Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jul. 31, 2016 | Dec. 31, 2015 | |
Document Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PH | ||
Entity Registrant Name | PARKER HANNIFIN CORP | ||
Entity Central Index Key | 76,334 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 133,901,044 | ||
Entity Public Float | $ 18,161,893,495 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 11,360,753 | $ 12,711,744 | $ 13,215,971 |
Cost of sales | 8,823,384 | 9,655,245 | 10,188,227 |
Gross profit | 2,537,369 | 3,056,499 | 3,027,744 |
Selling, general and administrative expenses | 1,359,360 | 1,544,746 | 1,633,992 |
Goodwill and Intangible Asset Impairment | 0 | 0 | 188,870 |
Interest expense | 136,517 | 118,406 | 82,566 |
Other (income), net | (62,199) | (43,374) | (25,513) |
(Gain) loss on disposal of assets | (11,037) | 4,481 | (408,891) |
Income before income taxes | 1,114,728 | 1,432,240 | 1,556,720 |
Income taxes (Note 4) | 307,512 | 419,687 | 515,302 |
Net Income | 807,216 | 1,012,553 | 1,041,418 |
Less: Noncontrolling interest in subsidiaries' earnings | 376 | 413 | 370 |
Net Income Attributable to Common Shareholders | $ 806,840 | $ 1,012,140 | $ 1,041,048 |
Earnings per Share Attributable to Common Shareholders (Note 5) | |||
Basic earnings per share | $ 5.96 | $ 7.08 | $ 6.98 |
Diluted earnings per share | $ 5.89 | $ 6.97 | $ 6.87 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 807,216 | $ 1,012,553 | $ 1,041,418 |
Less: Noncontrolling interest in subsidiaries' earnings | 376 | 413 | 370 |
Net Income Attributable to Common Shareholders | 806,840 | 1,012,140 | 1,041,048 |
Other Comprehensive Income (Loss), Foreign Currency Translation and Other Adjustment, net of tax of $908, $(31,024) and $4,591 in 2016, 2015 and 2014 | (203,299) | (765,659) | 193,130 |
Retirement benefits plan activity (net of tax of $152,203, $88,547 and $(54,473) in 2016, 2015 and 2014 | (286,044) | (149,710) | 91,182 |
Other Comprehensive Income (Loss) | (489,343) | (915,369) | 284,312 |
Less: Other comprehensive (loss) for noncontrolling interests | (196) | (249) | (23) |
Other comprehensive income (loss) attributable to common shareholders | (489,147) | (915,120) | 284,335 |
Total Comprehensive Income Attributable to Common Shareholders | $ 317,693 | $ 97,020 | $ 1,325,383 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income Consolidated Statement of Comprehensive Income (Paranthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Translation and Other Adjustment, tax | $ (2,342) | $ (31,024) | $ 4,591 |
Other Comprehensive Income (Loss), Retirement benefits plan activity, Tax | $ 152,203 | $ 88,547 | $ (54,473) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 1,221,653 | $ 1,180,584 |
Marketable securities and other investments | 882,342 | 733,490 |
Trade accounts receivable, net | 1,593,920 | 1,620,194 |
Non-trade and notes receivable | 232,183 | 364,534 |
Inventories | 1,173,329 | 1,300,459 |
Prepaid expenses | 104,360 | 241,684 |
Total Current Assets | 5,207,787 | 5,440,945 |
Plant and equipment (Note 1) | 4,737,141 | 4,862,611 |
Less: Accumulated depreciation | 3,169,041 | 3,198,589 |
Plant and Equipment, Net | 1,568,100 | 1,664,022 |
Deferred income taxes (Notes 1 and 4) | 605,155 | 406,267 |
Investments and other assets (Note 1) | 850,088 | 811,930 |
Intangible assets, net (Notes 1 and 7) | 922,571 | 1,013,439 |
Goodwill (Notes 1 and 7) | 2,903,037 | 2,942,679 |
Total Assets | 12,056,738 | 12,279,282 |
Current Liabilities | ||
Notes payable and long-term debt payable within one year (Notes 8 and 9) | 361,840 | 223,142 |
Accounts payable, trade | 1,034,589 | 1,092,138 |
Accrued payrolls and other compensation | 382,945 | 409,762 |
Accrued domestic and foreign taxes | 127,597 | 139,285 |
Other accrued liabilities | 458,970 | 484,793 |
Total Current Liabilities | 2,365,941 | 2,349,120 |
Long-term debt (Note 9) | 2,675,000 | 2,723,960 |
Pensions and other postretirement benefits (Note 10) | 2,076,143 | 1,699,197 |
Deferred income taxes (Notes 1 and 4) | 54,395 | 63,222 |
Other liabilities | 306,581 | 336,214 |
Total Liabilities | 7,478,060 | 7,171,713 |
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 2016 and 2015 | 90,523 | 90,523 |
Additional capital | 628,451 | 622,729 |
Retained earnings | 10,302,866 | 9,841,885 |
Accumulated other comprehensive (loss) | (2,227,765) | (1,738,618) |
Treasury shares at cost: 47,033,896 in 2016 and 42,487,389 in 2015 | (4,218,820) | (3,712,232) |
Total Shareholders' Equity | 4,575,255 | 5,104,287 |
Noncontrolling interests | 3,423 | 3,282 |
Total Equity | 4,578,678 | 5,107,569 |
Total Liabilities and Equity | $ 12,056,738 | $ 12,279,282 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Serial preferred stock, authorized | 3,000,000 | 3,000,000 |
Serial preferred stock, par value | $ 0.50 | $ 0.50 |
Serial preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, authorized | 600,000,000 | 600,000,000 |
Common stock, issued | 181,046,128 | 181,046,128 |
Treasury shares, shares | 47,033,896 | 42,487,389 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | |||
Net income | $ 807,216 | $ 1,012,553 | $ 1,041,418 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 190,308 | 202,776 | 214,965 |
Amortization | 116,535 | 114,715 | 121,737 |
Goodwill and Intangible Asset Impairment | 0 | 0 | 188,870 |
Stock incentive plan compensation | 71,293 | 96,093 | 103,161 |
Deferred income taxes | (65,686) | 18,865 | (74,139) |
Foreign currency transaction loss (gain) | 22,750 | (77,784) | 5,398 |
Loss on disposal of assets | 414 | 14,953 | 2,997 |
Gain on Sale of Business | (10,666) | (6,420) | 0 |
Net gain on deconsolidation | 0 | 0 | (412,612) |
(Gain) loss on sale of marketable securities | (723) | 3,817 | 0 |
Changes in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | 17,549 | 143,179 | (99,144) |
Inventories | 120,243 | (70,377) | (3,816) |
Prepaid expenses | 136,034 | (116,561) | 58,117 |
Other assets | (5,033) | 20,976 | (79,158) |
Accounts payable, trade | (52,378) | (86,750) | 92,927 |
Accrued payrolls and other compensation | (22,865) | (12,657) | 20,840 |
Accrued domestic and foreign taxes | (17,430) | (66,870) | 86,745 |
Other accrued liabilities | (61,424) | (46,633) | (23,480) |
Pensions and other postretirement benefits | (45,796) | 156,859 | 99,569 |
Other liabilities | (30,498) | 1,207 | 43,498 |
Net cash provided by operating activities | 1,169,843 | 1,301,941 | 1,387,893 |
Cash Flows From Investing Activities | |||
Acquisitions (less cash acquired of $3,814 in 2016, $8,322 in 2015 and $1,780 in 2014 | (67,552) | (18,618) | (17,593) |
Capital expenditures | (149,407) | (215,527) | (216,340) |
Proceeds from disposal of assets | 18,821 | 19,655 | 14,368 |
Proceeds from sale of businesses | 24,325 | 37,265 | 0 |
Net proceeds from deconsolidation | 0 | 0 | 202,498 |
Purchase of marketable securities and other investments | (1,351,464) | (1,747,333) | (624,880) |
Maturities and sales of marketable securities and other investments | 1,300,633 | 1,391,396 | 0 |
Other | (39,995) | (46,001) | (4,454) |
Net cash (used in) investing activities | (264,639) | (579,163) | (646,401) |
Cash Flows From Financing Activities | |||
Proceeds from exercise of stock options | 126 | 3,355 | 8,013 |
Payments for common shares | (557,575) | (1,398,446) | (204,043) |
Tax benefit from stock incentive plan compensation | 11,145 | 23,429 | 33,732 |
(Payments for) proceeds from notes payable, net | 303,624 | (815,171) | (515,387) |
Proceeds from long-term borrowings | 2,287 | 1,483,015 | 748 |
Payments for long-term borrowings | (220,068) | (537) | (2,934) |
Dividends paid | (341,962) | (340,389) | (278,244) |
Net cash (used in) financing activities | (802,423) | (1,044,744) | (958,115) |
Effect of exchange rate changes on cash | (61,712) | (111,005) | 48,766 |
Net increase (decrease) in cash and cash equivalents | 41,069 | (432,971) | (167,857) |
Cash and cash equivalents at beginning of year | 1,180,584 | 1,613,555 | 1,781,412 |
Cash and cash equivalents at end of year | 1,221,653 | 1,180,584 | 1,613,555 |
Cash paid during the year for: | |||
Interest | 133,999 | 105,202 | 77,144 |
Income taxes | $ 250,155 | $ 515,350 | $ 472,369 |
Consolidated Statement of Cash8
Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Cash Flows [Abstract] | |||
Acquisitions, cash acquired | $ 3,814 | $ 8,332 | $ 1,780 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Shares | Noncontrolling Interests |
Beginning Balance at Jun. 30, 2013 | $ 5,741,481 | $ 90,523 | $ 608,752 | $ 8,421,270 | $ (1,107,833) | $ (2,274,286) | $ 3,055 |
Net income | 1,041,418 | 1,041,048 | 370 | ||||
Other Comprehensive Income (Loss) | 284,312 | 284,335 | (23) | ||||
Dividends paid | (278,244) | (278,222) | (22) | ||||
Stock incentive plan activity | 73,841 | (13,254) | (9,907) | 97,002 | |||
Shares purchased at cost | (200,000) | (200,000) | |||||
Ending Balance at Jun. 30, 2014 | 6,662,808 | 90,523 | 595,498 | 9,174,189 | (823,498) | (2,377,284) | 3,380 |
Net income | 1,012,553 | 1,012,140 | 413 | ||||
Other Comprehensive Income (Loss) | (915,369) | (915,120) | (249) | ||||
Dividends paid | (340,389) | (340,132) | (257) | ||||
Stock incentive plan activity | 81,549 | 27,231 | (4,312) | 58,630 | |||
Liquidation activity | (5) | (5) | |||||
Shares purchased at cost | (1,393,578) | (1,393,578) | |||||
Ending Balance at Jun. 30, 2015 | 5,107,569 | 90,523 | 622,729 | 9,841,885 | (1,738,618) | (3,712,232) | 3,282 |
Net income | 807,216 | 806,840 | 376 | ||||
Other Comprehensive Income (Loss) | (489,343) | (489,147) | (196) | ||||
Dividends paid | (341,962) | (341,923) | (39) | ||||
Stock incentive plan activity | 52,702 | 5,722 | (3,936) | 50,916 | |||
Shares purchased at cost | (557,504) | (557,504) | |||||
Ending Balance at Jun. 30, 2016 | $ 4,578,678 | $ 90,523 | $ 628,451 | $ 10,302,866 | $ (2,227,765) | $ (4,218,820) | $ 3,423 |
Business Segment Information Bu
Business Segment Information Business Segment Information (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information (Dollars in thousands) 2016 2015 2014 Net Sales: Diversified Industrial: North America $ 4,955,211 $ 5,715,742 $ 5,693,527 International 4,145,272 4,741,376 5,287,916 Aerospace Systems 2,260,270 2,254,626 2,234,528 $ 11,360,753 $ 12,711,744 $ 13,215,971 Segment Operating Income: Diversified Industrial: North America $ 789,667 $ 955,501 $ 946,493 International 448,457 583,937 572,476 Aerospace Systems 337,531 298,994 271,238 Total segment operating income 1,575,655 1,838,432 1,790,207 Corporate administration 173,203 215,396 181,926 Income before interest expense and other 1,402,452 1,623,036 1,608,281 Interest expense 136,517 118,406 82,566 Other expense (income) 151,207 72,390 (31,005 ) Income before income taxes $ 1,114,728 $ 1,432,240 $ 1,556,720 Assets (a): Diversified Industrial $ 8,728,671 $ 8,734,942 $ 9,470,822 Aerospace Systems (b) 1,430,577 1,375,845 1,359,063 Corporate (c) 1,897,490 2,168,495 2,429,930 $ 12,056,738 $ 12,279,282 $ 13,259,815 Property Additions: Diversified Industrial $ 134,618 $ 190,580 $ 189,832 Aerospace Systems 10,857 18,427 23,261 Corporate 3,932 6,520 3,247 $ 149,407 $ 215,527 $ 216,340 Depreciation: Diversified Industrial $ 163,014 $ 174,102 $ 187,347 Aerospace Systems 18,469 19,509 19,193 Corporate 8,825 9,165 8,425 $ 190,308 $ 202,776 $ 214,965 (Dollars in thousands) 2016 2015 2014 By Geographic Area (d) Net Sales: North America $ 7,144,481 $ 7,891,571 $ 7,853,603 International 4,216,272 4,820,173 5,362,368 $ 11,360,753 $ 12,711,744 $ 13,215,971 Long-Lived Assets: North America $ 817,872 $ 856,947 $ 861,300 International 750,228 807,075 962,994 $ 1,568,100 $ 1,664,022 $ 1,824,294 The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote except that the business segment results are prepared on a basis that is consistent with the manner in which the Company’s management disaggregates financial information for internal review and decision-making. (a) Amounts in 2015 and 2014 have been adjusted to reflect the retrospective adoption of Accounting Standards Update (ASU) 2015-17 in the fourth quarter of 2016. (b) 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 ( 2016 - $241,728 ; 2015 - $251,365 ; 2014 - $263,246 ). (c) Corporate assets are principally cash and cash equivalents, marketable securities and other investments, domestic deferred income taxes, deferred compensation plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment. (d) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location. |
Significant Accounting Policies
Significant Accounting Policies Significant Accounting Policies (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies The significant accounting policies followed in the preparation of the accompanying consolidated financial statements are summarized below. Nature of Operations - The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. The Company evaluates performance based on segment operating income before corporate and administrative expenses, interest expense and income taxes. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Diversified Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Diversified Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Diversified Industrial International operations provide Parker products and services to 46 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and also performs a vital role in naval vessels and land-based weapons systems. This Segment serves original equipment and maintenance, repair and overhaul customers worldwide. Aerospace Systems Segment products are marketed by field sales employees and are sold directly to manufacturers and end-users. There are no individual customers to whom sales are more than four percent of the Company's consolidated sales. Due to the diverse group of customers throughout the world, the Company does not consider itself exposed to any concentration of credit risks. The Company manufactures and markets its products throughout the world. Although certain risks and uncertainties exist, the diversity and breadth of the Company's products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect the Company's operating results. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Basis of Consolidation - The consolidated financial statements include the accounts of all majority-owned domestic and foreign subsidiaries. All intercompany transactions and profits have been eliminated in the consolidated financial statements. The Company does not have off-balance sheet arrangements. Within the Business Segment Information, intersegment and interarea sales have been eliminated. Revenue Recognition - Revenue is recognized when persuasive evidence of an arrangement exists, product has shipped and the risks and rewards of ownership have transferred or services have been rendered, the price to the customer is fixed and determinable and collectibility is reasonably assured, which is generally at the time the product is shipped. Shipping and handling costs billed to customers are included in net sales and the related costs in cost of sales. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. Long-term Contracts - The Company enters into long-term contracts primarily for the production of aerospace products. For financial statement purposes, revenues are primarily recognized using the percentage-of-completion method. The extent of progress toward completion is primarily measured using the units-of-delivery method. Unbilled costs on these contracts are included in inventory. Progress payments are netted against the inventory balances. The Company estimates costs to complete long-term contracts for purposes of evaluating and establishing contract reserves. Adjustments to cost estimates are made on a consistent basis and a contract reserve is established when the estimated costs to complete a contract exceed the expected contract revenues. Cash - Cash equivalents consist of short-term highly liquid investments, with a three-month or less maturity, carried at cost plus accrued interest, which are readily convertible into cash. Marketable Securities and Other Investments - Consist of short-term highly liquid investments, with stated maturities of greater than three months from the date of purchase, carried at cost plus accrued interest, and investments classified as available-for-sale, which are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive (loss). Gains and losses on available-for-sale investments are calculated based on the first-in, first-out method. The Company has the ability to liquidate the available-for-sale investments after giving appropriate notice to the issuer. Trade Accounts Receivable, Net - Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible due to the insolvency of the debtor. Allowance for doubtful accounts was $8,010 and $9,284 at June 30, 2016 and June 30, 2015 , respectively. Non-Trade and Notes Receivable - The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Notes receivable $ 102,400 $ 90,470 Reverse repurchase agreements — 113,558 Accounts receivable, other 129,783 160,506 Total $ 232,183 $ 364,534 Reverse repurchase agreements are collateralized lending arrangements and have a maturity longer than three months from the date of purchase. The Company does not record an asset or liability for the collateral associated with the reverse repurchase agreements. Plant, Equipment and Depreciation - Plant and equipment are recorded at cost and are depreciated principally using the straight-line method for financial reporting purposes. Depreciation rates are based on estimated useful lives of the assets, generally 40 years for buildings, 15 years for land improvements and building equipment, seven to 10 years for machinery and equipment, and three to eight years for vehicles and office equipment. Improvements, which extend the useful life of property, are capitalized, and maintenance and repairs are expensed. The Company reviews plant and equipment for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included in current income. The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Land and land improvements $ 291,122 $ 294,537 Buildings and building equipment 1,437,601 1,457,650 Machinery and equipment 2,933,818 3,017,011 Construction in progress 74,600 93,413 Total $ 4,737,141 $ 4,862,611 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 $355,876 and $315,989 at June 30, 2016 and June 30, 2015 , respectively. A significant portion of the underlying net assets of the joint ventures are related to goodwill. The Company's share of earnings from these investments were immaterial to the Company's results of operations. Intangible Assets - Intangible assets primarily include patents, trademarks and customer lists and are recorded at cost and amortized on a straight-line method. Patents are amortized over the shorter of their remaining useful or legal life. Trademarks are amortized over the estimated time period over which an economic benefit is expected to be received. Customer lists are amortized over a period based on anticipated customer attrition rates. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Goodwill - The Company conducts a formal impairment test of goodwill on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Income Taxes - Income taxes are provided based upon income for financial reporting purposes. Tax credits and similar tax incentives are applied to reduce the provision for income taxes in the year in which the credits arise. The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, are recognized in income tax expense. Deferred income taxes arise from temporary differences in the recognition of income and expense for tax purposes. During the fourth quarter of 2016, the Company adopted ASU 2015-17, "Income Taxes - Balance Sheet Classification of Deferred Taxes." ASU 2015-17 requires companies to present deferred tax assets and deferred tax liabilities as noncurrent in the statement of financial position. The following captions within the Consolidated Balance Sheet at June 30, 2015 have been revised: As Previously Reported Revised Current Assets Deferred income taxes $ 142,147 $ — Noncurrent Assets Deferred income taxes — 406,267 Investments and other assets 1,091,805 811,930 Current Liabilities Accrued domestic and foreign taxes 140,295 139,285 Noncurrent Liabilities Deferred income taxes 77,967 63,222 Foreign Currency Translation - Assets and liabilities of foreign subsidiaries are translated at current exchange rates, and income and expenses are translated using weighted-average exchange rates. The effects of these translation adjustments, as well as gains and losses from certain intercompany transactions, are reported in the accumulated other comprehensive (loss) component of shareholders' equity. Such adjustments will affect net income only upon sale or liquidation of the underlying foreign investments, which is not contemplated at this time. Exchange (gains) losses from transactions in a currency other than the local currency of the entity involved are included within cost of goods sold caption in the Consolidated Statement of Income and were $22,750 , $(77,784) and $5,398 , in 2016, 2015 and 2014, respectively. Subsequent Events - The Company has evaluated subsequent events that have occurred through the date of filing of this Annual Report on Form 10-K for the year ended June 30, 2016 . No subsequent events occurred that required adjustment to or disclosure in these financial statements. Recent Accounting Pronouncements - In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years, and interim periods with those years, beginning after December 15, 2019. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-13 will have on its financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." Under ASU 2016-09, all excess tax benefits and deficiencies arising from employee share-based payment awards, and dividends on those awards, will be recognized in the income statement during the period in which they occur. ASU 2016-09 allows companies to make an accounting policy election to estimate forfeitures, as required today, or record them when they occur and allows companies to withhold an amount up to the maximum statutory tax rate without causing the award to be classified as a liability. Within the statement of cash flows, ASU 2016-09 requires excess tax benefits to be classified as an operating activity and cash payments to tax authorities in connection with shares withheld to be classified as a financing activity. ASU 2016-09 is effective for annual periods, and interim periods within the annual periods, beginning after December 15, 2016. The Company intends to adopt ASU 2016-09 during the first quarter of 2017. The impact of ASU 2016-09 will generally be dependent on the amount of employee exercises of share-based awards. In March 2016, the FASB issued ASU 2016-07, "Simplifying the Transition to the Equity Method of Accounting." ASU 2016-07 eliminates the requirement to apply the equity method of accounting, upon obtaining significant influence, as if it was applied to the investment from inception. Instead, at the date significant influence is obtained, companies should add the cost of the additional interest acquired to the current basis of the investment and apply the equity method prospectively. If an available-for-sale security becomes eligible for the equity method of accounting, any unrealized gains or losses within accumulated other comprehensive income should be recognized within earnings on the date the investment becomes qualified for use of the equity method. During fourth quarter of 2016, the Company adopted ASU 2016-07. The adoption of ASU 2016-07 did not affect the Company's financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet by recognizing a liability to make lease payments and an asset representing their right to use the asset during the lease term. Lessee recognition, measurement, and presentation of expenses and cash flows will not change significantly from existing guidance. Lessor accounting is also largely unchanged from existing guidance. ASU 2016-02 requires qualitative and quantitative disclosures that provide information about the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-02 will have on its financial statements. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Liabilities." ASU 2016-01 requires equity investments (excluding equity method investments and investments that are consolidated) to be measured at fair value with changes in fair value recognized in net income. Equity investments that do not have a readily determinable fair value may be measured at cost, adjusted for impairment and observable price changes. The ASU also simplifies the impairment assessment of equity investments, eliminates the disclosure of the assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at cost on the balance sheet and requires the exit price to be used when measuring fair value of financial instruments for disclosure purposes. Under ASU 2016-01, changes in fair value (resulting from instrument-specific credit risk) will be presented separately in other comprehensive income for liabilities measured using the fair value option and financial assets and liabilities will be presented separately by measurement category and type either on the balance sheet or in the financial statement disclosures. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has not yet determined the effect that ASU 2016-01 will have on its financial statements. In September 2015, the FASB issued ASU 2015-16, "Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 requires the recognition of adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined. The effects of the adjustments to provisional amounts on depreciation, amortization or other income effects should be recognized in current-period earnings as if the accounting had been completed at the acquisition date. Disclosure of the portion of the adjustment recorded in current-period earnings that would have been reported in prior reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date is also required. During the first quarter of 2016, the Company adopted ASU 2015-16. The adoption of ASU 2015-16 did not materially affect the Company's financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory - Simplifying the Measurement of Inventory." ASU 2015-11 requires companies to measure inventory (valued using first-in, first-out or average cost methods) at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The measurement of inventory valued using the last-in, first-out method is unchanged. During the fourth quarter of 2016, the Company adopted ASU 2015-11. The adoption of ASU 2015-11 did not materially affect the Company's financial statements. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in the ASU. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect that ASU 2015-03 will have a material impact on its financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company has not yet determined the effect that ASU 2014-09 and ASU 2016-10 will have on its financial statements. |
Acquisitions and Deconsolidatio
Acquisitions and Deconsolidation of Subsidiary Acquisitions (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Deconsolidation of Subsidiary | Acquisitions and Deconsolidation of Subsidiary Acquisitions - During 2016 , the Company completed two acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were approximately $48 million . Total purchase price for the two acquisitions was approximately $71 million in cash and $2 million in assumed debt. During 2015 , the Company completed four acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were approximately $27 million . Total purchase price for the four acquisitions was approximately $27 million in cash. During 2014 , the Company completed three acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were approximately $14 million . Total purchase price for the three acquisitions was approximately $19 million in cash. The results of operations for all acquisitions are included as of the respective dates of acquisition. The initial purchase price allocation and subsequent purchase price adjustments for acquisitions in 2016 , 2015 and 2014 are presented below. Some of the 2016 acquisitions are still subject to purchase price adjustments. 2016 2015 2014 Assets: Accounts receivable $ 6,793 $ 7,656 $ 954 Inventories 12,041 3,099 2,184 Prepaid expenses 1,350 91 57 Deferred income taxes — 5 189 Plant and equipment 5,647 1,123 11,211 Intangible and other assets 26,849 7,794 5,646 Goodwill 31,134 10,430 3,195 83,814 30,198 23,436 Liabilities: Notes payable 720 — — Accounts payable, trade 2,536 2,689 915 Accrued payrolls and other compensation 1,310 243 263 Accrued domestic and foreign taxes 604 777 1 Other accrued liabilities 1,804 5,267 3,864 Long-term debt 1,743 — — Deferred income taxes 7,545 2,604 — Other liabilities — — 800 16,262 11,580 5,843 Net assets acquired $ 67,552 $ 18,618 $ 17,593 Deconsolidation of Subsidiary - During 2014, the Company and GE Aviation, a non-related party, finalized a joint venture in which the Company sold a 50 percent equity interest in one of its wholly-owned subsidiaries. The sale of the 50 percent equity interest in the wholly-owned subsidiary resulted in a loss of control of the subsidiary, and therefore it was deconsolidated from the Company's financial statements during 2014. The Company recognized a pre-tax gain of $413 million on the deconsolidation, measured as the fair value of the consideration received for the 50 percent equity interest in the former subsidiary and the fair value of the retained investment less the carrying amount of the former subsidiary's net assets. Approximately $186 million of the pre-tax gain is attributable to the remeasurement of the retained investment in the former subsidiary to its current fair value. The gain is reflected in the (gain)loss on disposal of assets caption in the Consolidated Statement of Income and the other expense (income) caption in the Business Segment Information. |
Charges Related to Business Rea
Charges Related to Business Realignment (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Charges Related to Business Realignment | Charges Related to Business Realignment To structure its businesses in light of current and anticipated customer demand, the Company incurred business realignment charges in 2016 , 2015 and 2014 . Business realignment charges presented in the Business Segment Information are as follows: 2016 2015 2014 Diversified Industrial $ 91,404 $ 30,882 $ 101,524 Aerospace Systems 3,629 967 925 Corporate administration 2,215 458 — Other expense (income) 116 2,399 1,331 Work force reductions related to the business realignment charges in the Business Segment Information are as follows: 2016 2015 2014 Diversified Industrial 3,515 668 1,581 Aerospace Systems 81 21 44 Corporate administration 53 18 — The charges primarily consist of severance costs related to actions taken under the Company's Simplification initiative aimed at reducing organizational and process complexity, as well as plant closures, with the majority of charges incurred in Europe and North America. In connection with a plant closure during 2016, the Company recognized an expense associated with enhanced retirement benefits (refer to Note 10 for further discussion). The Company believes the realignment actions taken will positively impact future results of operations, but will not have a material effect on liquidity and sources and uses of capital. The business realignment charges are presented in the Consolidated Statement of Income as follows: 2016 2015 2014 Cost of sales $ 76,197 $ 19,419 $ 63,575 Selling, general and administrative expenses 21,051 12,888 38,874 (Gain) loss on disposal of assets 116 2,399 1,331 As of June 30, 2016 , approximately $55 million in severance payments have been made relating to charges incurred during 2016 , the remainder of which are expected to be paid by March 31, 2017 . Severance payments relating to prior-year actions are being made as required. Remaining severance payments related to current-year and prior-year actions of approximately $40 million are primarily reflected within the other accrued liabilities caption in the Consolidated Balance Sheet. Additional charges may be recognized in future periods related to the realignment actions described above, the timing and amount of which are not known at this time. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes was derived from the following sources: 2016 2015 2014 United States $ 672,907 $ 779,782 $ 1,115,010 Foreign 441,821 652,458 441,710 $ 1,114,728 $ 1,432,240 $ 1,556,720 Income taxes include the following: 2016 2015 2014 Federal Current $ 235,557 $ 185,761 $ 377,404 Deferred (45,797 ) 28,108 (45,643 ) Foreign Current 113,146 189,826 168,177 Deferred (7,006 ) (11,208 ) (28,016 ) State and local Current 24,495 25,235 43,860 Deferred (12,883 ) 1,965 (480 ) $ 307,512 $ 419,687 $ 515,302 A reconciliation of the Company's effective income tax rate to the statutory Federal rate follows: 2016 2015 2014 Statutory Federal income tax rate 35.0 % 35.0 % 35.0 % State and local income taxes 0.6 1.1 1.8 Goodwill and intangible asset impairment — — 4.5 Tax related to international activities (5.2 ) (4.5 ) (5.6 ) Cash surrender value of life insurance 0.2 (0.1 ) (0.9 ) Federal manufacturing deduction (1.0 ) (1.6 ) (1.0 ) Research tax credit (1.9 ) (0.8 ) (0.3 ) Other (0.1 ) 0.2 (0.4 ) Effective income tax rate 27.6 % 29.3 % 33.1 % 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: 2016 2015 Retirement benefits $ 815,545 $ 614,127 Other liabilities and reserves 126,524 127,838 Long-term contracts 64,371 49,929 Stock-based incentive compensation 67,138 66,015 Loss carryforwards 326,707 316,994 Unrealized currency exchange gains and losses (19,491 ) (17,218 ) Inventory 14,693 16,659 Foreign tax credit carryforward 24,051 29,965 Depreciation and amortization (536,070 ) (531,258 ) Valuation allowance (332,708 ) (330,006 ) Net deferred tax asset $ 550,760 $ 343,045 Change in net deferred tax asset: Provision for deferred tax $ 65,686 $ (18,865 ) Items of other comprehensive (loss) 149,861 57,523 Acquisitions and other (7,832 ) (1,225 ) Total change in net deferred tax $ 207,715 $ 37,433 As of June 30, 2016 , the Company has recorded deferred tax assets of $326,707 resulting from $1,145,475 in loss carryforwards. A valuation allowance of $313,554 related to the loss carryforwards has been established due to the uncertainty of their realization. Of this valuation allowance, $288,515 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 to 20 years . In addition, a valuation allowance of $19,154 related to future deductible items has been established due to the uncertainty of their realization. These future deductible items are recorded in the other liabilities and reserves line in the table above. Provision has not been made for additional U.S. or foreign taxes on undistributed earnings of certain international operations as those earnings will continue to be reinvested. It is not practicable to estimate the additional taxes, including applicable foreign withholding taxes, that might be payable on the eventual remittance of such earnings. Accumulated undistributed earnings reinvested in international operations amounted to approximately $3,200,000 at June 30, 2016 . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance July 1 $ 145,688 $ 164,813 $ 107,440 Additions for tax positions related to current year 7,025 6,090 7,752 Additions for tax positions of prior years 2,582 14,989 55,136 Reductions for tax positions of prior years (627 ) (6,945 ) (1,359 ) Reductions for settlements (10,284 ) — (1,856 ) Reductions for expiration of statute of limitations (4,142 ) (6,251 ) (5,005 ) Effect of foreign currency translation (335 ) (27,008 ) 2,705 Balance June 30 $ 139,907 $ 145,688 $ 164,813 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $80,722 , $83,471 and $71,898 as of June 30, 2016 , 2015 and 2014 , respectively. If recognized, a significant portion of the gross unrecognized tax benefits as of June 30, 2016 would be offset against an asset currently recorded in the Consolidated Balance Sheet. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, was $12,357 , $9,514 and $8,198 as of June 30, 2016 , 2015 and 2014 , respectively. It is reasonably possible that within the next 12 months, the amount of gross unrecognized tax benefits could be reduced by up to approximately $100,000 as a result of the revaluation of existing uncertain tax positions arising from developments in the examination process or the closure of tax statutes. Any increase in the amount of unrecognized tax benefits within the next 12 months is expected to be insignificant. The Company and its subsidiaries file income tax returns in the United States and in various foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is open to assessment of its federal income tax returns by the U.S. Internal Revenue Service for years after 2011, and its state and local tax returns for years after 2006. The Company is open to assessment for significant foreign jurisdictions for years after 2007. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed using the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted-average number of common shares and common share equivalents outstanding during the year. Common share equivalents represent the dilutive effect of outstanding stock-based awards. The computation of net income per share was as follows: 2016 2015 2014 Numerator: Net income attributable to common shareholders $ 806,840 $ 1,012,140 $ 1,041,048 Denominator: Basic - weighted-average common shares 135,353,321 142,925,327 149,099,448 Increase in weighted-average common shares from dilutive effect of stock-based awards 1,558,369 2,186,823 2,344,655 Diluted - weighted-average common shares, assuming exercise of stock-based awards 136,911,690 145,112,150 151,444,103 Basic earnings per share $ 5.96 $ 7.08 $ 6.98 Diluted earnings per share $ 5.89 $ 6.97 $ 6.87 For 2016 , 2015 and 2014 , 3.1 million , 1.1 million and 1.2 million common shares, respectively, subject to stock-based awards were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. |
Inventories (Notes)
Inventories (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The majority of domestic inventories are valued by the last-in, first-out (LIFO) cost method and the balance of the Company's inventories are valued by the first-in, first-out (FIFO) cost method. Inventories valued by the FIFO cost method are stated at the lower of cost or net realizable value. Inventories valued by the LIFO cost method are stated at lower of cost or market. Inventories valued on the LIFO cost method were approximately 30 percent of total inventories in 2016 and 32 percent of total inventories in 2015 . The current cost of these inventories exceeds their valuation determined on the LIFO basis by $200,247 in 2016 and $206,233 in 2015 . Progress payments of $51,104 in 2016 and $34,820 in 2015 are netted against inventories. The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Finished products $ 458,657 $ 526,708 Work in process 639,907 688,727 Raw materials 74,765 85,024 Total $ 1,173,329 $ 1,300,459 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2014 $ 3,072,724 $ 98,701 $ 3,171,425 Acquisitions 10,430 — 10,430 Divestitures (4,757 ) — (4,757 ) Foreign currency translation and other (234,352 ) (67 ) (234,419 ) Balance June 30, 2015 $ 2,844,045 $ 98,634 $ 2,942,679 Acquisitions 31,134 — 31,134 Foreign currency translation and other (70,776 ) — (70,776 ) Balance June 30, 2016 $ 2,804,403 $ 98,634 $ 2,903,037 Acquisitions represent the original goodwill allocation, purchase price adjustments and final adjustments to the purchase price allocation for the acquisitions during the measurement period subsequent to the applicable acquisition dates. The impact of the purchase price adjustments and final adjustments to the purchase price allocation on the Company's results of operations and financial position were immaterial. In 2014, the Company made a decision to restructure and change the strategic direction of its Worldwide Energy Products Division (EPD). The Company calculated the fair value of EPD using assumptions reflecting the Company's updated strategic direction for this reporting unit, the results of which indicated that the carrying value of EPD exceeded its fair value. As a result, the Company estimated the implied fair value of EPD's goodwill, which resulted in a non-cash impairment charge of $140,334 . The impairment charge is reflected in the goodwill and intangible asset impairment caption in the Consolidated Statement of Income and in the other expense (income) caption in the Business Segment Information. The fair value of EPD was calculated using both a discounted cash flow analysis and estimated fair market values of comparable businesses with each valuation method having equal weight. Fair value calculated using a discounted cash flow analysis is classified within level 3 of the fair value hierarchy and requires several assumptions including a risk-adjusted interest rate and future sales and operating margin levels. The Company's annual impairment tests performed in 2016 , 2015 and 2014 resulted in no impairment loss being recognized. Intangible assets are amortized on a straight-line method over their legal or estimated useful life. The gross carrying value and accumulated amortization for each major category of intangible asset at June 30 are as follows: 2016 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 150,914 $ 95,961 $ 149,066 $ 88,540 Trademarks 340,805 179,156 355,108 172,187 Customer lists and other 1,362,521 656,552 1,369,380 599,388 Total $ 1,854,240 $ 931,669 $ 1,873,554 $ 860,115 During 2016 , the Company acquired intangible assets, either individually or as part of a group of assets, with an initial purchase price allocation and weighted-average life as follows: Purchase Price Allocation Weighted-Average Life Patents $ 565 12 years Trademarks 761 5 years Customer lists and other 25,523 11 years Total $ 26,849 11 years Total intangible amortization expense in 2016 , 2015 and 2014 was $108,019 , $109,887 and $118,782 , respectively. Estimated intangible amortization expense for the five years ending June 30, 2017 through 2021 is $95,873 , $91,902 , $85,091 , $78,297 and $70,252 , respectively. Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. In 2014, in connection with the goodwill impairment review of EPD, the Company determined that certain intangible assets of EPD, primarily trademarks and customer lists, were impaired resulting in the recognition of a non-cash impairment charge of $43,664 . The impairment charge is reflected in the goodwill and intangible asset impairment caption in the Consolidated Statement of Income and in the other expense (income) caption in the Business Segment Information. The fair value of EPD's intangible assets were determined using an income approach for the individual intangible assets. Fair value calculated using an income approach is classified within level 3 of the fair value hierarchy and requires several assumptions including future sales and operating margins expected to be generated from the use of the individual intangible asset. |
Financing Arrangements (Notes)
Financing Arrangements (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Financing Arrangements [Abstract] | |
Financing Arrangements | Financing Arrangements The Company has a line of credit totaling $2,000,000 through a multi-currency revolving credit agreement with a group of banks, $1,696,300 of which was available at June 30, 2016 . The credit agreement expires in October 2017; however, the Company has the right to request a one -year extension of the expiration date on an annual basis, which request may result in changes to the current terms and conditions of the credit agreement. Advances from the credit agreement can be used for general corporate purposes, including acquisitions, and for the refinancing of existing indebtedness. The credit agreement requires the payment of an annual facility fee, the amount of which may increase in the event the Company's credit ratings are lowered. Although a lowering of the Company's credit ratings would likely increase the cost of future debt, it would not limit the Company's ability to use the credit agreement nor would it accelerate the repayment of any outstanding borrowings. The Company is currently authorized to sell up to $1,850,000 of short-term commercial paper notes. At June 30, 2016 , $303,700 of commercial paper notes were outstanding and no commercial paper notes were outstanding at June 30, 2015 . In addition to commercial paper notes, notes payable includes short-term lines of credit and borrowings from foreign banks. At June 30, 2016 , the Company had $64,310 in lines of credit from various foreign banks, none of which was outstanding at June 30, 2016 . Most of these agreements are renewed annually. The weighted-average interest rate on notes payable during 2016 was 0.3 percent and was 0.2 percent during 2015 . The Company's foreign locations in the ordinary course of business may enter into financial guarantees through financial institutions which enable customers to be reimbursed in the event of nonperformance by the Company. The Company's credit agreements and indentures governing certain debt agreements contain various covenants, the violation of which would limit or preclude the use of the applicable agreements for future borrowings, or might accelerate the maturity of the related outstanding borrowings covered by the applicable agreements. At the Company's present rating level, the most restrictive covenant contained in the credit agreements and the indentures provides that the ratio of secured debt to net tangible assets be less than 10 percent . As of June 30, 2016 , the Company does not have any secured debt outstanding. The Company is in compliance with all covenants. |
Debt (Notes)
Debt (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt June 30, 2016 2015 Domestic: Fixed rate medium-term notes 3.30% to 6.55%, due 2018-2045 $ 2,675,000 $ 2,675,000 Foreign: Bank loans, including revolving credit 1% to 11.75%, due 2016 — 322 Euro bonds 4.125%, due 2016 — 222,820 Japanese Yen credit facility JPY Libor plus 55 bps, due 2017 58,140 48,960 Total long-term debt 2,733,140 2,947,102 Less: Long-term debt payable within one year 58,140 223,142 Long-term debt, net $ 2,675,000 $ 2,723,960 Principal amounts of long-term debt payable in the five years ending June 30, 2017 through 2021 are $58,140 , $450,000 , $100,000 , $0 and $0 , respectively. Lease Commitments - Future minimum rental commitments as of June 30, 2016 , under non-cancelable operating leases, which expire at various dates, are as follows: 2017 - $68,718 ; 2018 - $44,506 ; 2019 - $27,412 ; 2020 - $15,009 ; 2021 - $9,338 and after 2021 - $29,946 . Rental expense in 2016 , 2015 and 2014 was $119,004 , $125,657 and $131,948 , respectively. |
Retirement Benefits (Notes)
Retirement Benefits (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits Pensions - The Company has noncontributory defined benefit pension plans covering eligible employees, including certain employees in foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat-dollar amounts and years of service. The Company also has arrangements for certain key employees which provide for supplemental retirement benefits. In general, the Company's policy is to fund these plans based on legal requirements, tax considerations, local practices and investment opportunities. The Company also sponsors defined contribution plans and participates in government-sponsored programs in certain foreign countries. A summary of the Company's defined benefit pension plans follows: 2016 2015 2014 Benefit cost Service cost $ 94,650 $ 97,960 $ 99,929 Interest cost 181,469 176,556 190,999 Special termination cost 7,088 21,174 — Settlement cost 5,102 — — Expected return on plan assets (221,629 ) (218,938 ) (226,884 ) Amortization of prior service cost 7,470 9,437 14,644 Amortization of unrecognized actuarial loss 170,407 152,664 159,584 Amortization of initial net obligation 17 17 19 Net periodic benefit cost $ 244,574 $ 238,870 $ 238,291 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 4,867,703 $ 4,749,447 Service cost 94,650 97,960 Interest cost 181,469 176,556 Special termination cost 7,088 21,174 Actuarial loss 487,523 237,896 Benefits paid (230,551 ) (261,473 ) Plan amendments 2,992 3,033 Foreign currency translation and other (95,219 ) (156,890 ) Benefit obligation at end of year $ 5,315,655 $ 4,867,703 Change in plan assets Fair value of plan assets at beginning of year $ 3,238,307 $ 3,499,274 Actual gain on plan assets 97,165 51,514 Employer contributions 279,140 62,852 Benefits paid (230,551 ) (261,473 ) Foreign currency translation and other (77,014 ) (113,860 ) Fair value of plan assets at end of year $ 3,307,047 $ 3,238,307 Funded status $ (2,008,608 ) $ (1,629,396 ) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (42,763 ) $ (31,206 ) Pensions and other postretirement benefits (1,965,845 ) (1,598,190 ) Net amount recognized $ (2,008,608 ) $ (1,629,396 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 2,047,103 $ 1,639,010 Prior service cost 27,723 32,126 Transition obligation 103 103 Net amount recognized $ 2,074,929 $ 1,671,239 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. During 2016, the Company provided enhanced retirement benefits in connection with a plant closure, which resulted in an increase in net pension benefit cost of $7,088 . During 2015, the Company initiated a voluntary retirement program under which certain participants in its U.S. qualified defined benefit pension plan were offered enhanced retirement benefits, which resulted in an increase in net pension benefit cost of $21,174 . During 2015, the Company offered lump-sum distributions to certain participants in its U.S. qualified defined benefit plan. Included in benefits paid in 2015 is $81,496 , related to participants who elected to receive lump-sum distributions. The estimated amount of net actuarial loss, prior service cost and transition obligation that will be amortized from accumulated other comprehensive (loss) into net periodic benefit pension cost in 2017 is $200,725 , $6,579 and $19 , respectively. The accumulated benefit obligation for all defined benefit plans was $4,884,985 and $4,451,047 at June 30, 2016 and 2015 , respectively. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $5,211,768 , $4,796,860 and $3,206,287 , respectively, at June 30, 2016 , and $4,761,438 , $4,352,369 and $3,129,803 , respectively, at June 30, 2015 . The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were $5,310,979 and $3,302,370 , respectively, at June 30, 2016 , and $4,821,675 and $3,188,293 , respectively, at June 30, 2015 . The Company expects to make cash contributions of approximately $306 million to its defined benefit pension plans in 2017 , the majority of which relate to its U.S. qualified defined benefit plan. Estimated future benefit payments in the five years ending June 30, 2017 through 2021 are $239,898 , $220,006 , $224,569 , $248,085 and $272,250 , respectively and $1,381,405 in the aggregate for the five years ending June 30, 2021 through June 30, 2025. The assumptions used to measure net periodic benefit cost for the Company's significant defined benefit plans are: 2016 2015 2014 U.S. defined benefit plans Discount rate 4.19 % 4.05 % 4.52 % Average increase in compensation 5.14 % 5.12 % 5.13 % Expected return on plan assets 7.5 % 7.5 % 8.0 % Non-U.S. defined benefit plans Discount rate 0.7 to 6.0% 0.9 to 4.2% 1.5 to 4.59% Average increase in compensation 2.0 to 5.5% 2.0 to 5.0% 2.0 to 6.0% Expected return on plan assets 1.0 to 5.75% 1.0 to 6.25% 1.0 to 6.25% The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2016 2015 U.S. defined benefit plans Discount rate 3.33 % 4.19 % Average increase in compensation 5.02 % 5.14 % Non-U.S. defined benefit plans Discount rate 0.23 to 7.75% 0.7 to 6.0% Average increase in compensation 2.0 to 5.5% 2.0 to 5.5% The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same estimated time period that benefit payments will be required to be made. The expected return on plan assets assumption is based on the weighted-average expected return of the various asset classes in the plans' portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. Beginning in 2017, the Company will change the method used to estimate the service and interest cost components of net periodic pension cost. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligation to the relevant projected cash outflows. Previously, these cost components were determined using a single-weighted average discount rate. This change does not affect the measurement of the Company benefit obligation. The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows: 2016 2015 Equity securities 39 % 41 % Debt securities 51 % 47 % Other investments 10 % 12 % 100 % 100 % The weighted-average target asset allocation as of June 30, 2016 is 41 percent equity securities, 47 percent debt securities and 12 percent other investments. The investment strategy for the Company's worldwide defined benefit pension plan assets focuses on achieving prudent actuarial funding ratios while maintaining acceptable levels of risk in order to provide adequate liquidity to meet immediate and future benefit requirements. This strategy requires investment portfolios that are broadly diversified across various asset classes and external investment managers. Assets held in the U.S. defined benefit plans account for approximately 73 percent of the Company's total defined benefit plan assets. The Company's overall investment strategy with respect to the Company's U.S. defined benefit plans is to opportunistically migrate from its traditional mix between growth seeking assets (primarily consisting of global public equities in developed and emerging countries and hedge fund of fund strategies) and income generating assets (primarily consisting of high quality bonds, both domestic and global, emerging market bonds, high yield bonds and Treasury Inflation Protected Securities) to an allocation more heavily weighted toward income generating assets. Over time, long duration fixed income assets are being added to the portfolio. These securities are highly correlated with the Company's pension liabilities and will serve to hedge a portion of the Company's interest rate risk. The fair values of pension plan assets at June 30, 2016 and at June 30, 2015 , by asset class, are as follows: June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 46,052 $ 45,474 $ 578 $ — Equity securities U.S. based companies 292,138 292,138 — — Non-U.S. based companies 191,647 191,647 — — Fixed income securities Corporate bonds 141,549 73,685 67,864 — Government issued securities 203,000 141,935 61,065 — Mutual funds Equity funds 149,807 149,807 — — Fixed income funds 151,649 151,649 — — Mutual funds measured at net asset value 246,075 Common/Collective trusts Equity funds 65,404 65,404 — — Fixed income funds 43,981 43,981 — — Common/Collective trusts measured at net asset value 1,487,170 Limited Partnerships measured at net asset value 280,248 Miscellaneous 8,327 — 8,327 — Total at June 30, 2016 $ 3,307,047 $ 1,155,720 $ 137,834 $ — June 30, 2015 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 75,015 $ 75,015 $ — $ — Equity securities U.S. based companies 299,321 299,321 — — Non-U.S. based companies 203,199 203,199 — — Fixed income securities Corporate bonds 165,226 77,224 88,002 — Government issued securities 143,697 90,785 52,912 — Mutual funds Equity funds 149,383 149,383 — — Fixed income funds 135,949 135,949 — — Mutual funds measured at net asset value 5,564 Common/Collective trusts Equity funds 77,429 77,429 — — Fixed income funds 46,184 46,184 — — Common/Collective trusts measured at net asset value 1,635,135 Limited Partnerships measured at net asset value 290,904 Miscellaneous 11,301 — 11,301 — Total at June 30, 2015 $ 3,238,307 $ 1,154,489 $ 152,215 $ — Cash and cash equivalents, which include repurchase agreements and other short-term investments, are valued at cost, which approximates fair value. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded. U.S. based companies include Company stock with a fair value of $143,652 as of June 30, 2016 and $154,660 as of June 30, 2015 . Fixed income securities are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded. Mutual funds are valued using the closing market price reported on the active market on which the fund is traded or at net asset value per share and primarily consist of equity and fixed income funds. The equity funds primarily provide exposure to U.S. and international equities, real estate and commodities. The fixed income funds primarily provide exposure to high-yield securities and emerging market fixed income instruments. Mutual funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. Common/Collective trusts primarily consist of equity and fixed income funds and are valued using the closing market price reported on the active market on which the fund is traded or at net asset value per share. Common/Collective trust investments can be redeemed daily and without restriction. Redemption of the entire investment balance generally requires a 30 -day notice period. The equity funds provide exposure to large, mid and small cap U.S. equities, international large and small cap equities and emerging market equities. The fixed income funds provide exposure to U.S., international and emerging market debt securities. Common/Collective trusts measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. Limited Partnerships primarily consist of hedge funds valued using a net asset value per share and provide exposure to a variety of hedging strategies including long/short equity, relative value, event driven and global macro. Limited Partnership investments can be redeemed daily and without restriction. Redemption of the entire investment balance generally requires a 30 -day notice period. Limited Partnerships measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. Miscellaneous primarily includes real estate funds, insurance contracts held in the asset portfolio of the Company's non-U.S. defined benefit pension plans, and net payables for securities purchased but not settled in the asset portfolio of the Company's U.S. defined benefit pension plans. Insurance contracts are valued at the present value of future cash flows promised under the terms of the insurance contracts. The primary investment objective of equity securities and equity funds, within both the mutual fund and common/collective trust asset class, is to obtain capital appreciation in an amount that at least equals various market-based benchmarks. The primary investment objective of fixed income securities and fixed income funds, within both the mutual fund and common/collective trust asset class, is to provide for a constant stream of income while preserving capital. The primary investment objective of limited partnerships is to achieve capital appreciation through an investment program focused on specialized investment strategies. The primary investment objective of insurance contracts, included in the miscellaneous asset class, is to provide a stable rate of return over a specified period of time. Employee Savings Plan - The Company sponsors an employee stock ownership plan (ESOP) as part of its existing savings and investment 401(k) plan. The ESOP is available to eligible domestic employees. Company matching contributions, up to a maximum of four percent of an employee's annual compensation, are recorded as compensation expense. Prior to August 1, 2014, Company stock was used to match employee contributions. Effective August 1, 2014, participants may direct company matching contributions to any investment option within the savings and investment 401(k) plan. 2016 2015 2014 Shares held by ESOP 7,728,332 8,407,858 8,944,697 Company matching contributions $ 58,922 $ 63,914 $ 63,441 In addition to shares within the ESOP, as of June 30, 2016 , employees have elected to invest in 2,317,924 shares of common stock within a company stock fund of the savings and investment 401(k) plan. The Company has a retirement income account (RIA) within the employee savings plan. The Company makes a cash contribution to the participant's RIA each year, the amount of which is based on the participant's age and years of service. Participants do not contribute to the RIA. The Company recognized $25,780 , $29,570 and $25,247 in expense related to the RIA in 2016 , 2015 and 2014 , respectively. Other Postretirement Benefits - The Company provides postretirement medical and life insurance benefits to certain retirees and eligible dependents. Most plans are contributory, with retiree contributions adjusted annually. The plans are unfunded and pay stated percentages of covered medically necessary expenses incurred by retirees, after subtracting payments by Medicare or other providers and after stated deductibles have been met. For most plans, the Company has established cost maximums to more effectively control future medical costs. The Company has reserved the right to change these benefit plans. The Company recognized $8,754 , $4,340 and $4,478 in expense related to other postretirement benefits in 2016 , 2015 and 2014 , respectively. During 2016, the Company provided enhanced retirement benefits in connection with a plant closure, which resulted in an increase in expense related to other postretirement benefits of $4,521 . 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 75,953 $ 76,207 Service cost 591 632 Interest cost 2,834 2,723 Special termination cost 4,521 — Actuarial loss 10,217 655 Benefits paid (4,331 ) (4,264 ) Benefit obligation at end of year $ 89,785 $ 75,953 Funded status $ (89,785 ) $ (75,953 ) 2016 2015 Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (6,216 ) $ (5,629 ) Pensions and other postretirement benefits (83,569 ) (70,324 ) Net amount recognized $ (89,785 ) $ (75,953 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 22,914 $ 13,626 Prior service credit (556 ) (676 ) Net amount recognized $ 22,358 $ 12,950 The presentation of the amounts recognized on the Consolidated Balance Sheet and in accumulated other comprehensive (loss) is on a debit (credit) basis and is before the effect of income taxes. The amount of net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive (loss) into net periodic postretirement cost in 2017 is $2,101 and $(121) , respectively. The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2016 2015 2014 Discount rate 3.96 % 3.74 % 4.10 % Current medical cost trend rate (Pre-65 participants) 7.61 % 7.75 % 7.75 % Current medical cost trend rate (Post-65 participants) 9.00 % 7.75 % 7.75 % Ultimate medical cost trend rate 4.50 % 5.00 % 5.00 % Medical cost trend rate decreases to ultimate in year 2025 2021 2021 The discount rate assumption used to measure the benefit obligation was 3.15 percent in 2016 and 3.96 percent in 2015 . Estimated future benefit payments for other postretirement benefits in the five years ending June 30, 2017 through 2021 are $6,216 , $6,796 , $6,717 , $6,349 and $6,287 , respectively, and $27,882 in the aggregate for the five years ending June 30, 2021 through June 30, 2025. A one percentage point change in assumed health care cost trend rates would not have a material effect on the benefit cost or benefit obligation. Other - The Company has established nonqualified deferred compensation programs, which permit officers, directors and certain management employees annually to elect to defer a portion of their compensation, on a pre-tax basis, until their retirement. The retirement benefit to be provided is based on the amount of compensation deferred, Company matching contributions and earnings on the deferrals. During 2016 , 2015 and 2014 , the Company recorded (income) expense relating to deferred compensation of $(2,917) , $5,676 and $24,549 , respectively. The Company has invested in corporate-owned life insurance policies to assist in meeting the obligation under these programs. The policies are held in a rabbi trust and are recorded as assets of the Company. |
Equity Equity (Notes)
Equity Equity (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2014 $ 124,392 $ (947,890 ) $ (823,498 ) Other comprehensive (loss) before reclassifications (769,431 ) (253,206 ) (1,022,637 ) Amounts reclassified from accumulated other comprehensive (loss) 4,021 103,496 107,517 Balance June 30, 2015 $ (641,018 ) $ (1,097,600 ) $ (1,738,618 ) Other comprehensive (loss) before reclassifications (202,444 ) (400,053 ) (602,497 ) Amounts reclassified from accumulated other comprehensive (loss) (659 ) 114,009 113,350 Balance June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2016 : Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Retirement benefit plans Amortization of prior service cost and initial net obligation $ (7,366 ) See Note 10 Recognized actuarial loss (171,337 ) See Note 10 Total before tax (178,703 ) Tax benefit 64,694 Income taxes Net of tax $ (114,009 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2015 : 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 $ (9,333 ) See Note 10 Recognized actuarial loss (153,770 ) See Note 10 Total before tax (163,103 ) Tax benefit 59,607 Income taxes Net of tax $ (103,496 ) 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: 2016 2015 2014 Shares repurchased 5,121,051 11,091,759 1,741,143 Average price per share $ 108.87 $ 125.64 $ 114.87 |
Stock Incentive Plans (Notes)
Stock Incentive Plans (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans The Company's 2009 Omnibus Stock Incentive Plan provides for the granting of share-based incentive awards in the form of nonqualified stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and restricted and unrestricted stock to officers and key employees of the Company. The aggregate number of shares authorized for issuance under the 2009 Omnibus Stock Incentive Plan is 14.7 million . At June 30, 2016 , 3.4 million common shares were reserved for issuance in connection with stock incentive plans. The Company satisfies share-based incentive award obligations by issuing shares of common stock out of treasury, which have been repurchased pursuant to the Company's share repurchase program described in Note 11, or through the issuance of previously unissued common stock. Stock Options/SARs - Stock options allow the participant to purchase shares of common stock at a price not less than 100 percent of the fair market value of the stock on the date of grant. 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. Stock options and SARs are exercisable from one to three years after the date of grant and expire no more than 10 years after grant. The fair value of each stock option and SAR award granted in 2016 , 2015 and 2014 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Risk-free interest rate 1.9 % 2.0 % 1.55 % Expected life of award 5.4 yrs 5.4 yrs 5.1 yrs Expected dividend yield of stock 1.9 % 1.8 % 1.9 % Expected volatility of stock 28.7 % 32.3 % 39.1 % Weighted-average fair value $ 26.88 $ 30.50 $ 32.57 The risk-free interest rate was based on U.S. Treasury yields with a term similar to the expected life of the award . The expected life of the award was derived by referring to actual exercise and post-vesting employment termination experience. The expected dividend yield was based on the Company's historical dividend rate and stock price over a period similar to the expected life of the award. The expected volatility of stock was derived by referring to changes in the Company's historical common stock prices over a time-frame similar to the expected life of the award. Stock option and SAR activity during 2016 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, 2015 8,134,206 $ 79.84 Granted 968,445 113.23 Exercised (945,191 ) 67.65 Canceled (101,012 ) 108.32 Outstanding June 30, 2016 8,056,448 $ 84.93 5.3 years $ 199.2 Exercisable June 30, 2016 6,018,552 $ 75.80 4.3 years $ 198.4 A summary of the status and changes of shares subject to stock option and SAR awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2015 2,310,089 $ 30.71 Granted 968,445 26.88 Vested (1,164,552 ) 29.80 Canceled (76,086 ) 29.31 Nonvested June 30, 2016 2,037,896 $ 29.46 At June 30, 2016 , $15,844 of expense with respect to nonvested stock option and SAR awards has yet to be recognized and will be amortized into expense over a weighted-average period of approximately 18 months . The total fair value of shares vested during 2016 , 2015 and 2014 was $34,706 , $34,064 and $42,363 , respectively. Information related to stock option and SAR awards exercised during 2016 , 2015 and 2014 is as follows: 2016 2015 2014 Net cash proceeds $ 126 $ 3,355 $ 8,013 Intrinsic value 40,612 72,140 155,903 Income tax benefit 7,188 17,355 37,993 During 2016 , 2015 and 2014 , the Company recognized stock-based compensation expense of $28,129 , $34,617 and $49,998 , respectively, relating to stock option and 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 tax benefit is credited to additional capital as the Company is currently in a windfall tax benefit position. Shares surrendered upon exercise of stock options and SARs: 2016 - 158,808 ; 2015 - 243,799 ; 2014 - 775,163 . RSUs - RSUs constitute an agreement to deliver shares of common stock to the participant at the end of a vesting period. Generally, the RSUs vest and the underlying stock is issued ratably over a three -year graded vesting period. Unvested RSUs may not be transferred and do not have dividend or voting rights. For each unvested RSU, recipients are entitled to receive a dividend equivalent, payable in cash or common shares, equal to the cash dividend per share paid to common shareholders. The fair value of each RSU award granted in 2016 , 2015 and 2014 was based on the fair market value of the Company's common stock on the date of grant. A summary of the status and changes of shares subject to RSU awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2015 449,288 $ 105.63 Granted 180,487 113.19 Vested (210,777 ) 100.45 Canceled (44,830 ) 108.68 Nonvested June 30, 2016 374,168 $ 111.82 During 2016 , 2015 and 2014 , the Company recognized stock-based compensation expense of $ 21,190 , $ 22,547 and $21,475 respectively, relating to RSU awards. At June 30, 2016 , $14,714 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 17 months . The total fair value of RSU awards vested during 2016 , 2015 and 2014 was $ 21,173 , $ 18,953 and $18,007 , respectively. The Company recognized a tax benefit of $ 870 , $704 and $2,509 relating to the issuance of common stock for RSU awards that vested during 2016 , 2015 and 2014 , respectively. In 2016 , 14,404 RSU awards, with a one-year vesting period, were granted to certain non-employee members of the Board of Directors. In 2016, the Company recognized $824 of expense with respect to these awards. LTIP - The Company's Long Term Incentive Plans (LTIP) provide for the issuance of unrestricted stock to certain officers and key employees based on the attainment of certain goals relating to the Company's revenue growth, earnings per share growth and return on invested capital during the three -year performance period. No dividends or dividend equivalents are paid on unearned shares. Stock issued for LTIP 2016 2015 2014 LTIP three-year plan 2013-14-15 2012-13-14 2011-12-13 Number of shares issued 175,291 185,063 298,813 Average share value on date of issuance $ 113.91 $ 119.06 $ 126.17 Total value $ 19,967 $ 22,034 $ 37,701 Under the Company's 2014-15-16 LTIP, a payout of unrestricted stock will be issued in April 2017. The fair value of each LTIP award granted in 2016 , 2015 and 2014 was based on the fair market value of the Company's common stock on the date of grant. A summary of the status and changes of shares relating to the LTIP and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2015 876,171 $ 109.27 Granted 262,032 88.63 Vested (298,105 ) 93.05 Canceled (26,336 ) 115.60 Nonvested June 30, 2016 813,762 $ 108.37 During 2016 , 2015 and 2014 , the Company recorded stock-based compensation expense of $21,150 , $38,929 and $31,688 , respectively, relating to the LTIP. During 2016 , 2015 and 2014 , the Company recognized a tax benefit (cost) of $3,119 , $5,373 and $(6,983) , respectively, relating to the LTIP. Shares surrendered in connection with the LTIP: 2016 - 78,173 ; 2015 - 42,394 ; 2014 - 140,406 . Restricted Shares - In 2015 and 2014 , 12,716 and 12,353 restricted shares, respectively, were issued to non-employee members of the Board of Directors. Transferability of the restricted shares is restricted for one to three years following issuance, and they vest ratably, on an annual basis, over the term of office of the director. The fair value of the restricted shares was based on the fair market value of the Company's common stock on the date of grant. During 2016 , 2015 and 2014 the Company recognized expense of $468 , $1,401 and $1,304 , respectively, related to the restricted shares. During 2016 , 2015 and 2014 , the Company recognized a tax (cost) benefit of $(32) , $(3) and $212 , respectively, related to the restricted shares. |
Shareholders' Protection Rights
Shareholders' Protection Rights Agreement (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Shareholders Protection Rights Agreement [Abstract] | |
Shareholders' Protection Rights Agreement Disclosure [Text Block] | Shareholders' Protection Rights Agreement On January 25, 2007, the Board of Directors of the Company declared a dividend of one Shareholders' Right for each common share outstanding on February 17, 2007 in relation to the Company's Shareholders Protection Rights Agreement. As of June 30, 2016 , 134,012,232 common shares were reserved for issuance under this Agreement. Under certain conditions involving acquisition of, or an offer for, 15 percent or more of the Company's common shares, all holders of Shareholders' Rights would be entitled to purchase one common share at an exercise price currently set at $160 . In addition, in certain circumstances, all holders of Shareholders' Rights (other than the acquiring entity) would be entitled to purchase a number of common shares equal to twice the exercise price, or at the option of the Board of Directors, to exchange each Shareholders' Right for one common share. The Shareholders' Rights remain in existence until February 17, 2017, unless extended by the Board of Directors or earlier redeemed (at one cent per Shareholders' Right), exercised or exchanged under the terms of the agreement . In the event of an unfriendly business combination attempt, the Shareholders' Rights will cause substantial dilution to the person attempting the business combination. The Shareholders' Rights should not interfere with any merger or other business combination that is in the best interest of the Company and its shareholders since the Shareholders' Rights may be redeemed. |
Research and Development
Research and Development | 12 Months Ended |
Jun. 30, 2016 | |
Research and Development [Abstract] | |
Research and Development | Research and Development Research and development costs amounted to $359,796 in 2016 , $403,085 in 2015 and $410,132 in 2014 . These amounts include both costs incurred by the Company related to independent research and development initiatives as well as costs incurred in connection with research and development contracts. Costs incurred in connection with research and development contracts amounted to $57,999 in 2016 , $57,799 in 2015 and $55,916 in 2014 . These costs are included in the total research and development cost for each of the respective years. |
Financial Instruments (Notes)
Financial Instruments (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, marketable securities and other investments, accounts receivable and long-term investments as well as obligations under accounts payable, trade, notes payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, accounts receivable, accounts payable, trade and notes payable approximate fair value. Marketable securities and other investments include deposits, which are recorded at cost, and investments classified as available-for-sale, which are recorded at fair value with unrealized gains and losses recorded in accumulated other comprehensive (loss). Gross unrealized gains and losses were not material as of June 30, 2016 and 2015 . Substantially all of the available-for-sale investments in an unrealized loss position have been in that position for less than 12 months. There were no facts or circumstances that indicated the unrealized losses were other than temporary. The contractual maturities of available-for-sale investments at June 30, 2016 and 2015 are as follows: June 30, 2016 June 30, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Less than one year $ 29,960 $ 29,990 $ 13,561 $ 13,555 One to three years 144,100 144,625 188,539 188,057 Over three years 34,276 34,275 15,673 15,587 Actual maturities of available-for-sale investments may differ from their contractual maturities as the Company has the ability to liquidate the available-for-sale investments after giving appropriate notice to the issuer. The carrying value of long-term debt and estimated fair value of long-term debt at June 30 are as follows: 2016 2015 Carrying value of long-term debt $ 2,733,140 $ 2,947,102 Estimated fair value of long-term debt 3,133,989 3,107,735 The fair value of long-term debt was determined based on observable market prices in the active market in which the security is traded and is classified within level 2 of the fair value hierarchy. The Company utilizes derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign denominated debt designated as net investment hedges, to manage foreign currency transaction and translation risk. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not hold or issue derivative financial instruments for trading purposes. The Company’s Euro bonds, which matured in November 2015, and Japanese Yen credit facility have each been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Euro bonds and Japanese Yen credit facility into U.S. dollars is recorded in accumulated other comprehensive (loss) and remains there until the underlying net investment is sold or substantially liquidated. Derivative financial instruments are recognized on the Consolidated Balance Sheet as either assets or liabilities and are measured at fair value. The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption 2016 2015 Net investment hedges Cross-currency swap contracts Other assets $ 24,771 $ 17,994 Cash flow hedges Costless collar contracts Non-trade and notes receivable — 5,627 Costless collar contracts Other accrued liabilities 8,368 1,970 The cross-currency swap and costless collar contracts are reflected on a gross basis in the Consolidated Balance Sheet. The Company has not entered into any master netting arrangements. Gains or losses on derivatives that are not hedges are adjusted to fair value through the cost of sales caption in the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through accumulated other comprehensive (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings. The cross-currency swap contracts have been designated as hedging instruments. The costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income during 2016 , 2015 and 2014 were not material. Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: 2016 2015 Cross-currency swap contracts $ 6,869 $ 39,406 Foreign denominated debt (8,180 ) 37,871 There was no ineffectiveness of the cross-currency swap contracts or foreign denominated debt, nor were any portion of these financial instruments excluded from the effectiveness testing, during 2016 , 2015 and 2014 . A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2016 and 2015 are as follows: June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Equity securities $ 1,296 $ 1,296 $ — $ — Government bonds 15,764 15,764 — — Corporate bonds 184,380 184,380 — — Asset-backed and mortgage-backed securities 8,746 — 8,746 — Derivatives 25,303 — 25,303 — Investments measured at net asset value 361,770 Liabilities: Derivatives 13,028 — 13,028 — June 30, 2015 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Government bonds $ 60,512 $ 60,512 $ — $ — Corporate bonds 145,717 145,717 — — Asset-backed and mortgage-backed securities 10,970 — 10,970 — Derivatives 23,598 — 23,598 — Investments measured at net asset value 187,534 Liabilities: Derivatives 1,970 — 1,970 — The fair values of the equity securities, government bonds, corporate bonds and asset-backed and mortgage-backed securities are determined using the closing market price reported in the active market in which the fund is traded or the market price for similar assets that are traded in an active market. Derivatives consist of forward exchange, costless collar and cross-currency swap contracts, the fair values of which are calculated using market observable inputs including both spot and forward prices for the same underlying currencies. The calculation of fair value of the cross-currency swap contracts also utilizes a present value cash flow model that has been adjusted to reflect the credit risk of either the Company or the counterparty. Investments measured at net asset value primarily consist of investments in fixed income mutual funds, which are measured at fair value using the net asset value per share practical expedient. These investments have not been categorized in the fair value hierarchy and are presented in the table above is to permit reconciliation of the fair value hierarchy to the Consolidated Balance Sheet. The Company has the ability to liquidate these investments after giving appropriate notice to the issuer. The primary investment objective for all investments is the preservation of principal and liquidity while earning income. There are no other financial assets or financial liabilities that are marked to market on a recurring basis. Fair values are transferred between levels of the fair value hierarchy when facts and circumstances indicate that a change in the method of estimating the fair value of a financial asset or financial liability is warranted. |
Contingencies (Notes)
Contingencies (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is involved in various litigation matters arising in the normal course of business, including proceedings based on product liability claims, workers' compensation claims and alleged violations of various environmental laws. The Company is self-insured in the United States for health care, workers' compensation, general liability and product liability up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending proceedings cannot be predicted with certainty, management believes that any liabilities that may result from these proceedings will not have a material adverse effect on the Company's liquidity, financial condition or results of operations. Environmental - The Company is currently responsible for environmental remediation at various manufacturing facilities presently or formerly operated by the Company and has been named as a “potentially responsible party,” along with other companies, at off-site waste disposal facilities and regional sites. As of June 30, 2016 , the Company had an accrual of $15,152 for environmental matters, which are probable and reasonably estimable. The accrual is recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company's liability in proportion to other responsible parties. The Company's estimated total liability for environmental matters ranges from a minimum of $15.2 million to a maximum of $80.6 million . The largest range for any one site is approximately $7.6 million . The actual costs to be incurred by the Company will be dependent on final determination of contamination and required remedial action, negotiations with governmental authorities with respect to cleanup levels, changes in regulatory requirements, innovations in investigatory and remedial technologies, effectiveness of remedial technologies employed, the ability of other responsible parties to pay, and any insurance or other third-party recoveries. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | Quarterly Information (Unaudited) 2016 1st 2nd 3rd 4th Total Net sales $ 2,869,348 $ 2,705,590 $ 2,828,665 $ 2,957,150 $ 11,360,753 Gross profit 668,444 564,966 619,264 684,695 2,537,369 Net income attributable to common shareholders 194,978 182,982 187,084 241,796 806,840 Diluted earnings per share 1.41 1.33 1.37 1.77 5.89 2015 1st 2nd 3rd 4th Total Net sales $ 3,269,932 $ 3,134,993 $ 3,162,311 $ 3,144,508 $ 12,711,744 Gross profit 810,067 733,409 789,295 723,728 3,056,499 Net income attributable to common shareholders 280,089 267,252 285,345 179,454 1,012,140 Diluted earnings per share 1.85 1.80 2.02 1.27 6.97 Earnings per share amounts are computed independently for each of the quarters presented, therefore, the sum of the quarterly earnings per share amounts may not equal the total computed for the year. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations - The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. The Company evaluates performance based on segment operating income before corporate and administrative expenses, interest expense and income taxes. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Diversified Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Diversified Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Diversified Industrial International operations provide Parker products and services to 46 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and also performs a vital role in naval vessels and land-based weapons systems. This Segment serves original equipment and maintenance, repair and overhaul customers worldwide. Aerospace Systems Segment products are marketed by field sales employees and are sold directly to manufacturers and end-users. There are no individual customers to whom sales are more than four percent of the Company's consolidated sales. Due to the diverse group of customers throughout the world, the Company does not consider itself exposed to any concentration of credit risks. The Company manufactures and markets its products throughout the world. Although certain risks and uncertainties exist, the diversity and breadth of the Company's products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect the Company's operating results. |
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Basis of Consolidation | Basis of Consolidation - The consolidated financial statements include the accounts of all majority-owned domestic and foreign subsidiaries. All intercompany transactions and profits have been eliminated in the consolidated financial statements. The Company does not have off-balance sheet arrangements. Within the Business Segment Information, intersegment and interarea sales have been eliminated. |
Revenue Recognition | Revenue Recognition - Revenue is recognized when persuasive evidence of an arrangement exists, product has shipped and the risks and rewards of ownership have transferred or services have been rendered, the price to the customer is fixed and determinable and collectibility is reasonably assured, which is generally at the time the product is shipped. Shipping and handling costs billed to customers are included in net sales and the related costs in cost of sales. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. |
Long-term Contracts | Long-term Contracts - The Company enters into long-term contracts primarily for the production of aerospace products. For financial statement purposes, revenues are primarily recognized using the percentage-of-completion method. The extent of progress toward completion is primarily measured using the units-of-delivery method. Unbilled costs on these contracts are included in inventory. Progress payments are netted against the inventory balances. The Company estimates costs to complete long-term contracts for purposes of evaluating and establishing contract reserves. Adjustments to cost estimates are made on a consistent basis and a contract reserve is established when the estimated costs to complete a contract exceed the expected contract revenues. |
Cash | Cash - Cash equivalents consist of short-term highly liquid investments, with a three-month or less maturity, carried at cost plus accrued interest, which are readily convertible into cash. |
Marketable Securities and Other Investments | Marketable Securities and Other Investments - Consist of short-term highly liquid investments, with stated maturities of greater than three months from the date of purchase, carried at cost plus accrued interest, and investments classified as available-for-sale, which are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive (loss). Gains and losses on available-for-sale investments are calculated based on the first-in, first-out method. The Company has the ability to liquidate the available-for-sale investments after giving appropriate notice to the issuer. |
Trade Accounts Receivable, Net | Trade Accounts Receivable, Net - Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible due to the insolvency of the debtor. Allowance for doubtful accounts was $8,010 and $9,284 at June 30, 2016 and June 30, 2015 , respectively. |
Non-Trade and Notes Receivable | Non-Trade and Notes Receivable - The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Notes receivable $ 102,400 $ 90,470 Reverse repurchase agreements — 113,558 Accounts receivable, other 129,783 160,506 Total $ 232,183 $ 364,534 Reverse repurchase agreements are collateralized lending arrangements and have a maturity longer than three months from the date of purchase. The Company does not record an asset or liability for the collateral associated with the reverse repurchase agreements. |
Plant, Equipment and Depreciation | Plant, Equipment and Depreciation - Plant and equipment are recorded at cost and are depreciated principally using the straight-line method for financial reporting purposes. Depreciation rates are based on estimated useful lives of the assets, generally 40 years for buildings, 15 years for land improvements and building equipment, seven to 10 years for machinery and equipment, and three to eight years for vehicles and office equipment. Improvements, which extend the useful life of property, are capitalized, and maintenance and repairs are expensed. The Company reviews plant and equipment for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included in current income. The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Land and land improvements $ 291,122 $ 294,537 Buildings and building equipment 1,437,601 1,457,650 Machinery and equipment 2,933,818 3,017,011 Construction in progress 74,600 93,413 Total $ 4,737,141 $ 4,862,611 |
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 $355,876 and $315,989 at June 30, 2016 and June 30, 2015 , respectively. A significant portion of the underlying net assets of the joint ventures are related to goodwill. The Company's share of earnings from these investments were immaterial to the Company's results of operations. |
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. |
Intangible Assets | |
Income Taxes | Income Taxes - Income taxes are provided based upon income for financial reporting purposes. Tax credits and similar tax incentives are applied to reduce the provision for income taxes in the year in which the credits arise. The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, are recognized in income tax expense. Deferred income taxes arise from temporary differences in the recognition of income and expense for tax purposes. During the fourth quarter of 2016, the Company adopted ASU 2015-17, "Income Taxes - Balance Sheet Classification of Deferred Taxes." ASU 2015-17 requires companies to present deferred tax assets and deferred tax liabilities as noncurrent in the statement of financial position. The following captions within the Consolidated Balance Sheet at June 30, 2015 have been revised: As Previously Reported Revised Current Assets Deferred income taxes $ 142,147 $ — Noncurrent Assets Deferred income taxes — 406,267 Investments and other assets 1,091,805 811,930 Current Liabilities Accrued domestic and foreign taxes 140,295 139,285 Noncurrent Liabilities Deferred income taxes 77,967 63,222 |
Foreign Currency Translation | Foreign Currency Translation - Assets and liabilities of foreign subsidiaries are translated at current exchange rates, and income and expenses are translated using weighted-average exchange rates. The effects of these translation adjustments, as well as gains and losses from certain intercompany transactions, are reported in the accumulated other comprehensive (loss) component of shareholders' equity. Such adjustments will affect net income only upon sale or liquidation of the underlying foreign investments, which is not contemplated at this time. Exchange (gains) losses from transactions in a currency other than the local currency of the entity involved are included within cost of goods sold caption in the Consolidated Statement of Income and were $22,750 , $(77,784) and $5,398 , in 2016, 2015 and 2014, respectively. |
Subsequent Events | Subsequent Events - The Company has evaluated subsequent events that have occurred through the date of filing of this Annual Report on Form 10-K for the year ended June 30, 2016 . No subsequent events occurred that required adjustment to or disclosure in these financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years, and interim periods with those years, beginning after December 15, 2019. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-13 will have on its financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." Under ASU 2016-09, all excess tax benefits and deficiencies arising from employee share-based payment awards, and dividends on those awards, will be recognized in the income statement during the period in which they occur. ASU 2016-09 allows companies to make an accounting policy election to estimate forfeitures, as required today, or record them when they occur and allows companies to withhold an amount up to the maximum statutory tax rate without causing the award to be classified as a liability. Within the statement of cash flows, ASU 2016-09 requires excess tax benefits to be classified as an operating activity and cash payments to tax authorities in connection with shares withheld to be classified as a financing activity. ASU 2016-09 is effective for annual periods, and interim periods within the annual periods, beginning after December 15, 2016. The Company intends to adopt ASU 2016-09 during the first quarter of 2017. The impact of ASU 2016-09 will generally be dependent on the amount of employee exercises of share-based awards. In March 2016, the FASB issued ASU 2016-07, "Simplifying the Transition to the Equity Method of Accounting." ASU 2016-07 eliminates the requirement to apply the equity method of accounting, upon obtaining significant influence, as if it was applied to the investment from inception. Instead, at the date significant influence is obtained, companies should add the cost of the additional interest acquired to the current basis of the investment and apply the equity method prospectively. If an available-for-sale security becomes eligible for the equity method of accounting, any unrealized gains or losses within accumulated other comprehensive income should be recognized within earnings on the date the investment becomes qualified for use of the equity method. During fourth quarter of 2016, the Company adopted ASU 2016-07. The adoption of ASU 2016-07 did not affect the Company's financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet by recognizing a liability to make lease payments and an asset representing their right to use the asset during the lease term. Lessee recognition, measurement, and presentation of expenses and cash flows will not change significantly from existing guidance. Lessor accounting is also largely unchanged from existing guidance. ASU 2016-02 requires qualitative and quantitative disclosures that provide information about the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-02 will have on its financial statements. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Liabilities." ASU 2016-01 requires equity investments (excluding equity method investments and investments that are consolidated) to be measured at fair value with changes in fair value recognized in net income. Equity investments that do not have a readily determinable fair value may be measured at cost, adjusted for impairment and observable price changes. The ASU also simplifies the impairment assessment of equity investments, eliminates the disclosure of the assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at cost on the balance sheet and requires the exit price to be used when measuring fair value of financial instruments for disclosure purposes. Under ASU 2016-01, changes in fair value (resulting from instrument-specific credit risk) will be presented separately in other comprehensive income for liabilities measured using the fair value option and financial assets and liabilities will be presented separately by measurement category and type either on the balance sheet or in the financial statement disclosures. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has not yet determined the effect that ASU 2016-01 will have on its financial statements. In September 2015, the FASB issued ASU 2015-16, "Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 requires the recognition of adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined. The effects of the adjustments to provisional amounts on depreciation, amortization or other income effects should be recognized in current-period earnings as if the accounting had been completed at the acquisition date. Disclosure of the portion of the adjustment recorded in current-period earnings that would have been reported in prior reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date is also required. During the first quarter of 2016, the Company adopted ASU 2015-16. The adoption of ASU 2015-16 did not materially affect the Company's financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory - Simplifying the Measurement of Inventory." ASU 2015-11 requires companies to measure inventory (valued using first-in, first-out or average cost methods) at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The measurement of inventory valued using the last-in, first-out method is unchanged. During the fourth quarter of 2016, the Company adopted ASU 2015-11. The adoption of ASU 2015-11 did not materially affect the Company's financial statements. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in the ASU. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect that ASU 2015-03 will have a material impact on its financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company has not yet determined the effect that ASU 2014-09 and ASU 2016-10 will have on its financial statements. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | (Dollars in thousands) 2016 2015 2014 Net Sales: Diversified Industrial: North America $ 4,955,211 $ 5,715,742 $ 5,693,527 International 4,145,272 4,741,376 5,287,916 Aerospace Systems 2,260,270 2,254,626 2,234,528 $ 11,360,753 $ 12,711,744 $ 13,215,971 Segment Operating Income: Diversified Industrial: North America $ 789,667 $ 955,501 $ 946,493 International 448,457 583,937 572,476 Aerospace Systems 337,531 298,994 271,238 Total segment operating income 1,575,655 1,838,432 1,790,207 Corporate administration 173,203 215,396 181,926 Income before interest expense and other 1,402,452 1,623,036 1,608,281 Interest expense 136,517 118,406 82,566 Other expense (income) 151,207 72,390 (31,005 ) Income before income taxes $ 1,114,728 $ 1,432,240 $ 1,556,720 Assets (a): Diversified Industrial $ 8,728,671 $ 8,734,942 $ 9,470,822 Aerospace Systems (b) 1,430,577 1,375,845 1,359,063 Corporate (c) 1,897,490 2,168,495 2,429,930 $ 12,056,738 $ 12,279,282 $ 13,259,815 Property Additions: Diversified Industrial $ 134,618 $ 190,580 $ 189,832 Aerospace Systems 10,857 18,427 23,261 Corporate 3,932 6,520 3,247 $ 149,407 $ 215,527 $ 216,340 Depreciation: Diversified Industrial $ 163,014 $ 174,102 $ 187,347 Aerospace Systems 18,469 19,509 19,193 Corporate 8,825 9,165 8,425 $ 190,308 $ 202,776 $ 214,965 (Dollars in thousands) 2016 2015 2014 By Geographic Area (d) Net Sales: North America $ 7,144,481 $ 7,891,571 $ 7,853,603 International 4,216,272 4,820,173 5,362,368 $ 11,360,753 $ 12,711,744 $ 13,215,971 Long-Lived Assets: North America $ 817,872 $ 856,947 $ 861,300 International 750,228 807,075 962,994 $ 1,568,100 $ 1,664,022 $ 1,824,294 |
Significant Accounting Polici30
Significant Accounting Policies Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Non-trade and notes receivable | Non-Trade and Notes Receivable - The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Notes receivable $ 102,400 $ 90,470 Reverse repurchase agreements — 113,558 Accounts receivable, other 129,783 160,506 Total $ 232,183 $ 364,534 |
Plant and equipment | The plant and equipment caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Land and land improvements $ 291,122 $ 294,537 Buildings and building equipment 1,437,601 1,457,650 Machinery and equipment 2,933,818 3,017,011 Construction in progress 74,600 93,413 Total $ 4,737,141 $ 4,862,611 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As Previously Reported Revised Current Assets Deferred income taxes $ 142,147 $ — Noncurrent Assets Deferred income taxes — 406,267 Investments and other assets 1,091,805 811,930 Current Liabilities Accrued domestic and foreign taxes 140,295 139,285 Noncurrent Liabilities Deferred income taxes 77,967 63,222 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | 2016 2015 2014 Assets: Accounts receivable $ 6,793 $ 7,656 $ 954 Inventories 12,041 3,099 2,184 Prepaid expenses 1,350 91 57 Deferred income taxes — 5 189 Plant and equipment 5,647 1,123 11,211 Intangible and other assets 26,849 7,794 5,646 Goodwill 31,134 10,430 3,195 83,814 30,198 23,436 Liabilities: Notes payable 720 — — Accounts payable, trade 2,536 2,689 915 Accrued payrolls and other compensation 1,310 243 263 Accrued domestic and foreign taxes 604 777 1 Other accrued liabilities 1,804 5,267 3,864 Long-term debt 1,743 — — Deferred income taxes 7,545 2,604 — Other liabilities — — 800 16,262 11,580 5,843 Net assets acquired $ 67,552 $ 18,618 $ 17,593 |
Charges Related to Business R32
Charges Related to Business Realignment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Business realignment charges presented in the Business Segment Information are as follows: 2016 2015 2014 Diversified Industrial $ 91,404 $ 30,882 $ 101,524 Aerospace Systems 3,629 967 925 Corporate administration 2,215 458 — Other expense (income) 116 2,399 1,331 Work force reductions related to the business realignment charges in the Business Segment Information are as follows: 2016 2015 2014 Diversified Industrial 3,515 668 1,581 Aerospace Systems 81 21 44 Corporate administration 53 18 — The business realignment charges are presented in the Consolidated Statement of Income as follows: 2016 2015 2014 Cost of sales $ 76,197 $ 19,419 $ 63,575 Selling, general and administrative expenses 21,051 12,888 38,874 (Gain) loss on disposal of assets 116 2,399 1,331 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes was derived from the following sources: 2016 2015 2014 United States $ 672,907 $ 779,782 $ 1,115,010 Foreign 441,821 652,458 441,710 $ 1,114,728 $ 1,432,240 $ 1,556,720 |
Schedule of Components of Income Tax Expense (Benefit) | Income taxes include the following: 2016 2015 2014 Federal Current $ 235,557 $ 185,761 $ 377,404 Deferred (45,797 ) 28,108 (45,643 ) Foreign Current 113,146 189,826 168,177 Deferred (7,006 ) (11,208 ) (28,016 ) State and local Current 24,495 25,235 43,860 Deferred (12,883 ) 1,965 (480 ) $ 307,512 $ 419,687 $ 515,302 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company's effective income tax rate to the statutory Federal rate follows: 2016 2015 2014 Statutory Federal income tax rate 35.0 % 35.0 % 35.0 % State and local income taxes 0.6 1.1 1.8 Goodwill and intangible asset impairment — — 4.5 Tax related to international activities (5.2 ) (4.5 ) (5.6 ) Cash surrender value of life insurance 0.2 (0.1 ) (0.9 ) Federal manufacturing deduction (1.0 ) (1.6 ) (1.0 ) Research tax credit (1.9 ) (0.8 ) (0.3 ) Other (0.1 ) 0.2 (0.4 ) Effective income tax rate 27.6 % 29.3 % 33.1 % |
Schedule of Deferred Tax Assets and Liabilities | The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows: 2016 2015 Retirement benefits $ 815,545 $ 614,127 Other liabilities and reserves 126,524 127,838 Long-term contracts 64,371 49,929 Stock-based incentive compensation 67,138 66,015 Loss carryforwards 326,707 316,994 Unrealized currency exchange gains and losses (19,491 ) (17,218 ) Inventory 14,693 16,659 Foreign tax credit carryforward 24,051 29,965 Depreciation and amortization (536,070 ) (531,258 ) Valuation allowance (332,708 ) (330,006 ) Net deferred tax asset $ 550,760 $ 343,045 Change in net deferred tax asset: Provision for deferred tax $ 65,686 $ (18,865 ) Items of other comprehensive (loss) 149,861 57,523 Acquisitions and other (7,832 ) (1,225 ) Total change in net deferred tax $ 207,715 $ 37,433 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance July 1 $ 145,688 $ 164,813 $ 107,440 Additions for tax positions related to current year 7,025 6,090 7,752 Additions for tax positions of prior years 2,582 14,989 55,136 Reductions for tax positions of prior years (627 ) (6,945 ) (1,359 ) Reductions for settlements (10,284 ) — (1,856 ) Reductions for expiration of statute of limitations (4,142 ) (6,251 ) (5,005 ) Effect of foreign currency translation (335 ) (27,008 ) 2,705 Balance June 30 $ 139,907 $ 145,688 $ 164,813 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The computation of net income per share was as follows: 2016 2015 2014 Numerator: Net income attributable to common shareholders $ 806,840 $ 1,012,140 $ 1,041,048 Denominator: Basic - weighted-average common shares 135,353,321 142,925,327 149,099,448 Increase in weighted-average common shares from dilutive effect of stock-based awards 1,558,369 2,186,823 2,344,655 Diluted - weighted-average common shares, assuming exercise of stock-based awards 136,911,690 145,112,150 151,444,103 Basic earnings per share $ 5.96 $ 7.08 $ 6.98 Diluted earnings per share $ 5.89 $ 6.97 $ 6.87 |
Inventories Inventories (Tables
Inventories Inventories (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The inventories caption in the Consolidated Balance Sheet is comprised of the following components: June 30, 2016 2015 Finished products $ 458,657 $ 526,708 Work in process 639,907 688,727 Raw materials 74,765 85,024 Total $ 1,173,329 $ 1,300,459 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance June 30, 2014 $ 3,072,724 $ 98,701 $ 3,171,425 Acquisitions 10,430 — 10,430 Divestitures (4,757 ) — (4,757 ) Foreign currency translation and other (234,352 ) (67 ) (234,419 ) Balance June 30, 2015 $ 2,844,045 $ 98,634 $ 2,942,679 Acquisitions 31,134 — 31,134 Foreign currency translation and other (70,776 ) — (70,776 ) Balance June 30, 2016 $ 2,804,403 $ 98,634 $ 2,903,037 |
Schedule of Finite-Lived Intangible Assets by Major Class | The gross carrying value and accumulated amortization for each major category of intangible asset at June 30 are as follows: 2016 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 150,914 $ 95,961 $ 149,066 $ 88,540 Trademarks 340,805 179,156 355,108 172,187 Customer lists and other 1,362,521 656,552 1,369,380 599,388 Total $ 1,854,240 $ 931,669 $ 1,873,554 $ 860,115 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | During 2016 , the Company acquired intangible assets, either individually or as part of a group of assets, with an initial purchase price allocation and weighted-average life as follows: Purchase Price Allocation Weighted-Average Life Patents $ 565 12 years Trademarks 761 5 years Customer lists and other 25,523 11 years Total $ 26,849 11 years |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | June 30, 2016 2015 Domestic: Fixed rate medium-term notes 3.30% to 6.55%, due 2018-2045 $ 2,675,000 $ 2,675,000 Foreign: Bank loans, including revolving credit 1% to 11.75%, due 2016 — 322 Euro bonds 4.125%, due 2016 — 222,820 Japanese Yen credit facility JPY Libor plus 55 bps, due 2017 58,140 48,960 Total long-term debt 2,733,140 2,947,102 Less: Long-term debt payable within one year 58,140 223,142 Long-term debt, net $ 2,675,000 $ 2,723,960 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Employee Stock Ownership Plan (ESOP) Disclosures | 2016 2015 2014 Shares held by ESOP 7,728,332 8,407,858 8,944,697 Company matching contributions $ 58,922 $ 63,914 $ 63,441 |
Pension Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | A summary of the Company's defined benefit pension plans follows: 2016 2015 2014 Benefit cost Service cost $ 94,650 $ 97,960 $ 99,929 Interest cost 181,469 176,556 190,999 Special termination cost 7,088 21,174 — Settlement cost 5,102 — — Expected return on plan assets (221,629 ) (218,938 ) (226,884 ) Amortization of prior service cost 7,470 9,437 14,644 Amortization of unrecognized actuarial loss 170,407 152,664 159,584 Amortization of initial net obligation 17 17 19 Net periodic benefit cost $ 244,574 $ 238,870 $ 238,291 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 4,867,703 $ 4,749,447 Service cost 94,650 97,960 Interest cost 181,469 176,556 Special termination cost 7,088 21,174 Actuarial loss 487,523 237,896 Benefits paid (230,551 ) (261,473 ) Plan amendments 2,992 3,033 Foreign currency translation and other (95,219 ) (156,890 ) Benefit obligation at end of year $ 5,315,655 $ 4,867,703 Change in plan assets Fair value of plan assets at beginning of year $ 3,238,307 $ 3,499,274 Actual gain on plan assets 97,165 51,514 Employer contributions 279,140 62,852 Benefits paid (230,551 ) (261,473 ) Foreign currency translation and other (77,014 ) (113,860 ) Fair value of plan assets at end of year $ 3,307,047 $ 3,238,307 Funded status $ (2,008,608 ) $ (1,629,396 ) Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (42,763 ) $ (31,206 ) Pensions and other postretirement benefits (1,965,845 ) (1,598,190 ) Net amount recognized $ (2,008,608 ) $ (1,629,396 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 2,047,103 $ 1,639,010 Prior service cost 27,723 32,126 Transition obligation 103 103 Net amount recognized $ 2,074,929 $ 1,671,239 |
Schedule of Assumptions Used | The assumptions used to measure net periodic benefit cost for the Company's significant defined benefit plans are: 2016 2015 2014 U.S. defined benefit plans Discount rate 4.19 % 4.05 % 4.52 % Average increase in compensation 5.14 % 5.12 % 5.13 % Expected return on plan assets 7.5 % 7.5 % 8.0 % Non-U.S. defined benefit plans Discount rate 0.7 to 6.0% 0.9 to 4.2% 1.5 to 4.59% Average increase in compensation 2.0 to 5.5% 2.0 to 5.0% 2.0 to 6.0% Expected return on plan assets 1.0 to 5.75% 1.0 to 6.25% 1.0 to 6.25% The assumptions used to measure the benefit obligation for the Company's significant defined benefit plans are: 2016 2015 U.S. defined benefit plans Discount rate 3.33 % 4.19 % Average increase in compensation 5.02 % 5.14 % Non-U.S. defined benefit plans Discount rate 0.23 to 7.75% 0.7 to 6.0% Average increase in compensation 2.0 to 5.5% 2.0 to 5.5% |
Schedule of Allocation of Plan Assets and Fair Values | The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows: 2016 2015 Equity securities 39 % 41 % Debt securities 51 % 47 % Other investments 10 % 12 % 100 % 100 % June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 46,052 $ 45,474 $ 578 $ — Equity securities U.S. based companies 292,138 292,138 — — Non-U.S. based companies 191,647 191,647 — — Fixed income securities Corporate bonds 141,549 73,685 67,864 — Government issued securities 203,000 141,935 61,065 — Mutual funds Equity funds 149,807 149,807 — — Fixed income funds 151,649 151,649 — — Mutual funds measured at net asset value 246,075 Common/Collective trusts Equity funds 65,404 65,404 — — Fixed income funds 43,981 43,981 — — Common/Collective trusts measured at net asset value 1,487,170 Limited Partnerships measured at net asset value 280,248 Miscellaneous 8,327 — 8,327 — Total at June 30, 2016 $ 3,307,047 $ 1,155,720 $ 137,834 $ — June 30, 2015 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 75,015 $ 75,015 $ — $ — Equity securities U.S. based companies 299,321 299,321 — — Non-U.S. based companies 203,199 203,199 — — Fixed income securities Corporate bonds 165,226 77,224 88,002 — Government issued securities 143,697 90,785 52,912 — Mutual funds Equity funds 149,383 149,383 — — Fixed income funds 135,949 135,949 — — Mutual funds measured at net asset value 5,564 Common/Collective trusts Equity funds 77,429 77,429 — — Fixed income funds 46,184 46,184 — — Common/Collective trusts measured at net asset value 1,635,135 Limited Partnerships measured at net asset value 290,904 Miscellaneous 11,301 — 11,301 — Total at June 30, 2015 $ 3,238,307 $ 1,154,489 $ 152,215 $ — |
Other Postretirement Benefit Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The Company recognized $8,754 , $4,340 and $4,478 in expense related to other postretirement benefits in 2016 , 2015 and 2014 , respectively. During 2016, the Company provided enhanced retirement benefits in connection with a plant closure, which resulted in an increase in expense related to other postretirement benefits of $4,521 . 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 75,953 $ 76,207 Service cost 591 632 Interest cost 2,834 2,723 Special termination cost 4,521 — Actuarial loss 10,217 655 Benefits paid (4,331 ) (4,264 ) Benefit obligation at end of year $ 89,785 $ 75,953 Funded status $ (89,785 ) $ (75,953 ) 2016 2015 Amounts recognized on the Consolidated Balance Sheet Other accrued liabilities $ (6,216 ) $ (5,629 ) Pensions and other postretirement benefits (83,569 ) (70,324 ) Net amount recognized $ (89,785 ) $ (75,953 ) Amounts recognized in Accumulated Other Comprehensive (Loss) Net actuarial loss $ 22,914 $ 13,626 Prior service credit (556 ) (676 ) Net amount recognized $ 22,358 $ 12,950 |
Schedule of Assumptions Used | The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are: 2016 2015 2014 Discount rate 3.96 % 3.74 % 4.10 % Current medical cost trend rate (Pre-65 participants) 7.61 % 7.75 % 7.75 % Current medical cost trend rate (Post-65 participants) 9.00 % 7.75 % 7.75 % Ultimate medical cost trend rate 4.50 % 5.00 % 5.00 % Medical cost trend rate decreases to ultimate in year 2025 2021 2021 |
Equity Equity (Tables)
Equity Equity (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive (loss) in shareholders' equity by component: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance June 30, 2014 $ 124,392 $ (947,890 ) $ (823,498 ) Other comprehensive (loss) before reclassifications (769,431 ) (253,206 ) (1,022,637 ) Amounts reclassified from accumulated other comprehensive (loss) 4,021 103,496 107,517 Balance June 30, 2015 $ (641,018 ) $ (1,097,600 ) $ (1,738,618 ) Other comprehensive (loss) before reclassifications (202,444 ) (400,053 ) (602,497 ) Amounts reclassified from accumulated other comprehensive (loss) (659 ) 114,009 113,350 Balance June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | eclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2016 : Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Retirement benefit plans Amortization of prior service cost and initial net obligation $ (7,366 ) See Note 10 Recognized actuarial loss (171,337 ) See Note 10 Total before tax (178,703 ) Tax benefit 64,694 Income taxes Net of tax $ (114,009 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity during 2015 : 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 $ (9,333 ) See Note 10 Recognized actuarial loss (153,770 ) See Note 10 Total before tax (163,103 ) Tax benefit 59,607 Income taxes Net of tax $ (103,496 ) |
Schedule of Share Repurchases | The number of common shares repurchased at the average purchase price follows: 2016 2015 2014 Shares repurchased 5,121,051 11,091,759 1,741,143 Average price per share $ 108.87 $ 125.64 $ 114.87 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Share-based Payment Award, Stock Options and SARs, Valuation Assumptions | The fair value of each stock option and SAR award granted in 2016 , 2015 and 2014 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Risk-free interest rate 1.9 % 2.0 % 1.55 % Expected life of award 5.4 yrs 5.4 yrs 5.1 yrs Expected dividend yield of stock 1.9 % 1.8 % 1.9 % Expected volatility of stock 28.7 % 32.3 % 39.1 % Weighted-average fair value $ 26.88 $ 30.50 $ 32.57 |
Schedule of Share-based Compensation, Stock Options and SARs, Activity | Stock option and SAR activity during 2016 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, 2015 8,134,206 $ 79.84 Granted 968,445 113.23 Exercised (945,191 ) 67.65 Canceled (101,012 ) 108.32 Outstanding June 30, 2016 8,056,448 $ 84.93 5.3 years $ 199.2 Exercisable June 30, 2016 6,018,552 $ 75.80 4.3 years $ 198.4 |
Schedule of Nonvested Share Activity | A summary of the status and changes of shares subject to stock option and SAR awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2015 2,310,089 $ 30.71 Granted 968,445 26.88 Vested (1,164,552 ) 29.80 Canceled (76,086 ) 29.31 Nonvested June 30, 2016 2,037,896 $ 29.46 |
Stock-Based Awards Exercised Disclosure | Information related to stock option and SAR awards exercised during 2016 , 2015 and 2014 is as follows: 2016 2015 2014 Net cash proceeds $ 126 $ 3,355 $ 8,013 Intrinsic value 40,612 72,140 155,903 Income tax benefit 7,188 17,355 37,993 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the status and changes of shares subject to RSU awards and the related average price per share follows: Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2015 449,288 $ 105.63 Granted 180,487 113.19 Vested (210,777 ) 100.45 Canceled (44,830 ) 108.68 Nonvested June 30, 2016 374,168 $ 111.82 |
Schedule of status and changes of LTIP shares and related fair value | Number of Shares Weighted-Average Grant Date Fair Value Nonvested June 30, 2015 876,171 $ 109.27 Granted 262,032 88.63 Vested (298,105 ) 93.05 Canceled (26,336 ) 115.60 Nonvested June 30, 2016 813,762 $ 108.37 Stock issued for LTIP 2016 2015 2014 LTIP three-year plan 2013-14-15 2012-13-14 2011-12-13 Number of shares issued 175,291 185,063 298,813 Average share value on date of issuance $ 113.91 $ 119.06 $ 126.17 Total value $ 19,967 $ 22,034 $ 37,701 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturities of available-for-sale investments at June 30, 2016 and 2015 are as follows: June 30, 2016 June 30, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Less than one year $ 29,960 $ 29,990 $ 13,561 $ 13,555 One to three years 144,100 144,625 188,539 188,057 Over three years 34,276 34,275 15,673 15,587 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The carrying value of long-term debt and estimated fair value of long-term debt at June 30 are as follows: 2016 2015 Carrying value of long-term debt $ 2,733,140 $ 2,947,102 Estimated fair value of long-term debt 3,133,989 3,107,735 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption 2016 2015 Net investment hedges Cross-currency swap contracts Other assets $ 24,771 $ 17,994 Cash flow hedges Costless collar contracts Non-trade and notes receivable — 5,627 Costless collar contracts Other accrued liabilities 8,368 1,970 |
Schedule of Derivative Instruments, Gain (Loss) | Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income during 2016 , 2015 and 2014 were not material. Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: 2016 2015 Cross-currency swap contracts $ 6,869 $ 39,406 Foreign denominated debt (8,180 ) 37,871 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2016 and 2015 are as follows: June 30, 2016 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Equity securities $ 1,296 $ 1,296 $ — $ — Government bonds 15,764 15,764 — — Corporate bonds 184,380 184,380 — — Asset-backed and mortgage-backed securities 8,746 — 8,746 — Derivatives 25,303 — 25,303 — Investments measured at net asset value 361,770 Liabilities: Derivatives 13,028 — 13,028 — June 30, 2015 Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Government bonds $ 60,512 $ 60,512 $ — $ — Corporate bonds 145,717 145,717 — — Asset-backed and mortgage-backed securities 10,970 — 10,970 — Derivatives 23,598 — 23,598 — Investments measured at net asset value 187,534 Liabilities: Derivatives 1,970 — 1,970 — |
Quarterly Information (Unaudi42
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2016 1st 2nd 3rd 4th Total Net sales $ 2,869,348 $ 2,705,590 $ 2,828,665 $ 2,957,150 $ 11,360,753 Gross profit 668,444 564,966 619,264 684,695 2,537,369 Net income attributable to common shareholders 194,978 182,982 187,084 241,796 806,840 Diluted earnings per share 1.41 1.33 1.37 1.77 5.89 2015 1st 2nd 3rd 4th Total Net sales $ 3,269,932 $ 3,134,993 $ 3,162,311 $ 3,144,508 $ 12,711,744 Gross profit 810,067 733,409 789,295 723,728 3,056,499 Net income attributable to common shareholders 280,089 267,252 285,345 179,454 1,012,140 Diluted earnings per share 1.85 1.80 2.02 1.27 6.97 |
Business Segment Information (D
Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 2,957,150 | $ 2,828,665 | $ 2,705,590 | $ 2,869,348 | $ 3,144,508 | $ 3,162,311 | $ 3,134,993 | $ 3,269,932 | $ 11,360,753 | $ 12,711,744 | $ 13,215,971 | |
Segment Operating Income | 1,575,655 | 1,838,432 | 1,790,207 | |||||||||
Corporate administration | 173,203 | 215,396 | 181,926 | |||||||||
Income before interest expense and other | 1,402,452 | 1,623,036 | 1,608,281 | |||||||||
Interest expense | 136,517 | 118,406 | 82,566 | |||||||||
Other expense (income) | 151,207 | 72,390 | (31,005) | |||||||||
Income before income taxes | 1,114,728 | 1,432,240 | 1,556,720 | |||||||||
Assets | 12,056,738 | 12,279,282 | 12,056,738 | 12,279,282 | 13,259,815 | |||||||
Property Additions | [1] | 149,407 | 215,527 | 216,340 | ||||||||
Depreciation | 190,308 | 202,776 | 214,965 | |||||||||
Net Sales | [2] | $ 11,360,753 | $ 12,711,744 | $ 13,215,971 | ||||||||
Long-Lived Assets | 1,568,100 | 1,664,022 | 1,824,294 | |||||||||
Diversified Industrial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 8,728,671 | 8,734,942 | $ 8,728,671 | $ 8,734,942 | $ 9,470,822 | |||||||
Property Additions | [1] | 134,618 | 190,580 | 189,832 | ||||||||
Depreciation | 163,014 | 174,102 | 187,347 | |||||||||
Aerospace Systems | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,260,270 | 2,254,626 | 2,234,528 | |||||||||
Segment Operating Income | 337,531 | 298,994 | 271,238 | |||||||||
Assets | [3] | 1,430,577 | 1,375,845 | 1,430,577 | 1,375,845 | 1,359,063 | ||||||
Property Additions | [1] | 10,857 | 18,427 | 23,261 | ||||||||
Depreciation | 18,469 | 19,509 | 19,193 | |||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | [4] | $ 1,897,490 | $ 2,168,495 | 1,897,490 | 2,168,495 | 2,429,930 | ||||||
Property Additions | [1] | 3,932 | 6,520 | 3,247 | ||||||||
Depreciation | 8,825 | 9,165 | 8,425 | |||||||||
North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | [2] | $ 7,144,481 | $ 7,891,571 | $ 7,853,603 | ||||||||
Long-Lived Assets | 817,872 | 856,947 | 861,300 | |||||||||
North America | Diversified Industrial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 4,955,211 | $ 5,715,742 | $ 5,693,527 | |||||||||
Segment Operating Income | 789,667 | 955,501 | 946,493 | |||||||||
International | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | [2] | $ 4,216,272 | $ 4,820,173 | $ 5,362,368 | ||||||||
Long-Lived Assets | 750,228 | 807,075 | 962,994 | |||||||||
International | Diversified Industrial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 4,145,272 | $ 4,741,376 | $ 5,287,916 | |||||||||
Segment Operating Income | $ 448,457 | $ 583,937 | $ 572,476 | |||||||||
[1] | (a)Amounts in 2015 and 2014 have been adjusted to reflect the retrospective adoption of Accounting Standards Update (ASU) 2015-17 in the fourth quarter of 2016. | |||||||||||
[2] | Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location. | |||||||||||
[3] | 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 (2016 - $241,728; 2015 - $251,365; 2014 - $263,246). | |||||||||||
[4] | Corporate assets are principally cash and cash equivalents, marketable securities and other investments, domestic deferred income taxes, deferred compensation plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment. |
Business Segment Information -
Business Segment Information - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Segment Reporting Information [Line Items] | |||
Equity Method Investments | $ 355,876 | $ 315,989 | |
Value of net plant and equipment at the date of acquisition of acquired companies | 5,647 | 1,123 | $ 11,211 |
Aerospace Systems | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investments | $ 241,728 | $ 251,365 | $ 263,246 |
Maximum | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% |
Significant Accounting Polici45
Significant Accounting Policies Nature of operations (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Diversified Industrial | International | |
Number of countries that the Industrial International operations provide Parker products and services to | 46 |
Customer Concentration Risk [Member] | |
Sales level from major customers | 4.00% |
Significant Accounting Polici46
Significant Accounting Policies Trade accounts receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Trade Accounts Receivable, Net [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 8,010 | $ 9,284 |
Non-trade and notes receivable
Non-trade and notes receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Disclosure Accounts Receivable Net [Abstract] | ||
Notes receivable | $ 102,400 | $ 90,470 |
Reverse repurchase agreement | 0 | 113,558 |
Accounts receivable, other | 129,783 | 160,506 |
Total | $ 232,183 | $ 364,534 |
Significant Accounting Polici48
Significant Accounting Policies Plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Land and land improvements | $ 291,122 | $ 294,537 |
Buildings and building equipment | 1,437,601 | 1,457,650 |
Machinery and Equipment, Gross | 2,933,818 | 3,017,011 |
Construction in Progress, Gross | 74,600 | 93,413 |
Plant and equipment | $ 4,737,141 | $ 4,862,611 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Minimum | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Minimum | Vehicles and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Maximum | Vehicles and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years |
Significant Accounting Polici49
Significant Accounting Policies Investment and other assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments - Equity in undistributed earnings | $ 355,876 | $ 315,989 |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% |
Significant Accounting Polici50
Significant Accounting Policies Foreign currency translation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Foreign Currency Translation [Abstract] | |||
Exchange (gains) and losses from transactions in a currency other than the local currency of the entity | $ 22,750 | $ (77,784) | $ 5,398 |
Significant Accounting Polici51
Significant Accounting Policies Income taxes (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current Assets | ||
Deferred income taxes | $ 0 | |
Noncurrent Assets | ||
Deferred income taxes | $ 605,155 | 406,267 |
Investments and other assets | 850,088 | 811,930 |
Current Liabilities | ||
Accrued domestic and foreign taxes | 127,597 | 139,285 |
Noncurrent Liabilities | ||
Deferred income taxes | $ 54,395 | 63,222 |
As Previously Reported | ||
Current Assets | ||
Deferred income taxes | 142,147 | |
Noncurrent Assets | ||
Deferred income taxes | 0 | |
Investments and other assets | 1,091,805 | |
Current Liabilities | ||
Accrued domestic and foreign taxes | 140,295 | |
Noncurrent Liabilities | ||
Deferred income taxes | $ 77,967 |
Acquisitions (Detail)
Acquisitions (Detail) - Series of Individually Immaterial Business Acquisitions [Member] $ in Millions | 12 Months Ended | ||
Jun. 30, 2016USD ($)acquisition | Jun. 30, 2015USD ($)acquisition | Jun. 30, 2014USD ($)acquisition | |
Significant Acquisitions | |||
Number of Businesses Acquired | acquisition | 2 | 4 | 3 |
Cash paid to acquire businesses | $ 71 | $ 27 | $ 19 |
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition | 48 | $ 27 | $ 14 |
Assumed debt | $ 2 |
Initial Purchase Price Allocati
Initial Purchase Price Allocation and Subsequent Purchase Price Adjustments for Acquisitions (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Assets: | |||
Accounts receivable | $ 6,793 | $ 7,656 | $ 954 |
Inventories | 12,041 | 3,099 | 2,184 |
Prepaid expenses | 1,350 | 91 | 57 |
Deferred income taxes | 0 | 5 | 189 |
Plant and equipment | 5,647 | 1,123 | 11,211 |
Intangible and other assets | 26,849 | 7,794 | 5,646 |
Goodwill | 31,134 | 10,430 | 3,195 |
Total | 83,814 | 30,198 | 23,436 |
Liabilities and equity: | |||
Notes payable | 720 | 0 | 0 |
Accounts payable, trade | 2,536 | 2,689 | 915 |
Accrued payrolls and other compensation | 1,310 | 243 | 263 |
Accrued domestic and foreign taxes | 604 | 777 | 1 |
Other accrued liabilities | 1,804 | 5,267 | 3,864 |
Long-term debt | 1,743 | 0 | 0 |
Deferred income taxes | 7,545 | 2,604 | 0 |
Other liabilities | 0 | 0 | 800 |
Total | 16,262 | 11,580 | 5,843 |
Net assets acquired | $ 67,552 | $ 18,618 | $ 17,593 |
Acquisitions and Deconsolidat54
Acquisitions and Deconsolidation of Subsidiary Deconsolidation of subsidiary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Deconsolidation of Subsidiary [Abstract] | |||
Equity interest sold | 50.00% | ||
Net gain on deconsolidation | $ 0 | $ 0 | $ 412,612 |
Amount of gain attributable to the remeasurement of the retained investment in the former subsidiary to its current fair value. | $ 186,000 |
Business Realignment Charges (D
Business Realignment Charges (Detail) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016USD ($)employee | Jun. 30, 2015USD ($)employee | Jun. 30, 2014USD ($)employee | |
Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 76,197 | $ 19,419 | $ 63,575 |
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 21,051 | 12,888 | 38,874 |
Loss (Gain) on Disposal of Assets | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | 116 | 2,399 | 1,331 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance payments relating to charges incurred during the current fiscal year | 55,000 | ||
Remaining severance payments related to current-year and prior-year actions | 40,000 | ||
Diversified Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 91,404 | $ 30,882 | $ 101,524 |
Work force reduction | employee | 3,515 | 668 | 1,581 |
Aerospace Systems | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 3,629 | $ 967 | $ 925 |
Work force reduction | employee | 81 | 21 | 44 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 2,215 | $ 458 | $ 0 |
Work force reduction | employee | 53 | 18 | 0 |
Other Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to business realignment | $ 116 | $ 2,399 | $ 1,331 |
Income Before Income Taxes Deri
Income Before Income Taxes Derived from Sources (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 672,907 | $ 779,782 | $ 1,115,010 |
Foreign | 441,821 | 652,458 | 441,710 |
Income before income taxes | $ 1,114,728 | $ 1,432,240 | $ 1,556,720 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Federal | |||
Current | $ 235,557 | $ 185,761 | $ 377,404 |
Deferred | (45,797) | 28,108 | (45,643) |
Foreign | |||
Current | 113,146 | 189,826 | 168,177 |
Deferred | (7,006) | (11,208) | (28,016) |
State and Local | |||
Current | 24,495 | 25,235 | 43,860 |
Deferred | (12,883) | 1,965 | (480) |
Income taxes | $ 307,512 | $ 419,687 | $ 515,302 |
Reconciliation of Effective Inc
Reconciliation of Effective Income Tax Rate to the Statutory Federal Rate (Detail) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes | 0.60% | 1.10% | 1.80% |
Goodwill and intangible asset impairment | 0.00% | 0.00% | 4.50% |
Tax related to international activities | (5.20%) | (4.50%) | (5.60%) |
Cash surrender value of life insurance - nondeductible expense | 0.20% | ||
Cash surrender value of life insurance - tax exempt income | (0.10%) | (0.90%) | |
Federal manufacturing deduction | (1.00%) | (1.60%) | (1.00%) |
Research tax credit | (1.90%) | (0.80%) | (0.30%) |
Other | (0.10%) | 0.20% | (0.40%) |
Effective income tax rate | 27.60% | 29.30% | 33.10% |
Deferred Income Taxes (Detail)
Deferred Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Retirement benefits | $ 815,545 | $ 614,127 | |
Other liabilities and reserves | 126,524 | 127,838 | |
Long-term contracts | 64,371 | 49,929 | |
Stock-based incentive compensation | 67,138 | 66,015 | |
Loss carryforwards | 326,707 | 316,994 | |
Unrealized currency exchange gains | (19,491) | (17,218) | |
Inventory | 14,693 | 16,659 | |
Foreign tax credit carryforward | 24,051 | 29,965 | |
Depreciation and amortization | (536,070) | (531,258) | |
Valuation allowance | (332,708) | (330,006) | |
Net deferred tax asset | 550,760 | 343,045 | |
Change in net deferred tax asset: | |||
Provision for deferred tax | 65,686 | (18,865) | $ 74,139 |
Items of other comprehensive (loss) income | 149,861 | 57,523 | |
Acquisitions and other | (7,832) | (1,225) | |
Total change in net deferred tax | $ 207,715 | $ 37,433 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets resulting from loss carryforwards | $ 326,707 | $ 316,994 | |
Loss carryforwards | 1,145,475 | ||
Valuation allowance related to the loss carryforwards | 313,554 | ||
Amount of valuation allowance relating to non-operating entity whose loss carryforward utilization is considered to be remote | $ 288,515 | ||
Operating loss carryforward minimum period before expiration | 3 years | ||
Operating loss carryforward maximum period before expiration | 20 years | ||
Valuation allowance related to future deductible items | $ 19,154 | ||
Accumulated undistributed earnings reinvested in international operations | 3,200,000 | ||
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 80,722 | 83,471 | $ 71,898 |
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits | 12,357 | $ 9,514 | $ 8,198 |
Amount of gross unrecognized tax benefits could be reduced by as a result of the revaluation of existing uncertain tax positions | $ 100,000 |
Reconciliation of the Beginning
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $ 145,688 | $ 164,813 | $ 107,440 |
Additions for tax positions related to current year | 7,025 | 6,090 | 7,752 |
Additions for tax positions of prior years | 2,582 | 14,989 | 55,136 |
Reductions for tax positions of prior years | (627) | (6,945) | (1,359) |
Reductions for settlements | (10,284) | 0 | (1,856) |
Reductions for expiration of statute of limitations | (4,142) | (6,251) | (5,005) |
Effect of foreign currency translation - decrease | (335) | (27,008) | |
Effect of foreign currency translation - increase | 2,705 | ||
Ending Balance | $ 139,907 | $ 145,688 | $ 164,813 |
Computation of Earnings Per Sha
Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | |||||||||||
Net income attributable to common shareholders | $ 806,840 | $ 1,012,140 | $ 1,041,048 | ||||||||
Denominator: | |||||||||||
Basic - weighted-average common shares | 135,353,321 | 142,925,327 | 149,099,448 | ||||||||
Increase in weighted-average common shares from dilutive effect of stock-based awards | 1,558,369 | 2,186,823 | 2,344,655 | ||||||||
Diluted - weighted-average common shares, assuming exercise of stock-based awards | 136,911,690 | 145,112,150 | 151,444,103 | ||||||||
Basic earnings per share | $ 5.96 | $ 7.08 | $ 6.98 | ||||||||
Diluted earnings per share | $ 1.77 | $ 1.37 | $ 1.33 | $ 1.41 | $ 1.27 | $ 2.02 | $ 1.80 | $ 1.85 | $ 5.89 | $ 6.97 | $ 6.87 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Number of common shares subject to stock-based awards that were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive | 3.1 | 1.1 | 1.2 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Inventory, Net [Abstract] | ||
Finished products | $ 458,657 | $ 526,708 |
Work in process | 639,907 | 688,727 |
Raw materials | 74,765 | 85,024 |
Total | $ 1,173,329 | $ 1,300,459 |
Inventories LIFO (Details)
Inventories LIFO (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory to total inventory | 30.00% | 32.00% |
Current cost of inventories exceeds their valuation determined on the LIFO basis, amount | $ 200,247 | $ 206,233 |
Progress payments netted against inventories | $ 51,104 | $ 34,820 |
Changes in the Carrying Amount
Changes in the Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | |||
Beginning Balance | $ 2,942,679 | $ 3,171,425 | |
Acquisitions | 31,134 | 10,430 | |
Impairment | $ (140,334) | ||
Divestitures | (4,757) | ||
Foreign currency translation and other | 70,776 | 234,419 | |
Ending Balance | 2,903,037 | 2,942,679 | 3,171,425 |
Diversified Industrial | |||
Goodwill [Line Items] | |||
Beginning Balance | 2,844,045 | 3,072,724 | |
Acquisitions | 31,134 | 10,430 | |
Divestitures | (4,757) | ||
Foreign currency translation and other | 70,776 | 234,352 | |
Ending Balance | 2,804,403 | 2,844,045 | 3,072,724 |
Aerospace Systems | |||
Goodwill [Line Items] | |||
Beginning Balance | 98,634 | 98,701 | |
Acquisitions | 0 | 0 | |
Divestitures | 0 | ||
Foreign currency translation and other | 0 | 67 | |
Ending Balance | $ 98,634 | $ 98,634 | $ 98,701 |
Gross Carrying Value and Accumu
Gross Carrying Value and Accumulated Amortization for Each Major Category of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,854,240 | $ 1,873,554 |
Accumulated Amortization | 931,669 | 860,115 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 150,914 | 149,066 |
Accumulated Amortization | 95,961 | 88,540 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 340,805 | 355,108 |
Accumulated Amortization | 179,156 | 172,187 |
Customer lists and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,362,521 | 1,369,380 |
Accumulated Amortization | $ 656,552 | $ 599,388 |
Acquired Intangible Assets with
Acquired Intangible Assets with an Initial Purchase Price Allocation and Weighted-Average Life (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 26,849 |
Weighted- Average Life | 11 years |
Patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 565 |
Weighted- Average Life | 12 years |
Trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 761 |
Weighted- Average Life | 5 years |
Customer lists and other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation | $ 25,523 |
Weighted- Average Life | 11 years |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment charge | $ 140,334 | ||
Intangible amortization expense | $ 108,019 | $ 109,887 | 118,782 |
Estimated amortization expense, year ending June 30, 2017 | 95,873 | ||
Estimated amortization expense, year ending June 30, 2018 | 91,902 | ||
Estimated amortization expense, year ending June 30, 2019 | 85,091 | ||
Estimated amortization expense, year ending June 30, 2020 | 78,297 | ||
Estimated amortization expense, year ending June 30, 2021 | $ 70,252 | ||
Intangible asset impairment charge | $ 43,664 |
Financing Arrangements (Detail)
Financing Arrangements (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Line of Credit Facility [Line Items] | ||
Line of credit available | $ 1,696,300 | |
Commercial Paper | 303,700 | $ 0 |
Commercial Paper | ||
Line of Credit Facility [Line Items] | ||
Line of credit | $ 1,850,000 | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Ratio of Secured Debt to Net Tangible Assets | 10.00% | |
Domestic Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit | $ 2,000,000 | |
Foreign Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit | $ 64,310 | |
Weighted-average interest rate of notes payable | 0.30% | 0.20% |
Line of credit outstanding | $ 0 |
Schedule of Debt Instruments (D
Schedule of Debt Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,733,140 | $ 2,947,102 |
Total long-term debt | 2,733,140 | 2,947,102 |
Less long-term debt payable within one year | 58,140 | 223,142 |
Long-term debt, net | 2,675,000 | 2,723,960 |
Domestic | Fixed rate medium-term notes 3.30% to 6.55%, due 2018-2045 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,675,000 | 2,675,000 |
Foreign | Bank loans, including revolving credit 1% to 11.75%, due 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 322 |
Foreign | Euro Bonds 4.125%, due 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 222,820 |
Foreign | Japanese Yen credit facility JPY Libor plus 55 bps, due 2017 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 58,140 | $ 48,960 |
Debt Long-term debt payable in
Debt Long-term debt payable in the next five years (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Long-term debt payable in 2017 | $ 58,140 |
Long-term debt payable in 2018 | 450,000 |
Long-term debt payable in 2019 | 100,000 |
Long-term debt payable in 2020 | 0 |
Long-term debt payable in 2021 | $ 0 |
Debt Lease Commitments (Details
Debt Lease Commitments (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future minimum rental commitments due in 2017 | $ 68,718 |
Future minimum rental commitments due in 2018 | 44,506 |
Future minimum rental commitments due in 2019 | 27,412 |
Future minimum rental commitments due in 2020 | 15,009 |
Future minimum rental commitments due in 2021 | 9,338 |
Future minimum rental commitments due after 2021 | $ 29,946 |
Debt Rent Expense (Details)
Debt Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Rent Expense [Abstract] | |||
Rental expense | $ 119,004 | $ 125,657 | $ 131,948 |
Debt Debt table phantom (Detail
Debt Debt table phantom (Details) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign | Euro Bonds 4.125%, due 2016 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.125% | 4.125% |
Foreign | Japanese Yen credit facility JPY Libor plus 55 bps, due 2017 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.55% | 0.55% |
Minimum | Domestic | Fixed rate medium-term notes 3.30% to 6.55%, due 2018-2045 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.30% | 3.30% |
Minimum | Foreign | Bank loans, including revolving credit 1% to 11.75%, due 2016 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.00% | 1.00% |
Maximum | Domestic | Fixed rate medium-term notes 3.30% to 6.55%, due 2018-2045 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.55% | 6.55% |
Maximum | Foreign | Bank loans, including revolving credit 1% to 11.75%, due 2016 | ||
Debt Instrument [Line Items] | ||
Interest rate | 11.75% | 11.75% |
Net Periodic Pension Cost Recog
Net Periodic Pension Cost Recognized (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 94,650 | $ 97,960 | $ 99,929 |
Interest cost | 181,469 | 176,556 | 190,999 |
Special termination cost | 7,088 | 21,174 | 0 |
Settlements | 5,102 | 0 | 0 |
Expected return on plan assets | (221,629) | (218,938) | (226,884) |
Amortization of prior service cost | 7,470 | 9,437 | 14,644 |
Amortization of unrecognized actuarial loss | 170,407 | 152,664 | 159,584 |
Amortization of initial net obligation | 17 | 17 | 19 |
Net periodic benefit cost | $ 244,574 | $ 238,870 | $ 238,291 |
Summary of Defined Benefit Pens
Summary of Defined Benefit Pension Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 3,238,307 | ||
Fair value of plan assets at end of year | 3,307,047 | $ 3,238,307 | |
Amounts recognized on the Consolidated Balance Sheet | |||
Pensions and other postretirement benefits | (2,076,143) | (1,699,197) | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 4,867,703 | 4,749,447 | |
Service cost | 94,650 | 97,960 | $ 99,929 |
Interest cost | 181,469 | 176,556 | 190,999 |
Special termination cost | 7,088 | 21,174 | 0 |
Actuarial loss | 487,523 | 237,896 | |
Benefits paid | (230,551) | (261,473) | |
Plan amendments | 2,992 | 3,033 | |
Foreign currency translation and other | (95,219) | (156,890) | |
Benefit obligation at end of year | 5,315,655 | 4,867,703 | 4,749,447 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 3,238,307 | 3,499,274 | |
Actual gain on plan assets | 97,165 | 51,514 | |
Employer contributions | 279,140 | 62,852 | |
Benefits paid | (230,551) | (261,473) | |
Foreign currency translation and other | (77,014) | (113,860) | |
Fair value of plan assets at end of year | 3,307,047 | 3,238,307 | $ 3,499,274 |
Funded status | (2,008,608) | (1,629,396) | |
Amounts recognized on the Consolidated Balance Sheet | |||
Other accrued liabilities | (42,763) | (31,206) | |
Pensions and other postretirement benefits | (1,965,845) | (1,598,190) | |
Net amount recognized | (2,008,608) | (1,629,396) | |
Amounts recognized in Accumulated Other Comprehensive (Loss) | |||
Net actuarial loss | 2,047,103 | 1,639,010 | |
Prior service cost | 27,723 | 32,126 | |
Transition obligation | 103 | 103 | |
Net amount recognized | $ 2,074,929 | $ 1,671,239 |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Special termination cost | $ 7,088 | $ 21,174 | $ 0 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 200,725 | ||
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 6,579 | ||
Estimated amount of transition asset that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 19 | ||
Accumulated benefit obligation for all defined benefit plans | 4,884,985 | 4,451,047 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets | 5,211,768 | 4,761,438 | |
Accumulated benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets | 4,796,860 | 4,352,369 | |
Fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | 3,206,287 | 3,129,803 | |
Projected benefit obligation for pension plans with projected benefit obligations in excess of plan assets | 5,310,979 | 4,821,675 | |
Fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets | 3,302,370 | 3,188,293 | |
Expected cash contributions to defined benefit pension plans in 2012 | 306,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
Estimated future benefit payments in the year ending June 30, 2017 | 239,898 | ||
Estimated future benefit payments in the year ending June 30, 2018 | 220,006 | ||
Estimated future benefit payments in the year ending June 30, 2019 | 224,569 | ||
Estimated future benefit payments in the year ending June 30, 2020 | 248,085 | ||
Estimated future benefit payments in the year ending June 30, 2021 | 272,250 | ||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2022 through June 30, 2026 | 1,381,405 | ||
Domestic Defined Benefit Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Lump-sum distribution | 81,496 | ||
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Special termination cost | 4,521 | $ 0 | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 2,101 | ||
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | (121) | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
Estimated future benefit payments in the year ending June 30, 2017 | 6,216 | ||
Estimated future benefit payments in the year ending June 30, 2018 | 6,796 | ||
Estimated future benefit payments in the year ending June 30, 2019 | 6,717 | ||
Estimated future benefit payments in the year ending June 30, 2020 | 6,349 | ||
Estimated future benefit payments in the year ending June 30, 2021 | 6,287 | ||
Estimated future benefit payments in the aggregate for the five years ending June 30, 2022 through June 30, 2026 | $ 27,882 |
Assumptions Used to Measure Net
Assumptions Used to Measure Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Domestic Defined Benefit Plan | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate used to measure net periodic benefit cost | 4.19% | 4.05% | 4.52% |
Average increase in compensation | 5.14% | 5.12% | 5.13% |
Expected return on plan assets | 7.50% | 7.50% | 8.00% |
Minimum | Non-U.S. defined benefit plans | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate used to measure net periodic benefit cost | 0.90% | 1.50% | 1.75% |
Average increase in compensation | 2.00% | 2.00% | 2.00% |
Expected return on plan assets | 1.00% | 1.00% | 1.00% |
Maximum | Non-U.S. defined benefit plans | |||
Assumptions used to measure net periodic benefit cost | |||
Discount rate used to measure net periodic benefit cost | 5.50% | 4.59% | 4.70% |
Average increase in compensation | 5.50% | 6.00% | 6.00% |
Expected return on plan assets | 6.25% | 6.25% | 6.40% |
Assumptions Used to Measure Ben
Assumptions Used to Measure Benefit Obligations (Detail) | Jun. 30, 2016 | Jun. 30, 2015 |
Domestic Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate used to measure benefit obligation | 3.33% | 4.19% |
Average increase in compensation | 5.02% | 5.14% |
Minimum | Non-U.S. defined benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate used to measure benefit obligation | 0.70% | 0.90% |
Average increase in compensation | 2.00% | 2.00% |
Maximum | Non-U.S. defined benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate used to measure benefit obligation | 6.00% | 4.20% |
Average increase in compensation | 5.50% | 5.00% |
Weighted-Average Allocation of
Weighted-Average Allocation of the Majority of the Assets Related to Defined Benefit Plans (Detail) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 39.00% | 41.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 41.00% | |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 51.00% | 47.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 47.00% | |
Other investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 10.00% | 12.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 12.00% | |
Domestic Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of assets held in the U.S. defined benefit plan | 73.00% |
Fair Values of Pension Plan Ass
Fair Values of Pension Plan Assets by Asset Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 3,307,047 | $ 3,238,307 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 46,052 | 75,015 | |
Equity Securities | US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 292,138 | 299,321 | |
Equity Securities | Non US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 191,647 | 203,199 | |
Fixed income securities | Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 141,549 | 165,226 | |
Fixed income securities | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 203,000 | 143,697 | |
Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 246,075 | 5,564 | |
Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 149,807 | 149,383 | |
Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 151,649 | 135,949 | |
Common/Collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments valued using a net asset value per share, redemption frequency | daily | ||
Pension plan assets | $ 1,487,170 | 1,635,135 | |
Investments valued using a net asset value per share, redemption notice period | 30 days | ||
Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 65,404 | 77,429 | |
Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 43,981 | 46,184 | |
Limited Partnership | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments valued using a net asset value per share, redemption frequency | daily | ||
Pension plan assets | $ 280,248 | 290,904 | |
Investments valued using a net asset value per share, redemption notice period | 30 days | ||
Miscellaneous | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 8,327 | 11,301 | |
Quoted Prices In Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1,155,720 | 1,154,489 | |
Quoted Prices In Active Markets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 45,474 | 75,015 | |
Quoted Prices In Active Markets (Level 1) | Equity Securities | US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 292,138 | 299,321 | |
Quoted Prices In Active Markets (Level 1) | Equity Securities | Non US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 191,647 | 203,199 | |
Quoted Prices In Active Markets (Level 1) | Fixed income securities | Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 73,685 | 77,224 | |
Quoted Prices In Active Markets (Level 1) | Fixed income securities | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 141,935 | 90,785 | |
Quoted Prices In Active Markets (Level 1) | Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 149,807 | 149,383 | |
Quoted Prices In Active Markets (Level 1) | Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 151,649 | 135,949 | |
Quoted Prices In Active Markets (Level 1) | Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 65,404 | 77,429 | |
Quoted Prices In Active Markets (Level 1) | Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 43,981 | 46,184 | |
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 | 137,834 | 152,215 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 578 | ||
Significant Other Observable Inputs (Level 2) | Equity Securities | US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Significant Other Observable Inputs (Level 2) | Equity Securities | Non US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Significant Other Observable Inputs (Level 2) | Fixed income securities | Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 67,864 | 88,002 | |
Significant Other Observable Inputs (Level 2) | Fixed income securities | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 61,065 | 52,912 | |
Significant Other Observable Inputs (Level 2) | Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Miscellaneous | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 8,327 | 11,301 | |
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 | ||
Significant Unobservable Inputs (Level 3) | Equity Securities | US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Significant Unobservable Inputs (Level 3) | Equity Securities | Non US Based Companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Significant Unobservable Inputs (Level 3) | Fixed income securities | Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed income securities | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Common/Collective trusts | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Common/Collective trusts | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Miscellaneous | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company stock included in U.S. based company equity securities | 143,652 | 154,660 | |
Pension plan assets | $ 3,307,047 | $ 3,238,307 | $ 3,499,274 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (ESOP) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares held by ESOP | 7,728,332 | 8,407,858 | 8,944,697 |
Company contributions to ESOP | $ 58,922 | $ 63,914 | $ 63,441 |
Number of Shares Invested By Employees In Company Stock | 2,317,924 | ||
RIA expense | $ 25,780 | $ 29,570 | $ 25,247 |
Maximum | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Maximum percentage of employer 401K matching contribution | 4.00% |
Summary of Other Postretirement
Summary of Other Postretirement Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amounts recognized on the Consolidated Balance Sheet | |||
Pensions and other postretirement benefits | $ (2,076,143) | $ (1,699,197) | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense related to other postretirement benefits | 8,754 | 4,340 | $ 4,478 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 75,953 | 76,207 | |
Service cost | 591 | 632 | |
Interest cost | 2,834 | 2,723 | |
Special termination cost | 4,521 | 0 | |
Actuarial (gain) loss | 10,217 | 655 | |
Benefits paid | (4,331) | (4,264) | |
Benefit obligation at end of year | 89,785 | 75,953 | $ 76,207 |
Funded status | (89,785) | (75,953) | |
Amounts recognized on the Consolidated Balance Sheet | |||
Other accrued liabilities | (6,216) | (5,629) | |
Pensions and other postretirement benefits | (83,569) | (70,324) | |
Net amount recognized | (89,785) | (75,953) | |
Amounts recognized in Accumulated Other Comprehensive (Loss) | |||
Net actuarial loss | 22,914 | 13,626 | |
Prior service (credit) | (556) | (676) | |
Net amount recognized | 22,358 | $ 12,950 | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | 2,101 | ||
Estimated amount of prior service credit that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost | $ (121) |
Assumptions Used to Measure N85
Assumptions Used to Measure Net Periodic Benefit Cost for Postretirement Plans (Detail) - Other Postretirement Benefit Plans, Defined Benefit | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate used to measure net periodic benefit cost | 3.96% | 3.74% | 4.10% |
Ultimate medical cost trend rate | 4.50% | 5.00% | 5.00% |
Medical cost trend rate decreases to ultimate in year | 2,025 | 2,021 | 2,021 |
Defined benefit plan, participant age range, Pre-65 [Member] | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Current medical cost trend rate | 7.61% | 7.75% | 7.75% |
Defined benefit plan, participant age range, Post-65 [Member] [Member] | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Current medical cost trend rate | 9.00% | 7.75% | 7.75% |
Retirement Benefits Assumptions
Retirement Benefits Assumptions Used to Measure the Obligation for Postretirement Plans (Details) | Jun. 30, 2016 | Jun. 30, 2015 |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate used to measure benefit obligation | 3.15% | 3.96% |
Retirement Benefits Postretirem
Retirement Benefits Postretirement Benefit Plans - Expected Future Benefit Payments (Details) - Other Postretirement Benefit Plans, Defined Benefit $ in Thousands | Jun. 30, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future benefit payments in the year ending June 30, 2017 | $ 6,216 |
Estimated future benefit payments in the year ending June 30, 2018 | 6,796 |
Estimated future benefit payments in the year ending June 30, 2019 | 6,717 |
Estimated future benefit payments in the year ending June 30, 2020 | 6,349 |
Estimated future benefit payments in the year ending June 30, 2021 | 6,287 |
Estimated future benefit payments in the aggregate for the five years ending June 30, 2022 through June 30, 2026 | $ 27,882 |
Retirement Benefits Other - Non
Retirement Benefits Other - Nonqualified Deferred Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation expense | $ (2,917) | $ 5,676 | $ 24,549 |
Equity - Balance of Accumulated
Equity - Balance of Accumulated Other Comprehensive (Loss) in Shareholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2,227,765) | $ (1,738,618) | $ (823,498) |
Other comprehensive income before reclassifications | (602,497) | (1,022,637) | |
Amounts reclassified from accumulated other comprehensive (loss) | (113,350) | (107,517) | |
Accumulated Foreign Currency and Other Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (844,121) | (641,018) | 124,392 |
Other comprehensive income before reclassifications | (202,444) | (769,431) | |
Amounts reclassified from accumulated other comprehensive (loss) | 659 | (4,021) | |
Retirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,383,644) | (1,097,600) | $ (947,890) |
Other comprehensive income before reclassifications | (400,053) | (253,206) | |
Amounts reclassified from accumulated other comprehensive (loss) | $ (114,009) | $ (103,496) |
Equity Reclassifications out of
Equity Reclassifications out of accumulated other comprehensive (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Amortization of prior service cost and initial net obligation | $ (7,366) | $ (9,333) |
Recognized actuarial loss | (171,337) | (153,770) |
Total before tax | (178,703) | (163,103) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Tax benefit, retirement benefit plans | 64,694 | 59,607 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net of tax, retirement benefit plans | $ (114,009) | $ (103,496) |
Equity - Share Repurchase Progr
Equity - Share Repurchase Program (Detail) - $ / shares | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Oct. 22, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased | 5,121,051 | 11,091,759 | 1,741,143 | |
Average price per share | $ 108.87 | $ 125.64 | $ 114.87 | |
Maximum | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 35,000,000 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2016shares | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options and SARs exercisable period after the date of grant (in years) | 3 years |
Minimum | Employee Stock Option / SAR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price of common stock under stock options | 100.00% |
Stock options and SARs exercisable period after the date of grant (in years) | 1 year |
Maximum | Employee Stock Option / SAR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options and SARs exercisable period after the date of grant (in years) | 3 years |
Stock options and SARs expiration period (in years) | 10 years |
Omnibus Stock Incentive Plan 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate number of shares authorized for issuance under stock incentive plan | 14,700,000 |
Common shares reserved for issuance in connection with its stock incentive plans | 3,400,000 |
Fair Value of Stock Option and
Fair Value of Stock Option and SAR Award Weighted-Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.90% | 2.00% | 1.55% |
Expected life of award (in years) | 5 years 4 months 24 days | 5 years 1 month 6 days | 4 years 10 months 24 days |
Expected dividend yield of stock | 1.90% | 1.80% | 1.90% |
Expected volatility of stock | 28.70% | 32.30% | 39.10% |
Weighted-average fair value | $ 26.88 | $ 30.50 | $ 32.57 |
Stock Option and SAR Activity (
Stock Option and SAR Activity (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding June 30, 2014 (in shares) | shares | 8,134,206 |
Granted (in shares) | shares | 968,445 |
Exercised (in shares) | shares | (945,191) |
Canceled (in shares) | shares | (101,012) |
Outstanding June 30, 2015 (in shares) | shares | 8,056,448 |
Exercisable June 30, 2015 (in shares) | shares | 6,018,552 |
Weighted-Average Exercise Price | |
Outstanding June 30, 2014 | $ / shares | $ 79.84 |
Granted | $ / shares | 113.23 |
Exercised | $ / shares | 67.65 |
Canceled | $ / shares | 108.32 |
Outstanding June 30, 2015 | $ / shares | 84.93 |
Exercisable June 30, 2015 | $ / shares | $ 75.80 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding June 30, 2015 (in years) | 5 years 2 months 12 days |
Exercisable June 30, 2015 (in years) | 4 years |
Outstanding June 30, 2015 | $ | $ 199.2 |
Exercisable June 30, 2015 | $ | $ 198.4 |
Summary of the Status and Chang
Summary of the Status and Changes of Shares Subject to Stock Option and SAR Awards and the Related Average Price Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Stock Option and SAR Nonvested Share Roll Forward | |||
Nonvested June 30, 2014 (in shares) | 2,310,089 | ||
Granted (in shares) | 968,445 | ||
Vested (in shares) | (1,164,552) | ||
Canceled (in shares) | (76,086) | ||
Nonvested June 30, 2015 (in shares) | 2,037,896 | 2,310,089 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested June 30, 2014 | $ 30.71 | ||
Granted | 26.88 | $ 30.50 | $ 32.57 |
Vested | 29.80 | ||
Canceled | 29.31 | ||
Nonvested June 30, 2015 | $ 29.46 | $ 30.71 | |
Employee Stock Option / SAR | |||
Stock Options and SARs - Additional Information | |||
Expense for nonvested stock-based awards has yet to be recognized | $ 15,844 | ||
Expense for nonvested stock-based awards has yet to be recognized, amortized over a weighted-average period (in months) | 18 months | ||
Total fair value of shares vested | $ 34,706 | $ 34,064 | $ 42,363 |
Information Related to Stock Op
Information Related to Stock Options and SAR Awards Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Net cash proceeds | $ 126 | $ 3,355 | $ 8,013 |
Intrinsic value | 40,612 | 72,140 | 155,903 |
Income tax benefit | 7,188 | 17,355 | 37,993 |
Employee Stock Option / SAR | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 28,129 | $ 34,617 | $ 49,998 |
Shares surrendered upon exercise of stock | 158,808 | 243,799 | 775,163 |
Summary of the Status and Cha97
Summary of the Status and Changes of Shares Subject to RSU Awards and the Related Average Price Per Share (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
RSU graded vesting period | 3 years | ||
Number of Shares | |||
Nonvested June 30, 2014 (in shares) | 449,288 | ||
Granted (in shares) | 180,487 | ||
Vested (in shares) | (210,777) | ||
Canceled (in shares) | (44,830) | ||
Nonvested June 30, 2015 (in shares) | 374,168 | 449,288 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested June 30, 2014 | $ 105.63 | ||
Granted | 113.19 | ||
Vested | 100.45 | ||
Canceled | 108.68 | ||
Nonvested June 30, 2015 | $ 111.82 | $ 105.63 | |
RSUs - Additional Disclosures | |||
Stock-based compensation expense | $ 21,190 | $ 22,547 | $ 21,475 |
Expense for nonvested stock-based awards has yet to be recognized | $ 14,714 | ||
Expense for nonvested stock-based awards has yet to be recognized, amortized over a weighted-average period (in months) | 17 months | ||
Total fair value of shares vested | $ 21,173 | 18,953 | 18,007 |
Tax benefit relating to issuance of common stock for RSU awards | $ 870 | $ 704 | $ 2,509 |
Director [Member] | |||
Number of Shares | |||
Granted (in shares) | 14,404 | ||
RSUs - Additional Disclosures | |||
Stock-based compensation expense | $ 824 |
Long Term Incentive Plans (Deta
Long Term Incentive Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation arrangement by share-based payment, performance period of plan | 3 years | ||
Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
LTIP 3-year plan | . 15, 2013 | . 14, 2012 | Dec. 13, 2011 |
Restricted stock issued to certain non-employee members of the Board of Directors (in shares) | 175,291 | 185,063 | 298,813 |
Average share value on date of issuance | $ 113.91 | $ 119.06 | $ 126.17 |
Total value | $ 19,967 | $ 22,034 | $ 37,701 |
Summary of the Status and Cha99
Summary of the Status and Changes of Shares Relating to LTIP and the Related Average Price Per Share (Detail) - Long Term Incentive Plans - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Number of Shares | |||
Nonvested June 30, 2014 (in shares) | 876,171 | ||
Granted (in shares) | 262,032 | ||
Vested (in shares) | (298,105) | ||
Canceled (in shares) | (26,336) | ||
Nonvested June 30, 2015 (in shares) | 813,762 | 876,171 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested June 30, 2014 | $ 109.27 | ||
Granted | 88.63 | ||
Vested | 93.05 | ||
Canceled | 115.60 | ||
Nonvested June 30, 2015 | $ 108.37 | $ 109.27 | |
LTIP - Additional Disclosures | |||
Stock-based compensation expense | $ 21,150 | $ 38,929 | $ 31,688 |
Shares surrendered upon exercise of stock | 78,173 | 42,394 | 140,406 |
Restricted stock issued to certain non-employee members of the Board of Directors (in shares) | 175,291 | 185,063 | 298,813 |
Tax benefit (cost) | $ 3,119 | $ 5,373 | $ (6,983) |
Stock Incentive Plans Restricte
Stock Incentive Plans Restricted Shares (Details) - Director [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Restricted Stock Award | 12,716 | 12,353 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 468 | $ 1,401 | $ 1,304 |
Tax benefit (cost) | $ (32) | $ (3) | $ 212 |
Shareholders' Protection Rig101
Shareholders' Protection Rights Agreement Shareholders' Protection Rights Agreement (Details) | Jun. 30, 2016$ / sharesshares |
Shareholders' Protection Rights Agreement [Line Items] | |
Percent of common shares acquired entitling all holders of Shareholders' Right to purchase one common share | 15.00% |
Shareholders' Protection Rights Agreement [Member] | |
Shareholders' Protection Rights Agreement [Line Items] | |
Common shares reserved for future issuance | shares | 134,012,232 |
Holders of Shareholders' Rights would be entitled to purchase one common share, exercise price | $ / shares | $ 160 |
Research and Development (Detai
Research and Development (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Research and Development [Abstract] | |||
Research and development costs | $ 359,796 | $ 403,085 | $ 410,132 |
Costs incurred in connection with research and development contracts | $ 57,999 | $ 57,799 | $ 55,916 |
Financial Instruments Available
Financial Instruments Available-for-Sale Investments - Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Less than one year, amortized cost | $ 29,960 | $ 13,561 |
Less than one year, fair value | 29,990 | 13,555 |
One to three years, amortized cost | 144,100 | 188,539 |
One to three years, fair value | 144,625 | 188,057 |
Over three years, amortized cost | 34,276 | 15,673 |
Over three years, fair value | $ 34,275 | $ 15,587 |
Carrying Value and Fair Value o
Carrying Value and Fair Value of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying value of long-term debt, excluding leases | $ 2,733,140 | $ 2,947,102 |
Fair value of long-term debt, excluding leases | $ 3,133,989 | $ 3,107,735 |
Summary of the Location and Fai
Summary of the Location and Fair Value of Derivative Financial Instruments Reported in the Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Currency Swap [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Investment Hedge | $ 24,771 | $ 17,994 |
Costless Collar Contracts | Non-trade and Notes Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash flows hedges | 0 | 5,627 |
Costless Collar Contracts | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash flow hedges | $ 8,368 | $ 1,970 |
Gains (Losses) on Derivative Fi
Gains (Losses) on Derivative Financial Instruments (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Currency Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative And Non Derivative Instruments, Gain (Loss) Recognized In Accumulated Other Comprehensive (Loss) | $ 6,869 | $ 39,406 |
Foreign Denominated Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative And Non Derivative Instruments, Gain (Loss) Recognized In Accumulated Other Comprehensive (Loss) | $ (8,180) | $ 37,871 |
Financial Instruments Financial
Financial Instruments Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 13,028 | $ 1,970 |
Derivatives | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 13,028 | 1,970 |
Derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,296 | |
Equity Securities | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,296 | |
Equity Securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Equity Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 15,764 | 60,512 |
Government bonds | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 15,764 | 60,512 |
Government bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Government bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 184,380 | 145,717 |
Corporate Bonds | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 184,380 | 145,717 |
Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Corporate Bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Asset-backed and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 8,746 | 10,970 |
Asset-backed and mortgage-backed securities | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Asset-backed and mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 8,746 | 10,970 |
Asset-backed and mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 25,303 | 23,598 |
Derivatives | Quoted Prices In Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 25,303 | 23,598 |
Derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Investments measured at net asset value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 361,770 | $ 187,534 |
Contingencies (Detail)
Contingencies (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Loss Contingencies [Line Items] | |
Reserve for environmental matters | $ 15,152 |
Environmental Issue | |
Loss Contingencies [Line Items] | |
Largest range for any one site | 7,600 |
Minimum | Environmental Issue | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | 15,200 |
Maximum | Environmental Issue | |
Loss Contingencies [Line Items] | |
Estimated total liability for environmental sites | $ 80,600 |
Quarterly Information (Detail)
Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,957,150 | $ 2,828,665 | $ 2,705,590 | $ 2,869,348 | $ 3,144,508 | $ 3,162,311 | $ 3,134,993 | $ 3,269,932 | $ 11,360,753 | $ 12,711,744 | $ 13,215,971 |
Gross Profit | 684,695 | 619,264 | 564,966 | 668,444 | 723,728 | 789,295 | 733,409 | 810,067 | 2,537,369 | 3,056,499 | 3,027,744 |
Net Income Attributable to Common Shareholders | $ 241,796 | $ 187,084 | $ 182,982 | $ 194,978 | $ 179,454 | $ 285,345 | $ 267,252 | $ 280,089 | $ 806,840 | $ 1,012,140 | $ 1,041,048 |
Diluted earnings per share | $ 1.77 | $ 1.37 | $ 1.33 | $ 1.41 | $ 1.27 | $ 2.02 | $ 1.80 | $ 1.85 | $ 5.89 | $ 6.97 | $ 6.87 |