Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 31, 2023 | Dec. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
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 | $ 37,131,474,472 | ||
Entity Common Stock, Shares Outstanding | 128,431,401 | ||
Documents Incorporated by Reference | Portions of the Definitive Proxy Statement for the Company’s 2023 Annual Meeting of Shareholders, to be held on October 25, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000076334 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Cleveland, Ohio |
Auditor Firm ID | 34 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | [1] | Jun. 30, 2021 | [1] | |
Income Statement [Abstract] | |||||
Net Sales | $ 19,065,194 | $ 15,861,608 | $ 14,347,640 | ||
Cost of sales | 12,635,892 | 10,550,309 | 9,604,522 | ||
Selling, general and administrative expenses | 3,354,103 | 2,504,061 | 2,383,407 | ||
Interest expense | 573,894 | 255,252 | 250,036 | ||
Other expense (income), net | 184,167 | 944,881 | (27,950) | ||
Gain on disposal of assets | (362,526) | (7,121) | (109,332) | ||
Income before income taxes | 2,679,664 | 1,614,226 | 2,246,957 | ||
Income taxes | 596,128 | 298,040 | 500,096 | ||
Net Income | 2,083,536 | 1,316,186 | 1,746,861 | ||
Less: Noncontrolling interest in subsidiaries' earnings | 600 | 581 | 761 | ||
Net Income Attributable to Common Shareholders | $ 2,082,936 | $ 1,315,605 | $ 1,746,100 | ||
Earnings per Share Attributable to Common Shareholders | |||||
Basic earnings per share (in USD per share) | $ 16.23 | $ 10.24 | $ 13.54 | ||
Diluted earnings per share (in USD per share) | $ 16.04 | $ 10.09 | $ 13.35 | ||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net Income | $ 2,083,536 | $ 1,316,186 | [1] | $ 1,746,861 | [1] |
Less: Noncontrolling interest in subsidiaries' earnings | 600 | 581 | [1] | 761 | [1] |
Net Income Attributable to Common Shareholders | 2,082,936 | 1,315,605 | [1] | 1,746,100 | [1] |
Other comprehensive income (loss), net of tax | |||||
Foreign currency translation adjustment and other (net of tax of $(38,322), $(3,236) and $(3,664) in 2023, 2022 and 2021, respectively) | 186,721 | (284,732) | 328,792 | ||
Retirement benefits plan activity (net of tax of $(26,019), $(95,574) and $(205,845) in 2023, 2022 and 2021, respectively) | 63,299 | 306,735 | 664,076 | ||
Other comprehensive income (loss) | 250,020 | 22,003 | 992,868 | ||
Less: Other comprehensive (loss) income for noncontrolling interests | (306) | (1,526) | 720 | ||
Other comprehensive income (loss) attributable to common shareholders | 250,326 | 23,529 | 992,148 | ||
Total Comprehensive Income Attributable to Common Shareholders | $ 2,333,262 | $ 1,339,134 | $ 2,738,248 | ||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation and other, tax (expense) benefit | $ (38,322) | $ (3,236) | $ (3,664) |
Retirement benefits plan activity, tax (expense) benefit | $ (26,019) | $ (95,574) | $ (205,845) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 475,182 | $ 535,799 |
Marketable securities and other investments | 8,390 | 27,862 |
Trade accounts receivable, net | 2,827,297 | 2,341,504 |
Non-trade and notes receivable | 309,167 | 543,757 |
Inventories | 2,907,879 | 2,214,553 |
Prepaid expenses and other | 306,314 | 6,383,169 |
Total Current Assets | 6,834,229 | 12,046,644 |
Property, plant and equipment | 6,865,545 | 5,897,955 |
Less: Accumulated depreciation | 4,000,515 | 3,775,197 |
Property, plant and equipment, net | 2,865,030 | 2,122,758 |
Deferred income taxes | 81,429 | 110,585 |
Investments and other assets | 1,104,576 | 788,057 |
Intangible assets, net | 8,450,614 | 3,135,817 |
Goodwill | 10,628,594 | 7,740,082 |
Total Assets | 29,964,472 | 25,943,943 |
Current Liabilities | ||
Notes payable and long-term debt payable within one year | 3,763,175 | 1,724,310 |
Accounts payable, trade | 2,050,934 | 1,731,925 |
Accrued payrolls and other compensation | 651,319 | 470,132 |
Accrued domestic and foreign taxes | 374,571 | 250,292 |
Other accrued liabilities | 895,371 | 1,682,659 |
Total Current Liabilities | 7,735,370 | 5,859,318 |
Long-term debt | 8,796,284 | 9,755,825 |
Pensions and other postretirement benefits | 551,510 | 639,939 |
Deferred income taxes | 1,649,674 | 307,044 |
Other liabilities | 893,355 | 521,897 |
Total Liabilities | 19,626,193 | 17,084,023 |
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 2023 and 2022 | 90,523 | 90,523 |
Additional capital | 305,522 | 327,307 |
Retained earnings | 17,041,502 | 15,661,808 |
Accumulated other comprehensive (loss) | (1,292,872) | (1,543,198) |
Treasury shares at cost: 52,613,046 in 2023 and 52,594,956 in 2022 | (5,817,787) | (5,688,429) |
Total Shareholders' Equity | 10,326,888 | 8,848,011 |
Noncontrolling interests | 11,391 | 11,909 |
Total Equity | 10,338,279 | 8,859,920 |
Total Liabilities and Equity | $ 29,964,472 | $ 25,943,943 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
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) | 52,613,046 | 52,594,956 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Cash Flows From Operating Activities | |||||
Net Income | $ 2,083,536 | $ 1,316,186 | [1] | $ 1,746,861 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 317,416 | 257,314 | 269,943 | ||
Amortization | 500,713 | 314,450 | 325,447 | ||
Stock incentive plan compensation | 142,720 | 137,093 | 121,483 | ||
Deferred income taxes | 91,865 | (351,201) | (51,500) | ||
Foreign currency transaction loss (gain) | 45,647 | (39,987) | (10,948) | ||
Loss (gain) on disposal of property, plant and equipment | 3,819 | (5,727) | (109,332) | ||
Gain on sale of businesses | (366,345) | (1,394) | 0 | ||
Gain on investments | (4,690) | (3,972) | (12,616) | ||
(Gain) loss on marketable securities | (1,486) | 5,131 | (11,570) | ||
Other | 25,524 | 70,443 | 14,424 | ||
Changes in assets and liabilities, net of effects from acquisitions and divestitures: | |||||
Accounts receivable, net | (16,675) | (179,126) | (298,511) | ||
Inventories | 53,124 | (212,134) | (85,597) | ||
Prepaid expenses and other | 1,550 | 37,630 | (25,508) | ||
Other assets | (109,032) | (11,167) | (8,779) | ||
Accounts payable, trade | 91,551 | 131,384 | 526,781 | ||
Accrued payrolls and other compensation | 87,375 | (15,524) | 72,412 | ||
Accrued domestic and foreign taxes | 102,476 | 32,514 | 36,552 | ||
Other accrued liabilities | 112,822 | 999,831 | 11,397 | ||
Pensions and other postretirement benefits | (109,481) | 1,822 | 17,875 | ||
Other liabilities | (72,499) | (41,836) | 46,187 | ||
Net cash provided by operating activities | 2,979,930 | 2,441,730 | 2,575,001 | ||
Cash Flows From Investing Activities | |||||
Acquisitions (net of cash acquired of $89,704 in 2023) | (7,146,110) | 0 | 0 | ||
Capital expenditures | (380,747) | (230,044) | (209,957) | ||
Proceeds from sale of property, plant and equipment | 13,244 | 39,353 | 140,590 | ||
Proceeds from sale of businesses | 473,207 | 3,366 | 0 | ||
Purchase of marketable securities and other investments | (37,791) | (27,895) | (34,809) | ||
Maturities and sales of marketable securities and other investments | 56,786 | 31,809 | 79,419 | ||
Payments of deal-contingent forward contracts | (1,405,418) | 0 | 0 | ||
Other | 250,017 | (235,426) | 24,744 | ||
Net cash used in investing activities | (8,176,812) | (418,837) | (13) | ||
Cash Flows From Financing Activities | |||||
Proceeds from exercise of stock options | 3,476 | 2,831 | 4,684 | ||
Payments for common shares | (297,323) | (460,056) | (218,818) | ||
Proceeds from (payments of) notes payable, net | 357,636 | 1,422,026 | (723,496) | ||
Proceeds from long-term borrowings | 2,023,400 | 3,598,056 | 1,213 | ||
Payments for long-term borrowings | (2,340,566) | (18,737) | (1,211,748) | ||
Financing fees paid | (13,605) | (58,629) | 0 | ||
Dividends paid | (704,054) | (569,855) | (475,174) | ||
Net cash (used in) provided by financing activities | (971,036) | 3,915,636 | (2,623,339) | ||
Effect of exchange rate changes on cash | (4,776) | (23,770) | 95,954 | ||
Net (decrease) increase in cash and cash equivalents and restricted cash | (6,172,694) | 5,914,759 | 47,603 | ||
Cash, cash equivalents and restricted cash at beginning of year | 6,647,876 | 733,117 | 685,514 | ||
Cash, cash equivalents and restricted cash at end of year | 475,182 | 6,647,876 | 733,117 | ||
Cash paid during the year for: | |||||
Interest | 464,701 | 240,313 | 236,979 | ||
Income taxes | $ 411,440 | $ 549,223 | $ 485,885 | ||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Statement of Cash Flows [Abstract] | |
Acquisitions, cash acquired | $ 89,704 |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Shares | Noncontrolling Interests | |
Beginning balance at Jun. 30, 2020 | $ 6,241,770 | $ 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] | 1,746,100 | 761 | ||||
Other comprehensive income (loss) | 992,868 | 992,148 | 720 | |||||
Dividends paid | (475,174) | (474,510) | (664) | |||||
Stock incentive plan activity | 7,345 | (86,966) | 94,311 | |||||
Shares purchased at cost | (100,000) | (100,000) | ||||||
Ending balance at Jun. 30, 2021 | 8,413,670 | 90,523 | 329,619 | 14,915,497 | (1,566,727) | (5,370,605) | 15,363 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,316,186 | [1] | 1,315,605 | 581 | ||||
Other comprehensive income (loss) | 22,003 | 23,529 | (1,526) | |||||
Dividends paid | (569,855) | (569,294) | (561) | |||||
Stock incentive plan activity | 60,198 | (2,312) | 62,510 | |||||
Liquidation activity | (1,948) | (1,948) | ||||||
Shares purchased at cost | (380,334) | (380,334) | ||||||
Ending balance at Jun. 30, 2022 | 8,859,920 | 90,523 | 327,307 | 15,661,808 | (1,543,198) | (5,688,429) | 11,909 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,083,536 | 2,082,936 | 600 | |||||
Other comprehensive income (loss) | 250,020 | 250,326 | (306) | |||||
Dividends paid | (704,054) | (703,242) | (812) | |||||
Stock incentive plan activity | 48,856 | (21,785) | 70,641 | |||||
Shares purchased at cost | (199,999) | (199,999) | ||||||
Ending balance at Jun. 30, 2023 | $ 10,338,279 | $ 90,523 | $ 305,522 | $ 17,041,502 | $ (1,292,872) | $ (5,817,787) | $ 11,391 | |
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in USD per share) | $ 5.47 | $ 4.42 | $ 3.67 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
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. There are no individual customers to whom sales are more than four 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. Reclassification - Certain prior-year amounts in the Consolidated Statement of Income have been reclassified to conform to the current-year presentation. Effective July 1, 2022, we began classifying certain expenses, previously classified as cost of sales, as selling, general and administrative expenses ("SG&A") or within other expense (income), net. During the integration of recently acquired businesses, the Company has seen diversity in practice of the classification of certain expenses, and the reclassification was made to better align the presentation of expenses on the Consolidated Statement of Income with management’s internal reporting. The expenses reclassified from cost of sales to SG&A relate to certain administrative activities conducted in production facilities and research and development. Foreign currency transaction expense was also reclassified from cost of sales to other expense (income), net on the Consolidated Statement of Income. These reclassifications had no impact on net income, earnings per share, cash flows, segment reporting or the financial position of the Company. For the year ended June 30, 2022, the reclassification resulted in a decrease of $837 million to cost of sales, an increase of $877 million to SG&A, and a decrease of $40 million to other expense (income), net. For the year ended June 30, 2021 the reclassification resulted in a decrease of $845 million to cost of sales, an increase of $856 million to SG&A, and a decrease of $11 million to other expense (income), net. 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, inter-segment and inter-area 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 assess 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 $32 million and $10 million at June 30, 2023 and 2022, respectively. The increase in the allowance for credit losses from the June 30, 2022 amount is primarily due to the Acquisition. 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, 2023 2022 Notes receivable $ 102,288 $ 103,558 Cash collateral receivable (a) — 250,000 Accounts receivable, other 206,879 190,199 Total $ 309,167 $ 543,757 (a) The cash collateral receivable relates to the deal-contingent forward contracts. Refer to Note 16 for further discussion. Property, Plant and Equipment and Depreciation - Property, 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 property, plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2023 2022 Land and land improvements $ 385,376 $ 322,024 Buildings and building equipment 2,051,546 1,783,805 Machinery and equipment 4,086,334 3,588,106 Construction in progress 342,289 204,020 Total $ 6,865,545 $ 5,897,955 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 $297 million and $314 million at June 30, 2023 and 2022, 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 $124 million, $76 million and $41 million in 2023, 2022 and 2021, respectively. Intangible Assets - Intangible assets primarily include patents and technology, trade names and customer relationships 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. Trade names are amortized over the estimated time period over which an economic benefit is expected to be received. Customer relationships are amortized over a period based on anticipated customer attrition rates or contractual lives. 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. Taxes related to Global Intangible Low-Taxed Income ("GILTI") are treated as a current period expense when incurred. 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 other expense (income), net caption in the Consolidated Statement of Income and were $46 million, $(40) million and $(11) million, in 2023, 2022 and 2021, respectively. Business Combinations - From time to time, we may enter into business combinations. Business acquisitions are accounted for using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Transaction costs associated with these acquisitions are expensed as incurred. 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, 2023. No subsequent events occurred that required adjustment to or disclosure in these financial statements. Recent Accounting Pronouncements - In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance", which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The Company prospectively adopted this standard during the fourth quarter of fiscal 2023 with no material impact on its consolidated financial statements and related disclosures. In September 2022, the FASB issued ASU 2022-04, "Liabilities—Supplier Finance Programs (Topic 405-50), Disclosure of Supplier Finance Program Obligations" ("ASU 2022-04"). ASU 2022-04 requires quantitative and qualitative disclosures about the key terms of supplier finance programs, an annual rollforward of obligations to finance providers, and interim disclosure of obligations as of each reporting period presented. ASU 2022-04 is effective for all entities for fiscal years beginning after December 15, 2022, on a retrospective basis, including interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective prospectively for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and does not expect it to be material. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2023 | |
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: 2023 2022 2021 Motion Systems $ 3,830,062 $ 3,489,431 $ 3,081,366 Flow and Process Control 4,939,356 4,616,270 4,108,080 Filtration and Engineered Materials 5,936,275 5,236,345 4,770,713 Total $ 14,705,693 $ 13,342,046 $ 11,960,159 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. 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: 2023 2022 2021 Commercial original equipment manufacturer ("OEM") $ 1,461,279 $ 889,649 $ 761,679 Commercial aftermarket 1,363,965 514,727 379,438 Military OEM 905,328 705,988 791,245 Military aftermarket 628,929 409,198 455,119 Total $ 4,359,501 $ 2,519,562 $ 2,387,481 Upon completing the Acquisition, we reviewed the disaggregation of revenue disclosure for the Aerospace Systems Segment and believe that disaggregation by primary market provides more meaningful information than disaggregation by product platform. Total revenues by geographic region based on the Company's selling operation's location: 2023 2022 2021 North America $ 12,689,719 $ 10,216,292 $ 9,046,162 Europe 3,777,507 3,156,024 2,919,025 Asia Pacific 2,379,791 2,290,557 2,215,686 Latin America 218,177 198,735 166,767 Total $ 19,065,194 $ 15,861,608 $ 14,347,640 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: 2023 2022 Contract assets, current (included within Prepaid expenses and other) $ 123,705 $ 28,546 Contract assets, noncurrent (included within Investments and other assets) 23,708 794 Total contract assets 147,413 29,340 Contract liabilities, current (included within Other accrued liabilities) (244,799) (60,472) Contract liabilities, noncurrent (included within Other liabilities) (78,239) (2,225) Total contract liabilities (323,038) (62,697) Net contract liabilities $ (175,625) $ (33,357) Net contract liabilities at June 30, 2023 increased from the prior year amount due to timing differences between when revenue was recognized and the receipt of advance payments as well as acquiring Meggitt's contract liabilities in excess of Meggitt's contract assets. During 2023, approximately $47 million of revenue was recognized that was included in the contract liabilities at June 30, 2022. Remaining performance obligation s 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, 2023 was $11.0 billion, of which approximately 79 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On September 12, 2022, we completed the Acquisition of all the outstanding ordinary shares of Meggitt for 800 pence per share, resulting in an aggregate cash purchase price of $7.2 billion, including the assumption of debt. Meggitt is a leader in design, manufacturing and aftermarket support of technologically differentiated systems and equipment in aerospace, defense and selected energy markets with annual sales of approximately $2.1 billion for the year ended December 31, 2021. For segment reporting purposes, approximately 82 percent of Meggitt's sales are included in the Aerospace Systems Segment, while the remaining 18 percent are included in the Diversified Industrial Segment. Assets acquired and liabilities assumed are recognized at their respective fair values as of the date of the Acquisition. 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 table presents the preliminary estimated fair values of Meggitt's assets acquired and liabilities assumed on the date of the Acquisition. These preliminary estimates are based on available information and may be revised during the measurement period, not to exceed 12 months from the date of the Acquisition, as third-party valuations are finalized, additional information becomes available or as additional analysis is performed. Such revisions may have a material impact on our results of operations and financial position within the measurement period. September 12, 2022 (previously reported) Measurement Period Adjustments September 12, 2022 Assets: Cash and cash equivalents $ 89,704 $ — $ 89,704 Accounts receivable 427,255 (17,613) 409,642 Inventories 833,602 (94,298) 739,304 Prepaid expenses and other 125,763 (23,731) 102,032 Property, plant and equipment, net 675,232 (16,235) 658,997 Deferred income taxes 5,720 28,478 34,198 Other assets 219,472 (38,481) 180,991 Intangible assets 5,418,795 260,405 5,679,200 Goodwill 2,830,845 (41,765) 2,789,080 Total assets acquired $ 10,626,388 $ 56,760 $ 10,683,148 Liabilities: Notes payable and long-term debt payable within one year $ 306,266 $ 1,910 $ 308,176 Accounts payable, trade 219,780 62 219,842 Accrued payrolls and other compensation 89,226 (2,152) 87,074 Accrued domestic and foreign taxes — 21,068 21,068 Other accrued liabilities 367,605 (45,565) 322,040 Long-term debt 669,321 42,382 711,703 Pensions and other postretirement benefits 85,899 13,654 99,553 Deferred income taxes 1,274,726 (15,309) 1,259,417 Other liabilities 377,751 40,710 418,461 Total liabilities assumed 3,390,574 56,760 3,447,334 Net assets acquired $ 7,235,814 $ — $ 7,235,814 Goodwill is calculated as the excess of the purchase price over the net assets acquired and represents cost synergies and enhancements to our existing technologies. For tax purposes, Meggitt's goodwill is not deductible. Based upon a preliminary acquisition valuation, we acquired $4.3 billion of customer-related intangible assets, $1.1 billion of technology and $304 million of trade names, each with weighted average estimated useful lives of 22, 21 and 18 years, respectively. These intangible assets were valued using the income approach, which includes significant assumptions around future revenue growth, earnings before interest, taxes, depreciation and amortization, royalty rates and discount rates. Such assumptions are classified as level 3 inputs within the fair value hierarchy. The fair value of the assets acquired includes $116 million and $91 million of operating and finance lease right-of-use assets, respectively. The fair value of liabilities assumed includes $118 million and $90 million of operating and finance lease liabilities, respectively, of which, $19 million and $1 million of operating and finance lease liabilities, respectively, are current liabilities. Debt assumed includes $900 million aggregate principal amount of private placement notes with fixed interest rates ranging from 2.78 percent to 3.60 percent, and maturity dates ranging from July 2023 to July 2026. The private placement notes were recorded at fair value at acquisition. In October 2022, we paid off $300 million aggregate principal amount of private placement notes in two tranches pursuant to an offer to noteholders according to change in control provisions. In June 2023, the Company paid the remaining $600 million aggregate principal amount of private placement notes assumed in the Acquisition, which resulted in a $10 million charge recorded in interest expense in the Consolidated Statement of Income associated with the fair value discount. Upon acquiring Meggitt, we also assumed $134 million of liabilities associated with environmental matters, the liabilities are included within other liabilities. The environmental matters primarily relate to known exposures arising from environmental litigation, investigations and remediation of certain sites for which Meggitt has been identified as a potentially responsible party. The liabilities are based on outcomes of litigation and estimates of the level and timing of remediation costs, including the period of operating and monitoring activities required. Our consolidated financial statements include the results of operations of Meggitt from the date of acquisition through June 30, 2023. Net sales and segment operating income attributable to Meggitt during 2023 was $2.1 billion and $23 million, respectively. Segment operating income attributable to Meggitt includes estimated amortization and depreciation expense associated with the preliminary fair value estimates of intangible assets, plant and equipment, inventory, as well as acquisition integration charges. Refer to Note 4 for further discussion of acquisition integration charges. Acquisition-related transaction costs totaled $115 million in 2023. These costs are included in SG&A in the Consolidated Statement of Income. The following table presents unaudited pro forma information for 2023 and 2022 as if the Acquisition had occurred on July 1, 2021. (Unaudited) 2023 2022 Net sales $ 19,446,524 $ 17,911,409 Net income attributable to common shareholders 1,956,813 1,529,970 The historical consolidated financial information of Parker and Meggitt has been adjusted in the pro forma information in the table above to give effect to events that are directly attributable to the Acquisition and factually supportable. To reflect the occurrence of the Acquisition on July 1, 2021, the unaudited pro forma information includes adjustments for the amortization of the step-up inventory to fair value and incremental depreciation and amortization expense resulting from the fair value adjustments to property, plant and equipment and intangible assets. These adjustments were based upon a preliminary purchase price allocation. Additionally, adjustments to financing costs and income tax expense were also made to reflect the capital structure and anticipated effective tax rate of the combined entity. Additionally, the pro forma information includes adjustments for non-recurring transactions directly related to the Acquisition, including the gain on the divestiture of the aircraft wheel and brake business, loss on deal-contingent forward contracts, and transaction costs. These non-recurring adjustments totaled $199 million and $654 million in 2023 and 2022, respectively. The resulting pro forma amounts are not necessarily indicative of the results that would have been obtained if the Acquisition had occurred as of the beginning of the period presented or that may occur in the future, and do not reflect future synergies, integration costs or other such costs or savings. Divestitures During September 2022, we divested our aircraft wheel and brake business, which was part of the Aerospace Systems Segment, for proceeds of $443 million. The resulting pre-tax gain of $374 million is included in other expense (income) During March 2023, we divested a French aerospace business, which was part of the Aerospace Systems Segment, for proceeds of $27 million. The resulting pre-tax loss of $12 million is included in other expense (income), net in the Consolidated Statement of Income. The operating results and net assets of the French aerospace business were immaterial to the Company's consolidated results of operations and financial position. Restricted Cash At June 30, 2022, prepaid expenses and other in the Consolidated Balance Sheet included a $6.1 billion balance in an escrow account restricted to payments for the Acquisition. These funds were used to finance a portion of the Acquisition, and there was no restricted cash at June 30, 2023. |
Business Realignment and Acquis
Business Realignment and Acquisition Integration Charges | 12 Months Ended |
Jun. 30, 2023 | |
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 2023, 2022 and 2021. Business realignment charges in 2023, 2022, and 2021 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. During 2021, business realignment charges primarily consisted of actions taken to address the impact of COVID-19 on our business. A majority of the business realignment charges were incurred in Europe. We believe the realignment actions will positively impact future results of operations but will not have a material effect on liquidity and sources and uses of capital. Business realignment charges by business segment are as follows: 2023 2022 2021 Diversified Industrial $ 23,641 $ 13,787 $ 38,557 Aerospace Systems 3,065 967 6,680 Corporate administration — — 1,399 Other expense — 3 1,226 Workforce reductions in connection with such business realignment charges by business segment are as follows: 2023 2022 2021 Diversified Industrial 728 300 820 Aerospace Systems 30 10 327 Corporate administration — — 20 The business realignment charges are presented in the Consolidated Statement of Income as follows: 2023 2022* 2021* Cost of sales $ 15,993 $ 5,007 $ 27,276 Selling, general and administrative expenses 10,713 9,747 19,360 Loss on disposal of assets — 3 1,226 *Years ended June 30, 2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. During 2023, approximately $22 million in payments were made relating to business realignment charges. Remaining payments related to current-year and prior-year business realignment actions of approximately $14 million, a majority of which are expected to be paid by December 31, 2023, 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. In addition to the business realignment charges discussed above, in 2022, we also incurred $20 million of expense as a result of our exit of business operations in Russia. These charges primarily consist of write-downs of inventory and other working capital items and $8 million of foreign currency translation expense reclassified from accumulated other comprehensive income. Within the business segment information in Note 18, $7 million of expense was recorded in the other expense (income), net, while the remainder of the charge was split evenly between the Aerospace Systems Segment and the Diversified Industrial International businesses. We also incurred the following acquisition integration charges related to the Meggitt, Lord and Exotic Metals Forming Company LLC ("Exotic") acquisitions: 2023 2022 2021 Diversified Industrial $ 8,511 $ 3,589 $ 11,222 Aerospace Systems 86,928 1,177 719 In 2023, acquisition integration charges relate to the acquisition of Meggitt. In 2022, charges within the Diversified Industrial and Aerospace Systems Segment relate to the acquisitions of Lord and Meggitt, respectively. Acquisition integration charges in 2021 within the Diversified Industrial and Aerospace Systems Segment relate to the acquisitions of Lord and Exotic, respectively. These charges were primarily included in selling, general and administrative expenses within the Consolidated Statement of Income. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes was derived from the following sources: 2023 2022 2021 United States $ 1,408,206 $ 646,364 $ 1,273,037 Foreign 1,271,458 967,862 973,920 $ 2,679,664 $ 1,614,226 $ 2,246,957 Income taxes include the following: 2023 2022 2021 Federal Current $ 161,465 $ 297,672 $ 247,094 Deferred 81,426 (253,123) (52,960) Foreign Current 297,199 303,089 269,607 Deferred (13,509) (45,977) 8,851 State and local Current 45,599 48,479 34,895 Deferred 23,948 (52,100) (7,391) $ 596,128 $ 298,040 $ 500,096 A reconciliation of the effective income tax rate to the statutory federal rate follows: 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes 2.1 (0.2) 1.0 Tax related to international activities 1.2 2.7 3.6 Cash surrender value of life insurance (0.1) 0.5 (0.6) Foreign derived intangible income deduction (1.1) (3.7) (1.0) Research tax credit (0.7) (0.8) (0.4) Share-based compensation (1.0) (1.3) (1.6) Other 0.8 0.3 0.3 Effective income tax rate 22.2 % 18.5 % 22.3 % Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities. The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows: 2023 2022 Retirement benefits $ 158,560 $ 207,147 Other liabilities and reserves 333,012 180,624 Long-term contracts 37,747 8,739 Stock-based compensation 33,374 31,490 Loss carryforwards 1,083,732 888,552 Unrealized currency exchange gains and losses (1,680) 254,334 Inventory 96,501 14,649 Tax credit carryforwards 18,773 17,326 Undistributed foreign earnings (21,304) (21,822) Depreciation and amortization (2,228,606) (875,623) Valuation allowance (1,078,354) (901,875) Net deferred tax (liability) $ (1,568,245) $ (196,459) Change in net deferred tax (liability): Provision for deferred tax $ (91,865) $ 351,201 Items of other comprehensive (loss) income (64,342) (98,810) Acquisitions and other (1,215,579) 880 Total change in net deferred tax $ (1,371,786) $ 253,271 As of June 30, 2023, we recorded deferred tax assets of $1,084 million resulting from $4,350 million in loss carryforwards. A valuation allowance of $1,059 million related to the loss carryforwards has been established due to the uncertainty of their realization. Of this valuation allowance, $1,030 million 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 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 $754 million that are no longer permanently reinvested outside of the United States, we have recorded a deferred tax liability of $13 million. The remaining undistributed foreign earnings of approximately $1,130 million remain permanently reinvested outside the United States at June 30, 2023. Of these undistributed earnings, we have recorded a deferred tax liability of $8 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: 2023 2022 2021 Balance July 1 $ 90,669 $ 100,759 $ 86,277 Additions for tax positions related to current year 9,389 7,039 10,145 Additions for tax positions of prior years 6,171 1,415 10,320 Additions for acquisitions 25,957 — 2,376 Reductions for tax positions of prior years (3,063) (140) (1,996) Reductions for settlements (6,923) (3,127) (7,165) Reductions for expiration of statute of limitations (11,199) (6,647) (2,252) Effect of foreign currency translation 2,502 (8,630) 3,054 Balance June 30 $ 113,503 $ 90,669 $ 100,759 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $114 million, $91 million and $101 million as of June 30, 2023, 2022 and 2021, respectively. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, was $21 million, $18 million, and $18 million as of June 30, 2023, 2022 and 2021, respectively. The accrued penalties related to the gross unrecognized tax benefits, excluded from the amounts above, was $2 million as of June 30, 2023. There were no accrued penalties related to the gross unrecognized tax benefits as of June 30, 2022 and 2021. 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 million 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, 2023 | |
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: 2023 2022 2021 Numerator: Net income attributable to common shareholders $ 2,082,936 $ 1,315,605 $ 1,746,100 Denominator: Basic - weighted-average common shares 128,367,842 128,539,387 128,999,879 Increase in weighted-average common shares from dilutive effect of equity-based awards 1,454,243 1,816,556 1,834,599 Diluted - weighted-average common shares, assuming exercise of equity-based awards 129,822,085 130,355,943 130,834,478 Basic earnings per share $ 16.23 $ 10.24 $ 13.54 Diluted earnings per share $ 16.04 $ 10.09 $ 13.35 For 2023, 2022 and 2021, 1.0 million, 0.4 million and 0.4 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, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out ("FIFO") method. The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2023 2022 Finished products $ 794,128 $ 811,702 Work in process 1,488,665 1,128,501 Raw materials 625,086 274,350 Total $ 2,907,879 $ 2,214,553 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
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, 2021 $ 7,457,309 $ 602,378 $ 8,059,687 Divestitures (164) — (164) Goodwill reclassified to held for sale — (48,242) (48,242) Foreign currency translation (271,164) (35) (271,199) Balance June 30, 2022 $ 7,185,981 $ 554,101 $ 7,740,082 Acquisitions 452,008 2,337,072 2,789,080 Divestitures (1,064) (2,232) (3,296) Foreign currency translation 45,830 56,898 102,728 Balance June 30, 2023 $ 7,682,755 $ 2,945,839 $ 10,628,594 Acquisitions represent goodwill resulting from the preliminary purchase price allocation for the Acquisition during the measurement period. Refer to Note 3 for further discussion. Divestitures represent goodwill associated with the sale of businesses during 2023 and 2022. Goodwill reclassified to held for sale, which was allocated using the relative fair value method, relates to the aircraft wheel and brake business. Refer to Note 3 for further discussion. Goodwill is tested for impairment at the reporting unit level annually 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 2023, 2022 and 2021 resulted in no impairment loss being recognized. 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: 2023 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents and technology $ 2,128,847 $ 352,040 $ 990,775 $ 259,587 Trade names 1,047,678 390,737 727,820 339,244 Customer relationships and other 8,109,063 2,092,197 3,735,042 1,718,989 Total $ 11,285,588 $ 2,834,974 $ 5,453,637 $ 2,317,820 Total intangible asset amortization expense in 2023, 2022 and 2021 was $501 million, $314 million and $325 million, respectively. The estimated intangible asset amortization expense for the five years ending June 30, 2024 through 2028 is $550 million, $528 million, $523 million, $518 million and $508 million, respectively. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jun. 30, 2023 | |
Financing Arrangements [Abstract] | |
Financing Arrangements | Financing Arrangements The Company has a line of credit totaling $3.0 billion through a multi-currency revolving credit agreement with a group of banks, of which $1.2 billion was available for borrowing as of June 30, 2023. During 2023, the Company amended its credit agreement by extending the expiration to June 2028. 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 supports our commercial paper program, and issuances of commercial paper reduce the amount of credit available under the agreement. 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 $3.0 billion of short-term commercial paper notes. There were $1.8 billion commercial paper notes outstanding at June 30, 2023 and $1.4 billion were outstanding at June 30, 2022. The Company had no outstanding borrowings from foreign banks at June 30, 2023 and 2022. The weighted-average interest rate on notes payable outstanding at June 30, 2023 and 2022 was 5.6 percent and 0.7 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, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt June 30, 2023 2022 Domestic: Fixed rate medium-term notes, 3.30% to 6.25%, due 2025 - 2045 $ 1,825,000 $ 2,125,000 Senior Notes, 2.70% to 4.50%, due 2024 - 2049 7,275,000 7,275,000 Term Loan Facility, due 2026 875,000 — Foreign: Euro Senior Notes, 1.125%, due 2025 763,770 733,950 Other long-term debt 106,598 11,127 Deferred debt issuance costs (74,713) (86,972) Total long-term debt 10,770,655 10,058,105 Less: Long-term debt payable within one year 1,974,371 302,280 Long-term debt, net $ 8,796,284 $ 9,755,825 In connection with the Acquisition, the Company entered into a Bridge Credit Agreement on August 2, 2021 (the "Bridge Credit Agreement"). Under the Bridge Credit Agreement, lenders committed to provide senior, unsecured financing in the aggregate principal amount of £6.5 billion at August 2, 2021. In July 2022, after consideration of the escrow balance and funds available under the delayed-draw term loan facility (the “Term Loan Facility”), we reduced the aggregate committed principal amount of the Bridge Credit Agreement to zero, and the Bridge Credit Agreement was terminated. In September 2022, the Company fully drew against the $2.0 billion delayed-draw Term Loan Facility, which will mature in its entirety in September 2025. We used the proceeds of the Term Loan Facility to finance a portion of the Acquisition. At June 30, 2023, the Term Loan Facility had an interest rate of Secured Overnight Financing Rate plus 122.5 bps. Interest payments are made at the interest reset dates, which are either one three Additionally, the provisions of the Term Loan Facility allow for prepayments at the Company's discretion. During 2023, we made principal payments totaling $1.1 billion related to the Term Loan Facility. Principal amounts of long-term debt payable in the five years ending June 30, 2024 through 2028 are $1,980 million, $1,268 million, $879 million, $704 million and $1,204 million, respectively. The principal amounts of long-term debt payable exclude the amortization of debt issuance costs. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We primarily enter into lease agreements for office space, distribution centers, certain manufacturing facilities and equipment. 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. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. 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: 2023 2022 2021 Operating lease expense $ 60,411 $ 46,026 $ 48,171 Finance lease cost: Amortization of lease assets 5,604 1,861 1,576 Interest on lease liabilities 4,383 390 455 Short-term lease cost 7,577 7,041 7,674 Variable lease cost 5,747 5,849 5,835 Total lease cost $ 83,722 $ 61,167 $ 63,711 Supplemental cash flow information related to leases is as follows: 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows - payments on operating leases $ 57,717 $ 45,371 $ 47,080 Operating cash outflows - interest payments on finance leases 4,383 390 455 Financing cash outflows - payments on finance lease obligations 5,141 1,992 1,713 Right-of-use assets obtained in exchange for operating lease obligations 45,365 50,925 41,637 Right-of-use assets obtained in exchange for finance lease obligations 1,340 — 3,834 Supplemental balance sheet information related to operating leases is as follows: 2023 2022 Operating Leases Operating lease right-of-use assets (included within Investments and other assets) $ 232,733 $ 133,412 Current operating lease liabilities (included within Other accrued liabilities) $ 50,523 $ 36,023 Long-term operating lease liabilities (included within Other liabilities) 187,445 100,337 Total operating lease liabilities $ 237,968 $ 136,360 Finance Leases Land and buildings $ 107,910 $ 9,223 Machinery and equipment 5,113 5,066 Accumulated depreciation (8,196) (3,836) Net property, plant and equipment $ 104,827 $ 10,453 Current portion of long-term debt (included within Other accrued liabilities) $ 4,198 $ 1,691 Long-term debt (included within Other liabilities) 100,889 8,575 Total finance lease liabilities $ 105,087 $ 10,266 Weighted-average remaining lease term Operating leases 6.9 years 5.6 years Finance leases 20.8 years 15.7 years Weighted-average discount rate Operating leases 3.9 % 1.6 % Finance leases 5.2 % 3.3 % Maturities of lease liabilities at June 30, 2023 are as follows: Operating Leases Finance Leases 2024 $ 58,351 $ 9,483 2025 49,196 8,871 2026 38,352 8,792 2027 28,590 8,896 2028 21,481 8,936 Thereafter 82,407 128,519 Total lease payments $ 278,377 $ 173,497 Less imputed interest 40,409 68,410 Total lease liabilities $ 237,968 $ 105,087 |
Leases | Leases We primarily enter into lease agreements for office space, distribution centers, certain manufacturing facilities and equipment. 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. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. 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: 2023 2022 2021 Operating lease expense $ 60,411 $ 46,026 $ 48,171 Finance lease cost: Amortization of lease assets 5,604 1,861 1,576 Interest on lease liabilities 4,383 390 455 Short-term lease cost 7,577 7,041 7,674 Variable lease cost 5,747 5,849 5,835 Total lease cost $ 83,722 $ 61,167 $ 63,711 Supplemental cash flow information related to leases is as follows: 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows - payments on operating leases $ 57,717 $ 45,371 $ 47,080 Operating cash outflows - interest payments on finance leases 4,383 390 455 Financing cash outflows - payments on finance lease obligations 5,141 1,992 1,713 Right-of-use assets obtained in exchange for operating lease obligations 45,365 50,925 41,637 Right-of-use assets obtained in exchange for finance lease obligations 1,340 — 3,834 Supplemental balance sheet information related to operating leases is as follows: 2023 2022 Operating Leases Operating lease right-of-use assets (included within Investments and other assets) $ 232,733 $ 133,412 Current operating lease liabilities (included within Other accrued liabilities) $ 50,523 $ 36,023 Long-term operating lease liabilities (included within Other liabilities) 187,445 100,337 Total operating lease liabilities $ 237,968 $ 136,360 Finance Leases Land and buildings $ 107,910 $ 9,223 Machinery and equipment 5,113 5,066 Accumulated depreciation (8,196) (3,836) Net property, plant and equipment $ 104,827 $ 10,453 Current portion of long-term debt (included within Other accrued liabilities) $ 4,198 $ 1,691 Long-term debt (included within Other liabilities) 100,889 8,575 Total finance lease liabilities $ 105,087 $ 10,266 Weighted-average remaining lease term Operating leases 6.9 years 5.6 years Finance leases 20.8 years 15.7 years Weighted-average discount rate Operating leases 3.9 % 1.6 % Finance leases 5.2 % 3.3 % Maturities of lease liabilities at June 30, 2023 are as follows: Operating Leases Finance Leases 2024 $ 58,351 $ 9,483 2025 49,196 8,871 2026 38,352 8,792 2027 28,590 8,896 2028 21,481 8,936 Thereafter 82,407 128,519 Total lease payments $ 278,377 $ 173,497 Less imputed interest 40,409 68,410 Total lease liabilities $ 237,968 $ 105,087 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jun. 30, 2023 | |
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. Our largest plans are generally closed to new participants. 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: 2023 2022 2021 Benefit cost Service cost $ 57,418 $ 76,638 $ 84,188 Interest cost 225,468 110,250 102,475 Expected return on plan assets (311,145) (267,888) (267,579) Amortization of prior service cost 931 4,103 5,325 Amortization of unrecognized actuarial loss 17,178 157,288 207,897 Amortization of transition obligation — 8 18 One-time charges related to divestitures (2,480) — — Net periodic benefit cost $ (12,630) $ 80,399 $ 132,324 Components of net pension benefit cost, other than service cost, are included in other expense (income), net in the Consolidated Statement of Income. 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 4,959,319 $ 6,323,003 Service cost 57,418 76,638 Interest cost 225,468 110,250 Acquisition 1,181,139 — Plan amendments 2,521 (5,691) Divestiture (1,779) — Actuarial gain (349,476) (1,097,053) Benefits paid (312,758) (256,868) Foreign currency translation and other 73,839 (190,960) Benefit obligation at end of year $ 5,835,691 $ 4,959,319 Change in plan assets Fair value of plan assets at beginning of year $ 4,362,153 $ 5,305,577 Actual gain (loss) on plan assets 31,399 (605,642) Acquisition 1,140,707 — Employer contributions 153,038 96,717 Benefits paid (312,758) (256,868) Foreign currency translation and other 80,756 (177,631) Fair value of plan assets at end of year $ 5,455,295 $ 4,362,153 Funded status $ (380,396) $ (597,166) Amounts recognized on the Consolidated Balance Sheet Investments and other assets $ 145,809 $ 103,632 Other accrued liabilities (57,783) (19,307) Pensions and other postretirement benefits (468,422) (681,491) Net amount recognized $ (380,396) $ (597,166) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 593,937 $ 672,775 Prior service cost 6,489 4,901 Net amount recognized $ 600,426 $ 677,676 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. As of the date of the Acquisition, the Meggitt plans were remeasured at fair value using accounting policies consistent with Parker plans. At June 30, 2023, the benefit obligation increased primarily due to plans acquired with the Acquisition partially offset by increased discount rates. At June 30, 2022, the benefit obligation decreased primarily due to significantly higher discount rates. The plans acquired with the Acquisition are the primary contributing factor for the increase in plan assets' fair value during 2023. In 2022, investment (losses) were the largest driver for the decrease in plan assets. The accumulated benefit obligation for all defined benefit plans was $5.7 billion and $4.8 billion at June 30, 2023 and 2022, respectively. Information for pension plans with accumulated benefit obligations in excess of plan assets: 2023 2022 Accumulated benefit obligation $ 4,352,952 $ 4,284,601 Fair value of plan assets 3,955,284 3,742,513 Information for pension plans with projected benefit obligations in excess of plan assets: 2023 2022 Projected benefit obligation $ 4,545,650 $ 4,483,486 Fair value of plan assets 4,019,445 3,782,688 We expect to make cash contributions of approximately $171 million to our defined benefit pension plans in 2024, the majority of which relates to our non-U.S. plans. Estimated future benefit payments in the five years ending June 30, 2024 through 2028 are $413 million, $413 million, $380 million, $387 million and $388 million, respectively, and $2.0 billion in the aggregate for the five years ending June 30, 2029 through June 30, 2033. The assumptions used to measure net periodic benefit cost for the Company's significant defined benefit plans are: 2023 2022 2021 U.S. defined benefit plan Discount rate 4.36 % 2.55 % 2.36 % Average increase in compensation 3.35 % 3.05 % 2.98 % Expected return on plan assets 6.50 % 6.50 % 6.75 % Non-U.S. defined benefit plans Discount rate 0.60 to 5.06% 0.25 to 2.95% 0.20 to 3.03% Average increase in compensation 1.75 to 4.00% 1.75 to 4.50% 1.75 to 4.50% Expected return on plan assets 1.00 to 5.10% 1.00 to 4.50% 1.00 to 5.40% The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2023 2022 U.S. defined benefit plan Discount rate 4.88 % 4.36 % Average increase in compensation 3.81 % 3.81 % Non-U.S. defined benefit plans Discount rate 0.90 to 5.20% 0.60 to 5.06% Average increase in compensation 2.00 to 4.40% 1.75 to 4.00% 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: 2023 2022 Equity securities 30 % 31 % Debt securities 45 % 43 % Other investments 25 % 26 % 100 % 100 % The weighted-average target asset allocation as of June 30, 2023 is 39 percent equity securities, 45 percent debt securities and 16 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 65 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, 2023 and at June 30, 2022, by asset class, are as follows: June 30, 2023 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 341,812 $ 333,978 $ 7,834 $ — Equity securities U.S. based companies 538,118 523,649 14,469 — Non-U.S. based companies 152,354 76,173 76,181 — Fixed income securities Corporate debt securities 464,056 118,536 345,520 — Government issued securities 610,326 570,368 39,958 — Mutual funds Equity funds 11,406 11,406 — — Fixed income funds 357 357 — — Mutual funds measured at net asset value 264,346 Common/Collective trusts measured at net asset value 2,626,832 Limited Partnerships measured at net asset value 137,077 Miscellaneous 308,610 — 308,610 — Total at June 30, 2023 $ 5,455,294 $ 1,634,467 $ 792,572 $ — June 30, 2022 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 201,053 $ 190,616 $ 10,437 $ — Equity securities U.S. based companies 327,122 327,122 — — Non-U.S. based companies 8,700 8,700 — — Fixed income securities Corporate debt securities 380,694 1,309 379,385 — Government issued securities 87,650 55,201 32,449 — Mutual funds Equity funds 9,085 9,085 — — Fixed income funds 9,679 9,679 — — Mutual funds measured at net asset value 279,849 Common/Collective trusts measured at net asset value 2,718,445 Limited Partnerships measured at net asset value 133,026 Miscellaneous 206,850 — 206,850 — Total at June 30, 2022 $ 4,362,153 $ 601,712 $ 629,121 $ — 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, 2023, this required cash balance totaled approximately $49 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 $519 million and $327 million as of June 30, 2023 and 2022, 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, for which the lock-up period expired 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. Effective January 1, 2022, the Company matching contributions were increased, up to a maximum of five percent of eligible compensation from the previous maximum of four percent of eligible compensation. These contributions are recorded as compensation expense. Participants may direct company matching contributions to any investment option within the savings and investment 401(k) plan. 2023 2022 2021 Shares held by ESOP 3,779,985 4,125,214 4,497,902 Company matching contributions $ 104,237 $ 87,554 $ 66,249 In addition to shares within the ESOP, as of June 30, 2023, employees have elected to invest in 1,115,612 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 contributions 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 $63 million, $57 million and $42 million in expense related to the RIA in 2023, 2022 and 2021, respectively. In September 2023, we acquired several defined contribution plans, relating to the Meggitt acquisition, which are comprised of similar company matching contributions and RIA features as our legacy plan. During the year we recorded additional company matching expense of $9 million and additional RIA type expense of $11 million for the acquired 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 $2 million, $1 million and $1 million in expense related to other postretirement benefits in 2023, 2022 and 2021, respectively. Components of net other postretirement benefit cost, other than service cost, are included in other expense (income), net in the Consolidated Statement of Income. 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 48,876 $ 63,739 Service cost 330 206 Interest cost 3,004 982 Acquisition 39,112 — Actuarial gain (4,403) (11,220) Benefits paid (8,352) (4,831) Benefit obligation at end of year $ 78,567 $ 48,876 Funded status $ (78,567) $ (48,876) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (7,831) $ (4,971) Pensions and other postretirement benefits (70,736) (43,905) Net amount recognized $ (78,567) $ (48,876) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial gain $ (17,952) $ (15,154) 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. As of the date of the Acquisition, the Meggitt plans were remeasured at fair value using accounting policies consistent with Parker plans. The increase in the benefit obligation is due to the Acquisition in 2023. The decrease in the benefit obligation in 2022 is due to significantly higher discount rates and updated census data and actuarial assumptions. The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2023 2022 2021 Discount rate 4.26 % 2.36 % 2.14 % Current medical cost trend rate (Pre-65 participants) 6.73 % 6.45 % 6.73 % Current medical cost trend rate (Post-65 participants) 6.81 % 6.72 % 7.03 % Ultimate medical cost trend rate 4.50 % 4.50 % 4.50 % Medical cost trend rate decreases to ultimate in year 2031 2029 2028 The discount rate assumption used to measure the benefit obligation was 4.86 percent and 4.26 percent in 2023 and 2022, respectively. Estimated future benefit payments for other postretirement benefits in the five years ending June 30, 2024 through 2028 are $8 million, $7 million, $7 million, $7 million and $7 million, respectively, and $29 million in the aggregate for the five years ending June 30, 2029 through June 30, 2033. 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 2023, 2022 and 2021, we recorded expense (income) relating to these programs of $20 million, $(21) million and $45 million, 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, 2023 | |
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, 2021 $ (865,865) $ (700,862) $ (1,566,727) Other comprehensive (loss) income before reclassifications (290,853) 185,101 (105,752) Amounts reclassified from accumulated other comprehensive (loss) 7,647 121,634 129,281 Balance June 30, 2022 $ (1,149,071) $ (394,127) $ (1,543,198) Other comprehensive income before reclassifications 187,027 53,172 240,199 Amounts reclassified from accumulated other comprehensive (loss) — 10,127 10,127 Balance June 30, 2023 $ (962,044) $ (330,828) $ (1,292,872) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2023: 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 $ (931) Other expense (income), net Recognized actuarial loss (15,573) Other expense (income), net Divestiture activity 2,480 Other expense (income), net Total before tax (14,024) Tax benefit 3,897 Net of tax $ (10,127) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2022: 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 $ (4,111) Other expense (income), net Recognized actuarial loss (156,912) Other expense (income), net Total before tax (161,023) Tax benefit 39,389 Net of tax $ (121,634) Share Repurchases - The Company has a program to repurchase its common shares. On October 22, 2014, the Board of Directors of the Company approved an increase in the overall number of shares authorized to repurchase under the program so that, beginning on such date, the aggregate number of shares authorized for repurchase was 35 million. There is no limitation on the number of shares that can be repurchased in a year. Repurchases may be funded primarily from operating cash flows and commercial paper borrowings and the shares are initially held as treasury shares. The number of common shares repurchased at the average purchase price follows: 2023 2022 2021 Shares repurchased 663,599 1,281,818 331,259 Average price per share, including commissions $ 301.39 $ 296.71 $ 301.88 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023, 6.4 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 2023, 2022 and 2021 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2023 2022 2021 Risk-free interest rate 3.0 % 0.8 % 0.4 % Expected life of award 5.6 years 5.6 years 5.4 years Expected dividend yield of stock 1.8 % 1.9 % 2.0 % Expected volatility of stock 37.1 % 35.7 % 35.2 % Weighted-average fair value $ 97.70 $ 81.71 $ 53.92 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 2023 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, 2022 4,099,144 $ 172.27 Granted 605,135 $ 298.26 Exercised (800,815) $ 134.38 Canceled (30,035) $ 263.62 Outstanding June 30, 2023 3,873,429 $ 199.08 6.0 years $ 739.7 Exercisable June 30, 2023 2,737,336 $ 165.45 5.0 years $ 614.8 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, 2022 1,212,497 $ 60.44 Granted 605,135 $ 97.36 Vested (654,784) $ 52.13 Canceled (26,755) $ 83.35 Nonvested June 30, 2023 1,136,093 $ 84.36 During 2023, 2022 and 2021, we recognized stock-based compensation expense of $51 million, $37 million and $35 million, 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, 2023, $19 million 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 23 months. The total fair value of shares vested during 2023, 2022 and 2021 was $34 million, $29 million and $25 million, respectively. Information related to SAR awards exercised during 2023, 2022 and 2021 is as follows: 2023 2022 2021 Net cash proceeds $ 3,476 $ 2,831 $ 4,684 Intrinsic value $ 158,452 $ 97,002 $ 225,025 Income tax benefit $ 26,854 $ 15,845 $ 37,437 Number of shares surrendered 152,835 98,673 316,330 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 2023, 2022 and 2021 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, 2022 277,902 $ 224.40 Granted 93,336 $ 298.54 Vested (155,718) $ 194.46 Canceled (9,999) $ 262.95 Nonvested June 30, 2023 205,521 $ 278.88 During 2023, 2022 and 2021, we recognized stock-based compensation expense of $27 million, $26 million and $26 million, respectively, relating to RSU awards for employees. At June 30, 2023, $18 million 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 21 months. The total fair value of RSU awards vested during 2023, 2022 and 2021 was $30 million, $26 million and $21 million, respectively. We recognized an income tax benefit of $2 million, $4 million and $1 million relating to the issuance of common stock for RSU awards that vested during 2023, 2022 and 2021, 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, 2022 5,620 $ 297.89 Granted 6,638 $ 278.99 Vested (5,650) $ 297.89 Canceled (383) $ 278.90 Nonvested June 30, 2023 6,225 $ 278.90 The fair value of each RSU award granted to the Board of Directors in 2023, 2022 and 2021 was based on the fair market value of our common stock on the date of grant. In 2023, 2022 and 2021, we recognized stock-based compensation expense of $1.9 million, $1.8 million and $1.5 million, respectively, relating to these awards. During 2023, 2022 and 2021, we recognized an income tax (cost) benefit of $(0.02) million, $0.2 million and $2.1 million, respectively, related to the vesting of Board of Directors RSU awards. At June 30, 2023, $0.4 million 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 three 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 2023 2022 2021 LTIP three-year plan 2020-21-22 2019-20-21 2018-19-20 Number of shares issued 204,175 251,783 210,864 Number of shares surrendered 102,120 124,007 105,402 Share value on date of issuance $ 311.65 $ 271.38 $ 317.60 Total value of shares issued $ 63,631 $ 68,329 $ 66,970 Under the Company's 2021-22-23 LTIP, a payout of unrestricted stock will be issued in April 2024. The fair value of each LTIP award granted in 2023, 2022 and 2021 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 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, 2022 417,789 $ 246.63 Granted 186,194 $ 301.64 Vested (199,143) $ 205.95 Canceled (12,233) $ 279.75 Nonvested June 30, 2023 392,607 $ 292.32 During 2023, 2022 and 2021, we recorded stock-based compensation expense of $63 million, $72 million and $59 million, respectively, relating to the LTIP. During 2023, 2022 and 2021, we recognized an income tax benefit of $4 million, $5 million and $2 million, respectively, relating to the LTIP. |
Research and Development
Research and Development | 12 Months Ended |
Jun. 30, 2023 | |
Research and Development [Abstract] | |
Research and Development | Research and Development Independent research and development costs amounted to $258 million in 2023, $191 million in 2022 and $205 million in 2021. Pre-production expense incurred in connection with development contracts amounted to $73 million in 2023, $74 million in 2022 and $54 million in 2021. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 30, 2023 | |
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: 2023 2022 Carrying value of long-term debt $ 10,845,359 $ 10,145,077 Estimated fair value of long-term debt 10,221,563 9,709,407 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 currency denominated debt designated as net investment hedges, to manage foreign currency transaction and translation risk. Additionally, we acquired forward exchange contracts and cross-currency swap contracts in connection with the Acquisition. 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. In connection with the Acquisition, the Company entered into deal-contingent forward contracts during October 2021 to mitigate the risk of appreciation in the GBP-denominated purchase price. The deal-contingent forward contracts had an aggregate notional amount of £6.4 billion, and were settled in September 2022 in connection with the Acquisition. In June 2022, we amended the agreement to include a credit support annex ("CSA") obligating Parker to post $250 million of cash collateral, which was recorded within non-trade and notes receivables on the Consolidated Balance Sheet. In July 2022, the Company received, and subsequently deposited into the escrow account, the $250 million cash collateral previously posted. Cash flows associated with the cash collateral are recorded in cash flow from investing activities on the Consolidated Statement of Cash Flows. 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 2023 2022 Net investment hedges Cross-currency swap contracts Investments and other assets $ 21,578 $ 21,444 Other derivative contracts Forward exchange contracts Non-trade and notes receivable — 20,976 Forward exchange contracts Other accrued liabilities — 5,651 Deal-contingent forward contracts Other accrued liabilities — 1,015,426 Costless collar contracts Non-trade and notes receivable — 351 Costless collar contracts Other accrued liabilities — 1,578 The cross-currency swap, forward exchange, deal-contingent forward 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 €69 million, €290 million and ¥2.1 billion cross-currency swap contracts have been designated as hedging instruments. The forward exchange, deal-contingent forward and costless collar contracts, as well as cross-currency swap contracts acquired as part of the Acquisition, have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. The forward exchange and costless collar contracts, as well as the cross-currency swap contracts acquired as part of the Acquisition, are adjusted to fair value by recording gains and losses through the cost of sales caption in the Consolidated Statement of Income. The deal-contingent forward contracts are adjusted to fair value by recording gains and losses through the other expense (income), net 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 assess the effectiveness of the €69 million, €290 million and ¥2.1 billion cross-currency swap hedging instruments using the spot method. Under this method, the periodic interest settlements are recognized directly in earnings through interest expense. Gains (losses) on derivative financial instruments were recorded in the Consolidated Statement of Income as follows: 2023 2022 2021 Deal-contingent forward contracts $ (389,992) $ (1,015,426) $ — Forward exchange contracts (7,259) 55,860 15,879 Costless collar contracts 11,528 (4,364) (2,092) Cross-currency swap contracts (18,739) — — Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: 2023 2022 Cross-currency swap contracts $ 451 $ 69,992 Foreign currency denominated debt (22,534) 72,670 During 2023, 2022, and 2021, the periodic interest settlements related to the cross-currency swaps were not material. A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2023 and 2022 are as follows: June 30, 2023 Quoted Prices In Significant Other Significant Assets: Derivatives $ 21,578 $ — $ 21,578 $ — June 30, 2022 Quoted Prices In Significant Other Significant Assets: Equity securities $ 13,038 $ 13,038 $ — $ — Derivatives 42,771 — 42,771 — Liabilities: Derivatives 1,022,655 — 1,022,655 — 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, deal-contingent forward, 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is involved in various litigation matters arising in the normal course of business, including proceedings based on product liability claims, workers' compensation claims, employee claims, class action lawsuits, 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 - We are currently responsible for environmental matters primarily relating to known exposures arising from environmental litigation, investigations, and remediation at various manufacturing facilities presently or formerly operated by Parker and for which we have been named as a “potentially responsible party,” along with other companies, at off-site waste disposal facilities and regional sites. As of June 30, 2023, we had an accrual of $149.4 million 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, the amount of our liability in proportion to other responsible parties, and outcomes of litigation. Our estimated total liability for environmental matters ranges from a minimum of $149.4 million to a maximum of $251.5 million. The largest range for any one site is approximately $27.8 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, outcomes of litigation, and any insurance or other third-party recoveries. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company operates in two reportable business segments: Diversified Industrial and Aerospace Systems. Both segments utilize eight core technologies, including hydraulics, pneumatics, electromechanical, filtration, fluid and gas handling, process control, engineered materials and climate control, to drive superior customer problem solving and value creation. 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 41 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa. The Aerospace Systems Segment produces actuation, fuel, oil, pneumatic, hydraulic, electric power, sensing, fire suppression, thermal management, and braking systems and components, which are utilized on virtually every domestic commercial and military aircraft. 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. 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. 2023 2022 2021 Net Sales: Diversified Industrial: North America $ 8,916,194 $ 7,703,150 $ 6,676,449 International 5,789,499 5,638,896 5,283,710 Aerospace Systems 4,359,501 2,519,562 2,387,481 $ 19,065,194 $ 15,861,608 $ 14,347,640 Segment Operating Income: Diversified Industrial: North America $ 1,853,079 $ 1,515,259 $ 1,247,419 International 1,218,331 1,178,044 988,054 Aerospace Systems 562,444 501,431 402,895 Total segment operating income 3,633,854 3,194,734 2,638,368 Corporate administration 229,677 219,699 178,427 Income before interest expense and other expense 3,404,177 2,975,035 2,459,941 Interest expense 573,894 255,252 250,036 Other expense (income) 150,619 1,105,557 (37,052) Income before income taxes $ 2,679,664 $ 1,614,226 $ 2,246,957 Assets: Diversified Industrial $ 15,572,849 $ 15,838,512 $ 16,518,688 Aerospace Systems (a) 13,661,086 3,020,606 3,077,395 Corporate 730,537 7,084,825 745,117 $ 29,964,472 $ 25,943,943 $ 20,341,200 Property Additions: Diversified Industrial $ 292,456 $ 197,675 $ 186,233 Aerospace Systems 81,456 27,452 20,705 Corporate 6,835 4,917 3,019 $ 380,747 $ 230,044 $ 209,957 2023 2022 2021 Depreciation: Diversified Industrial $ 204,632 $ 219,206 $ 229,891 Aerospace Systems 104,286 29,576 32,151 Corporate 8,498 8,532 7,901 $ 317,416 $ 257,314 $ 269,943 Amortization: Diversified Industrial $ 267,779 $ 263,430 $ 274,368 Aerospace Systems 232,934 51,020 51,079 $ 500,713 $ 314,450 $ 325,447 By Geographic Area (b) Net Sales: North America $ 12,689,719 $ 10,216,292 $ 9,046,162 International 6,375,475 5,645,316 5,301,478 $ 19,065,194 $ 15,861,608 $ 14,347,640 Long-Lived Assets: North America $ 1,828,457 $ 1,398,966 $ 1,448,109 International 1,036,573 723,792 818,367 $ 2,865,030 $ 2,122,758 $ 2,266,476 (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 (2023 - $216 million; 2022 - $211 million; 2021 - $219 million) and assets held for sale (2022 - $66 million). (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. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2023 | |
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, 2021, 2022 AND 2023 (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, 2021 $ 11,644 $ 4,673 $ (4,239) $ 12,078 Year ended June 30, 2022 $ 12,078 $ 1,719 $ (3,855) $ 9,942 Year ended June 30, 2023 $ 9,942 $ 7,379 $ 15,129 $ 32,450 Deferred tax asset valuation allowance: Year ended June 30, 2021 $ 771,430 $ 94,781 $ (447) $ 865,764 Year ended June 30, 2022 $ 865,764 $ 36,111 $ — $ 901,875 Year ended June 30, 2023 $ 901,875 $ 163,178 $ 13,301 $ 1,078,354 (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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Pay vs Performance Disclosure | |||||
Net Income (Loss) Attributable to Parent | $ 2,082,936 | $ 1,315,605 | [1] | $ 1,746,100 | [1] |
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
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. There are no individual customers to whom sales are more than four 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. |
Reclassification | Reclassification - Certain prior-year amounts in the Consolidated Statement of Income have been reclassified to conform to the current-year presentation. Effective July 1, 2022, we began classifying certain expenses, previously classified as cost of sales, as selling, general and administrative expenses ("SG&A") or within other expense (income), net. During the integration of recently acquired businesses, the Company has seen diversity in practice of the classification of certain expenses, and the reclassification was made to better align the presentation of expenses on the Consolidated Statement of Income with management’s internal reporting. The expenses reclassified from cost of sales to SG&A relate to certain administrative activities conducted in production facilities and research and development. Foreign currency transaction expense was also reclassified from cost of sales to other expense (income), net on the Consolidated Statement of Income. These reclassifications had no impact on net income, earnings per share, cash flows, segment reporting or the financial position of the Company. |
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, inter-segment and inter-area 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 assess 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. Allowance for credit losses was $32 million and $10 million at June 30, 2023 and 2022, respectively. The increase in the allowance for credit losses from the June 30, 2022 amount is primarily due to the Acquisition. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation - Property, 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 - 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 $297 million and $314 million at June 30, 2023 and 2022, 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 $124 million, $76 million and $41 million in 2023, 2022 and 2021, respectively. |
Intangible Assets | Intangible Assets - Intangible assets primarily include patents and technology, trade names and customer relationships 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. Trade names are amortized over the estimated time period over which an economic benefit is expected to be received. Customer relationships are amortized over a period based on anticipated customer attrition rates or contractual lives. 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. Taxes related to Global Intangible Low-Taxed Income ("GILTI") are treated as a current period expense when incurred. 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 other expense (income), net caption in the Consolidated Statement of Income and were $46 million, $(40) million and $(11) million, in 2023, 2022 and 2021, respectively. |
Business Combinations | Business Combinations - From time to time, we may enter into business combinations. Business acquisitions are accounted for using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Transaction costs associated with these acquisitions are expensed as incurred. |
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, 2023. No subsequent events occurred that required adjustment to or disclosure in these financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance", which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The Company prospectively adopted this standard during the fourth quarter of fiscal 2023 with no material impact on its consolidated financial statements and related disclosures. In September 2022, the FASB issued ASU 2022-04, "Liabilities—Supplier Finance Programs (Topic 405-50), Disclosure of Supplier Finance Program Obligations" ("ASU 2022-04"). ASU 2022-04 requires quantitative and qualitative disclosures about the key terms of supplier finance programs, an annual rollforward of obligations to finance providers, and interim disclosure of obligations as of each reporting period presented. ASU 2022-04 is effective for all entities for fiscal years beginning after December 15, 2022, on a retrospective basis, including interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective prospectively for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and does not expect it to be material. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 Notes receivable $ 102,288 $ 103,558 Cash collateral receivable (a) — 250,000 Accounts receivable, other 206,879 190,199 Total $ 309,167 $ 543,757 (a) The cash collateral receivable relates to the deal-contingent forward contracts. Refer to Note 16 for further discussion. |
Property, plant and equipment | The property, plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2023 2022 Land and land improvements $ 385,376 $ 322,024 Buildings and building equipment 2,051,546 1,783,805 Machinery and equipment 4,086,334 3,588,106 Construction in progress 342,289 204,020 Total $ 6,865,545 $ 5,897,955 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Diversified Industrial Segment revenues by technology platform: 2023 2022 2021 Motion Systems $ 3,830,062 $ 3,489,431 $ 3,081,366 Flow and Process Control 4,939,356 4,616,270 4,108,080 Filtration and Engineered Materials 5,936,275 5,236,345 4,770,713 Total $ 14,705,693 $ 13,342,046 $ 11,960,159 Aerospace Systems Segment revenues by product platform: 2023 2022 2021 Commercial original equipment manufacturer ("OEM") $ 1,461,279 $ 889,649 $ 761,679 Commercial aftermarket 1,363,965 514,727 379,438 Military OEM 905,328 705,988 791,245 Military aftermarket 628,929 409,198 455,119 Total $ 4,359,501 $ 2,519,562 $ 2,387,481 Upon completing the Acquisition, we reviewed the disaggregation of revenue disclosure for the Aerospace Systems Segment and believe that disaggregation by primary market provides more meaningful information than disaggregation by product platform. Total revenues by geographic region based on the Company's selling operation's location: 2023 2022 2021 North America $ 12,689,719 $ 10,216,292 $ 9,046,162 Europe 3,777,507 3,156,024 2,919,025 Asia Pacific 2,379,791 2,290,557 2,215,686 Latin America 218,177 198,735 166,767 Total $ 19,065,194 $ 15,861,608 $ 14,347,640 |
Contract assets and liabilities | Total contract assets and contract liabilities are as follows: 2023 2022 Contract assets, current (included within Prepaid expenses and other) $ 123,705 $ 28,546 Contract assets, noncurrent (included within Investments and other assets) 23,708 794 Total contract assets 147,413 29,340 Contract liabilities, current (included within Other accrued liabilities) (244,799) (60,472) Contract liabilities, noncurrent (included within Other liabilities) (78,239) (2,225) Total contract liabilities (323,038) (62,697) Net contract liabilities $ (175,625) $ (33,357) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Purchase price allocation | The following table presents the preliminary estimated fair values of Meggitt's assets acquired and liabilities assumed on the date of the Acquisition. These preliminary estimates are based on available information and may be revised during the measurement period, not to exceed 12 months from the date of the Acquisition, as third-party valuations are finalized, additional information becomes available or as additional analysis is performed. Such revisions may have a material impact on our results of operations and financial position within the measurement period. September 12, 2022 (previously reported) Measurement Period Adjustments September 12, 2022 Assets: Cash and cash equivalents $ 89,704 $ — $ 89,704 Accounts receivable 427,255 (17,613) 409,642 Inventories 833,602 (94,298) 739,304 Prepaid expenses and other 125,763 (23,731) 102,032 Property, plant and equipment, net 675,232 (16,235) 658,997 Deferred income taxes 5,720 28,478 34,198 Other assets 219,472 (38,481) 180,991 Intangible assets 5,418,795 260,405 5,679,200 Goodwill 2,830,845 (41,765) 2,789,080 Total assets acquired $ 10,626,388 $ 56,760 $ 10,683,148 Liabilities: Notes payable and long-term debt payable within one year $ 306,266 $ 1,910 $ 308,176 Accounts payable, trade 219,780 62 219,842 Accrued payrolls and other compensation 89,226 (2,152) 87,074 Accrued domestic and foreign taxes — 21,068 21,068 Other accrued liabilities 367,605 (45,565) 322,040 Long-term debt 669,321 42,382 711,703 Pensions and other postretirement benefits 85,899 13,654 99,553 Deferred income taxes 1,274,726 (15,309) 1,259,417 Other liabilities 377,751 40,710 418,461 Total liabilities assumed 3,390,574 56,760 3,447,334 Net assets acquired $ 7,235,814 $ — $ 7,235,814 |
Unaudited Pro Forma Information | The following table presents unaudited pro forma information for 2023 and 2022 as if the Acquisition had occurred on July 1, 2021. (Unaudited) 2023 2022 Net sales $ 19,446,524 $ 17,911,409 Net income attributable to common shareholders 1,956,813 1,529,970 |
Business Realignment and Acqu_2
Business Realignment and Acquisition Integration Charges (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Business realignment charges, acquisition integration charges and workforce reduction | Business realignment charges by business segment are as follows: 2023 2022 2021 Diversified Industrial $ 23,641 $ 13,787 $ 38,557 Aerospace Systems 3,065 967 6,680 Corporate administration — — 1,399 Other expense — 3 1,226 Workforce reductions in connection with such business realignment charges by business segment are as follows: 2023 2022 2021 Diversified Industrial 728 300 820 Aerospace Systems 30 10 327 Corporate administration — — 20 The business realignment charges are presented in the Consolidated Statement of Income as follows: 2023 2022* 2021* Cost of sales $ 15,993 $ 5,007 $ 27,276 Selling, general and administrative expenses 10,713 9,747 19,360 Loss on disposal of assets — 3 1,226 *Years ended June 30, 2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. We also incurred the following acquisition integration charges related to the Meggitt, Lord and Exotic Metals Forming Company LLC ("Exotic") acquisitions: 2023 2022 2021 Diversified Industrial $ 8,511 $ 3,589 $ 11,222 Aerospace Systems 86,928 1,177 719 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes | Income before income taxes was derived from the following sources: 2023 2022 2021 United States $ 1,408,206 $ 646,364 $ 1,273,037 Foreign 1,271,458 967,862 973,920 $ 2,679,664 $ 1,614,226 $ 2,246,957 |
Income taxes | Income taxes include the following: 2023 2022 2021 Federal Current $ 161,465 $ 297,672 $ 247,094 Deferred 81,426 (253,123) (52,960) Foreign Current 297,199 303,089 269,607 Deferred (13,509) (45,977) 8,851 State and local Current 45,599 48,479 34,895 Deferred 23,948 (52,100) (7,391) $ 596,128 $ 298,040 $ 500,096 |
Effective income tax rate reconciliation to statutory federal rate | A reconciliation of the effective income tax rate to the statutory federal rate follows: 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes 2.1 (0.2) 1.0 Tax related to international activities 1.2 2.7 3.6 Cash surrender value of life insurance (0.1) 0.5 (0.6) Foreign derived intangible income deduction (1.1) (3.7) (1.0) Research tax credit (0.7) (0.8) (0.4) Share-based compensation (1.0) (1.3) (1.6) Other 0.8 0.3 0.3 Effective income tax rate 22.2 % 18.5 % 22.3 % |
Differences comprising the net deferred taxes shown on consolidated balance sheet | The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows: 2023 2022 Retirement benefits $ 158,560 $ 207,147 Other liabilities and reserves 333,012 180,624 Long-term contracts 37,747 8,739 Stock-based compensation 33,374 31,490 Loss carryforwards 1,083,732 888,552 Unrealized currency exchange gains and losses (1,680) 254,334 Inventory 96,501 14,649 Tax credit carryforwards 18,773 17,326 Undistributed foreign earnings (21,304) (21,822) Depreciation and amortization (2,228,606) (875,623) Valuation allowance (1,078,354) (901,875) Net deferred tax (liability) $ (1,568,245) $ (196,459) Change in net deferred tax (liability): Provision for deferred tax $ (91,865) $ 351,201 Items of other comprehensive (loss) income (64,342) (98,810) Acquisitions and other (1,215,579) 880 Total change in net deferred tax $ (1,371,786) $ 253,271 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 2021 Balance July 1 $ 90,669 $ 100,759 $ 86,277 Additions for tax positions related to current year 9,389 7,039 10,145 Additions for tax positions of prior years 6,171 1,415 10,320 Additions for acquisitions 25,957 — 2,376 Reductions for tax positions of prior years (3,063) (140) (1,996) Reductions for settlements (6,923) (3,127) (7,165) Reductions for expiration of statute of limitations (11,199) (6,647) (2,252) Effect of foreign currency translation 2,502 (8,630) 3,054 Balance June 30 $ 113,503 $ 90,669 $ 100,759 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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: 2023 2022 2021 Numerator: Net income attributable to common shareholders $ 2,082,936 $ 1,315,605 $ 1,746,100 Denominator: Basic - weighted-average common shares 128,367,842 128,539,387 128,999,879 Increase in weighted-average common shares from dilutive effect of equity-based awards 1,454,243 1,816,556 1,834,599 Diluted - weighted-average common shares, assuming exercise of equity-based awards 129,822,085 130,355,943 130,834,478 Basic earnings per share $ 16.23 $ 10.24 $ 13.54 Diluted earnings per share $ 16.04 $ 10.09 $ 13.35 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory components | The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2023 2022 Finished products $ 794,128 $ 811,702 Work in process 1,488,665 1,128,501 Raw materials 625,086 274,350 Total $ 2,907,879 $ 2,214,553 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2021 $ 7,457,309 $ 602,378 $ 8,059,687 Divestitures (164) — (164) Goodwill reclassified to held for sale — (48,242) (48,242) Foreign currency translation (271,164) (35) (271,199) Balance June 30, 2022 $ 7,185,981 $ 554,101 $ 7,740,082 Acquisitions 452,008 2,337,072 2,789,080 Divestitures (1,064) (2,232) (3,296) Foreign currency translation 45,830 56,898 102,728 Balance June 30, 2023 $ 7,682,755 $ 2,945,839 $ 10,628,594 |
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: 2023 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents and technology $ 2,128,847 $ 352,040 $ 990,775 $ 259,587 Trade names 1,047,678 390,737 727,820 339,244 Customer relationships and other 8,109,063 2,092,197 3,735,042 1,718,989 Total $ 11,285,588 $ 2,834,974 $ 5,453,637 $ 2,317,820 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | June 30, 2023 2022 Domestic: Fixed rate medium-term notes, 3.30% to 6.25%, due 2025 - 2045 $ 1,825,000 $ 2,125,000 Senior Notes, 2.70% to 4.50%, due 2024 - 2049 7,275,000 7,275,000 Term Loan Facility, due 2026 875,000 — Foreign: Euro Senior Notes, 1.125%, due 2025 763,770 733,950 Other long-term debt 106,598 11,127 Deferred debt issuance costs (74,713) (86,972) Total long-term debt 10,770,655 10,058,105 Less: Long-term debt payable within one year 1,974,371 302,280 Long-term debt, net $ 8,796,284 $ 9,755,825 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease expense and supplemental cash flow information | The components of lease expense are as follows: 2023 2022 2021 Operating lease expense $ 60,411 $ 46,026 $ 48,171 Finance lease cost: Amortization of lease assets 5,604 1,861 1,576 Interest on lease liabilities 4,383 390 455 Short-term lease cost 7,577 7,041 7,674 Variable lease cost 5,747 5,849 5,835 Total lease cost $ 83,722 $ 61,167 $ 63,711 Supplemental cash flow information related to leases is as follows: 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows - payments on operating leases $ 57,717 $ 45,371 $ 47,080 Operating cash outflows - interest payments on finance leases 4,383 390 455 Financing cash outflows - payments on finance lease obligations 5,141 1,992 1,713 Right-of-use assets obtained in exchange for operating lease obligations 45,365 50,925 41,637 Right-of-use assets obtained in exchange for finance lease obligations 1,340 — 3,834 |
Supplemental balance sheet information | Supplemental balance sheet information related to operating leases is as follows: 2023 2022 Operating Leases Operating lease right-of-use assets (included within Investments and other assets) $ 232,733 $ 133,412 Current operating lease liabilities (included within Other accrued liabilities) $ 50,523 $ 36,023 Long-term operating lease liabilities (included within Other liabilities) 187,445 100,337 Total operating lease liabilities $ 237,968 $ 136,360 Finance Leases Land and buildings $ 107,910 $ 9,223 Machinery and equipment 5,113 5,066 Accumulated depreciation (8,196) (3,836) Net property, plant and equipment $ 104,827 $ 10,453 Current portion of long-term debt (included within Other accrued liabilities) $ 4,198 $ 1,691 Long-term debt (included within Other liabilities) 100,889 8,575 Total finance lease liabilities $ 105,087 $ 10,266 Weighted-average remaining lease term Operating leases 6.9 years 5.6 years Finance leases 20.8 years 15.7 years Weighted-average discount rate Operating leases 3.9 % 1.6 % Finance leases 5.2 % 3.3 % |
Maturities of operating lease liabilities | Maturities of lease liabilities at June 30, 2023 are as follows: Operating Leases Finance Leases 2024 $ 58,351 $ 9,483 2025 49,196 8,871 2026 38,352 8,792 2027 28,590 8,896 2028 21,481 8,936 Thereafter 82,407 128,519 Total lease payments $ 278,377 $ 173,497 Less imputed interest 40,409 68,410 Total lease liabilities $ 237,968 $ 105,087 |
Maturities of financing lease liabilities | Maturities of lease liabilities at June 30, 2023 are as follows: Operating Leases Finance Leases 2024 $ 58,351 $ 9,483 2025 49,196 8,871 2026 38,352 8,792 2027 28,590 8,896 2028 21,481 8,936 Thereafter 82,407 128,519 Total lease payments $ 278,377 $ 173,497 Less imputed interest 40,409 68,410 Total lease liabilities $ 237,968 $ 105,087 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | A summary of the Company's defined benefit pension plans follows: 2023 2022 2021 Benefit cost Service cost $ 57,418 $ 76,638 $ 84,188 Interest cost 225,468 110,250 102,475 Expected return on plan assets (311,145) (267,888) (267,579) Amortization of prior service cost 931 4,103 5,325 Amortization of unrecognized actuarial loss 17,178 157,288 207,897 Amortization of transition obligation — 8 18 One-time charges related to divestitures (2,480) — — Net periodic benefit cost $ (12,630) $ 80,399 $ 132,324 |
Schedule of defined benefit plans | 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 4,959,319 $ 6,323,003 Service cost 57,418 76,638 Interest cost 225,468 110,250 Acquisition 1,181,139 — Plan amendments 2,521 (5,691) Divestiture (1,779) — Actuarial gain (349,476) (1,097,053) Benefits paid (312,758) (256,868) Foreign currency translation and other 73,839 (190,960) Benefit obligation at end of year $ 5,835,691 $ 4,959,319 Change in plan assets Fair value of plan assets at beginning of year $ 4,362,153 $ 5,305,577 Actual gain (loss) on plan assets 31,399 (605,642) Acquisition 1,140,707 — Employer contributions 153,038 96,717 Benefits paid (312,758) (256,868) Foreign currency translation and other 80,756 (177,631) Fair value of plan assets at end of year $ 5,455,295 $ 4,362,153 Funded status $ (380,396) $ (597,166) Amounts recognized on the Consolidated Balance Sheet Investments and other assets $ 145,809 $ 103,632 Other accrued liabilities (57,783) (19,307) Pensions and other postretirement benefits (468,422) (681,491) Net amount recognized $ (380,396) $ (597,166) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 593,937 $ 672,775 Prior service cost 6,489 4,901 Net amount recognized $ 600,426 $ 677,676 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 48,876 $ 63,739 Service cost 330 206 Interest cost 3,004 982 Acquisition 39,112 — Actuarial gain (4,403) (11,220) Benefits paid (8,352) (4,831) Benefit obligation at end of year $ 78,567 $ 48,876 Funded status $ (78,567) $ (48,876) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (7,831) $ (4,971) Pensions and other postretirement benefits (70,736) (43,905) Net amount recognized $ (78,567) $ (48,876) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial gain $ (17,952) $ (15,154) |
Plan with accumulated benefit obligation in excess of plan assets | Information for pension plans with accumulated benefit obligations in excess of plan assets: 2023 2022 Accumulated benefit obligation $ 4,352,952 $ 4,284,601 Fair value of plan assets 3,955,284 3,742,513 |
Plan with projected benefit obligation in excess of plan assets | Information for pension plans with projected benefit obligations in excess of plan assets: 2023 2022 Projected benefit obligation $ 4,545,650 $ 4,483,486 Fair value of plan assets 4,019,445 3,782,688 |
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: 2023 2022 2021 U.S. defined benefit plan Discount rate 4.36 % 2.55 % 2.36 % Average increase in compensation 3.35 % 3.05 % 2.98 % Expected return on plan assets 6.50 % 6.50 % 6.75 % Non-U.S. defined benefit plans Discount rate 0.60 to 5.06% 0.25 to 2.95% 0.20 to 3.03% Average increase in compensation 1.75 to 4.00% 1.75 to 4.50% 1.75 to 4.50% Expected return on plan assets 1.00 to 5.10% 1.00 to 4.50% 1.00 to 5.40% The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2023 2022 U.S. defined benefit plan Discount rate 4.88 % 4.36 % Average increase in compensation 3.81 % 3.81 % Non-U.S. defined benefit plans Discount rate 0.90 to 5.20% 0.60 to 5.06% Average increase in compensation 2.00 to 4.40% 1.75 to 4.00% The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2023 2022 2021 Discount rate 4.26 % 2.36 % 2.14 % Current medical cost trend rate (Pre-65 participants) 6.73 % 6.45 % 6.73 % Current medical cost trend rate (Post-65 participants) 6.81 % 6.72 % 7.03 % Ultimate medical cost trend rate 4.50 % 4.50 % 4.50 % Medical cost trend rate decreases to ultimate in year 2031 2029 2028 |
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: 2023 2022 Equity securities 30 % 31 % Debt securities 45 % 43 % Other investments 25 % 26 % 100 % 100 % The fair values of pension plan assets at June 30, 2023 and at June 30, 2022, by asset class, are as follows: June 30, 2023 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 341,812 $ 333,978 $ 7,834 $ — Equity securities U.S. based companies 538,118 523,649 14,469 — Non-U.S. based companies 152,354 76,173 76,181 — Fixed income securities Corporate debt securities 464,056 118,536 345,520 — Government issued securities 610,326 570,368 39,958 — Mutual funds Equity funds 11,406 11,406 — — Fixed income funds 357 357 — — Mutual funds measured at net asset value 264,346 Common/Collective trusts measured at net asset value 2,626,832 Limited Partnerships measured at net asset value 137,077 Miscellaneous 308,610 — 308,610 — Total at June 30, 2023 $ 5,455,294 $ 1,634,467 $ 792,572 $ — June 30, 2022 Quoted Prices In Significant Other Significant Cash and cash equivalents $ 201,053 $ 190,616 $ 10,437 $ — Equity securities U.S. based companies 327,122 327,122 — — Non-U.S. based companies 8,700 8,700 — — Fixed income securities Corporate debt securities 380,694 1,309 379,385 — Government issued securities 87,650 55,201 32,449 — Mutual funds Equity funds 9,085 9,085 — — Fixed income funds 9,679 9,679 — — Mutual funds measured at net asset value 279,849 Common/Collective trusts measured at net asset value 2,718,445 Limited Partnerships measured at net asset value 133,026 Miscellaneous 206,850 — 206,850 — Total at June 30, 2022 $ 4,362,153 $ 601,712 $ 629,121 $ — |
Schedule of employee stock ownership plan (ESOP) | 2023 2022 2021 Shares held by ESOP 3,779,985 4,125,214 4,497,902 Company matching contributions $ 104,237 $ 87,554 $ 66,249 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2021 $ (865,865) $ (700,862) $ (1,566,727) Other comprehensive (loss) income before reclassifications (290,853) 185,101 (105,752) Amounts reclassified from accumulated other comprehensive (loss) 7,647 121,634 129,281 Balance June 30, 2022 $ (1,149,071) $ (394,127) $ (1,543,198) Other comprehensive income before reclassifications 187,027 53,172 240,199 Amounts reclassified from accumulated other comprehensive (loss) — 10,127 10,127 Balance June 30, 2023 $ (962,044) $ (330,828) $ (1,292,872) |
Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity | Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2023: 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 $ (931) Other expense (income), net Recognized actuarial loss (15,573) Other expense (income), net Divestiture activity 2,480 Other expense (income), net Total before tax (14,024) Tax benefit 3,897 Net of tax $ (10,127) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2022: 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 $ (4,111) Other expense (income), net Recognized actuarial loss (156,912) Other expense (income), net Total before tax (161,023) Tax benefit 39,389 Net of tax $ (121,634) |
Schedule of share repurchases | The number of common shares repurchased at the average purchase price follows: 2023 2022 2021 Shares repurchased 663,599 1,281,818 331,259 Average price per share, including commissions $ 301.39 $ 296.71 $ 301.88 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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 2023, 2022 and 2021 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2023 2022 2021 Risk-free interest rate 3.0 % 0.8 % 0.4 % Expected life of award 5.6 years 5.6 years 5.4 years Expected dividend yield of stock 1.8 % 1.9 % 2.0 % Expected volatility of stock 37.1 % 35.7 % 35.2 % Weighted-average fair value $ 97.70 $ 81.71 $ 53.92 |
Stock appreciation rights activity | SAR activity during 2023 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, 2022 4,099,144 $ 172.27 Granted 605,135 $ 298.26 Exercised (800,815) $ 134.38 Canceled (30,035) $ 263.62 Outstanding June 30, 2023 3,873,429 $ 199.08 6.0 years $ 739.7 Exercisable June 30, 2023 2,737,336 $ 165.45 5.0 years $ 614.8 |
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, 2022 1,212,497 $ 60.44 Granted 605,135 $ 97.36 Vested (654,784) $ 52.13 Canceled (26,755) $ 83.35 Nonvested June 30, 2023 1,136,093 $ 84.36 |
Information related to stock appreciation rights awards exercised | Information related to SAR awards exercised during 2023, 2022 and 2021 is as follows: 2023 2022 2021 Net cash proceeds $ 3,476 $ 2,831 $ 4,684 Intrinsic value $ 158,452 $ 97,002 $ 225,025 Income tax benefit $ 26,854 $ 15,845 $ 37,437 Number of shares surrendered 152,835 98,673 316,330 |
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, 2022 277,902 $ 224.40 Granted 93,336 $ 298.54 Vested (155,718) $ 194.46 Canceled (9,999) $ 262.95 Nonvested June 30, 2023 205,521 $ 278.88 Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2022 5,620 $ 297.89 Granted 6,638 $ 278.99 Vested (5,650) $ 297.89 Canceled (383) $ 278.90 Nonvested June 30, 2023 6,225 $ 278.90 |
Status and changes of shares of long term incentive plans shares and the related average price per share | Stock issued and surrendered for LTIP 2023 2022 2021 LTIP three-year plan 2020-21-22 2019-20-21 2018-19-20 Number of shares issued 204,175 251,783 210,864 Number of shares surrendered 102,120 124,007 105,402 Share value on date of issuance $ 311.65 $ 271.38 $ 317.60 Total value of shares issued $ 63,631 $ 68,329 $ 66,970 Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2022 417,789 $ 246.63 Granted 186,194 $ 301.64 Vested (199,143) $ 205.95 Canceled (12,233) $ 279.75 Nonvested June 30, 2023 392,607 $ 292.32 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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: 2023 2022 Carrying value of long-term debt $ 10,845,359 $ 10,145,077 Estimated fair value of long-term debt 10,221,563 9,709,407 |
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 2023 2022 Net investment hedges Cross-currency swap contracts Investments and other assets $ 21,578 $ 21,444 Other derivative contracts Forward exchange contracts Non-trade and notes receivable — 20,976 Forward exchange contracts Other accrued liabilities — 5,651 Deal-contingent forward contracts Other accrued liabilities — 1,015,426 Costless collar contracts Non-trade and notes receivable — 351 Costless collar contracts Other accrued liabilities — 1,578 |
Gain (losses) on derivative financial instruments recorded in consolidated statement if income | Gains (losses) on derivative financial instruments were recorded in the Consolidated Statement of Income as follows: 2023 2022 2021 Deal-contingent forward contracts $ (389,992) $ (1,015,426) $ — Forward exchange contracts (7,259) 55,860 15,879 Costless collar contracts 11,528 (4,364) (2,092) Cross-currency swap contracts (18,739) — — |
(Losses) gains on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) | Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: 2023 2022 Cross-currency swap contracts $ 451 $ 69,992 Foreign currency denominated debt (22,534) 72,670 |
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, 2023 and 2022 are as follows: June 30, 2023 Quoted Prices In Significant Other Significant Assets: Derivatives $ 21,578 $ — $ 21,578 $ — June 30, 2022 Quoted Prices In Significant Other Significant Assets: Equity securities $ 13,038 $ 13,038 $ — $ — Derivatives 42,771 — 42,771 — Liabilities: Derivatives 1,022,655 — 1,022,655 — |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business segment information | 2023 2022 2021 Net Sales: Diversified Industrial: North America $ 8,916,194 $ 7,703,150 $ 6,676,449 International 5,789,499 5,638,896 5,283,710 Aerospace Systems 4,359,501 2,519,562 2,387,481 $ 19,065,194 $ 15,861,608 $ 14,347,640 Segment Operating Income: Diversified Industrial: North America $ 1,853,079 $ 1,515,259 $ 1,247,419 International 1,218,331 1,178,044 988,054 Aerospace Systems 562,444 501,431 402,895 Total segment operating income 3,633,854 3,194,734 2,638,368 Corporate administration 229,677 219,699 178,427 Income before interest expense and other expense 3,404,177 2,975,035 2,459,941 Interest expense 573,894 255,252 250,036 Other expense (income) 150,619 1,105,557 (37,052) Income before income taxes $ 2,679,664 $ 1,614,226 $ 2,246,957 Assets: Diversified Industrial $ 15,572,849 $ 15,838,512 $ 16,518,688 Aerospace Systems (a) 13,661,086 3,020,606 3,077,395 Corporate 730,537 7,084,825 745,117 $ 29,964,472 $ 25,943,943 $ 20,341,200 Property Additions: Diversified Industrial $ 292,456 $ 197,675 $ 186,233 Aerospace Systems 81,456 27,452 20,705 Corporate 6,835 4,917 3,019 $ 380,747 $ 230,044 $ 209,957 2023 2022 2021 Depreciation: Diversified Industrial $ 204,632 $ 219,206 $ 229,891 Aerospace Systems 104,286 29,576 32,151 Corporate 8,498 8,532 7,901 $ 317,416 $ 257,314 $ 269,943 Amortization: Diversified Industrial $ 267,779 $ 263,430 $ 274,368 Aerospace Systems 232,934 51,020 51,079 $ 500,713 $ 314,450 $ 325,447 By Geographic Area (b) Net Sales: North America $ 12,689,719 $ 10,216,292 $ 9,046,162 International 6,375,475 5,645,316 5,301,478 $ 19,065,194 $ 15,861,608 $ 14,347,640 Long-Lived Assets: North America $ 1,828,457 $ 1,398,966 $ 1,448,109 International 1,036,573 723,792 818,367 $ 2,865,030 $ 2,122,758 $ 2,266,476 (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 (2023 - $216 million; 2022 - $211 million; 2021 - $219 million) and assets held for sale (2022 - $66 million). (b) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of property, plant and equipment based on physical location. |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Concentration Risk [Line Items] | |||||
Decrease to cost of sales | $ (12,635,892) | $ (10,550,309) | [1] | $ (9,604,522) | [1] |
Increase to selling, general and administrative expenses | 3,354,103 | 2,504,061 | [1] | 2,383,407 | [1] |
Decrease to other (income) expense, net | 184,167 | 944,881 | [1] | (27,950) | [1] |
Trade accounts receivable, allowance for doubtful accounts | 32,000 | 10,000 | |||
Investment in joint-venture companies and company's equity in undistributed earnings | 297,000 | 314,000 | |||
Share of earnings from investments in joint-venture companies | 124,000 | 76,000 | 41,000 | ||
Other expense (income), net | $ 46,000 | (40,000) | (11,000) | ||
Buildings | |||||
Concentration Risk [Line Items] | |||||
Useful life | 40 years | ||||
Land Improvements and Building Equipment | |||||
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 | ||||
Revision of Prior Period, Reclassification, Adjustment | |||||
Concentration Risk [Line Items] | |||||
Decrease to cost of sales | 837,000 | 845,000 | |||
Increase to selling, general and administrative expenses | 877,000 | 856,000 | |||
Decrease to other (income) expense, net | $ 40,000 | $ 11,000 | |||
Revenue Benchmark | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue, individual customer, less than | 4% | ||||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Significant Accounting Polici_5
Significant Accounting Policies - Non-trade and notes receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Accounting Policies [Abstract] | ||
Notes receivable | $ 102,288 | $ 103,558 |
Cash collateral receivable(a) | 0 | 250,000 |
Accounts receivable, other | 206,879 | 190,199 |
Total | $ 309,167 | $ 543,757 |
Significant Accounting Polici_6
Significant Accounting Policies - Property, plant and equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Accounting Policies [Abstract] | ||
Land and land improvements | $ 385,376 | $ 322,024 |
Buildings and building equipment | 2,051,546 | 1,783,805 |
Machinery and equipment | 4,086,334 | 3,588,106 |
Construction in progress | 342,289 | 204,020 |
Total | $ 6,865,545 | $ 5,897,955 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues by segment and by platform (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 19,065,194 | $ 15,861,608 | [1] | $ 14,347,640 | [1] |
Diversified Industrial | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 14,705,693 | 13,342,046 | 11,960,159 | ||
Diversified Industrial | Motion Systems | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 3,830,062 | 3,489,431 | 3,081,366 | ||
Diversified Industrial | Flow and Process Control | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 4,939,356 | 4,616,270 | 4,108,080 | ||
Diversified Industrial | Filtration and Engineered Materials | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 5,936,275 | 5,236,345 | 4,770,713 | ||
Aerospace Systems | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 4,359,501 | 2,519,562 | 2,387,481 | ||
Aerospace Systems | Commercial original equipment manufacturer ("OEM") | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 1,461,279 | 889,649 | 761,679 | ||
Aerospace Systems | Commercial aftermarket | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 1,363,965 | 514,727 | 379,438 | ||
Aerospace Systems | Military OEM | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 905,328 | 705,988 | 791,245 | ||
Aerospace Systems | Military aftermarket | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 628,929 | $ 409,198 | $ 455,119 | ||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by geographic region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 19,065,194 | $ 15,861,608 | [1] | $ 14,347,640 | [1] |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 12,689,719 | 10,216,292 | 9,046,162 | ||
Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 3,777,507 | 3,156,024 | 2,919,025 | ||
Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | 2,379,791 | 2,290,557 | 2,215,686 | ||
Latin America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts | $ 218,177 | $ 198,735 | $ 166,767 | ||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Revenue Recognition - Contract
Revenue Recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current (included within Prepaid expenses and other) | $ 123,705 | $ 28,546 |
Contract assets, noncurrent (included within Investments and other assets) | 23,708 | 794 |
Total contract assets | 147,413 | 29,340 |
Contract liabilities, current (included within Other accrued liabilities) | (244,799) | (60,472) |
Contract liabilities, noncurrent (included within Other liabilities) | (78,239) | (2,225) |
Total contract liabilities | (323,038) | (62,697) |
Net contract liabilities | $ (175,625) | $ (33,357) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 47 |
Remaining performance obligation, amount | $ 11,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 79% |
Remaining performance obligation, period | 12 months |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Sep. 12, 2022 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) tranche | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | [1] | Sep. 12, 2022 £ / shares | Sep. 12, 2022 USD ($) | ||
Business Acquisition [Line Items] | ||||||||||||
Interest expense | $ 573,894 | $ 255,252 | [1] | $ 250,036 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other expense (income), net | |||||||||||
Aircraft Wheel and Brake Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from sale of businesses | $ 443,000 | |||||||||||
Pre-tax gain (loss) related to divestiture | $ 374,000 | |||||||||||
Aircraft Wheel and Brake Business | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Aggregate carrying amount, net assets | 66,000 | |||||||||||
French Aerospace Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from sale of businesses | $ 27,000 | |||||||||||
Pre-tax gain (loss) related to divestiture | $ (12,000) | |||||||||||
Meggitt plc | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Price per share of stock acquired (in pound sterling per share) | £ / shares | £ 8 | |||||||||||
Purchase price to acquire business (in pound sterling) | $ 7,200,000 | |||||||||||
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition | $ 2,100,000 | |||||||||||
Operating lease right of use assets | $ 116,000 | |||||||||||
Finance lease right-of-use assets | 91,000 | |||||||||||
Operating lease liability | 118,000 | |||||||||||
Finance lease liability | 90,000 | |||||||||||
Operating lease liability, current | 19,000 | |||||||||||
Finance lease liability, current | 1,000 | |||||||||||
Liabilities assumed, environmental matters | 134,000 | |||||||||||
Net sales, from date of acquisition | 2,100,000 | |||||||||||
Operating income from date of acquisition | 23,000 | |||||||||||
Acquisition-related transaction costs | 115,000 | |||||||||||
Acquisition-relate nonrecurring adjustments | 199,000 | 654,000 | ||||||||||
Restricted cash | $ 0 | $ 0 | $ 6,100,000 | |||||||||
Meggitt plc | Private Placement Notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Debt assumed, private placement notes | $ 900,000 | |||||||||||
Repayments of debt | 600,000 | $ 300,000 | ||||||||||
Debt instrument, repayment of debt, number of tranches | tranche | 2 | |||||||||||
Interest expense | $ 10,000 | |||||||||||
Meggitt plc | Aerospace Systems | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of revenue allocated to segment | 82% | |||||||||||
Meggitt plc | Diversified Industrial | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of revenue allocated to segment | 18% | |||||||||||
Meggitt plc | Minimum | Private Placement Notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interest rate | 2.78% | |||||||||||
Meggitt plc | Maximum | Private Placement Notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interest rate | 3.60% | |||||||||||
Meggitt plc | Customer Relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | $ 4,300,000 | |||||||||||
Weighted average useful life of intangible assets | 22 years | |||||||||||
Meggitt plc | Technology | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | 1,100,000 | |||||||||||
Weighted average useful life of intangible assets | 21 years | |||||||||||
Meggitt plc | Trade names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | $ 304,000 | |||||||||||
Weighted average useful life of intangible assets | 18 years | |||||||||||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of assets and liabilities assumed on acquisition date (Details) - USD ($) $ in Thousands | Sep. 12, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Assets: | ||||
Goodwill | $ 10,628,594 | $ 7,740,082 | $ 8,059,687 | |
Meggitt plc | ||||
Assets: | ||||
Cash and cash equivalents | $ 89,704 | |||
Measurement period adjustments, cash and cash equivalents | 0 | |||
Accounts receivable | 409,642 | |||
Measurement period adjustments, accounts receivable | (17,613) | |||
Inventories | 739,304 | |||
Measurement period adjustments, inventory | (94,298) | |||
Prepaid expenses and other | 102,032 | |||
Measurement period adjustments, prepaid expenses and other | (23,731) | |||
Property, plant and equipment, net | 658,997 | |||
Measurement period adjustments, property, plant, and equipment, net | (16,235) | |||
Deferred income taxes | 34,198 | |||
Measurement period adjustments, deferred income taxes | 28,478 | |||
Other assets | 180,991 | |||
Measurement period adjustments, other assets | (38,481) | |||
Intangible assets | 5,679,200 | |||
Measurement period adjustments, intangible assets | 260,405 | |||
Goodwill | 2,789,080 | |||
Measurement period adjustments, goodwill | (41,765) | |||
Total assets acquired | 10,683,148 | |||
Measurement period adjustments, total assets acquired | 56,760 | |||
Liabilities: | ||||
Notes payable and long-term debt payable within one year | 308,176 | |||
Measurement period adjustments, notes payable and long-term debt payable within one year | 1,910 | |||
Accounts payable, trade | 219,842 | |||
Measurement period adjustments, accounts payable, trade | 62 | |||
Accrued payrolls and other compensation | 87,074 | |||
Measurement period adjustments, accrued payrolls and other compensation | (2,152) | |||
Accrued domestic and foreign taxes | 21,068 | |||
Measurement period adjustments, accrued domestic and foreign taxes | 21,068 | |||
Other accrued liabilities | 322,040 | |||
Measurement period adjustments, other accrued liabilities | (45,565) | |||
Long-term debt | 711,703 | |||
Measurement period adjustments, long-term debt | 42,382 | |||
Pensions and other postretirement benefits | 99,553 | |||
Measurement period adjustments, pensions and other postretirement benefits | 13,654 | |||
Deferred income taxes | 1,259,417 | |||
Measurement period adjustments, deferred income taxes | (15,309) | |||
Other liabilities | 418,461 | |||
Measurement period adjustments, other liabilities | 40,710 | |||
Total liabilities assumed | 3,447,334 | |||
Measurement period adjustments, total liabilities assumed | 56,760 | |||
Net assets acquired | 7,235,814 | |||
Measurement period adjustments, net assets acquired | 0 | |||
Meggitt plc | Previously Reported | ||||
Assets: | ||||
Cash and cash equivalents | 89,704 | |||
Accounts receivable | 427,255 | |||
Inventories | 833,602 | |||
Prepaid expenses and other | 125,763 | |||
Property, plant and equipment, net | 675,232 | |||
Deferred income taxes | 5,720 | |||
Other assets | 219,472 | |||
Intangible assets | 5,418,795 | |||
Goodwill | 2,830,845 | |||
Total assets acquired | 10,626,388 | |||
Liabilities: | ||||
Notes payable and long-term debt payable within one year | 306,266 | |||
Accounts payable, trade | 219,780 | |||
Accrued payrolls and other compensation | 89,226 | |||
Accrued domestic and foreign taxes | 0 | |||
Other accrued liabilities | 367,605 | |||
Long-term debt | 669,321 | |||
Pensions and other postretirement benefits | 85,899 | |||
Deferred income taxes | 1,274,726 | |||
Other liabilities | 377,751 | |||
Total liabilities assumed | 3,390,574 | |||
Net assets acquired | $ 7,235,814 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Unaudited pro forma information (Details) - Meggitt plc - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||
Net sales | $ 19,446,524 | $ 17,911,409 |
Net income attributable to common shareholders | $ 1,956,813 | $ 1,529,970 |
Business Realignment and Acqu_3
Business Realignment and Acquisition Integration Charges - Business realignment charges and workforce reductions (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) employee | Jun. 30, 2022 USD ($) employee | Jun. 30, 2021 USD ($) employee | |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 15,993 | $ 5,007 | $ 27,276 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 10,713 | 9,747 | 19,360 |
Loss on disposal of assets | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 0 | 3 | 1,226 |
Operating segments | Diversified Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 23,641 | $ 13,787 | $ 38,557 |
Work force reduction (in employees) | employee | 728 | 300 | 820 |
Operating segments | Aerospace Systems | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 3,065 | $ 967 | $ 6,680 |
Work force reduction (in employees) | employee | 30 | 10 | 327 |
Corporate administration | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 0 | $ 0 | $ 1,399 |
Work force reduction (in employees) | employee | 0 | 0 | 20 |
Other expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 0 | $ 3 | $ 1,226 |
Business Realignment and Acqu_4
Business Realignment and Acquisition Integration Charges - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Payments for restructuring | $ 22 | |
Remaining severance payments related to current-year and prior-year actions | $ 14 | |
Expense from exit of business operations in Russia | $ 20 | |
Foreign currency translation expense | 8 | |
Nonoperating Income (Expense) | ||
Restructuring Cost and Reserve [Line Items] | ||
Expense from exit of business operations in Russia | $ 7 |
Business Realignment and Acqu_5
Business Realignment and Acquisition Integration Charges - Acquisition integration charges related to the Lord, Exotic and proposed Meggitt acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Diversified Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Acquisition integration charges | $ 8,511 | $ 3,589 | $ 11,222 |
Aerospace Systems | |||
Restructuring Cost and Reserve [Line Items] | |||
Acquisition integration charges | $ 86,928 | $ 1,177 | $ 719 |
Income Taxes - Income before in
Income Taxes - Income before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,408,206 | $ 646,364 | $ 1,273,037 |
Foreign | 1,271,458 | 967,862 | 973,920 |
Income before income taxes | $ 2,679,664 | $ 1,614,226 | $ 2,246,957 |
Income Taxes - Schedule of inco
Income Taxes - Schedule of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Federal | |||||
Current | $ 161,465 | $ 297,672 | $ 247,094 | ||
Deferred | 81,426 | (253,123) | (52,960) | ||
Foreign | |||||
Current | 297,199 | 303,089 | 269,607 | ||
Deferred | (13,509) | (45,977) | 8,851 | ||
State and local | |||||
Current | 45,599 | 48,479 | 34,895 | ||
Deferred | 23,948 | (52,100) | (7,391) | ||
Income taxes | $ 596,128 | $ 298,040 | [1] | $ 500,096 | [1] |
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
State and local income taxes | 2.10% | (0.20%) | 1% |
Tax related to international activities | 1.20% | 2.70% | 3.60% |
Cash surrender value of life insurance | (0.10%) | 0.50% | (0.60%) |
Foreign derived intangible income deduction | (1.10%) | (3.70%) | (1.00%) |
Research tax credit | (0.70%) | (0.80%) | (0.40%) |
Share-based compensation | (1.00%) | (1.30%) | (1.60%) |
Other | 0.80% | 0.30% | 0.30% |
Effective income tax rate | 22.20% | 18.50% | 22.30% |
Income Taxes - Differences comp
Income Taxes - Differences comprising the net deferred taxes shown on consolidated balance sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Retirement benefits | $ 158,560 | $ 207,147 | |
Other liabilities and reserves | 333,012 | 180,624 | |
Long-term contracts | 37,747 | 8,739 | |
Stock-based compensation | 33,374 | 31,490 | |
Loss carryforwards | 1,083,732 | 888,552 | |
Unrealized currency exchange gains and losses | (1,680) | 254,334 | |
Inventory | 96,501 | 14,649 | |
Tax credit carryforwards | 18,773 | 17,326 | |
Undistributed foreign earnings | (21,304) | (21,822) | |
Depreciation and amortization | (2,228,606) | (875,623) | |
Valuation allowance | (1,078,354) | (901,875) | |
Net deferred tax (liability) | (1,568,245) | (196,459) | |
Change in net deferred tax (liability): | |||
Provision for deferred tax | (91,865) | 351,201 | $ 51,500 |
Items of other comprehensive (loss) income | (64,342) | (98,810) | |
Acquisitions and other | (1,215,579) | 880 | |
Total change in net deferred tax | $ (1,371,786) | $ 253,271 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets resulting from loss carryforwards | $ 1,083,732 | $ 888,552 | |
Loss carryforwards | 4,350,000 | ||
Valuation allowance related to the loss carryforwards | 1,059,000 | ||
Amount of valuation allowance relating to non-operating entity whose loss carryforward utilization is considered to be remote | $ 1,030,000 | ||
Operating loss carryforward minimum period before expiration | 3 years | ||
Operating loss carryforward maximum period before expiration | 20 years | ||
Valuation allowance | $ 20,000 | ||
Undistributed foreign earnings not permanently reinvested | 754,000 | ||
Deferred tax liability on undistributed foreign earnings not permanently reinvested | 13,000 | ||
Undistributed distributed foreign earnings | 1,130,000 | ||
Deferred tax liability on undistributed foreign earnings not permanently reinvested in their subsidiaries | 8,000 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 114,000 | 91,000 | $ 101,000 |
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits | 21,000 | 18,000 | 18,000 |
Accrued penalties related to gross unrecognized tax benefits | 2,000 | $ 0 | $ 0 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance July 1 | $ 90,669 | $ 100,759 | $ 86,277 |
Additions for tax positions related to current year | 9,389 | 7,039 | 10,145 |
Additions for tax positions of prior years | 6,171 | 1,415 | 10,320 |
Additions for acquisitions | 25,957 | 2,376 | |
Reductions for tax positions of prior years | (3,063) | (140) | (1,996) |
Reductions for settlements | (6,923) | (3,127) | (7,165) |
Reductions for expiration of statute of limitations | (11,199) | (6,647) | (2,252) |
Effect of foreign currency translation - increase | 2,502 | 3,054 | |
Effect of foreign currency translation - decrease | (8,630) | ||
Balance June 30 | $ 113,503 | $ 90,669 | $ 100,759 |
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 | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Numerator: | |||||
Net income attributable to common shareholders, basic | $ 2,082,936 | $ 1,315,605 | $ 1,746,100 | ||
Net income attributable to common shareholders, diluted | $ 2,082,936 | $ 1,315,605 | $ 1,746,100 | ||
Denominator: | |||||
Basic - weighted-average common shares (in shares) | 128,367,842 | 128,539,387 | 128,999,879 | ||
Increase in weighted-average common shares from dilutive effect of equity-based awards (in shares) | 1,454,243 | 1,816,556 | 1,834,599 | ||
Diluted - weighted-average common shares, assuming exercise of stock-based awards (in shares) | 129,822,085 | 130,355,943 | 130,834,478 | ||
Basic earnings per share (in USD per share) | $ 16.23 | $ 10.24 | [1] | $ 13.54 | [1] |
Diluted earnings per share (in USD per share) | $ 16.04 | $ 10.09 | [1] | $ 13.35 | [1] |
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Number of common shares subject to stock-based awards that were excluded from the computation of diluted earnings per share | 1 | 0.4 | 0.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 794,128 | $ 811,702 |
Work in process | 1,488,665 | 1,128,501 |
Raw materials | 625,086 | 274,350 |
Total | $ 2,907,879 | $ 2,214,553 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 7,740,082 | $ 8,059,687 |
Acquisitions | 2,789,080 | |
Divestitures | (3,296) | (164) |
Goodwill reclassified to held for sale | (48,242) | |
Foreign currency translation | 102,728 | (271,199) |
Ending balance | 10,628,594 | 7,740,082 |
Diversified Industrial Segment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 7,185,981 | 7,457,309 |
Acquisitions | 452,008 | |
Divestitures | (1,064) | (164) |
Goodwill reclassified to held for sale | 0 | |
Foreign currency translation | 45,830 | (271,164) |
Ending balance | 7,682,755 | 7,185,981 |
Aerospace Systems Segment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 554,101 | 602,378 |
Acquisitions | 2,337,072 | |
Divestitures | (2,232) | 0 |
Goodwill reclassified to held for sale | (48,242) | |
Foreign currency translation | 56,898 | (35) |
Ending balance | $ 2,945,839 | $ 554,101 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment loss recognized | $ 0 | $ 0 | $ 0 |
Intangible amortization expense | 501,000,000 | $ 314,000,000 | $ 325,000,000 |
Estimated amortization expense, year ending June 30, 2024 | 550,000,000 | ||
Estimated amortization expense, year ending June 30, 2025 | 528,000,000 | ||
Estimated amortization expense, year ending June 30, 2026 | 523,000,000 | ||
Estimated amortization expense, year ending June 30, 2027 | 518,000,000 | ||
Estimated amortization expense, year ending June 30, 2028 | $ 508,000,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross carrying value and accumulated amortization of intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,285,588 | $ 5,453,637 |
Accumulated Amortization | 2,834,974 | 2,317,820 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,128,847 | 990,775 |
Accumulated Amortization | 352,040 | 259,587 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,047,678 | 727,820 |
Accumulated Amortization | 390,737 | 339,244 |
Customer relationships and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,109,063 | 3,735,042 |
Accumulated Amortization | $ 2,092,197 | $ 1,718,989 |
Financing Arrangements (Details
Financing Arrangements (Details) | 12 Months Ended | |
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||
Commercial paper notes outstanding | $ 1,800,000,000 | $ 1,400,000,000 |
Debt to debt-shareholders' equity ratio | 0.55 | |
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 | 3,000,000,000 | |
Line of Credit | Amended And Extended Multi-Currency Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Line of credit | 3,000,000,000 | |
Line of credit available | $ 1,200,000,000 | |
Extension option, term | 1 year | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Weighted-average interest rate of notes payable | 5.60% | 0.70% |
Debt - Schedule of long-term de
Debt - Schedule of long-term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 10,770,655 | $ 10,058,105 |
Other long-term debt | 106,598 | 11,127 |
Deferred debt issuance costs | (74,713) | (86,972) |
Less: Long-term debt payable within one year | 1,974,371 | 302,280 |
Long-term debt, net | 8,796,284 | 9,755,825 |
Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.25%, due 2025 - 2045 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,825,000 | 2,125,000 |
Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.25%, due 2025 - 2045 | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.30% | |
Medium-term Notes | Fixed rate medium-term notes, 3.30% to 6.25%, due 2025 - 2045 | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.25% | |
Senior Notes | Senior Notes, 2.70% to 4.50%, due 2024 - 2049 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 7,275,000 | 7,275,000 |
Senior Notes | Senior Notes, 2.70% to 4.50%, due 2024 - 2049 | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.70% | |
Senior Notes | Senior Notes, 2.70% to 4.50%, due 2024 - 2049 | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Senior Notes | Euro Senior Notes, 1.125%, due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.125% | |
Long-term debt | $ 763,770 | 733,950 |
Loans Payable | Term Loan Facility, due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 875,000 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands, £ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jul. 31, 2022 GBP (£) | Aug. 02, 2021 GBP (£) | |
Debt Instrument [Line Items] | ||||||
Proceeds from long-term borrowings | $ 2,023,400 | $ 3,598,056 | $ 1,213 | |||
Payments for long-term borrowings | 2,340,566 | $ 18,737 | $ 1,211,748 | |||
Long-term debt payable in 2024 | 1,980,000 | |||||
Long-term debt payable in 2025 | 1,268,000 | |||||
Long-term debt payable in 2026 | 879,000 | |||||
Long-term debt payable in 2027 | 704,000 | |||||
Long-term debt payable in 2028 | 1,204,000 | |||||
Bridge Credit Agreement | Line of Credit | Bridge Loan | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | £ | £ 0 | £ 6,500 | ||||
Loans Payable | Term Loan Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from long-term borrowings | $ 2,000,000 | |||||
Payments for long-term borrowings | $ 1,100,000 | |||||
Loans Payable | Term Loan Facility | Line of Credit | Debt Instrument, Periodic Payment, Interest, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment, interest, period | 1 month | |||||
Loans Payable | Term Loan Facility | Line of Credit | Debt Instrument, Periodic Payment, Interest, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment, interest, period | 3 months | |||||
Loans Payable | Term Loan Facility | Line of Credit | Debt Instrument, Periodic Payment, Interest, Period Three | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment, interest, period | 6 months | |||||
Loans Payable | Term Loan Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.225% |
Leases - Lease expense and supp
Leases - Lease expense and supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 60,411 | $ 46,026 | $ 48,171 |
Finance lease cost: | |||
Amortization of lease assets | 5,604 | 1,861 | 1,576 |
Interest on lease liabilities | 4,383 | 390 | 455 |
Short-term lease cost | 7,577 | 7,041 | 7,674 |
Variable lease cost | 5,747 | 5,849 | 5,835 |
Total lease cost | 83,722 | 61,167 | 63,711 |
Operating cash outflows - payments on operating leases | 57,717 | 45,371 | 47,080 |
Operating cash outflows - interest payments on finance leases | 4,383 | 390 | 455 |
Financing cash outflows - payments on finance lease obligations | 5,141 | 1,992 | 1,713 |
Right-of-use assets obtained in exchange for operating lease obligations | 45,365 | 50,925 | 41,637 |
Right-of-use assets obtained in exchange for finance lease obligations | $ 1,340 | $ 0 | $ 3,834 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Operating Leases | ||
Operating lease right-of-use assets (included within Investments and other assets) | $ 232,733 | $ 133,412 |
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) | $ 50,523 | $ 36,023 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Long-term operating lease liabilities (included within Other liabilities) | $ 187,445 | $ 100,337 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total operating lease liabilities | $ 237,968 | $ 136,360 |
Finance Lease, Assets And Liabilities, Lessee [Abstract] | ||
Accumulated depreciation | $ (8,196) | $ (3,836) |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Net property, plant and equipment | $ 104,827 | $ 10,453 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Current portion of long-term debt (included within Other accrued liabilities) | $ 4,198 | $ 1,691 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Long-term debt (included within Other liabilities) | $ 100,889 | $ 8,575 |
Total finance lease liabilities | $ 105,087 | $ 10,266 |
Weighted-average remaining lease term | ||
Operating leases | 6 years 10 months 24 days | 5 years 7 months 6 days |
Finance leases | 20 years 9 months 18 days | 15 years 8 months 12 days |
Weighted-average discount rate | ||
Operating leases | 3.90% | 1.60% |
Finance leases | 5.20% | 3.30% |
Land and buildings | ||
Finance Lease, Assets And Liabilities, Lessee [Abstract] | ||
Finance leases | $ 107,910 | $ 9,223 |
Machinery and equipment | ||
Finance Lease, Assets And Liabilities, Lessee [Abstract] | ||
Finance leases | $ 5,113 | $ 5,066 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Operating Leases | ||
2024 | $ 58,351 | |
2025 | 49,196 | |
2026 | 38,352 | |
2027 | 28,590 | |
2028 | 21,481 | |
Thereafter | 82,407 | |
Total lease payments | 278,377 | |
Less imputed interest | 40,409 | |
Total lease liabilities | 237,968 | $ 136,360 |
Finance Leases | ||
2024 | 9,483 | |
2025 | 8,871 | |
2026 | 8,792 | |
2027 | 8,896 | |
2028 | 8,936 | |
Thereafter | 128,519 | |
Total lease payments | 173,497 | |
Less imputed interest | 68,410 | |
Total finance lease liabilities | $ 105,087 | $ 10,266 |
Retirement Benefits - Net perio
Retirement Benefits - Net periodic pension cost recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
One-time charges related to divestitures | $ (2,480) | $ 0 | $ 0 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 57,418 | 76,638 | 84,188 |
Interest cost | 225,468 | 110,250 | 102,475 |
Expected return on plan assets | (311,145) | (267,888) | (267,579) |
Amortization of prior service cost | 931 | 4,103 | 5,325 |
Amortization of unrecognized actuarial loss | 17,178 | 157,288 | 207,897 |
Amortization of transition obligation | 0 | 8 | 18 |
Net periodic benefit cost | $ (12,630) | $ 80,399 | $ 132,324 |
Retirement Benefits - Summary o
Retirement Benefits - Summary of defined benefit pension plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 4,362,153 | ||
Fair value of plan assets at end of year | 5,455,294 | $ 4,362,153 | |
Amounts recognized on the Consolidated Balance Sheet | |||
Pensions and other postretirement benefits | (551,510) | (639,939) | |
Pension Plan | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 4,959,319 | 6,323,003 | |
Service cost | 57,418 | 76,638 | $ 84,188 |
Interest cost | 225,468 | 110,250 | 102,475 |
Acquisition | 1,181,139 | 0 | |
Plan amendments | 2,521 | (5,691) | |
Divestiture | (1,779) | 0 | |
Actuarial gain | (349,476) | (1,097,053) | |
Benefits paid | (312,758) | (256,868) | |
Foreign currency translation and other | 73,839 | (190,960) | |
Benefit obligation at end of year | 5,835,691 | 4,959,319 | 6,323,003 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 4,362,153 | 5,305,577 | |
Actual gain (loss) on plan assets | 31,399 | (605,642) | |
Acquisition | 1,140,707 | 0 | |
Employer contributions | 153,038 | 96,717 | |
Benefits paid | (312,758) | (256,868) | |
Foreign currency translation and other | 80,756 | (177,631) | |
Fair value of plan assets at end of year | 5,455,295 | 4,362,153 | $ 5,305,577 |
Funded status | (380,396) | (597,166) | |
Amounts recognized on the Consolidated Balance Sheet | |||
Investments and other assets | 145,809 | 103,632 | |
Other accrued liabilities | (57,783) | (19,307) | |
Pensions and other postretirement benefits | (468,422) | (681,491) | |
Net amount recognized | (380,396) | (597,166) | |
Amounts recognized in Accumulated Other Comprehensive (Loss) | |||
Net actuarial loss | 593,937 | 672,775 | |
Prior service cost | 6,489 | 4,901 | |
Net amount recognized | $ 600,426 | $ 677,676 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 01, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Required cash balance | $ 49,000 | |||||
Number of shares invested by employees in company stock | 1,115,612 | |||||
Defined contribution plan, annual contributions per employee not grandfathered | 3% | |||||
Defined contribution plan expense recognized | $ 63,000 | $ 57,000 | $ 42,000 | |||
Company matching contributions | 104,237 | 87,554 | 66,249 | |||
Meggitt plc | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined contribution plan expense recognized | 11,000 | |||||
Company matching contributions | $ 9,000 | |||||
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 | 65% | |||||
Maximum | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Maximum percentage of employer 401K matching contribution | 5% | 4% | ||||
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 | |||||
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 | 20% | |||||
Investments valued using a net asset value per share, redemption restriction, frequency period | 6 months | |||||
Equity securities | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Weighted-average target asset allocation | 39% | |||||
Debt securities | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Weighted-average target asset allocation | 45% | |||||
Other investments | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Weighted-average target asset allocation | 16% | |||||
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 | $ 519,000 | 327,000 | ||||
Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Accumulated benefit obligation for all defined benefit plans | 5,700,000 | 4,800,000 | ||||
Expected cash contributions to defined benefit pension plans in next fiscal year | 171,000 | |||||
Estimated future benefit payments in the year ending June 30, 2024 | 413,000 | |||||
Estimated future benefit payments in the year ending June 30, 2025 | 413,000 | |||||
Estimated future benefit payments in the year ending June 30, 2026 | 380,000 | |||||
Estimated future benefit payments in the year ending June 30, 2027 | 387,000 | |||||
Estimated future benefit payments in the year ending June 30, 2028 | 388,000 | |||||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2029 through June 30, 2033 | 2,000,000 | |||||
Expense related to other postretirement benefits | $ (12,630) | $ 80,399 | 132,324 | |||
Pension Plan | United States | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Discount rate | 4.88% | 4.36% | ||||
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, 2024 | $ 8,000 | |||||
Estimated future benefit payments in the year ending June 30, 2025 | 7,000 | |||||
Estimated future benefit payments in the year ending June 30, 2026 | 7,000 | |||||
Estimated future benefit payments in the year ending June 30, 2027 | 7,000 | |||||
Estimated future benefit payments in the year ending June 30, 2028 | 7,000 | |||||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2029 through June 30, 2033 | 29,000 | |||||
Expense related to other postretirement benefits | $ 2,000 | $ 1,000 | 1,000 | |||
Discount rate | 4.86% | 4.26% | ||||
Other | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Deferred compensation (income) expense | $ 20,000 | $ (21,000) | $ 45,000 |
Retirement Benefits - Plan with
Retirement Benefits - Plan with accumulated benefit obligation in excess of plan assets (Details) - Pension Plan - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 4,352,952 | $ 4,284,601 |
Fair value of plan assets | $ 3,955,284 | $ 3,742,513 |
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, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 4,545,650 | $ 4,483,486 |
Fair value of plan assets | $ 4,019,445 | $ 3,782,688 |
Retirement Benefits - Assumptio
Retirement Benefits - Assumptions used to measure periodic benefit cost (Details) - Pension Plan | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
United States | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 4.36% | 2.55% | 2.36% |
Average increase in compensation | 3.35% | 3.05% | 2.98% |
Expected return on plan assets | 6.50% | 6.50% | 6.75% |
Minimum | Foreign Plan | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 0.60% | 0.25% | 0.20% |
Average increase in compensation | 1.75% | 1.75% | 1.75% |
Expected return on plan assets | 1% | 1% | 1% |
Maximum | Foreign Plan | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate | 5.06% | 2.95% | 3.03% |
Average increase in compensation | 4% | 4.50% | 4.50% |
Expected return on plan assets | 5.10% | 4.50% | 5.40% |
Retirement Benefits - Assumpt_2
Retirement Benefits - Assumptions used to measure benefit obligations (Details) - Pension Plan | Jun. 30, 2023 | Jun. 30, 2022 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.88% | 4.36% |
Average increase in compensation | 3.81% | 3.81% |
Minimum | Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.90% | 0.60% |
Average increase in compensation | 2% | 1.75% |
Maximum | Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.20% | 5.06% |
Average increase in compensation | 4.40% | 4% |
Retirement Benefits - Weighted-
Retirement Benefits - Weighted-average allocation of the majority of the assets related to defined benefit plans (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 100% | 100% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 30% | 31% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 45% | 43% |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average allocation of assets related to defined benefit plans | 25% | 26% |
Retirement Benefits - Fair valu
Retirement Benefits - Fair values of pension plan assets by asset class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 5,455,294 | $ 4,362,153 |
Fair Value, Inputs, Level 1, 2 and 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 341,812 | 201,053 |
Fair Value, Inputs, Level 1, 2 and 3 | Equity securities, U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 538,118 | 327,122 |
Fair Value, Inputs, Level 1, 2 and 3 | Equity securities, Non-U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 152,354 | 8,700 |
Fair Value, Inputs, Level 1, 2 and 3 | Fixed income securities, Corporate debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 464,056 | 380,694 |
Fair Value, Inputs, Level 1, 2 and 3 | Fixed income securities, Government issued securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 610,326 | 87,650 |
Fair Value, Inputs, Level 1, 2 and 3 | Mutual funds, Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 11,406 | 9,085 |
Fair Value, Inputs, Level 1, 2 and 3 | Mutual funds, Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 357 | 9,679 |
Fair Value, Inputs, Level 1, 2 and 3 | Miscellaneous | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 308,610 | 206,850 |
Quoted Prices In Active Markets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 1,634,467 | 601,712 |
Quoted Prices In Active Markets (Level 1) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 333,978 | 190,616 |
Quoted Prices In Active Markets (Level 1) | Equity securities, U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 523,649 | 327,122 |
Quoted Prices In Active Markets (Level 1) | Equity securities, Non-U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 76,173 | 8,700 |
Quoted Prices In Active Markets (Level 1) | Fixed income securities, Corporate debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 118,536 | 1,309 |
Quoted Prices In Active Markets (Level 1) | Fixed income securities, Government issued securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 570,368 | 55,201 |
Quoted Prices In Active Markets (Level 1) | Mutual funds, Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 11,406 | 9,085 |
Quoted Prices In Active Markets (Level 1) | Mutual funds, Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 357 | 9,679 |
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 | 792,572 | 629,121 |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 7,834 | 10,437 |
Significant Other Observable Inputs (Level 2) | Equity securities, U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 14,469 | 0 |
Significant Other Observable Inputs (Level 2) | Equity securities, Non-U.S. based companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 76,181 | 0 |
Significant Other Observable Inputs (Level 2) | Fixed income securities, Corporate debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 345,520 | 379,385 |
Significant Other Observable Inputs (Level 2) | Fixed income securities, Government issued securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 39,958 | 32,449 |
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 | 308,610 | 206,850 |
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 | 264,346 | 279,849 |
Measured at Net Asset Value | Common/Collective trusts measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 2,626,832 | 2,718,445 |
Measured at Net Asset Value | Limited Partnerships measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 137,077 | $ 133,026 |
Retirement Benefits - Employee
Retirement Benefits - Employee stock ownership plan (ESOP) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Shares held by ESOP (in shares) | 3,779,985 | 4,125,214 | 4,497,902 |
Company matching contributions | $ 104,237 | $ 87,554 | $ 66,249 |
Retirement Benefits - Summary_2
Retirement Benefits - Summary of other postretirement benefit plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Amounts recognized on the Consolidated Balance Sheet | ||
Pensions and other postretirement benefits | $ (551,510) | $ (639,939) |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | 48,876 | 63,739 |
Service cost | 330 | 206 |
Interest cost | 3,004 | 982 |
Acquisition | 39,112 | 0 |
Actuarial gain | (4,403) | (11,220) |
Benefits paid | (8,352) | (4,831) |
Benefit obligation at end of year | 78,567 | 48,876 |
Funded status | (78,567) | (48,876) |
Amounts recognized on the Consolidated Balance Sheet | ||
Other accrued liabilities | (7,831) | (4,971) |
Pensions and other postretirement benefits | (70,736) | (43,905) |
Net amount recognized | (78,567) | (48,876) |
Amounts recognized in Accumulated Other Comprehensive (Loss) | ||
Net actuarial gain | $ (17,952) | $ (15,154) |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.26% | 2.36% | 2.14% |
Ultimate medical cost trend rate | 4.50% | 4.50% | 4.50% |
Medical cost trend rate decreases to ultimate in year | 2031 | 2029 | 2028 |
Defined benefit plan, participant age range, Pre-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current medical cost trend rate | 6.73% | 6.45% | 6.73% |
Defined benefit plan, participant age range, Post-65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current medical cost trend rate | 6.81% | 6.72% | 7.03% |
Equity - Changes in accumulated
Equity - Changes in accumulated other comprehensive (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 8,859,920 | $ 8,413,670 |
Ending balance | 10,338,279 | 8,859,920 |
AOCI Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,543,198) | (1,566,727) |
Other comprehensive (loss) income before reclassifications | 240,199 | (105,752) |
Amounts reclassified from accumulated other comprehensive (loss) | 10,127 | 129,281 |
Ending balance | (1,292,872) | (1,543,198) |
Foreign Currency Translation Adjustment and Other | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,149,071) | (865,865) |
Other comprehensive (loss) income before reclassifications | 187,027 | (290,853) |
Amounts reclassified from accumulated other comprehensive (loss) | 0 | 7,647 |
Ending balance | (962,044) | (1,149,071) |
Retirement Benefit Plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (394,127) | (700,862) |
Other comprehensive (loss) income before reclassifications | 53,172 | 185,101 |
Amounts reclassified from accumulated other comprehensive (loss) | 10,127 | 121,634 |
Ending balance | $ (330,828) | $ (394,127) |
Equity - Significant reclassifi
Equity - Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | [1] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other expense (income), net | $ (184,167) | $ (944,881) | [1] | $ 27,950 | |
Income before income taxes | 2,679,664 | 1,614,226 | [1] | 2,246,957 | |
Tax benefit | (596,128) | (298,040) | [1] | (500,096) | |
Net income | 2,083,536 | 1,316,186 | [1] | $ 1,746,861 | |
Reclassification out of Accumulated Other Comprehensive Income | Retirement benefit plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Income before income taxes | (14,024) | (161,023) | |||
Tax benefit | 3,897 | 39,389 | |||
Net income | (10,127) | (121,634) | |||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost and initial net obligation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other expense (income), net | (931) | (4,111) | |||
Reclassification out of Accumulated Other Comprehensive Income | Recognized actuarial loss | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other expense (income), net | (15,573) | $ (156,912) | |||
Reclassification out of Accumulated Other Comprehensive Income | Divestiture activity | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other expense (income), net | $ 2,480 | ||||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Equity - Share repurchases (Det
Equity - Share repurchases (Details) - $ / shares | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Oct. 22, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 663,599 | 1,281,818 | 331,259 | |
Average price per share including commissions (in USD per share) | $ 301.39 | $ 296.71 | $ 301.88 | |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | 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 | 6,400,000 | |||
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 51,000 | $ 37,000 | $ 35,000 | |
Expense for nonvested awards not yet recognized | $ 19,000 | |||
Expense for nonvested awards not yet recognized, weighted-average period for recognition | 23 months | |||
Total fair value of shares vested | $ 34,000 | 29,000 | 25,000 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock-based compensation expense | $ 27,000 | 26,000 | 26,000 | |
Expense for nonvested awards not yet recognized | $ 18,000 | |||
Expense for nonvested awards not yet recognized, weighted-average period for recognition | 21 months | |||
Total fair value of shares vested | $ 30,000 | 26,000 | 21,000 | |
Share based payment arrangement, tax benefit (cost) | $ 2,000 | 4,000 | 1,000 | |
Long Term Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock-based compensation expense | $ 63,000 | 72,000 | 59,000 | |
Share based payment arrangement, tax benefit (cost) | $ 4,000 | 5,000 | 2,000 | |
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 | $ 1,900 | 1,800 | 1,500 | |
Expense for nonvested awards not yet recognized | $ 400 | |||
Expense for nonvested awards not yet recognized, weighted-average period for recognition | 3 months | |||
Share based payment arrangement, tax benefit (cost) | $ (20) | $ 200 | $ 2,100 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3% | 0.80% | 0.40% |
Expected life of award | 5 years 7 months 6 days | 5 years 7 months 6 days | 5 years 4 months 24 days |
Expected dividend yield of stock | 1.80% | 1.90% | 2% |
Expected volatility of stock | 37.10% | 35.70% | 35.20% |
Weighted-average fair value (in USD per share) | $ 97.70 | $ 81.71 | $ 53.92 |
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, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Beginning balance, outstanding (in shares) | shares | 4,099,144 |
Granted (in shares) | shares | 605,135 |
Exercised (in shares) | shares | (800,815) |
Canceled (in shares) | shares | (30,035) |
Ending balance, outstanding (in shares) | shares | 3,873,429 |
Exercisable (in shares) | shares | 2,737,336 |
Weighted-Average Exercise Price | |
Beginning balance, outstanding (in USD per share) | $ / shares | $ 172.27 |
Granted (in USD per share) | $ / shares | 298.26 |
Exercised (in USD per share) | $ / shares | 134.38 |
Canceled (in USD per share) | $ / shares | 263.62 |
Ending balance, outstanding (in USD per share) | $ / shares | 199.08 |
Exercisable (in USD per share) | $ / shares | $ 165.45 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, weighted average remaining contractual term | 6 years |
Exercisable, weighted average remaining contractual term | 5 years |
Outstanding, aggregate intrinsic value | $ | $ 739.7 |
Exercisable, aggregate intrinsic value | $ | $ 614.8 |
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) | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance, nonvested (in shares) | shares | 1,212,497 |
Granted (in shares) | shares | 605,135 |
Vested (in shares) | shares | (654,784) |
Canceled (in shares) | shares | (26,755) |
Ending balance, nonvested (in shares) | shares | 1,136,093 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in USD per share) | $ / shares | $ 60.44 |
Granted (in USD per share) | $ / shares | 97.36 |
Vested (in USD per share) | $ / shares | 52.13 |
Canceled (in USD per share) | $ / shares | 83.35 |
Ending balance, nonvested (in USD per share) | $ / shares | $ 84.36 |
Stock Incentive Plans - Informa
Stock Incentive Plans - Information related to stock appreciation rights awards exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Net cash proceeds | $ 3,476 | $ 2,831 | $ 4,684 |
Stock Appreciation Rights (SARs) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Net cash proceeds | 3,476 | 2,831 | 4,684 |
Intrinsic value | 158,452 | 97,002 | 225,025 |
Income tax benefit | $ 26,854 | $ 15,845 | $ 37,437 |
Number of shares surrendered | 152,835 | 98,673 | 316,330 |
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, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance, nonvested (in shares) | shares | 277,902 |
Granted (in shares) | shares | 93,336 |
Vested (in shares) | shares | (155,718) |
Canceled (in shares) | shares | (9,999) |
Ending balance, nonvested (in shares) | shares | 205,521 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in USD per share) | $ / shares | $ 224.40 |
Granted (in USD per share) | $ / shares | 298.54 |
Vested (in USD per share) | $ / shares | 194.46 |
Canceled (in USD per share) | $ / shares | 262.95 |
Ending balance, nonvested (in USD per share) | $ / shares | $ 278.88 |
Director | |
Number of Shares | |
Beginning balance, nonvested (in shares) | shares | 5,620 |
Granted (in shares) | shares | 6,638 |
Vested (in shares) | shares | (5,650) |
Canceled (in shares) | shares | (383) |
Ending balance, nonvested (in shares) | shares | 6,225 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in USD per share) | $ / shares | $ 297.89 |
Granted (in USD per share) | $ / shares | 278.99 |
Vested (in USD per share) | $ / shares | 297.89 |
Canceled (in USD per share) | $ / shares | 278.90 |
Ending balance, nonvested (in USD per share) | $ / shares | $ 278.90 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued | 204,175 | 251,783 | 210,864 |
Number of shares surrendered | 102,120 | 124,007 | 105,402 |
Share value on date of issuance (in USD per share) | $ 311.65 | $ 271.38 | $ 317.60 |
Total value of shares issued | $ 63,631 | $ 68,329 | $ 66,970 |
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, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance, nonvested (in shares) | shares | 417,789 |
Granted (in shares) | shares | 186,194 |
Vested (in shares) | shares | (199,143) |
Canceled (in shares) | shares | (12,233) |
Ending balance, nonvested (in shares) | shares | 392,607 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in USD per share) | $ / shares | $ 246.63 |
Granted (in USD per share) | $ / shares | 301.64 |
Vested (in USD per share) | $ / shares | 205.95 |
Canceled (in USD per share) | $ / shares | 279.75 |
Ending balance, nonvested (in USD per share) | $ / shares | $ 292.32 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Research and Development [Abstract] | |||
Research and development costs | $ 258 | $ 191 | $ 205 |
Costs incurred in connection with research and development contracts | $ 73 | $ 74 | $ 54 |
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, 2023 | Jun. 30, 2022 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 10,845,359 | $ 10,145,077 |
Estimated fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 10,221,563 | $ 9,709,407 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) $ in Thousands, € in Millions, ¥ in Billions, £ in Billions | 12 Months Ended | ||||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2023 JPY (¥) | Sep. 30, 2022 GBP (£) | Jul. 31, 2022 USD ($) | |
Derivative [Line Items] | |||||||
Cash collateral for derivative | $ 0 | $ 250,000 | |||||
Senior Notes | Senior Notes Due 2025 | |||||||
Derivative [Line Items] | |||||||
Aggregate principal amount (in EUR) | € | € 700 | ||||||
Deal-contingent forward contracts | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | £ | £ 6.4 | ||||||
Cash collateral for derivative | 250,000 | $ 250,000 | |||||
Net gains (losses) relating to forward exchange contracts | $ (389,992) | $ (1,015,426) | $ 0 | ||||
Cross-currency swap contracts, due November 2034 | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | 69 | ¥ 2.1 | |||||
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, 2023 | Jun. 30, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 21,578 | $ 42,771 |
Derivative liabilities | $ 1,022,655 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Cross-currency swap contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 21,578 | $ 21,444 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Investments and other assets | Investments and other assets |
Forward exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0 | $ 20,976 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Non-trade and notes receivable | Non-trade and notes receivable |
Derivative liabilities | $ 0 | $ 5,651 |
Deal-contingent forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 1,015,426 |
Costless collar contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0 | $ 351 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Non-trade and notes receivable | Non-trade and notes receivable |
Derivative liabilities | $ 0 | $ 1,578 |
Financial Instruments - Gain (l
Financial Instruments - Gain (losses) on derivative financial instruments recorded in consolidated statement if income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Deal-contingent forward contracts | |||
Derivative [Line Items] | |||
Net gains (losses) relating to forward exchange contracts | $ (389,992) | $ (1,015,426) | $ 0 |
Forward exchange contracts | |||
Derivative [Line Items] | |||
Net gains (losses) relating to forward exchange contracts | (7,259) | 55,860 | 15,879 |
Costless collar contracts | |||
Derivative [Line Items] | |||
Net gains (losses) relating to forward exchange contracts | 11,528 | (4,364) | (2,092) |
Cross-currency swap contracts | |||
Derivative [Line Items] | |||
Net gains (losses) relating to forward exchange contracts | $ (18,739) | $ 0 | $ 0 |
Financial Instruments - Gain _2
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, 2023 | Jun. 30, 2022 | |
Cross-currency swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ 451 | $ 69,992 |
Foreign currency denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ (22,534) | $ 72,670 |
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, 2023 | Jun. 30, 2022 |
Assets: | ||
Derivatives | $ 21,578 | $ 42,771 |
Equity securities | 13,038 | |
Liabilities: | ||
Derivative Liability | 1,022,655 | |
Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity securities | 13,038 | |
Liabilities: | ||
Derivative Liability | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivatives | 21,578 | 42,771 |
Equity securities | 0 | |
Liabilities: | ||
Derivative Liability | 1,022,655 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivatives | $ 0 | 0 |
Equity securities | 0 | |
Liabilities: | ||
Derivative Liability | $ 0 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | |
Reserve for environmental matters | $ 149.4 |
Environmental Loss Contingency Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | environmental matters |
Environmental Issue | |
Loss Contingencies [Line Items] | |
Largest range for any one site | $ 27.8 |
Environmental Issue | Minimum | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | 149.4 |
Environmental Issue | Maximum | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | $ 251.5 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 12 Months Ended |
Jun. 30, 2023 country segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 2 |
Diversified Industrial | International | |
Segment Reporting Information [Line Items] | |
Number of countries operating in | country | 41 |
Business Segment Information _2
Business Segment Information - Business Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 19,065,194 | $ 15,861,608 | [1] | $ 14,347,640 | [1] |
Segment Operating Income | 3,404,177 | 2,975,035 | 2,459,941 | ||
Corporate administration | 3,354,103 | 2,504,061 | [1] | 2,383,407 | [1] |
Interest expense | 573,894 | 255,252 | [1] | 250,036 | [1] |
Other expense (income) | 150,619 | 1,105,557 | (37,052) | ||
Income before income taxes | 2,679,664 | 1,614,226 | [1] | 2,246,957 | [1] |
Assets | 29,964,472 | 25,943,943 | 20,341,200 | ||
Property Additions | 380,747 | 230,044 | 209,957 | ||
Depreciation | 317,416 | 257,314 | 269,943 | ||
Amortization | 500,713 | 314,450 | 325,447 | ||
Long-Lived Assets | 2,865,030 | 2,122,758 | 2,266,476 | ||
Investment in a joint venture | 297,000 | 314,000 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | Aircraft Wheel and Brake Business | |||||
Segment Reporting Information [Line Items] | |||||
Aggregate carrying amount, net assets | 66,000 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Aircraft Wheel and Brake Business | |||||
Segment Reporting Information [Line Items] | |||||
Aggregate carrying amount, net assets | 66,000 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 19,065,194 | 15,861,608 | 14,347,640 | ||
Segment Operating Income | 3,633,854 | 3,194,734 | 2,638,368 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Corporate administration | 229,677 | 219,699 | 178,427 | ||
Assets | 730,537 | 7,084,825 | 745,117 | ||
Property Additions | 6,835 | 4,917 | 3,019 | ||
Depreciation | 8,498 | 8,532 | 7,901 | ||
Diversified Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 14,705,693 | 13,342,046 | 11,960,159 | ||
Diversified Industrial | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 15,572,849 | 15,838,512 | 16,518,688 | ||
Property Additions | 292,456 | 197,675 | 186,233 | ||
Depreciation | 204,632 | 219,206 | 229,891 | ||
Amortization | 267,779 | 263,430 | 274,368 | ||
Aerospace Systems | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 4,359,501 | 2,519,562 | 2,387,481 | ||
Investment in a joint venture | 216,000 | 211,000 | 219,000 | ||
Aerospace Systems | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 4,359,501 | 2,519,562 | 2,387,481 | ||
Segment Operating Income | 562,444 | 501,431 | 402,895 | ||
Assets | 13,661,086 | 3,020,606 | 3,077,395 | ||
Property Additions | 81,456 | 27,452 | 20,705 | ||
Depreciation | 104,286 | 29,576 | 32,151 | ||
Amortization | 232,934 | 51,020 | 51,079 | ||
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 12,689,719 | 10,216,292 | 9,046,162 | ||
Long-Lived Assets | 1,828,457 | 1,398,966 | 1,448,109 | ||
North America | Diversified Industrial | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 8,916,194 | 7,703,150 | 6,676,449 | ||
Segment Operating Income | 1,853,079 | 1,515,259 | 1,247,419 | ||
International | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 6,375,475 | 5,645,316 | 5,301,478 | ||
Long-Lived Assets | 1,036,573 | 723,792 | 818,367 | ||
International | Diversified Industrial | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 5,789,499 | 5,638,896 | 5,283,710 | ||
Segment Operating Income | $ 1,218,331 | $ 1,178,044 | $ 988,054 | ||
[1]Years ended June 30,2022 and 2021 amounts have been reclassified to reflect the income statement reclassification, as described in Note 1 to the Consolidated Financial Statements. |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 9,942 | $ 12,078 | $ 11,644 |
Additions Charged to Costs and Expenses | 7,379 | 1,719 | 4,673 |
Other (Deductions) | (3,855) | (4,239) | |
Other Additions | 15,129 | ||
Balance at End of Period | 32,450 | 9,942 | 12,078 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 901,875 | 865,764 | 771,430 |
Additions Charged to Costs and Expenses | 163,178 | 36,111 | 94,781 |
Other (Deductions) | (447) | ||
Other Additions | 13,301 | 0 | |
Balance at End of Period | $ 1,078,354 | $ 901,875 | $ 865,764 |