The Company primarily offers an assurance-type standard warranty that the product will conform to certain specifications for a defined period of time or usage after delivery. This type of warranty does not represent a separate performance obligation. |
Cash | Cash - Cash equivalents consist of short-term, highly liquid investments with a maturity of three months or less. These investments are carried at cost plus accrued interest and 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, which are carried at cost plus accrued interest. Marketable securities and other investments also include investments in equity securities which are carried at fair value. Changes in fair value related to equity securities are recorded in net income. We have the ability to liquidate these 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. We evaluate the collectibility of our receivables based on historical experience and current and forecasted economic conditions based on management's judgment. Additionally, receivables are written off to bad debt when management makes a final determination of uncollectibility. |
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 three |
Investments and Other Assets | Investments and Other Assets - |
Intangible Assets | Intangible Assets - Intangible assets primarily include patents and technology, trademarks and customer lists and contracts and are recorded at cost and amortized on a straight-line method. Patents and technology are amortized over the shorter of their remaining useful or legal life. Trademarks and customer contracts 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. We recognize 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. Income tax effects resulting from adjusting temporary differences recorded in accumulated other comprehensive (loss) are released when the circumstances on which they are based cease to exist. |
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 accumulated other comprehensive (loss). Such adjustments will affect net income only upon sale or liquidation of the underlying foreign investments. Exchange (gains) losses 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 $(10,948), $(10,018) and $5,888, in 2021, 2020 and 2019, respectively. |
Subsequent Events | Subsequent Events - We 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, 2021. On August 2, 2021, the Company announced that it reached an agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Meggitt plc ("Meggitt") for 800 pence per share (the "Acquisition"), or approximately £6,308 million. We intend to fund the proposed Acquisition with cash and new debt. The proposed Acquisition remains subject to customary closing conditions, including regulatory clearances and approval by Meggitt’s shareholders. In connection with the proposed Acquisition, the Company entered into a bridge credit agreement (the "Bridge Credit Agreement") on August 2, 2021. Under the Bridge Credit Agreement, lenders are committed to provide senior, unsecured financing in the aggregate principal amount of £6,524 million. Any borrowings made under the Bridge Credit Agreement would mature 364 days from the initial funding date. The commitments are intended to be drawn to finance the proposed Acquisition only to the extent that we do not arrange for alternative financing prior to closing. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. We adopted ASU 2016-13 on July 1, 2020. The adoption of this guidance, using the modified retrospective method, did not result in a cumulative-effect adjustment to retained earnings and did not have a material impact on the consolidated financial statements or related disclosures. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business segment information | (Dollars in thousands) 2021 2020* 2019* Net Sales: Diversified Industrial: North America $ 6,676,449 $ 6,456,298 $ 6,808,948 International 5,283,710 4,504,587 5,000,599 Aerospace Systems 2,387,481 2,734,635 2,510,777 $ 14,347,640 $ 13,695,520 $ 14,320,324 Segment Operating Income: Diversified Industrial: North America $ 1,247,419 $ 985,944 $ 1,138,586 International 988,054 674,763 804,890 Aerospace Systems 402,895 476,900 487,757 Total segment operating income 2,638,368 2,137,607 2,431,233 Corporate administration 178,427 170,903 194,994 Income before interest expense and other expense 2,459,941 1,966,704 2,236,239 Interest expense 250,036 308,161 190,138 Other (income) expense (37,052) 151,689 96,626 Income before income taxes $ 2,246,957 $ 1,506,854 $ 1,949,475 Assets: Diversified Industrial $ 16,518,688 $ 15,973,576 $ 13,189,204 Aerospace Systems (a) 3,077,395 3,251,522 1,546,053 Corporate 745,117 662,655 2,996,771 $ 20,341,200 $ 19,887,753 $ 17,732,028 Property Additions: Diversified Industrial $ 186,233 $ 183,981 $ 172,348 Aerospace Systems 20,705 44,546 20,748 Corporate 3,019 4,064 1,993 $ 209,957 $ 232,591 $ 195,089 Depreciation: Diversified Industrial $ 229,891 $ 218,092 $ 203,144 Aerospace Systems 32,151 27,749 16,268 Corporate 7,901 7,058 6,263 $ 269,943 $ 252,899 $ 225,675 Amortization: Diversified Industrial $ 274,368 $ 243,714 $ 196,680 Aerospace Systems 51,079 40,918 3,072 $ 325,447 $ 284,632 $ 199,752 (Dollars in thousands) 2021 2020 2019 By Geographic Area (b) Net Sales: North America $ 9,046,162 $ 9,166,773 $ 9,318,195 International 5,301,478 4,528,747 5,002,129 $ 14,347,640 $ 13,695,520 $ 14,320,324 Long-Lived Assets: North America $ 1,448,109 $ 1,494,858 $ 1,052,263 International 818,367 797,877 716,024 $ 2,266,476 $ 2,292,735 $ 1,768,287 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 (2021 - $219,081; 2020 - $237,911; 2019 - $234,703). (b) 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 property, plant and equipment based on physical location. *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Notes receivable $ 144,441 $ 97,370 Accounts receivable, other 181,874 147,500 Total $ 326,315 $ 244,870 |
Plant and equipment | The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2021 2020 Land and land improvements $ 342,950 $ 345,746 Buildings and building equipment 1,848,141 1,773,041 Machinery and equipment 3,653,566 3,515,842 Construction in progress 195,563 176,052 Total $ 6,040,220 $ 5,810,681 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Diversified Industrial Segment revenues by technology platform: 2021 2020 Motion Systems $ 3,081,366 $ 2,996,645 Flow and Process Control 4,108,080 3,795,952 Filtration and Engineered Materials 4,770,713 4,168,288 Total $ 11,960,159 $ 10,960,885 Aerospace Systems Segment revenues by product platform: 2021 2020 Flight Control Actuation $ 698,877 $ 711,017 Fuel and Inerting 509,687 592,543 Hydraulics 308,835 411,823 Engines 575,804 616,747 Fluid Conveyance 196,348 304,769 Other 97,930 97,736 Total $ 2,387,481 $ 2,734,635 Total revenues by geographic region based on the Company's selling operation's location: 2021 2020 North America $ 9,046,162 $ 9,166,773 Europe 2,919,025 2,596,125 Asia Pacific 2,215,686 1,790,032 Latin America 166,767 142,590 Total $ 14,347,640 $ 13,695,520 |
Contract assets and liabilities | Total contract assets and contract liabilities are as follows: 2021 2020 Contract assets, current (included within Prepaid expenses and other) $ 34,190 $ 30,827 Contract assets, noncurrent (included within Investments and other assets) 1,884 1,497 Total contract assets 36,074 32,324 Contract liabilities, current (included within Other accrued liabilities) (51,211) (51,278) Contract liabilities, noncurrent (included within Other liabilities) (3,080) (3,232) Total contract liabilities (54,291) (54,510) Net contract liabilities $ (18,217) $ (22,186) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Purchase price allocation | The final purchase price allocations for acquisitions in 2020 is as follows: Lord Exotic October 29, 2019 September 16, 2019 Assets: Cash and cash equivalents $ 74,013 $ 8,179 Accounts receivable 153,765 81,336 Inventories 248,600 114,661 Prepaid expenses 24,230 1,343 Property, plant and equipment 409,163 178,393 Deferred income taxes — 2,057 Other assets 41,335 1,226 Intangible assets 1,446,660 874,470 Goodwill 1,970,603 503,725 Total assets acquired 4,368,369 1,765,390 Liabilities: Notes payable and long-term debt payable within one year 156 — Accounts payable, trade 56,186 23,176 Accrued payrolls and other compensation 57,571 8,863 Accrued domestic and foreign taxes 2,898 2,123 Other accrued liabilities 88,394 25,662 Long-term debt 221,161 — Pensions and other postretirement benefits 115,017 — Deferred income taxes 304,445 — Other liabilities 55,832 — Noncontrolling interests 11,266 — Total liabilities and noncontrolling interests assumed 912,926 59,824 Net assets acquired $ 3,455,443 $ 1,705,566 |
Business Realignment and Acqu_2
Business Realignment and Acquisition Integration Charges (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Business realignment charges, acquisition integration charges and workforce reductions | Business realignment and acquisition integration charges presented in the Business Segment Information are as follows: 2021 2020 2019 Diversified Industrial $ 38,557 $ 52,288 $ 27,830 Aerospace Systems 6,680 22,101 — Corporate administration 1,399 1,175 — Other expense 1,226 50 305 Workforce reductions in connection with such business realignment and acquisition integration charges in the Business Segment Information are as follows: 2021 2020 2019 Diversified Industrial 820 2,394 598 Aerospace Systems 327 1,254 — Corporate administration 20 31 — The business realignment and acquisition integration charges are presented in the Consolidated Statement of Income as follows: 2021 2020 2019 Cost of sales $ 33,746 $ 58,791 $ 14,650 Selling, general and administrative expenses 12,890 16,773 13,180 (Gain) loss on disposal of assets 1,226 50 305 We also incurred the following acquisition integration charges related to the Lord and Exotic acquisitions: 2021 2020 Diversified Industrial $ 11,222 $ 20,669 Aerospace Systems 719 1,908 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes | Income before income taxes was derived from the following sources: 2021 2020 2019 United States $ 1,273,037 $ 828,160 $ 1,140,983 Foreign 973,920 678,694 808,492 $ 2,246,957 $ 1,506,854 $ 1,949,475 |
Income taxes | Income taxes include the following: 2021 2020 2019 Federal Current $ 247,094 $ 105,796 $ 160,858 Deferred (52,960) 24,905 18,133 Foreign Current 269,607 167,680 206,167 Deferred 8,851 (14,247) 3,202 State and local Current 34,895 18,756 20,932 Deferred (7,391) 1,632 15,100 $ 500,096 $ 304,522 $ 424,392 |
Effective income tax rate reconciliation to statutory federal rate | A reconciliation of the effective income tax rate to the statutory federal rate follows: 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes 1.0 1.4 1.7 Tax related to international activities 3.6 1.8 2.9 Transition tax related to the TCJ Act — (0.7) 0.8 Remeasurement of deferred tax assets and liabilities related to the TCJ Act — — (0.9) Cash surrender value of life insurance (0.6) (0.3) (0.1) Federal manufacturing deduction — — 0.1 Foreign derived intangible income deduction (1.0) (1.5) (1.0) Research tax credit (0.4) (0.6) (0.5) Share-based compensation (1.6) (1.5) (1.7) Other 0.3 0.6 (0.5) Effective income tax rate 22.3 % 20.2 % 21.8 % |
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: 2021 2020 Retirement benefits $ 322,931 $ 504,747 Other liabilities and reserves 136,710 139,872 Long-term contracts 5,562 7,392 Stock-based compensation 30,165 35,483 Loss carryforwards 861,013 754,655 Unrealized currency exchange gains and losses 18,841 39,256 Inventory (11,753) (31,081) Tax credit carryforwards 19,709 33,176 Undistributed foreign earnings (21,722) (15,196) Depreciation and amortization (945,422) (988,886) Valuation allowance (865,764) (771,430) Net deferred tax (liability) $ (449,730) $ (292,012) Change in net deferred tax (liability): Provision for deferred tax $ 51,500 $ (12,290) Items of other comprehensive (loss) income (209,509) 102,297 Acquisitions and other 291 (301,690) Total change in net deferred tax $ (157,718) $ (211,683) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2021 2020 2019 Balance July 1 $ 86,277 $ 140,662 $ 153,091 Additions for tax positions related to current year 10,145 4,955 2,272 Additions for tax positions of prior years 10,320 798 45 Additions for acquisitions 2,376 43,532 — Reductions for tax positions of prior years (1,996) (41,726) (927) Reductions for settlements (7,165) (53,520) (832) Reductions for expiration of statute of limitations (2,252) (3,820) (9,388) Effect of foreign currency translation 3,054 (4,604) (3,599) Balance June 30 $ 100,759 $ 86,277 $ 140,662 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerator and denominator of basic and diluted earnings per share | The reconciliation of the numerator and denominator of basic and diluted earnings per share was as follows: 2021 2020* 2019* Numerator: Net income attributable to common shareholders $ 1,746,100 $ 1,201,970 $ 1,524,516 Denominator: Basic - weighted-average common shares 128,999,879 128,418,495 129,997,640 Increase in weighted-average common shares from dilutive effect of equity-based awards 1,834,599 1,386,539 1,783,977 Diluted - weighted-average common shares, assuming exercise of equity-based awards 130,834,478 129,805,034 131,781,617 Basic earnings per share $ 13.54 $ 9.36 $ 11.73 Diluted earnings per share $ 13.35 $ 9.26 $ 11.57 * Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory components | The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2021 2020* Finished products $ 733,744 $ 703,630 Work in process 1,089,976 988,564 Raw materials 266,922 272,001 Total $ 2,090,642 $ 1,964,195 * Year ended June 30, 2020 amounts have been revised to reflect the change in inventory accounting method, as described above and in Note 1 to the consolidated financial statements. |
Financial statements line item adjusted due to change in accounting method | As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying financial statements were adjusted, as follows: 2021 2020 2019 Dollars in thousands, except per share amounts As Computed Under LIFO As Reported Under FIFO Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Statements of Income Cost of sales $ 10,464,495 $ 10,449,680 $ (14,815) $ 10,286,518 $ 10,292,291 $ 5,773 $ 10,703,484 $ 10,688,970 $ (14,514) Income before income taxes 2,232,142 2,246,957 14,815 1,512,627 1,506,854 (5,773) 1,933,425 1,949,475 16,050 Income tax expense 499,269 500,096 827 305,924 304,522 (1,402) 420,494 424,392 3,898 Net income 1,732,873 1,746,861 13,988 1,206,703 1,202,332 (4,371) 1,512,931 1,525,083 12,152 Net income attributable to common shareholders 1,732,112 1,746,100 13,988 1,206,341 1,201,970 (4,371) 1,512,364 1,524,516 12,152 Earnings per share attributable to common shareholders: Basic $ 13.43 $ 13.54 $ 0.11 $ 9.39 $ 9.36 $ (0.03) $ 11.63 $ 11.73 $ 0.10 Diluted $ 13.24 $ 13.35 $ 0.11 $ 9.29 $ 9.26 $ (0.03) $ 11.48 $ 11.57 $ 0.09 Consolidated Statements of Comprehensive Income Net income $ 1,732,873 $ 1,746,861 $ 13,988 $ 1,206,703 $ 1,202,332 $ (4,371) $ 1,512,931 $ 1,525,083 $ 12,152 Net income attributable to common shareholders 1,732,112 1,746,100 13,988 1,206,341 1,201,970 (4,371) 1,512,364 1,524,516 12,152 Total comprehensive income attributable to common shareholders 2,724,260 2,738,248 13,988 706,514 702,143 (4,371) 1,218,136 1,230,288 12,152 2021 2020 2019 Dollars in thousands, except per share amounts As Computed Under LIFO As Reported Under FIFO Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Balance Sheets Inventories $ 1,926,263 $ 2,090,642 $ 164,379 $ 1,814,631 $ 1,964,195 $ 149,564 Deferred income taxes - noncurrent liability 516,831 553,981 37,150 382,528 418,851 36,323 Retained earnings 14,788,268 14,915,497 127,229 13,530,666 13,643,907 113,241 Consolidated Statements of Cash Flows Net income $ 1,732,873 $ 1,746,861 $ 13,988 $ 1,206,703 $ 1,202,332 $ (4,371) $ 1,512,931 $1,525,083 $ 12,152 Deferred income taxes (52,327) (51,500) 827 13,692 12,290 (1,402) 32,537 36,435 3,898 Inventories (70,782) (85,597) (14,815) 201,164 206,937 5,773 (51,817) (67,867) (16,050) The effect of change in inventory in 2020 represents the excess of gross FIFO inventories over the cost of such inventories valued on a LIFO basis of $219,854 less the related excess and obsolete reserve of $70,290. As a result of the retrospective application of this change in accounting principle, the following financial statement line items within the unaudited interim 2021 and 2020 quarterly condensed consolidated financial statements were adjusted, as follows: Three Months Ended (Unaudited) September 30, 2020 December 31, 2020 March 31, 2021 Dollars in thousands, except per share amounts As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Statements of Income Cost of sales $ 2,384,328 $ 2,386,449 $ 2,121 $ 2,519,545 $ 2,518,165 $ (1,380) $ 2,714,773 $ 2,712,785 $ (1,988) Income before income taxes 415,295 413,174 (2,121) 576,512 577,892 1,380 597,352 599,340 1,988 Income tax expense 93,578 93,063 (515) 129,015 129,350 335 125,619 126,101 482 Net income 321,717 320,111 (1,606) 447,497 448,542 1,045 471,733 473,239 1,506 Net income attributable to common shareholders 321,409 319,803 (1,606) 447,306 448,351 1,045 471,647 473,153 1,506 Earnings per share attributable to common shareholders: Basic $ 2.50 $ 2.48 $ (0.02) $ 3.47 $ 3.48 $ 0.01 $ 3.65 $ 3.67 $ 0.02 Diluted $ 2.47 $ 2.45 $ (0.02) $ 3.41 $ 3.42 $ 0.01 $ 3.59 $ 3.60 $ 0.01 Three Months Ended (Unaudited) September 30, 2019 December 31, 2019 March 31, 2020 Dollars in thousands, except per share amounts As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change As Reported Adjusted Effect of Change Consolidated Statements of Income Cost of sales $ 2,479,741 $ 2,480,992 $ 1,251 $ 2,682,765 $2,686,131 $ 3,366 $2,766,693 $2,759,637 $ (7,056) Income before income taxes 433,156 431,905 (1,251) 254,746 251,380 (3,366) 454,157 461,213 7,056 Income tax expense 94,115 93,811 (304) 50,148 49,331 (817) 86,788 88,501 1,713 Net income 339,041 338,094 (947) 204,598 202,049 (2,549) 367,369 372,712 5,343 Net income attributable to common shareholders 338,898 337,951 (947) 204,474 201,925 (2,549) 367,253 372,596 5,343 Earnings per share attributable to common shareholders: Basic $ 2.64 $ 2.63 $ (0.01) $ 1.59 $ 1.57 $ (0.02) $ 2.86 $ 2.90 $ 0.04 Diluted $ 2.60 $ 2.60 $ — $ 1.57 $ 1.55 $ (0.02) $ 2.83 $ 2.87 $ 0.04 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
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, 2019 $ 5,355,165 $ 98,640 $ 5,453,805 Acquisitions 1,966,865 503,725 2,470,590 Foreign currency translation and other (54,457) (3) (54,460) Balance June 30, 2020 $ 7,267,573 $ 602,362 $ 7,869,935 Acquisitions 3,738 — 3,738 Foreign currency translation and other 185,998 16 186,014 Balance June 30, 2021 $ 7,457,309 $ 602,378 $ 8,059,687 |
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: 2021 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents and technology $ 999,952 $ 216,314 $ 991,596 $ 162,528 Trademarks 762,130 331,905 748,326 285,197 Customer lists and other 3,869,772 1,563,838 3,791,505 1,284,789 Total $ 5,631,854 $ 2,112,057 $ 5,531,427 $ 1,732,514 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | June 30, 2021 2020 Domestic: Fixed rate medium-term notes, 3.30% to 6.25%, due 2023 - 2045 $ 2,125,000 $ 2,125,000 Senior Notes, 2.70% to 4.10%, due 2024 - 2049 3,675,000 3,675,000 Term loans, Libor plus 112.5 bps, due 2023 - 2024 — 1,210,313 Foreign: Euro Senior Notes, 1.125%, due 2025 830,060 786,520 Other long-term debt 15,968 12,708 Deferred debt issuance costs (61,156) (71,256) Total long-term debt 6,584,872 7,738,285 Less: Long-term debt payable within one year 2,819 86,029 Long-term debt, net $ 6,582,053 $ 7,652,256 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease expense and supplemental cash flow information | The components of lease expense are as follows: 2021 2020 Operating lease expense $ 48,171 $ 50,267 Short-term lease cost 7,674 8,566 Variable lease cost 5,835 5,108 Total lease cost $ 61,680 $ 63,941 Supplemental cash flow information related to operating leases are as follows: 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 47,080 $ 48,562 Right-of-use assets obtained in exchange for operating lease obligations 41,637 41,069 |
Supplemental balance sheet information | Supplemental balance sheet information related to operating leases is as follows: 2021 2020 Operating lease right-of-use assets (included within Investments and other assets) $ 131,880 $ 138,601 Current operating lease liabilities (included within Other accrued liabilities) $ 40,193 $ 43,327 Long-term operating lease liabilities (included within Other liabilities) 93,904 96,446 Total operating lease liabilities $ 134,097 $ 139,773 Weighted average remaining lease term 5.5 years 5.2 years Weighted average discount rate 1.8 % 2.1 % |
Maturities of lease liabilities | Maturities of lease liabilities at June 30, 2021 are as follows: Operating Leases 2022 $ 42,101 2023 29,349 2024 19,633 2025 15,068 2026 10,700 Thereafter 24,715 Total operating lease payments $ 141,566 Less imputed interest 7,469 Total operating lease liabilities $ 134,097 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | A summary of the Company's defined benefit pension plans follows: 2021 2020 2019 Benefit cost Service cost $ 84,188 $ 82,743 $ 76,647 Interest cost 102,475 142,479 160,542 Expected return on plan assets (267,579) (266,674) (251,072) Amortization of prior service cost 5,325 5,633 6,655 Amortization of unrecognized actuarial loss 207,897 165,815 121,823 Amortization of transition obligation 18 18 18 Net periodic benefit cost $ 132,324 $ 130,014 $ 114,613 |
Schedule of defined benefit plans | 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 6,405,623 $ 5,487,574 Service cost 84,188 82,743 Interest cost 102,475 142,479 Acquisition — 380,237 Plan amendments 2,311 3,286 Actuarial (gain) loss (91,719) 569,306 Benefits paid (264,062) (232,048) Foreign currency translation and other 84,187 (27,954) Benefit obligation at end of year $ 6,323,003 $ 6,405,623 Change in plan assets Fair value of plan assets at beginning of year $ 4,594,106 $ 4,244,969 Actual gain on plan assets 831,762 253,684 Acquisition — 280,103 Employer contributions 76,936 72,753 Benefits paid (264,062) (232,048) Foreign currency translation and other 66,835 (25,355) Fair value of plan assets at end of year $ 5,305,577 $ 4,594,106 Funded status $ (1,017,426) $ (1,811,517) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (4,944) $ (1,423) Pensions and other postretirement benefits (1,012,482) (1,810,094) Net amount recognized $ (1,017,426) $ (1,811,517) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 1,090,343 $ 1,921,389 Prior service cost 15,006 17,184 Transition obligation 8 26 Net amount recognized $ 1,105,357 $ 1,938,599 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 72,130 $ 60,998 Service cost 328 250 Interest cost 983 1,686 Acquisition — 12,638 Actuarial (gain) loss (4,139) 1,276 Benefits paid (5,563) (4,718) Benefit obligation at end of year $ 63,739 $ 72,130 Funded status $ (63,739) $ (72,130) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (5,634) $ (6,374) Pensions and other postretirement benefits (58,105) (65,756) Net amount recognized $ (63,739) $ (72,130) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial gain $ (4,311) $ (173) Prior service credit — (73) Net amount recognized $ (4,311) $ (246) |
Plan with accumulated benefit obligation in excess of plan assets | Information for pension plans with accumulated benefit obligations in excess of plan assets: 2021 2020 Accumulated benefit obligation $ 5,358,817 $ 6,028,952 Fair value of plan assets 4,546,301 4,503,316 |
Plan with projected benefit obligation in excess of plan assets | Information for pension plans with projected benefit obligations in excess of plan assets: 2021 2020 Projected benefit obligation $ 5,620,693 $ 6,348,500 Fair value of plan assets 4,568,113 4,523,545 |
Assumptions used to measure periodic benefit cost/benefit obligation | The assumptions used to measure net periodic benefit cost for the Company's significant defined benefit plans are: 2021 2020 2019 U.S. defined benefit plan Discount rate 2.36 % 3.28 % 4.01 % Average increase in compensation 2.98 % 3.60 % 3.65 % Expected return on plan assets 6.75 % 7.00 % 7.00 % Non-U.S. defined benefit plans Discount rate 0.2 to 3.03% 0.2 to 2.96% 0.3 to 3.37% Average increase in compensation 1.75 to 4.50% 1.75 to 3.90% 1.75 to 5.50% Expected return on plan assets 1.0 to 5.40% 1.0 to 5.75% 1.0 to 5.75% The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2021 2020 U.S. defined benefit plan Discount rate 2.55 % 2.36 % Average increase in compensation 3.05 % 2.98 % Non-U.S. defined benefit plans Discount rate 0.25 to 2.95% 0.2 to 3.03% Average increase in compensation 1.75 to 4.50% 1.75 to 4.50% The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2021 2020 2019 Discount rate 2.14 % 3.15 % 3.92 % Current medical cost trend rate (Pre-65 participants) 6.73 % 7.09 % 7.47 % Current medical cost trend rate (Post-65 participants) 7.03 % 7.43 % 7.87 % Ultimate medical cost trend rate 4.50 % 4.50 % 4.50 % Medical cost trend rate decreases to ultimate in year 2028 2028 2026 |
Allocation and fair values of plan assets | The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows: 2021 2020 Equity securities 38 % 41 % Debt securities 41 % 49 % Other investments 21 % 10 % 100 % 100 % The fair values of pension plan assets at June 30, 2021 and at June 30, 2020, by asset class, are as follows: June 30, 2021 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 248,525 $ 241,421 $ 7,104 $ — Equity securities U.S. based companies 408,301 408,301 — — Non-U.S. based companies 12,834 12,834 — — Fixed income securities Corporate debt securities 531,497 1,440 530,057 — Government issued securities 151,458 105,167 46,291 — Mutual funds Equity funds 6,768 6,768 — — Fixed income funds 6,506 6,506 — — Mutual funds measured at net asset value 368,340 Common/Collective trusts measured at net asset value 3,161,683 Limited Partnerships measured at net asset value 126,606 Miscellaneous 283,059 — 283,059 — Total at June 30, 2021 $ 5,305,577 $ 782,437 $ 866,511 $ — June 30, 2020 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 97,112 $ 96,004 $ 1,108 $ — Equity securities U.S. based companies 243,656 243,656 — — Non-U.S. based companies 9,152 9,152 — — Fixed income securities Corporate debt securities 616,582 1,477 615,105 — Government issued securities 471,059 379,128 91,931 — Mutual funds Equity funds 111,466 111,466 — — Fixed income funds 12,912 12,912 — — Mutual funds measured at net asset value 259,776 Common/Collective trusts Common/Collective trusts measured at net asset value 2,711,736 Limited Partnerships measured at net asset value 104,760 Miscellaneous (44,105) — (44,105) — Total at June 30, 2020 $ 4,594,106 $ 853,795 $ 664,039 $ — |
Schedule of employee stock ownership plan (ESOP) | 2021 2020 2019 Shares held by ESOP 4,497,902 5,306,643 6,134,280 Company matching contributions $ 66,249 $ 69,434 $ 72,032 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
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, 2019 $ (1,011,656) $ (1,047,392) $ (2,059,048) Other comprehensive (loss) before reclassifications (182,281) (447,161) (629,442) Amounts reclassified from accumulated other comprehensive (loss) — 129,615 129,615 Balance June 30, 2020 $ (1,193,937) $ (1,364,938) $ (2,558,875) Other comprehensive income before reclassifications 328,072 502,853 830,925 Amounts reclassified from accumulated other comprehensive (loss) — 161,223 161,223 Balance June 30, 2021 $ (865,865) $ (700,862) $ (1,566,727) |
Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity | Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2021: 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 $ (5,270) Other (income) expense, net Recognized actuarial loss (207,896) Other (income) expense, net Total before tax (213,166) Tax benefit 51,943 Net of tax $ (161,223) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2020: 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 $ (5,531) Other (income) expense, net Recognized actuarial loss (165,550) Other (income) expense, net Total before tax (171,081) Tax benefit 41,466 Net of tax $ (129,615) |
Schedule of share repurchases | The number of common shares repurchased at the average purchase price follows: 2021 2020 2019 Shares repurchased 331,259 818,581 4,755,273 Average price per share including commissions $ 301.88 $ 179.29 $ 168.23 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Weighted average assumptions used in fair value of each stock appreciation right award granted | The fair value of each SAR award granted in 2021, 2020 and 2019 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2021 2020 2019 Risk-free interest rate 0.4 % 1.5 % 2.8 % Expected life of award 5.4 years 5.1 years 5.1 years Expected dividend yield of stock 2.0 % 2.0 % 1.9 % Expected volatility of stock 35.2 % 25.9 % 24.2 % Weighted-average fair value $ 53.92 $ 31.68 $ 35.09 |
Stock appreciation rights activity | SAR activity during 2021 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, 2020 5,183,970 $ 132.42 Granted 741,852 $ 209.56 Exercised (1,741,352) $ 116.51 Canceled (35,884) $ 185.29 Outstanding June 30, 2021 4,148,586 $ 152.44 6.3 years $ 641.7 Exercisable June 30, 2021 2,677,757 $ 134.55 5.1 years $ 462.1 |
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, 2020 1,539,502 $ 32.41 Granted 741,852 $ 53.92 Vested (774,721) $ 32.09 Canceled (35,804) $ 42.50 Nonvested June 30, 2021 1,470,829 $ 43.19 |
Information related to stock appreciation rights awards exercised | Information related to SAR awards exercised during 2021, 2020 and 2019 is as follows: 2021 2020 2019 Net cash proceeds $ 4,684 $ 2,623 $ 2,475 Intrinsic value 225,025 133,641 95,502 Income tax benefit $ 37,437 $ 21,132 $ 15,584 Number of shares surrendered 316,330 228,986 158,610 |
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 for employees and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2020 350,573 $ 160.66 Granted 137,488 $ 218.17 Vested (130,121) $ 161.75 Canceled (8,354) $ 188.20 Nonvested June 30, 2021 349,586 $ 182.22 Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2020 8,262 $ 187.49 Granted 8,122 $ 214.46 Vested (8,298) $ 187.49 Canceled (610) $ 203.23 Nonvested June 30, 2021 7,476 $ 215.51 |
Status and changes of shares of long term incentive plans shares and the related average price per share | Stock issued and surrendered for LTIP 2021 2020 2019 LTIP three-year plan 2018-19-20 2017-18-19 2016-17-18 Number of shares issued 210,864 279,469 293,136 Number of shares surrendered 105,402 132,449 134,169 Share value on date of issuance $ 317.60 $ 134.95 $ 183.00 Total value of shares issued $ 66,970 $ 37,714 $ 53,644 Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2020 539,059 $ 186.75 Granted 141,122 $ 242.80 Vested (173,582) $ 208.83 Canceled (11,548) $ 199.95 Nonvested June 30, 2021 495,051 $ 194.68 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying value of long-term debt and estimated fair value of long-term debt | The carrying value of long-term debt, which excludes the impact of net unamortized debt issuance costs, and estimated fair value of long-term debt at June 30 are as follows: 2021 2020 Carrying value of long-term debt $ 6,646,029 $ 7,809,541 Estimated fair value of long-term debt 7,527,268 8,574,401 |
Location and fair value of derivative financial instruments reported in the consolidated balance sheet | The location and fair value of derivative financial instruments reported on the Consolidated Balance Sheet are as follows: Balance Sheet Caption 2021 2020 Net investment hedges Cross-currency swap contracts Other liabilities $ 71,798 $ 30,860 Cash flow hedges Forward exchange contracts Non-trade and notes receivable 5,376 5,311 Forward exchange contracts Other accrued liabilities 9,435 3,474 Costless collar contracts Non-trade and notes receivable 110 2,250 Costless collar contracts Other accrued liabilities 901 661 |
(Losses) gains on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) | (Losses) gains on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: 2021 2020 Cross-currency swap contracts $ (31,988) $ (9,435) Foreign denominated debt (32,882) 7,205 |
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, 2021 and 2020 are as follows: June 30, 2021 Quoted Prices In Significant Other Significant Assets: Equity securities $ 20,517 $ 20,517 $ — $ — Derivatives 5,486 — 5,486 — Liabilities: Derivatives 82,134 — 82,134 — June 30, 2020 Quoted Prices In Significant Other Significant Assets: Equity securities $ 7,901 $ 7,901 $ — $ — Derivatives 7,561 — 7,561 — Liabilities: Derivatives 34,995 — 34,995 — |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 14,347,640 | $ 13,695,520 | [1] | $ 14,320,324 | [1] | ||||||
Segment Operating Income | 2,459,941 | 1,966,704 | 2,236,239 | ||||||||
Corporate administration | 1,527,302 | 1,656,553 | [1] | 1,543,939 | [1] | ||||||
Interest expense | 250,036 | 308,161 | [1] | 190,138 | [1] | ||||||
Other (income) expense | (37,052) | 151,689 | 96,626 | ||||||||
Income before income taxes | $ 599,340 | $ 577,892 | $ 413,174 | $ 461,213 | $ 251,380 | $ 431,905 | 2,246,957 | 1,506,854 | [1] | 1,949,475 | [1] |
Assets | 20,341,200 | 19,887,753 | [2] | 17,732,028 | |||||||
Property Additions | 209,957 | 232,591 | 195,089 | ||||||||
Depreciation | 269,943 | 252,899 | [3] | 225,675 | [3] | ||||||
Amortization | 325,447 | 284,632 | 199,752 | ||||||||
Long-Lived Assets | 2,266,476 | 2,292,735 | 1,768,287 | ||||||||
Investment in a joint venture | $ 292,217 | 317,975 | |||||||||
Maximum | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Ownership percentage (or less) | 50.00% | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 14,347,640 | 13,695,520 | 14,320,324 | ||||||||
Segment Operating Income | 2,638,368 | 2,137,607 | 2,431,233 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate administration | 178,427 | 170,903 | 194,994 | ||||||||
Assets | 745,117 | 662,655 | 2,996,771 | ||||||||
Property Additions | 3,019 | 4,064 | 1,993 | ||||||||
Depreciation | 7,901 | 7,058 | 6,263 | ||||||||
Diversified Industrial | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 11,960,159 | 10,960,885 | |||||||||
Diversified Industrial | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 16,518,688 | 15,973,576 | 13,189,204 | ||||||||
Property Additions | 186,233 | 183,981 | 172,348 | ||||||||
Depreciation | 229,891 | 218,092 | 203,144 | ||||||||
Amortization | 274,368 | 243,714 | 196,680 | ||||||||
Aerospace Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,387,481 | 2,734,635 | |||||||||
Investment in a joint venture | 219,081 | 237,911 | 234,703 | ||||||||
Aerospace Systems | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,387,481 | 2,734,635 | 2,510,777 | ||||||||
Segment Operating Income | 402,895 | 476,900 | 487,757 | ||||||||
Assets | 3,077,395 | 3,251,522 | 1,546,053 | ||||||||
Property Additions | 20,705 | 44,546 | 20,748 | ||||||||
Depreciation | 32,151 | 27,749 | 16,268 | ||||||||
Amortization | 51,079 | 40,918 | 3,072 | ||||||||
North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 9,046,162 | 9,166,773 | 9,318,195 | ||||||||
Long-Lived Assets | 1,448,109 | 1,494,858 | 1,052,263 | ||||||||
North America | Diversified Industrial | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 6,676,449 | 6,456,298 | 6,808,948 | ||||||||
Segment Operating Income | 1,247,419 | 985,944 | 1,138,586 | ||||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 5,301,478 | 4,528,747 | 5,002,129 | ||||||||
Long-Lived Assets | 818,367 | 797,877 | 716,024 | ||||||||
International | Diversified Industrial | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 5,283,710 | 4,504,587 | 5,000,599 | ||||||||
Segment Operating Income | $ 988,054 | $ 674,763 | $ 804,890 | ||||||||
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | ||||||||||
[2] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | ||||||||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) £ / shares in Units, $ in Thousands, £ in Millions | Aug. 02, 2021GBP (£) | Jun. 30, 2022GBP (£)£ / shares | Jun. 30, 2021USD ($)country | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Concentration Risk [Line Items] | |||||
Trade accounts receivable, allowance for doubtful accounts | $ 12,078 | $ 11,644 | |||
Investment in joint-venture companies and company's equity in undistributed earnings | 292,217 | 317,975 | |||
Share of earnings from investments in joint-venture companies | 41,048 | 74,517 | $ 93,239 | ||
Exchange (gains) and losses from transactions in a currency other than the local currency of the entity | $ (10,948) | $ (10,018) | $ 5,888 | ||
Subsequent Event | Line of Credit | Bridge Loan | Bridge Credit Agreement | |||||
Concentration Risk [Line Items] | |||||
Aggregate principal amount | £ | £ 6,524 | ||||
Expiration period | 364 days | ||||
Subsequent Event | Forecast | Meggitt plc | |||||
Concentration Risk [Line Items] | |||||
Purchase price to acquire business | £ | £ 6,308 | ||||
Price per share of stock acquired (in pounds per share) | £ / shares | £ 8 | ||||
Maximum | |||||
Concentration Risk [Line Items] | |||||
Ownership percentage (or less) | 50.00% | ||||
Buildings | |||||
Concentration Risk [Line Items] | |||||
Useful life | 40 years | ||||
Land Improvements | |||||
Concentration Risk [Line Items] | |||||
Useful life | 15 years | ||||
Machinery and Equipment | Minimum | |||||
Concentration Risk [Line Items] | |||||
Useful life | 7 years | ||||
Machinery and Equipment | Maximum | |||||
Concentration Risk [Line Items] | |||||
Useful life | 10 years | ||||
Vehicles and Office Equipment | Minimum | |||||
Concentration Risk [Line Items] | |||||
Useful life | 3 years | ||||
Vehicles and Office Equipment | Maximum | |||||
Concentration Risk [Line Items] | |||||
Useful life | 8 years | ||||
Customer Concentration Risk | Revenue Benchmark | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue, individual customer, less than | 3.00% | ||||
Diversified Industrial | International | |||||
Concentration Risk [Line Items] | |||||
Number of countries operating in | country | 42 |
Significant Accounting Polici_5
Significant Accounting Policies - Non-trade and notes receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||
Notes receivable | $ 144,441 | $ 97,370 | |
Accounts receivable, other | 181,874 | 147,500 | |
Total | $ 326,315 | $ 244,870 | [1] |
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Significant Accounting Polici_6
Significant Accounting Policies - Plant, equipment and depreciation (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||
Land and land improvements | $ 342,950 | $ 345,746 | |
Buildings and building equipment | 1,848,141 | 1,773,041 | |
Machinery and equipment | 3,653,566 | 3,515,842 | |
Construction in progress | 195,563 | 176,052 | |
Total | $ 6,040,220 | $ 5,810,681 | [1] |
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Revenue Recognition - Revenues
Revenue Recognition - Revenues by segment and by platform (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | [1] | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 14,347,640 | $ 13,695,520 | [1] | $ 14,320,324 | |
Diversified Industrial | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 11,960,159 | 10,960,885 | |||
Diversified Industrial | Motion Systems | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 3,081,366 | 2,996,645 | |||
Diversified Industrial | Flow and Process Control | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 4,108,080 | 3,795,952 | |||
Diversified Industrial | Filtration and Engineered Materials | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 4,770,713 | 4,168,288 | |||
Aerospace Systems | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 2,387,481 | 2,734,635 | |||
Aerospace Systems | Flight Control Actuation | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 698,877 | 711,017 | |||
Aerospace Systems | Fuel and Inerting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 509,687 | 592,543 | |||
Aerospace Systems | Hydraulics | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 308,835 | 411,823 | |||
Aerospace Systems | Engines | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 575,804 | 616,747 | |||
Aerospace Systems | Fluid Conveyance | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 196,348 | 304,769 | |||
Aerospace Systems | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 97,930 | $ 97,736 | |||
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by geographic region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 14,347,640 | $ 13,695,520 | [1] | $ 14,320,324 | [1] |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 9,046,162 | 9,166,773 | $ 9,318,195 | ||
Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 2,919,025 | 2,596,125 | |||
Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 2,215,686 | 1,790,032 | |||
Latin America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 166,767 | $ 142,590 | |||
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Revenue Recognition - Contract
Revenue Recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current (included within Prepaid expenses and other) | $ 34,190 | $ 30,827 |
Contract assets, noncurrent (included within Investments and other assets) | 1,884 | 1,497 |
Total contract assets | 36,074 | 32,324 |
Contract liabilities, current (included within Other accrued liabilities) | (51,211) | (51,278) |
Contract liabilities, noncurrent (included within Other liabilities) | (3,080) | (3,232) |
Total contract liabilities | (54,291) | (54,510) |
Net contract liabilities | $ (18,217) | $ (22,186) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 33 |
Remaining performance obligation, amount | $ 6,503 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 84.00% |
Remaining performance obligation, period | 12 months |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Oct. 29, 2019 | Sep. 16, 2019 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||||
Acquisition-related transaction costs | $ 119,214 | |||
Lord | ||||
Business Acquisition [Line Items] | ||||
Equity interest | 100.00% | |||
Purchase price to acquire business | $ 3,455,000 | |||
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition | $ 1,025,000 | |||
Exotic | ||||
Business Acquisition [Line Items] | ||||
Equity interest | 100.00% | |||
Purchase price to acquire business | $ 1,706,000 | |||
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition | 409,000 | |||
Lord and Exotic | ||||
Business Acquisition [Line Items] | ||||
Net sales, from date of acquisition | $ 949,066 | |||
Operating loss, from date of acquisition | $ 22,330 | |||
Diversified Industrial | Lord | ||||
Business Acquisition [Line Items] | ||||
Percentage of revenue allocated to segment | 95.00% | |||
Aerospace Systems | Lord | ||||
Business Acquisition [Line Items] | ||||
Percentage of revenue allocated to segment | 5.00% | |||
Customer Relationships | Lord | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 869,190 | |||
Weighted average useful life of intangible assets | 13 years | |||
Customer Relationships | Exotic | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 502,470 | |||
Weighted average useful life of intangible assets | 18 years | |||
Patents and technology | Lord | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 458,030 | |||
Weighted average useful life of intangible assets | 21 years | |||
Patents and technology | Exotic | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 281,400 | |||
Weighted average useful life of intangible assets | 20 years | |||
Trademarks | Lord | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 119,440 | |||
Weighted average useful life of intangible assets | 20 years | |||
Trademarks | Exotic | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 90,600 | |||
Weighted average useful life of intangible assets | 20 years |
Acquisitions - Purchase price a
Acquisitions - Purchase price allocation (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | [1] | Oct. 29, 2019 | Sep. 16, 2019 | Jun. 30, 2019 |
Assets: | ||||||
Goodwill | $ 8,059,687 | $ 7,869,935 | $ 5,453,805 | |||
Lord | ||||||
Assets: | ||||||
Cash and cash equivalents | $ 74,013 | |||||
Accounts receivable | 153,765 | |||||
Inventories | 248,600 | |||||
Prepaid expenses | 24,230 | |||||
Property, plant and equipment | 409,163 | |||||
Deferred income taxes | 0 | |||||
Other assets | 41,335 | |||||
Intangible assets | 1,446,660 | |||||
Goodwill | 1,970,603 | |||||
Total assets acquired | 4,368,369 | |||||
Liabilities: | ||||||
Notes payable and long-term debt payable within one year | 156 | |||||
Accounts payable, trade | 56,186 | |||||
Accrued payrolls and other compensation | 57,571 | |||||
Accrued domestic and foreign taxes | 2,898 | |||||
Other accrued liabilities | 88,394 | |||||
Long-term debt | 221,161 | |||||
Pensions and other postretirement benefits | 115,017 | |||||
Deferred income taxes | 304,445 | |||||
Other liabilities | 55,832 | |||||
Noncontrolling interests | 11,266 | |||||
Total liabilities and noncontrolling interests assumed | 912,926 | |||||
Net assets acquired | $ 3,455,443 | |||||
Exotic | ||||||
Assets: | ||||||
Cash and cash equivalents | $ 8,179 | |||||
Accounts receivable | 81,336 | |||||
Inventories | 114,661 | |||||
Prepaid expenses | 1,343 | |||||
Property, plant and equipment | 178,393 | |||||
Deferred income taxes | 2,057 | |||||
Other assets | 1,226 | |||||
Intangible assets | 874,470 | |||||
Goodwill | 503,725 | |||||
Total assets acquired | 1,765,390 | |||||
Liabilities: | ||||||
Notes payable and long-term debt payable within one year | 0 | |||||
Accounts payable, trade | 23,176 | |||||
Accrued payrolls and other compensation | 8,863 | |||||
Accrued domestic and foreign taxes | 2,123 | |||||
Other accrued liabilities | 25,662 | |||||
Long-term debt | 0 | |||||
Pensions and other postretirement benefits | 0 | |||||
Deferred income taxes | 0 | |||||
Other liabilities | 0 | |||||
Noncontrolling interests | 0 | |||||
Total liabilities and noncontrolling interests assumed | 59,824 | |||||
Net assets acquired | $ 1,705,566 | |||||
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Business Realignment and Acqu_3
Business Realignment and Acquisition Integration Charges - Business realignment charges, acquisition integration charges and workforce reductions (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021USD ($)employee | Jun. 30, 2020USD ($)employee | Jun. 30, 2019USD ($)employee | |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 33,746 | $ 58,791 | |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 12,890 | 16,773 | |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 14,650 | ||
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 13,180 | ||
(Gain) loss on disposal of assets | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 1,226 | 50 | 305 |
Operating segments | Diversified Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 38,557 | $ 52,288 | $ 27,830 |
Work force reduction (in employees) | employee | 820 | 2,394 | 598 |
Operating segments | Aerospace Systems | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 6,680 | $ 22,101 | $ 0 |
Work force reduction (in employees) | employee | 327 | 1,254 | 0 |
Corporate administration | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 1,399 | $ 1,175 | $ 0 |
Work force reduction (in employees) | employee | 20 | 31 | 0 |
Other expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 1,226 | $ 50 | $ 305 |
Business Realignment and Acqu_4
Business Realignment and Acquisition Integration Charges - Narrative (Details) - Employee severance $ in Millions | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Severance payments | $ 56 |
Remaining severance payments related to current-year and prior-year actions | $ 15 |
Business Realignment and Acqu_5
Business Realignment and Acquisition Integration Charges - Acquisition integration charges related to the Lord and Exotic acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Diversified Industrial | ||
Restructuring Cost and Reserve [Line Items] | ||
Acquisition integration charges | $ 11,222 | $ 20,669 |
Aerospace Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Acquisition integration charges | $ 719 | $ 1,908 |
Income Taxes - Income before in
Income Taxes - Income before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,273,037 | $ 828,160 | $ 1,140,983 |
Foreign | 973,920 | 678,694 | 808,492 |
Income before income taxes | $ 2,246,957 | $ 1,506,854 | $ 1,949,475 |
Income Taxes - Schedule of inco
Income Taxes - Schedule of income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Federal | |||||||||||
Current | $ 247,094 | $ 105,796 | $ 160,858 | ||||||||
Deferred | (52,960) | 24,905 | 18,133 | ||||||||
Foreign | |||||||||||
Current | 269,607 | 167,680 | 206,167 | ||||||||
Deferred | 8,851 | (14,247) | 3,202 | ||||||||
State and local | |||||||||||
Current | 34,895 | 18,756 | 20,932 | ||||||||
Deferred | (7,391) | 1,632 | 15,100 | ||||||||
Income taxes | $ 126,101 | $ 129,350 | $ 93,063 | $ 88,501 | $ 49,331 | $ 93,811 | $ 500,096 | $ 304,522 | [1] | $ 424,392 | [1] |
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Income Taxes - Effective income
Income Taxes - Effective income tax rate reconciliation to statutory federal rate (Details) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State and local income taxes | 1.00% | 1.40% | 1.70% |
Tax related to international activities | 3.60% | 1.80% | 2.90% |
Transition tax related to the TCJ Act | 0 | (0.007) | 0.008 |
Remeasurement of deferred tax assets and liabilities related to the TCJ Act | 0.00% | 0.00% | (0.90%) |
Cash surrender value of life insurance | (0.60%) | (0.30%) | (0.10%) |
Federal manufacturing deduction | 0.00% | 0.00% | 0.10% |
Foreign derived intangible income deduction | (1.00%) | (1.50%) | (1.00%) |
Research tax credit | (0.40%) | (0.60%) | (0.50%) |
Share-based compensation | (1.60%) | (1.50%) | (1.70%) |
Other | 0.30% | 0.60% | (0.50%) |
Effective income tax rate | 22.30% | 20.20% | 21.80% |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | [1] | ||
Income Tax Disclosure [Abstract] | |||||
Retirement benefits | $ 322,931 | $ 504,747 | |||
Other liabilities and reserves | 136,710 | 139,872 | |||
Long-term contracts | 5,562 | 7,392 | |||
Stock-based compensation | 30,165 | 35,483 | |||
Loss carryforwards | 861,013 | 754,655 | |||
Unrealized currency exchange gains and losses | 18,841 | 39,256 | |||
Inventory | (11,753) | (31,081) | |||
Tax credit carryforwards | 19,709 | 33,176 | |||
Undistributed foreign earnings | (21,722) | (15,196) | |||
Depreciation and amortization | (945,422) | (988,886) | |||
Valuation allowance | (865,764) | (771,430) | |||
Net deferred tax (liability) | (449,730) | (292,012) | |||
Change in net deferred tax (liability): | |||||
Provision for deferred tax | 51,500 | (12,290) | [1] | $ (36,435) | |
Items of other comprehensive (loss) income | (209,509) | 102,297 | |||
Acquisitions and other | 291 | (301,690) | |||
Total change in net deferred tax | $ (157,718) | $ (211,683) | |||
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets resulting from loss carryforwards | $ 861,013 | $ 754,655 | |
Loss carryforwards | 3,473,000 | ||
Valuation allowance related to the loss carryforwards | 841,789 | ||
Amount of valuation allowance relating to non-operating entity whose loss carryforward utilization is considered to be remote | $ 816,388 | ||
Operating loss carryforward minimum period before expiration | 3 years | ||
Operating loss carryforward maximum period before expiration | 20 years | ||
Valuation allowance | $ 23,975 | ||
Undistributed foreign earnings not permanently reinvested | 712,000 | ||
Deferred tax liability on undistributed foreign earnings not permanently reinvested | 16,000 | ||
Undistributed distributed foreign earnings | 1,609,000 | ||
Deferred tax liability on undistributed foreign earnings not permanently reinvested in their subsidiaries | 6,000 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 100,759 | 86,277 | $ 140,662 |
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits | 17,862 | $ 14,247 | $ 25,214 |
Amount of gross unrecognized tax benefits could be reduced by as a result of the revaluation of existing uncertain tax positions | $ 40,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance July 1 | $ 86,277 | $ 140,662 | $ 153,091 |
Additions for tax positions related to current year | 10,145 | 4,955 | 2,272 |
Additions for tax positions of prior years | 10,320 | 798 | 45 |
Additions for acquisitions | 2,376 | 43,532 | 0 |
Reductions for tax positions of prior years | (1,996) | (41,726) | (927) |
Reductions for settlements | (7,165) | (53,520) | (832) |
Reductions for expiration of statute of limitations | (2,252) | (3,820) | (9,388) |
Effect of foreign currency translation - increase | 3,054 | ||
Effect of foreign currency translation - decrease | (4,604) | (3,599) | |
Balance June 30 | $ 100,759 | $ 86,277 | $ 140,662 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the numerator and denominator of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Numerator: | |||||||||||
Net income attributable to common shareholders, basic | $ 1,746,100 | $ 1,201,970 | $ 1,524,516 | ||||||||
Net income attributable to common shareholders, diluted | $ 1,746,100 | $ 1,201,970 | $ 1,524,516 | ||||||||
Denominator: | |||||||||||
Basic - weighted-average common shares (in shares) | 128,999,879 | 128,418,495 | 129,997,640 | ||||||||
Increase in weighted-average common shares from dilutive effect of equity-based awards (in shares) | 1,834,599 | 1,386,539 | 1,783,977 | ||||||||
Diluted - weighted-average common shares, assuming exercise of stock-based awards (in shares) | 130,834,478 | 129,805,034 | 131,781,617 | ||||||||
Basic earnings per share (in USD per share) | $ 3.67 | $ 3.48 | $ 2.48 | $ 2.90 | $ 1.57 | $ 2.63 | $ 13.54 | $ 9.36 | [1] | $ 11.73 | [1] |
Diluted earnings per share (in USD per share) | $ 3.60 | $ 3.42 | $ 2.45 | $ 2.87 | $ 1.55 | $ 2.60 | $ 13.35 | $ 9.26 | [1] | $ 11.57 | [1] |
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||
Number of common shares subject to stock-based awards that were excluded from the computation of diluted earnings per share | 0.4 | 0.6 | 0.9 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect | [1] | $ 8,413,670 | $ 6,241,770 | [2] | $ 6,085,764 | $ 5,970,953 |
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect | [1] | $ 14,915,497 | 13,643,907 | $ 12,895,150 | 11,731,435 | |
Inventory accounting method change | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect | [1] | 105,460 | ||||
Effect of change in inventory, gross | 219,854 | |||||
Effect of change in inventory, excess and obsolete reserve | $ 70,290 | |||||
Inventory accounting method change | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect | [1] | $ 105,460 | ||||
[1] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | |||||
[2] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Inventories - Inventory compone
Inventories - Inventory components (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Inventory, Net [Abstract] | ||||
Finished products | $ 733,744 | $ 703,630 | ||
Work in process | 1,089,976 | 988,564 | ||
Raw materials | 266,922 | 272,001 | ||
Total | $ 2,090,642 | $ 1,964,195 | [1] | |
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Inventories - Statements of Inc
Inventories - Statements of Income and Comprehensive Income adjustments due to change in accounting method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Consolidated Statements of Income | ||||||||||||
Cost of sales | $ 2,712,785 | $ 2,518,165 | $ 2,386,449 | $ 2,759,637 | $ 2,686,131 | $ 2,480,992 | $ 10,449,680 | $ 10,292,291 | [1] | $ 10,688,970 | [1] | |
Income before income taxes | 599,340 | 577,892 | 413,174 | 461,213 | 251,380 | 431,905 | 2,246,957 | 1,506,854 | [1] | 1,949,475 | [1] | |
Income tax expense | 126,101 | 129,350 | 93,063 | 88,501 | 49,331 | 93,811 | 500,096 | 304,522 | [1] | 424,392 | [1] | |
Net Income | 473,239 | 448,542 | 320,111 | 372,712 | 202,049 | 338,094 | 1,746,861 | [2] | 1,202,332 | [2],[3] | 1,525,083 | [2],[4] |
Net income attributable to common shareholders | $ 473,153 | $ 448,351 | $ 319,803 | $ 372,596 | $ 201,925 | $ 337,951 | $ 1,746,100 | $ 1,201,970 | [4] | $ 1,524,516 | [4] | |
Earnings per share attributable to common shareholders: | ||||||||||||
Basic (in USD per share) | $ 3.67 | $ 3.48 | $ 2.48 | $ 2.90 | $ 1.57 | $ 2.63 | $ 13.54 | $ 9.36 | [1] | $ 11.73 | [1] | |
Diluted (in USD per share) | $ 3.60 | $ 3.42 | $ 2.45 | $ 2.87 | $ 1.55 | $ 2.60 | $ 13.35 | $ 9.26 | [1] | $ 11.57 | [1] | |
Consolidated Statements of Comprehensive Income | ||||||||||||
Net income | $ 473,239 | $ 448,542 | $ 320,111 | $ 372,712 | $ 202,049 | $ 338,094 | $ 1,746,861 | [2] | $ 1,202,332 | [2],[3] | $ 1,525,083 | [2],[4] |
Net income attributable to common shareholders | 473,153 | 448,351 | 319,803 | 372,596 | 201,925 | 337,951 | 1,746,100 | 1,201,970 | [4] | 1,524,516 | [4] | |
Total comprehensive income attributable to common shareholders | 2,738,248 | 702,143 | [4] | 1,230,288 | [4] | |||||||
Previously Reported | ||||||||||||
Consolidated Statements of Income | ||||||||||||
Cost of sales | 2,714,773 | 2,519,545 | 2,384,328 | 2,766,693 | 2,682,765 | 2,479,741 | 10,464,495 | 10,286,518 | 10,703,484 | |||
Income before income taxes | 597,352 | 576,512 | 415,295 | 454,157 | 254,746 | 433,156 | 2,232,142 | 1,512,627 | 1,933,425 | |||
Income tax expense | 125,619 | 129,015 | 93,578 | 86,788 | 50,148 | 94,115 | 499,269 | 305,924 | 420,494 | |||
Net Income | 471,733 | 447,497 | 321,717 | 367,369 | 204,598 | 339,041 | 1,732,873 | 1,206,703 | 1,512,931 | |||
Net income attributable to common shareholders | $ 471,647 | $ 447,306 | $ 321,409 | $ 367,253 | $ 204,474 | $ 338,898 | $ 1,732,112 | $ 1,206,341 | $ 1,512,364 | |||
Earnings per share attributable to common shareholders: | ||||||||||||
Basic (in USD per share) | $ 3.65 | $ 3.47 | $ 2.50 | $ 2.86 | $ 1.59 | $ 2.64 | $ 13.43 | $ 9.39 | $ 11.63 | |||
Diluted (in USD per share) | $ 3.59 | $ 3.41 | $ 2.47 | $ 2.83 | $ 1.57 | $ 2.60 | $ 13.24 | $ 9.29 | $ 11.48 | |||
Consolidated Statements of Comprehensive Income | ||||||||||||
Net income | $ 471,733 | $ 447,497 | $ 321,717 | $ 367,369 | $ 204,598 | $ 339,041 | $ 1,732,873 | $ 1,206,703 | $ 1,512,931 | |||
Net income attributable to common shareholders | 471,647 | 447,306 | 321,409 | 367,253 | 204,474 | 338,898 | 1,732,112 | 1,206,341 | 1,512,364 | |||
Total comprehensive income attributable to common shareholders | 2,724,260 | 706,514 | 1,218,136 | |||||||||
Effect of Change | ||||||||||||
Consolidated Statements of Income | ||||||||||||
Cost of sales | (1,988) | (1,380) | 2,121 | (7,056) | 3,366 | 1,251 | (14,815) | 5,773 | (14,514) | |||
Income before income taxes | 1,988 | 1,380 | (2,121) | 7,056 | (3,366) | (1,251) | 14,815 | (5,773) | 16,050 | |||
Income tax expense | 482 | 335 | (515) | 1,713 | (817) | (304) | 827 | (1,402) | 3,898 | |||
Net Income | 1,506 | 1,045 | (1,606) | 5,343 | (2,549) | (947) | 13,988 | (4,371) | 12,152 | |||
Net income attributable to common shareholders | $ 1,506 | $ 1,045 | $ (1,606) | $ 5,343 | $ (2,549) | $ (947) | $ 13,988 | $ (4,371) | $ 12,152 | |||
Earnings per share attributable to common shareholders: | ||||||||||||
Basic (in USD per share) | $ 0.02 | $ 0.01 | $ (0.02) | $ 0.04 | $ (0.02) | $ (0.01) | $ 0.11 | $ (0.03) | $ 0.10 | |||
Diluted (in USD per share) | $ 0.01 | $ 0.01 | $ (0.02) | $ 0.04 | $ (0.02) | $ 0 | $ 0.11 | $ (0.03) | $ 0.09 | |||
Consolidated Statements of Comprehensive Income | ||||||||||||
Net income | $ 1,506 | $ 1,045 | $ (1,606) | $ 5,343 | $ (2,549) | $ (947) | $ 13,988 | $ (4,371) | $ 12,152 | |||
Net income attributable to common shareholders | $ 1,506 | $ 1,045 | $ (1,606) | $ 5,343 | $ (2,549) | $ (947) | 13,988 | (4,371) | 12,152 | |||
Total comprehensive income attributable to common shareholders | $ 13,988 | $ (4,371) | $ 12,152 | |||||||||
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||||||||
[2] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | |||||||||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||||||||
[4] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Inventories - Balance Sheet and
Inventories - Balance Sheet and Statement of Cash Flows adjustments due to change in accounting method (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Consolidated Balance Sheets | ||||||||||||
Inventories | $ 2,090,642 | $ 1,964,195 | [1] | |||||||||
Deferred income taxes - noncurrent liability | 553,981 | 418,851 | [1] | |||||||||
Retained earnings | 14,915,497 | 13,643,907 | [1] | |||||||||
Consolidated Statements of Cash Flows | ||||||||||||
Net income | $ 473,239 | $ 448,542 | $ 320,111 | $ 372,712 | $ 202,049 | $ 338,094 | 1,746,861 | [2] | 1,202,332 | [2],[3] | 1,525,083 | [2],[4] |
Deferred income taxes | (51,500) | 12,290 | [3] | 36,435 | [3] | |||||||
Inventories | (85,597) | 206,937 | [3] | (67,867) | [3] | |||||||
Previously Reported | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
Inventories | 1,926,263 | 1,814,631 | ||||||||||
Deferred income taxes - noncurrent liability | 516,831 | 382,528 | ||||||||||
Retained earnings | 14,788,268 | 13,530,666 | ||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
Net income | 471,733 | 447,497 | 321,717 | 367,369 | 204,598 | 339,041 | 1,732,873 | 1,206,703 | 1,512,931 | |||
Deferred income taxes | (52,327) | 13,692 | 32,537 | |||||||||
Inventories | (70,782) | 201,164 | (51,817) | |||||||||
Effect of Change | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
Inventories | 164,379 | 149,564 | ||||||||||
Deferred income taxes - noncurrent liability | 37,150 | 36,323 | ||||||||||
Retained earnings | 127,229 | 113,241 | ||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
Net income | $ 1,506 | $ 1,045 | $ (1,606) | $ 5,343 | $ (2,549) | $ (947) | 13,988 | (4,371) | 12,152 | |||
Deferred income taxes | 827 | (1,402) | 3,898 | |||||||||
Inventories | $ (14,815) | $ 5,773 | $ (16,050) | |||||||||
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||||||||
[2] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | |||||||||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||||||||
[4] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | |||
Goodwill [Roll Forward] | ||||
Beginning balance | $ 7,869,935 | [1] | $ 5,453,805 | |
Acquisitions | 3,738 | 2,470,590 | ||
Foreign currency translation and other | 186,014 | (54,460) | ||
Ending balance | 8,059,687 | 7,869,935 | [1] | |
Diversified Industrial Segment | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 7,267,573 | 5,355,165 | ||
Acquisitions | 3,738 | 1,966,865 | ||
Foreign currency translation and other | 185,998 | (54,457) | ||
Ending balance | 7,457,309 | 7,267,573 | ||
Aerospace Systems Segment | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 602,362 | 98,640 | ||
Acquisitions | 0 | 503,725 | ||
Foreign currency translation and other | 16 | (3) | ||
Ending balance | $ 602,378 | $ 602,362 | ||
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment loss recognized | $ 0 | $ 0 | $ 0 |
Intangible amortization expense | 325,447,000 | $ 284,632,000 | $ 205,164,000 |
Estimated amortization expense, year ending June 30, 2022 | 319,900,000 | ||
Estimated amortization expense, year ending June 30, 2023 | 304,906,000 | ||
Estimated amortization expense, year ending June 30, 2024 | 297,945,000 | ||
Estimated amortization expense, year ending June 30, 2025 | 287,617,000 | ||
Estimated amortization expense, year ending June 30, 2026 | $ 282,431,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross carrying value and accumulated amortization of intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,631,854 | $ 5,531,427 |
Accumulated Amortization | 2,112,057 | 1,732,514 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 999,952 | 991,596 |
Accumulated Amortization | 216,314 | 162,528 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 762,130 | 748,326 |
Accumulated Amortization | 331,905 | 285,197 |
Customer lists and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,869,772 | 3,791,505 |
Accumulated Amortization | $ 1,563,838 | $ 1,284,789 |
Financing Arrangements (Details
Financing Arrangements (Details) | 12 Months Ended | |
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Line of Credit Facility [Line Items] | ||
Commercial paper notes outstanding | $ 0 | $ 723,500,000 |
Debt to debt-shareholders' equity ratio | 0.44 | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt to debt-shareholders' equity ratio, covenant, maximum | 0.65 | |
International | ||
Line of Credit Facility [Line Items] | ||
Short-term borrowings | $ 0 | $ 0 |
Commercial Paper | ||
Line of Credit Facility [Line Items] | ||
Line of credit | 2,500,000,000 | |
Line of Credit | Amended And Extended Multi-Currency Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Line of credit | 2,500,000,000 | |
Line of credit available | $ 2,500,000,000 | |
Extension option, term | 1 year | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Weighted-average interest rate of notes payable | 0.20% | 2.20% |
Debt - Schedule of long-term de
Debt - Schedule of long-term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,584,872 | $ 7,738,285 | |
Other long-term debt | 15,968 | 12,708 | |
Deferred debt issuance costs | (61,156) | (71,256) | |
Less: Long-term debt payable within one year | 2,819 | 86,029 | |
Long-term debt, net | 6,582,053 | 7,652,256 | [1] |
Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.25%, due 2023 - 2045 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,125,000 | 2,125,000 | |
Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.25%, due 2023 - 2045 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.30% | ||
Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.25%, due 2023 - 2045 | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.25% | ||
Senior Notes | Senior Notes, 2.70% to 4.10%, due 2024 - 2049 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 3,675,000 | 3,675,000 | |
Senior Notes | Senior Notes, 2.70% to 4.10%, due 2024 - 2049 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.70% | ||
Senior Notes | Senior Notes, 2.70% to 4.10%, due 2024 - 2049 | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.10% | ||
Senior Notes | Euro Senior Notes, 1.125%, due 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.125% | ||
Long-term debt | $ 830,060 | 786,520 | |
Term Loan | Term loans, Libor plus 112.5 bps, due 2023 - 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 1,210,313 | |
Term Loan | Term loans, Libor plus 112.5 bps, due 2023 - 2024 | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
Long-term debt payable in 2022 | $ 2,819 |
Long-term debt payable in 2023 | 302,396 |
Long-term debt payable in 2024 | 576,224 |
Long-term debt payable in 2025 | 1,330,535 |
Long-term debt payable in 2026 | 439 |
Term Loan | Term Loan Due September 2023 | |
Debt Instrument [Line Items] | |
Repayments of debt | 890,000 |
Aggregate principal amount | 925,000 |
Term Loan | Term Loan Due October 2022 | |
Debt Instrument [Line Items] | |
Repayments of debt | 320,000 |
Aggregate principal amount | $ 800,000 |
Leases - Lease expense and supp
Leases - Lease expense and supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 48,171 | $ 50,267 |
Short-term lease cost | 7,674 | 8,566 |
Variable lease cost | 5,835 | 5,108 |
Total lease cost | 61,680 | 63,941 |
Cash paid for amounts included in the measurement of operating lease liabilities | 47,080 | 48,562 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 41,637 | $ 41,069 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets (included within Investments and other assets) | $ 131,880 | $ 138,601 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Investments and other assets | Investments and other assets |
Current operating lease liabilities (included within Other accrued liabilities) | $ 40,193 | $ 43,327 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherAccruedLiabilitiesCurrent | us-gaap:OtherAccruedLiabilitiesCurrent |
Long-term operating lease liabilities (included within Other liabilities) | $ 93,904 | $ 96,446 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Total operating lease liabilities | $ 134,097 | $ 139,773 |
Weighted average remaining lease term | 5 years 6 months | 5 years 2 months 12 days |
Weighted average discount rate | 1.80% | 2.10% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
2022 | $ 42,101 | |
2023 | 29,349 | |
2024 | 19,633 | |
2025 | 15,068 | |
2026 | 10,700 | |
Thereafter | 24,715 | |
Total operating lease payments | 141,566 | |
Less imputed interest | 7,469 | |
Total operating lease liabilities | $ 134,097 | $ 139,773 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Rent expense | $ 126,752 |
Retirement Benefits - Net perio
Retirement Benefits - Net periodic pension cost recognized (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 84,188 | $ 82,743 | $ 76,647 |
Interest cost | 102,475 | 142,479 | 160,542 |
Expected return on plan assets | (267,579) | (266,674) | (251,072) |
Amortization of prior service cost | 5,325 | 5,633 | 6,655 |
Amortization of unrecognized actuarial loss | 207,897 | 165,815 | 121,823 |
Amortization of transition obligation | 18 | 18 | 18 |
Net periodic benefit cost | $ 132,324 | $ 130,014 | $ 114,613 |
Retirement Benefits - Summary o
Retirement Benefits - Summary of defined benefit pension plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Change in plan assets | ||||
Fair value of plan assets at beginning of year | $ 4,594,106 | |||
Fair value of plan assets at end of year | 5,305,577 | $ 4,594,106 | ||
Amounts recognized on the Consolidated Balance Sheet | ||||
Pensions and other postretirement benefits | (1,055,638) | (1,887,414) | [1] | |
Pension Plan | ||||
Change in benefit obligation | ||||
Benefit obligation at beginning of year | 6,405,623 | 5,487,574 | ||
Service cost | 84,188 | 82,743 | $ 76,647 | |
Interest cost | 102,475 | 142,479 | 160,542 | |
Acquisition | 0 | 380,237 | ||
Plan amendments | 2,311 | 3,286 | ||
Actuarial (gain) loss | (91,719) | 569,306 | ||
Benefits paid | (264,062) | (232,048) | ||
Foreign currency translation and other | 84,187 | (27,954) | ||
Benefit obligation at end of year | 6,323,003 | 6,405,623 | 5,487,574 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 4,594,106 | 4,244,969 | ||
Actual gain on plan assets | 831,762 | 253,684 | ||
Acquisition | 0 | 280,103 | ||
Employer contributions | 76,936 | 72,753 | ||
Benefits paid | (264,062) | (232,048) | ||
Foreign currency translation and other | 66,835 | (25,355) | ||
Fair value of plan assets at end of year | 5,305,577 | 4,594,106 | $ 4,244,969 | |
Funded status | (1,017,426) | (1,811,517) | ||
Amounts recognized on the Consolidated Balance Sheet | ||||
Other accrued liabilities | (4,944) | (1,423) | ||
Pensions and other postretirement benefits | (1,012,482) | (1,810,094) | ||
Net amount recognized | (1,017,426) | (1,811,517) | ||
Amounts recognized in Accumulated Other Comprehensive (Loss) | ||||
Net actuarial loss | 1,090,343 | 1,921,389 | ||
Prior service cost | 15,006 | 17,184 | ||
Transition obligation | 8 | 26 | ||
Net amount recognized | $ 1,105,357 | $ 1,938,599 | ||
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Required cash balance | $ 162,000 | |||
Number of shares invested by employees in company stock | 1,258,763 | |||
Defined contribution plan, annual contributions per employee not grandfathered | 3.00% | |||
Defined contribution plan expense recognized | $ 41,680 | $ 38,387 | $ 30,603 | |
Company matching contributions | $ 66,249 | 69,434 | 72,032 | |
United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of assets held in U.S. defined benefit plans from total defined plan assets | 75.00% | |||
Lord and Exotic | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan expense recognized | $ 5,425 | 7,439 | ||
Company matching contributions | $ 4,623 | 4,190 | ||
Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Maximum percentage of employer 401K matching contribution | 4.00% | |||
Common/Collective trusts measured at net asset value | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investments valued using a net asset value per share, redemption notice period | 90 days | |||
Limited Partnership | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investments valued using a net asset value per share, redemption notice period | 90 days | |||
Investments valued using a net asset value per share, redemption restriction period | 1 year | |||
Investments valued using a net asset value per share, redemption restriction | 20.00% | |||
Investments valued using a net asset value per share, redemption restriction, frequency period | 6 months | |||
Mutual funds measured at net asset value | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investments valued using a net asset value per share, extension period | 2 years | |||
Equity securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average target asset allocation | 40.00% | |||
Debt securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average target asset allocation | 43.00% | |||
Other investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average target asset allocation | 17.00% | |||
Equity securities, U.S. based companies | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Company stock included in U.S. based company equity securities | $ 408,301 | 243,656 | ||
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Accumulated benefit obligation for all defined benefit plans | 6,069,000 | 6,102,000 | ||
Expected cash contributions to defined benefit pension plans in next fiscal year | 102,000 | |||
Estimated future benefit payments in the year ending June 30, 2022 | 303,856 | |||
Estimated future benefit payments in the year ending June 30, 2023 | 283,530 | |||
Estimated future benefit payments in the year ending June 30, 2024 | 327,149 | |||
Estimated future benefit payments in the year ending June 30, 2025 | 302,877 | |||
Estimated future benefit payments in the year ending June 30, 2026 | 305,135 | |||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2027 through June 30, 2031 | 1,644,821 | |||
Expense related to other postretirement benefits | $ 132,324 | $ 130,014 | 114,613 | |
Pension Plan | United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 2.55% | 2.36% | ||
Other Postretirement Benefits Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated future benefit payments in the year ending June 30, 2022 | $ 5,634 | |||
Estimated future benefit payments in the year ending June 30, 2023 | 5,155 | |||
Estimated future benefit payments in the year ending June 30, 2024 | 4,828 | |||
Estimated future benefit payments in the year ending June 30, 2025 | 4,540 | |||
Estimated future benefit payments in the year ending June 30, 2026 | 4,317 | |||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2027 through June 30, 2031 | 18,566 | |||
Expense related to other postretirement benefits | $ 1,237 | $ 1,551 | 1,838 | |
Discount rate | 2.36% | 2.14% | ||
Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Deferred compensation expense | $ 44,906 | $ 5,863 | $ 5,916 |
Retirement Benefits - Plan with
Retirement Benefits - Plan with accumulated benefit obligation in excess of plan assets (Details) - Pension Plan - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 5,358,817 | $ 6,028,952 |
Fair value of plan assets | $ 4,546,301 | $ 4,503,316 |
Retirement Benefits - Plan wi_2
Retirement Benefits - Plan with projected benefit obligation in excess of plan assets (Details) - Pension Plan - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 5,620,693 | $ 6,348,500 |
Fair value of plan assets | $ 4,568,113 | $ 4,523,545 |
Retirement Benefits - Assumptio
Retirement Benefits - Assumptions used to measure periodic benefit cost (Details) - Pension Plan | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
United States | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 2.36% | 3.28% | 4.01% |
Average increase in compensation | 2.98% | 3.60% | 3.65% |
Expected return on plan assets | 6.75% | 7.00% | 7.00% |
Minimum | Non-U.S. defined benefit plans | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 0.20% | 0.20% | 0.30% |
Average increase in compensation | 1.75% | 1.75% | 1.75% |
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 | 3.03% | 2.96% | 3.37% |
Average increase in compensation | 4.50% | 3.90% | 5.50% |
Expected return on plan assets | 5.40% | 5.75% | 5.75% |
Retirement Benefits - Assumpt_2
Retirement Benefits - Assumptions used to measure benefit obligations (Details) - Pension Plan | Jun. 30, 2021 | Jun. 30, 2020 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.55% | 2.36% |
Average increase in compensation | 3.05% | 2.98% |
Minimum | Non-U.S. defined benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.25% | 0.20% |
Average increase in compensation | 1.75% | 1.75% |
Maximum | Non-U.S. defined benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.95% | 3.03% |
Average increase in compensation | 4.50% | 4.50% |
Retirement Benefits - Weighted-
Retirement Benefits - Weighted-average allocation of the majority of the assets related to defined benefit plans (Details) | Jun. 30, 2021 | Jun. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 38.00% | 41.00% |
Weighted-average target asset allocation | 40.00% | |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 41.00% | 49.00% |
Weighted-average target asset allocation | 43.00% | |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 21.00% | 10.00% |
Weighted-average target asset allocation | 17.00% |
Retirement Benefits - Fair valu
Retirement Benefits - Fair values of pension plan assets by asset class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 5,305,577 | $ 4,594,106 |
Fair Value, Inputs, Level 1, 2 and 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 248,525 | 97,112 |
Fair Value, Inputs, Level 1, 2 and 3 | Equity securities, U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 408,301 | 243,656 |
Fair Value, Inputs, Level 1, 2 and 3 | Equity securities, Non-U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 12,834 | 9,152 |
Fair Value, Inputs, Level 1, 2 and 3 | Fixed income securities, Corporate debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 531,497 | 616,582 |
Fair Value, Inputs, Level 1, 2 and 3 | Fixed income securities, Government issued securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 151,458 | 471,059 |
Fair Value, Inputs, Level 1, 2 and 3 | Mutual funds, Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 6,768 | 111,466 |
Fair Value, Inputs, Level 1, 2 and 3 | Mutual funds, Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 6,506 | 12,912 |
Fair Value, Inputs, Level 1, 2 and 3 | Miscellaneous | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 283,059 | (44,105) |
Quoted Prices In Active Markets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 782,437 | 853,795 |
Quoted Prices In Active Markets (Level 1) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 241,421 | 96,004 |
Quoted Prices In Active Markets (Level 1) | Equity securities, U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 408,301 | 243,656 |
Quoted Prices In Active Markets (Level 1) | Equity securities, Non-U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 12,834 | 9,152 |
Quoted Prices In Active Markets (Level 1) | Fixed income securities, Corporate debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 1,440 | 1,477 |
Quoted Prices In Active Markets (Level 1) | Fixed income securities, Government issued securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 105,167 | 379,128 |
Quoted Prices In Active Markets (Level 1) | Mutual funds, Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 6,768 | 111,466 |
Quoted Prices In Active Markets (Level 1) | Mutual funds, Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 6,506 | 12,912 |
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 | 866,511 | 664,039 |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 7,104 | 1,108 |
Significant Other Observable Inputs (Level 2) | Equity securities, U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Equity securities, Non-U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fixed income securities, Corporate debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 530,057 | 615,105 |
Significant Other Observable Inputs (Level 2) | Fixed income securities, Government issued securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 46,291 | 91,931 |
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) | Miscellaneous | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 283,059 | (44,105) |
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 debt securities | ||
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) | Miscellaneous | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Measured at Net Asset Value | Mutual funds measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 368,340 | 259,776 |
Measured at Net Asset Value | Common/Collective trusts measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 3,161,683 | 2,711,736 |
Measured at Net Asset Value | Limited Partnerships measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 126,606 | $ 104,760 |
Retirement Benefits - Employee
Retirement Benefits - Employee stock ownership plan (ESOP) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |||
Shares held by ESOP (in shares) | 4,497,902 | 5,306,643 | 6,134,280 |
Company matching contributions | $ 66,249 | $ 69,434 | $ 72,032 |
Retirement Benefits - Summary_2
Retirement Benefits - Summary of other postretirement benefit plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Amounts recognized on the Consolidated Balance Sheet | |||
Pensions and other postretirement benefits | $ (1,055,638) | $ (1,887,414) | [1] |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 72,130 | 60,998 | |
Service cost | 328 | 250 | |
Interest cost | 983 | 1,686 | |
Acquisition | 0 | 12,638 | |
Actuarial (gain) loss | (4,139) | 1,276 | |
Benefits paid | (5,563) | (4,718) | |
Benefit obligation at end of year | 63,739 | 72,130 | |
Funded status | (63,739) | (72,130) | |
Amounts recognized on the Consolidated Balance Sheet | |||
Other accrued liabilities | (5,634) | (6,374) | |
Pensions and other postretirement benefits | (58,105) | (65,756) | |
Net amount recognized | (63,739) | (72,130) | |
Amounts recognized in Accumulated Other Comprehensive (Loss) | |||
Net actuarial gain | (4,311) | (173) | |
Prior service credit | 0 | (73) | |
Net amount recognized | $ (4,311) | $ (246) | |
[1] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Retirement Benefits - Assumpt_3
Retirement Benefits - Assumptions used to measure net periodic benefit cost for postretirement plans (Details) - Other Postretirement Benefits Plan | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.14% | 3.15% | 3.92% |
Ultimate medical cost trend rate | 4.50% | 4.50% | 4.50% |
Medical cost trend rate decreases to ultimate in year | 2028 | 2028 | 2026 |
Defined benefit plan, participant age range, Pre-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current medical cost trend rate | 6.73% | 7.09% | 7.47% |
Defined benefit plan, participant age range, Post-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current medical cost trend rate | 7.03% | 7.43% | 7.87% |
Equity - Changes in accumulated
Equity - Changes in accumulated other comprehensive (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | $ 6,241,770 | [2] | $ 6,085,764 | |
Ending balance | [1] | 8,413,670 | 6,241,770 | [2] | |
Foreign Currency Translation Adjustment and Other | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,193,937) | (1,011,656) | |||
Other comprehensive (loss) before reclassifications | 328,072 | (182,281) | |||
Amounts reclassified from accumulated other comprehensive (loss) | 0 | 0 | |||
Ending balance | (865,865) | (1,193,937) | |||
Retirement Benefit Plans | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,364,938) | (1,047,392) | |||
Other comprehensive (loss) before reclassifications | 502,853 | (447,161) | |||
Amounts reclassified from accumulated other comprehensive (loss) | 161,223 | 129,615 | |||
Ending balance | (700,862) | (1,364,938) | |||
AOCI Attributable to Parent | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (2,558,875) | (2,059,048) | ||
Other comprehensive (loss) before reclassifications | 830,925 | (629,442) | |||
Amounts reclassified from accumulated other comprehensive (loss) | 161,223 | 129,615 | |||
Ending balance | $ (1,566,727) | $ (2,558,875) | [1] | ||
[1] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | ||||
[2] | *Year ended June 30, 2020 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Equity - Significant reclassifi
Equity - Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Other (income) expense, net | $ 17,003 | $ 67,112 | [1] | $ 61,247 | [1] | |||||||
Income before income taxes | $ 599,340 | $ 577,892 | $ 413,174 | $ 461,213 | $ 251,380 | $ 431,905 | 2,246,957 | 1,506,854 | [1] | 1,949,475 | [1] | |
Tax benefit | (126,101) | (129,350) | (93,063) | (88,501) | (49,331) | (93,811) | (500,096) | (304,522) | [1] | (424,392) | [1] | |
Net income | $ 473,239 | $ 448,542 | $ 320,111 | $ 372,712 | $ 202,049 | $ 338,094 | 1,746,861 | [2] | 1,202,332 | [2],[3] | $ 1,525,083 | [2],[4] |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost and initial net obligation | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Other (income) expense, net | (5,270) | (5,531) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Recognized actuarial loss | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Other (income) expense, net | (207,896) | (165,550) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Retirement benefit plans | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Income before income taxes | (213,166) | (171,081) | ||||||||||
Tax benefit | 51,943 | 41,466 | ||||||||||
Net income | $ (161,223) | $ (129,615) | ||||||||||
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||||||||
[2] | *The balances at June 30, 2018 and the year ended June 30, 2020 and 2019 amounts have been revised to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the consolidated financial statements. | |||||||||||
[3] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. | |||||||||||
[4] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Equity - Share repurchases (Det
Equity - Share repurchases (Details) - $ / shares | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 22, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 331,259 | 818,581 | 4,755,273 | |
Average price per share including commissions (in USD per share) | $ 301.88 | $ 179.29 | $ 168.23 | |
Maximum | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares authorized for repurchase | 35,000,000 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 23, 2019 | |
Omnibus Stock Incentive Plan 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares authorized for issuance under stock incentive plan | 23,800,000 | |||
Number of shares available for future issuance | 11,300,000 | |||
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 35,212 | $ 26,108 | $ 26,568 | |
Expense for nonvested awards not yet recognized | $ 13,089 | |||
Expense for nonvested awards not yet recognized, weighted-average period for recognition | 16 months | |||
Total fair value of shares vested | $ 24,857 | 27,209 | 25,365 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock-based compensation expense | $ 26,009 | 25,560 | 25,258 | |
Expense for nonvested awards not yet recognized | $ 20,543 | |||
Expense for nonvested awards not yet recognized, weighted-average period for recognition | 20 months | |||
Total fair value of shares vested | $ 21,048 | 23,380 | 20,475 | |
Tax benefit (cost) | $ 796 | 1,037 | 1,548 | |
Long Term Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock-based compensation expense | $ 58,804 | 58,273 | 50,908 | |
Tax benefit (cost) | $ 1,974 | (1,251) | 14,101 | |
Minimum | Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Maximum | Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Expiration period | 10 years | |||
Director | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Stock-based compensation expense | $ 1,458 | 1,434 | 1,345 | |
Expense for nonvested awards not yet recognized | $ 649 | |||
Expense for nonvested awards not yet recognized, weighted-average period for recognition | 5 months | |||
Tax benefit (cost) | $ 2,115 | $ 86 | $ (82) |
Stock Incentive Plans - Weighte
Stock Incentive Plans - Weighted average assumptions used in fair value of each stock appreciation right award granted (Details) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.40% | 1.50% | 2.80% |
Expected life of award | 5 years 4 months 24 days | 5 years 1 month 6 days | 5 years 1 month 6 days |
Expected dividend yield of stock | 2.00% | 2.00% | 1.90% |
Expected volatility of stock | 35.20% | 25.90% | 24.20% |
Weighted-average fair value (in USD per share) | $ 53.92 | $ 31.68 | $ 35.09 |
Stock Incentive Plans - Stock a
Stock Incentive Plans - Stock appreciation rights activity (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance, outstanding (in shares) | shares | 5,183,970 |
Granted (in shares) | shares | 741,852 |
Exercised (in shares) | shares | (1,741,352) |
Canceled (in shares) | shares | (35,884) |
Ending balance, outstanding (in shares) | shares | 4,148,586 |
Exercisable (in shares) | shares | 2,677,757 |
Weighted-Average Exercise Price | |
Beginning balance, outstanding (in USD per share) | $ / shares | $ 132.42 |
Granted (in USD per share) | $ / shares | 209.56 |
Exercised (in USD per share) | $ / shares | 116.51 |
Canceled (in USD per share) | $ / shares | 185.29 |
Ending balance, outstanding (in USD per share) | $ / shares | 152.44 |
Exercisable (in USD per share) | $ / shares | $ 134.55 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, weighted average remaining contractual term | 6 years 3 months 18 days |
Exercisable, weighted average remaining contractual term | 5 years 1 month 6 days |
Outstanding, aggregate intrinsic value | $ | $ 641.7 |
Exercisable, aggregate intrinsic value | $ | $ 462.1 |
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) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Number of Shares | |||
Beginning balance, nonvested (in shares) | 1,539,502 | ||
Granted (in shares) | 741,852 | ||
Vested (in shares) | (774,721) | ||
Canceled (in shares) | (35,804) | ||
Ending balance, nonvested (in shares) | 1,470,829 | 1,539,502 | |
Weighted-Average Grant Date Fair Value | |||
Beginning balance, nonvested (in USD per share) | $ 32.41 | ||
Granted (in USD per share) | 53.92 | $ 31.68 | $ 35.09 |
Vested (in USD per share) | 32.09 | ||
Canceled (in USD per share) | 42.50 | ||
Ending balance, nonvested (in USD per share) | $ 43.19 | $ 32.41 |
Stock Incentive Plans - Informa
Stock Incentive Plans - Information related to stock appreciation rights awards exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Net cash proceeds | $ 4,684 | $ 2,623 | [1] | $ 2,475 | [1] |
Stock Appreciation Rights (SARs) | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Net cash proceeds | 4,684 | 2,623 | 2,475 | ||
Intrinsic value | 225,025 | 133,641 | 95,502 | ||
Income tax benefit | $ 37,437 | $ 21,132 | $ 15,584 | ||
Number of shares surrendered | 316,330 | 228,986 | 158,610 | ||
[1] | *Years ended June 30, 2020 and 2019 amounts have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 7 to the Consolidated Financial Statements. |
Stock Incentive Plans - Summa_2
Stock Incentive Plans - Summary of the status and shares subject to restricted stock units and average price per share (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance, nonvested (in shares) | shares | 350,573 |
Granted (in shares) | shares | 137,488 |
Vested (in shares) | shares | (130,121) |
Canceled (in shares) | shares | (8,354) |
Ending balance, nonvested (in shares) | shares | 349,586 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in USD per share) | $ / shares | $ 160.66 |
Granted (in USD per share) | $ / shares | 218.17 |
Vested (in USD per share) | $ / shares | 161.75 |
Canceled (in USD per share) | $ / shares | 188.20 |
Ending balance, nonvested (in USD per share) | $ / shares | $ 182.22 |
Director | |
Number of Shares | |
Beginning balance, nonvested (in shares) | shares | 8,262 |
Granted (in shares) | shares | 8,122 |
Vested (in shares) | shares | (8,298) |
Canceled (in shares) | shares | (610) |
Ending balance, nonvested (in shares) | shares | 7,476 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in USD per share) | $ / shares | $ 187.49 |
Granted (in USD per share) | $ / shares | 214.46 |
Vested (in USD per share) | $ / shares | 187.49 |
Canceled (in USD per share) | $ / shares | 203.23 |
Ending balance, nonvested (in USD per share) | $ / shares | $ 215.51 |
Stock Incentive Plans - Long te
Stock Incentive Plans - Long term incentive plans (Details) - Long Term Incentive Plans - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued | 210,864 | 279,469 | 293,136 |
Number of shares surrendered | 105,402 | 132,449 | 134,169 |
Share value on date of issuance (in USD per share) | $ 317.60 | $ 134.95 | $ 183 |
Total value of shares issued | $ 66,970 | $ 37,714 | $ 53,644 |
Stock Incentive Plans - Status
Stock Incentive Plans - Status and changes of shares of long term incentive plans shares and the related average price per share (Details) - Long Term Incentive Plans | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance, nonvested (in shares) | shares | 539,059 |
Granted (in shares) | shares | 141,122 |
Vested (in shares) | shares | (173,582) |
Canceled (in shares) | shares | (11,548) |
Ending balance, nonvested (in shares) | shares | 495,051 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in USD per share) | $ / shares | $ 186.75 |
Granted (in USD per share) | $ / shares | 242.80 |
Vested (in USD per share) | $ / shares | 208.83 |
Canceled (in USD per share) | $ / shares | 199.95 |
Ending balance, nonvested (in USD per share) | $ / shares | $ 194.68 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Research and Development [Abstract] | |||
Research and development costs | $ 259,039 | $ 293,837 | $ 294,852 |
Costs incurred in connection with research and development contracts | $ 54,051 | $ 56,964 | $ 44,484 |
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, 2021 | Jun. 30, 2020 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 6,646,029 | $ 7,809,541 |
Estimated fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 7,527,268 | $ 8,574,401 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) € in Millions, ¥ in Millions, $ in Millions | 12 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021EUR (€) | Jun. 30, 2021JPY (¥) | Jun. 30, 2020EUR (€)derivative | Jun. 30, 2020JPY (¥)derivative | |
Derivative [Line Items] | ||||||
Net gains (losses) relating to forward exchange contracts | $ | $ 16 | $ (27) | ||||
Senior Notes | Senior Notes Due 2025 | ||||||
Derivative [Line Items] | ||||||
Aggregate principal amount (in EUR) | € 700 | |||||
Cross-currency swap contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative settled | € 235 | |||||
Proceeds of derivative settled | $ | $ 44 | |||||
Notional amount of derivative | 359 | ¥ 2,149 | € 359 | ¥ 2,149 | ||
Number of derivative instruments held | derivative | 2 | 2 | ||||
Cross-currency swap contracts, due November 2034 | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | 69 | ¥ 2,149 | ||||
Cross-currency swap contracts, due May 2038 | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | € 290 |
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, 2021 | Jun. 30, 2020 |
Cross-currency swap contracts | Other liabilities | ||
Net investment hedges | ||
Cross-currency swap contracts | $ 71,798 | $ 30,860 |
Forward exchange contracts | Non-trade and notes receivable | ||
Cash flow hedges | ||
Cash flow hedges | 5,376 | 5,311 |
Forward exchange contracts | Other accrued liabilities | ||
Cash flow hedges | ||
Cash flow hedges | 9,435 | 3,474 |
Costless collar contracts | Non-trade and notes receivable | ||
Cash flow hedges | ||
Cash flow hedges | 110 | 2,250 |
Costless collar contracts | Other accrued liabilities | ||
Cash flow hedges | ||
Cash flow hedges | $ 901 | $ 661 |
Financial Instruments - Gain (l
Financial Instruments - Gain (losses) on derivative and non-derivative financial instruments recorded in accumulated other comprehensive (loss) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cross-currency swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ (31,988) | $ (9,435) |
Foreign denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ (32,882) | $ 7,205 |
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, 2021 | Jun. 30, 2020 |
Assets: | ||
Equity securities | $ 20,517 | $ 7,901 |
Derivatives | 5,486 | 7,561 |
Liabilities: | ||
Derivatives | 82,134 | 34,995 |
Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Equity securities | 20,517 | 7,901 |
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Equity securities | 0 | 0 |
Derivatives | 5,486 | 7,561 |
Liabilities: | ||
Derivatives | 82,134 | 34,995 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Equity securities | 0 | 0 |
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Loss Contingencies [Line Items] | |
Reserve for environmental matters | $ 17,059 |
Environmental Issue | |
Loss Contingencies [Line Items] | |
Largest range for any one site | 11,400 |
Environmental Issue | Minimum | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | 17,100 |
Environmental Issue | Maximum | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | $ 73,500 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 11,644 | $ 8,874 | $ 9,672 |
Additions Charged to Costs and Expenses | 4,673 | 4,860 | 2,034 |
Other (Deductions) | (4,239) | (2,090) | (2,832) |
Balance at End of Period | 12,078 | 11,644 | 8,874 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 771,430 | 797,692 | 694,857 |
Additions Charged to Costs and Expenses | 94,781 | (42,217) | 102,835 |
Other Additions | (447) | 15,955 | 0 |
Balance at End of Period | $ 865,764 | $ 771,430 | $ 797,692 |