Parker-Hannifin (PH) 10-Q 2 May 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Mar. 31, 2018shares
Document and Entity Information [Abstract]
Entity Registrant Name	PARKER HANNIFIN CORP
Entity Central Index Key	76,334
Trading Symbol	PH
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Outstanding (in shares)	132,959,431

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 3,749,591	$ 3,119,139	$ 10,484,915	$ 8,533,074
Cost of sales	2,825,008	2,383,790	7,926,956	6,534,280
Selling, general and administrative expenses	420,595	392,036	1,234,729	1,051,583
Interest expense	54,145	42,057	160,833	109,649
Other (income), net	(19,984)	(13,807)	(41,953)	(90,468)
Income before income taxes	469,827	315,063	1,204,350	928,030
Income taxes	103,697	76,216	496,363	237,545
Net income	366,130	238,847	707,987	690,485
Less: Noncontrolling interest in subsidiaries' earnings	141	174	442	378
Net income attributable to common shareholders	$ 365,989	$ 238,673	$ 707,545	$ 690,107
Earnings per share attributable to common shareholders:
Basic (in USD per share)	$ 2.75	$ 1.79	$ 5.32	$ 5.17
Diluted (in USD per share)	2.70	1.75	5.22	5.09
Cash dividends per common share (in USD per share)	$ 0.66	$ 0.66	$ 1.98	$ 1.92

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 366,130	$ 238,847	$ 707,987	$ 690,485
Less: Noncontrolling interests in subsidiaries' earnings	141	174	442	378
Net income attributable to common shareholders	365,989	238,673	707,545	690,107
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment and other	93,567	83,100	194,836	(170,634)
Retirement benefits plan activity	25,218	35,512	80,266	105,847
Other comprehensive income (loss)	118,785	118,612	275,102	(64,787)
Less: Other comprehensive income (loss) for noncontrolling interests	95	301	(64)	281
Other comprehensive income (loss) attributable to common shareholders	118,690	118,311	275,166	(65,068)
Total comprehensive income attributable to common shareholders	$ 484,679	$ 356,984	$ 982,711	$ 625,039

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 1,089,529	$ 884,886
Marketable securities and other investments	101,206	39,318
Trade accounts receivable, net	2,146,408	1,930,751
Non-trade and notes receivable	328,111	254,987
Inventories	1,732,759	1,549,494
Prepaid expenses	165,083	120,282
Total current assets	5,563,096	4,779,718
Plant and equipment	5,363,208	5,186,748
Less: Accumulated depreciation	3,421,409	3,249,456
Plant and equipment, net	1,941,799	1,937,292
Deferred income taxes	36,935	36,057
Investments and other assets	814,637	842,475
Intangible assets, net	2,134,659	2,307,484
Goodwill	5,746,358	5,586,878
Total assets	16,237,484	15,489,904
Current liabilities:
Notes payable and long-term debt payable within one year	1,055,527	1,008,465
Accounts payable, trade	1,376,457	1,300,496
Accrued payrolls and other compensation	391,994	435,911
Accrued domestic and foreign taxes	179,929	153,137
Other accrued liabilities	504,610	497,851
Total current liabilities	3,508,517	3,395,860
Long-term debt	4,818,570	4,861,895
Pensions and other postretirement benefits	1,351,106	1,406,082
Deferred income taxes	113,799	221,790
Other liabilities	569,209	336,931
Total liabilities	10,361,201	10,222,558
Shareholders’ equity:
Serial preferred stock, $.50 par value; authorized 3,000,000 shares; none issued	0	0
Common stock, $.50 par value; authorized 600,000,000 shares; issued 181,046,128 shares at March 31 and June 30	90,523	90,523
Additional capital	528,197	543,879
Retained earnings	11,373,676	10,930,348
Accumulated other comprehensive (loss)	(1,649,038)	(1,924,204)
Treasury shares, at cost; 48,086,697 shares at March 31 and 47,854,475 shares at June 30	(4,473,005)	(4,378,897)
Total shareholders’ equity	5,870,353	5,261,649
Noncontrolling interests	5,930	5,697
Total equity	5,876,283	5,267,346
Total liabilities and equity	$ 16,237,484	$ 15,489,904

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - $ / shares	Mar. 31, 2018	Jun. 30, 2017
Statement of Financial Position [Abstract]
Serial preferred stock, par value (in USD per share)	$ 0.50	$ 0.50
Serial preferred stock, authorized (in shares)	3,000,000	3,000,000
Serial preferred stock, issued (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.50	$ 0.50
Common stock, authorized (in shares)	600,000,000	600,000,000
Common stock, issued (in shares)	181,046,128	181,046,128
Treasury shares (in shares)	48,086,697	47,854,475

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 707,987	$ 690,485
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	179,412	142,959
Amortization	171,904	93,584
Share incentive plan compensation	89,571	60,916
Deferred income tax (benefit) expense	(89,032)	43,530
Foreign currency transaction loss	16,544	6,204
(Gain) loss on sale of plant and equipment	(26,767)	513
(Gain) on sale of businesses	0	(42,994)
(Gain) on sale of marketable securities	(1)	(1,032)
Loss on sale and impairment of investments	33,759	0
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, net	(225,447)	(45,442)
Inventories	(144,669)	(91,170)
Prepaid expenses	(43,202)	(1,329)
Other assets	(21,292)	1,384
Accounts payable, trade	40,688	101,143
Accrued payrolls and other compensation	(50,761)	(46,755)
Accrued domestic and foreign taxes	19,928	28,823
Other accrued liabilities	(10,594)	(21,686)
Pensions and other postretirement benefits	41,097	(140,154)
Other liabilities	215,700	10,314
Net cash provided by operating activities	904,825	789,293
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions (net of cash acquired of $157,426 in 2017)	0	(4,067,755)
Capital expenditures	(194,307)	(145,236)
Proceeds from sale of plant and equipment	64,203	8,452
Proceeds from sale of businesses	0	85,610
Purchases of marketable securities and other investments	(78,488)	(451,561)
Maturities of marketable securities and other investments	20,260	1,264,721
Other	5,350	(2,590)
Net cash (used in) investing activities	(182,982)	(3,308,359)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	3,624	2,095
Payments for common shares	(202,985)	(264,343)
(Payments for) proceeds from notes payable, net	(53,923)	447,799
Proceeds from long-term borrowings	1,602	2,614,756
Payments for long-term borrowings	(19,514)	(374,794)
Dividends	(264,332)	(257,161)
Net cash (used in) provided by financing activities	(535,528)	2,168,352
Effect of exchange rate changes on cash	18,328	(51,376)
Net increase (decrease) in cash and cash equivalents	204,643	(402,090)
Cash and cash equivalents at beginning of year	884,886	1,221,653
Cash and cash equivalents at end of period	$ 1,089,529	$ 819,563

Consolidated Statement of Cash7

Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Cash Flows [Abstract]
Acquisitions, cash acquired	$ 0	$ 157,426

Business Segment Information

Business Segment Information	9 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Business Segment Information	The Company operates in two reportable business segments: Diversified Industrial and Aerospace Systems. Diversified Industrial - This segment produces a broad range of motion-control and fluid systems and components used in all kinds of manufacturing, packaging, processing, transportation, mobile construction, refrigeration and air conditioning, agricultural and military machinery and equipment and has a significant portion of international operations. Sales are made directly to major original equipment manufacturers (OEMs) and through a broad distribution network to smaller OEMs and the aftermarket. Aerospace Systems - This segment designs and manufactures products and provides aftermarket support for commercial, business jet, military and general aviation aircraft, missile and spacecraft markets. The Aerospace Systems Segment provides a full range of systems and components for hydraulic, pneumatic and fuel applications. Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Net sales Diversified Industrial: North America $ 1,761,845 $ 1,413,302 $ 4,921,952 $ 3,701,326 International 1,389,332 1,128,886 3,883,675 3,149,777 Aerospace Systems 598,414 576,951 1,679,288 1,681,971 Total net sales $ 3,749,591 $ 3,119,139 $ 10,484,915 $ 8,533,074 Segment operating income Diversified Industrial: North America $ 280,694 $ 227,419 $ 762,528 $ 612,043 International 205,251 152,995 561,848 417,708 Aerospace Systems 106,653 79,967 271,235 225,764 Total segment operating income 592,598 460,381 1,595,611 1,255,515 Corporate general and administrative expenses 54,138 45,747 142,430 120,707 Income before interest expense and other expense 538,460 414,634 1,453,181 1,134,808 Interest expense 54,145 42,057 160,833 109,649 Other expense 14,488 57,514 87,998 97,129 Income before income taxes $ 469,827 $ 315,063 $ 1,204,350 $ 928,030

Management representation

Management representation	9 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Management representation	Management representation In the opinion of the management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company's financial position as of March 31, 2018 , the results of operations for the three and nine months ended March 31, 2018 and 2017 and cash flows for the nine months then ended. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2017 Annual Report on Form 10-K. Interim period results are not necessarily indicative of the results to be expected for the full fiscal year. The Company has evaluated subsequent events that have occurred through the date these financial statements were issued. In April 2018, the Company completed the divestiture of certain of its aerospace filtration businesses, which were part of the Diversified Industrial Segment. The operating results and net assets of the businesses divested were immaterial to the Company's consolidated results of operations and financial position. The Company expects to recognize an after-tax loss on the divestiture of approximately $48 million during the fourth quarter of fiscal 2018. A significant portion of the loss is attributable to tax expense resulting from a tax gain recognized with this transaction.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (TCJ Act) reduction of the U.S. federal corporate income tax rate. The amendments also require certain disclosures about stranded tax effects. ASU 2018-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted in any period after the issuance of the update. The amendments in this update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJ Act is recognized. The Company has not yet determined the effect that ASU 2018-02 will have on its financial statements. In August 2017, the FASB issued ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 provides targeted improvements to Topic 815 accounting for hedging activities by expanding an entity’s ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. ASU 2017-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early application is permitted in any interim period after issuance of the update. ASU 2017-12 should be applied using a modified retrospective approach for cash flow and net investment hedge relationships that exist on the date of adoption, and prospectively for presentation and disclosure requirements. The Company has not yet determined the effect that ASU 2017-12 will have on its financial statements. In May 2017, the FASB issued ASU 2017-09, "Scope of Modification Accounting." ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as fair value of the original award; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. During the first quarter of fiscal 2018, the Company adopted ASU 2017-09. The adoption of ASU 2017-09 did not affect the Company's financial statements as there were no modifications of any share-based awards during the first nine months of fiscal 2018. 2. New Accounting Pronouncements, cont'd In March 2017, the FASB issued ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 also provides that only the service cost component is eligible for capitalization, when applicable. ASU 2017-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued. ASU 2017-07 should be applied retrospectively for the income statement presentation of net periodic pension cost and net periodic postretirement benefit cost and prospectively, on or after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost. The Company has not yet determined the effect that ASU 2017-07 will have on its financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. During the first quarter of fiscal 2018, the Company adopted ASU 2017-04. The adoption of ASU 2017-04 did not affect the Company's financial statements as there were no instances of a reporting units carrying value exceeding its fair value for any goodwill impairment tests performed during the first nine months of fiscal 2018. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-16 provides that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in ASU 2016-16 eliminate the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted. The Company currently estimates that the adoption of ASU 2016-16 will eliminate a $58 million income tax deferred charge recorded in the Consolidated Balance Sheet as of March 31, 2018. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides specific guidance on several cash flow classification issues to reduce diversity in practice in how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and should be applied using a retrospective transition method to each period presented. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-15 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-13 will have on its financial statements. In 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 2. New Accounting Pronouncements, cont'd 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 May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company currently anticipates using the modified retrospective method to adopt ASU 2014-09. The Company is still in the process of quantifying the impact of the adoption of ASU 2014-09, but at this time the Company does not expect the adoption to have a material impact on its financial statements.

Earnings per share

Earnings per share	9 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings per share	Earnings per share The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended March 31, 2018 and 2017 . Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Numerator: Net income attributable to common shareholders $ 365,989 $ 238,673 $ 707,545 $ 690,107 Denominator: Basic - weighted average common shares 133,032,431 133,232,378 133,107,321 133,410,622 Increase in weighted average common shares from dilutive effect of equity-based awards 2,735,849 2,870,596 2,554,064 2,116,573 Diluted - weighted average common shares, assuming exercise of equity-based awards 135,768,280 136,102,974 135,661,385 135,527,195 Basic earnings per share $ 2.75 $ 1.79 $ 5.32 $ 5.17 Diluted earnings per share $ 2.70 $ 1.75 $ 5.22 $ 5.09 For the three months ended March 31, 2018 and 2017 , 197,560 and 717 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the nine months ended March 31, 2018 and 2017 , 471,008 and 1,608,245 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

Share repurchase program

Share repurchase program	9 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Share repurchase program	Share repurchase program The Company has a program to repurchase its common shares. On October 22, 2014, the Board of Directors of the Company approved an increase in the overall number of shares authorized for repurchase under the program so that, beginning on such date, the aggregate number of shares authorized for repurchase was 35 million . There is no limitation on the number of shares that can be repurchased in a fiscal year. There is no expiration date for this program. Repurchases may be funded primarily from operating cash flows and commercial paper borrowings and the shares are initially held as treasury shares. During the three-month period ended March 31, 2018 , the Company repurchased 263,179 shares at an average price, including commissions, of $189.98 per share. During the nine -month period ended March 31, 2018 , the Company repurchased 839,717 at an average price, including commissions, of $178.63 per share.

Trade accounts receivable, net

Trade accounts receivable, net	9 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Trade accounts receivable, net	Trade accounts receivable, net Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible due to the insolvency of the debtor. Allowance for doubtful accounts was $10,879 and $14,336 at March 31, 2018 and June 30, 2017 , respectively. Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 163,814 $ 118,351 Accounts receivable, other 164,297 136,636 Total $ 328,111 $ 254,987

Non-trade and notes receivable

Non-trade and notes receivable	9 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Non-trade and notes receivable	Trade accounts receivable, net Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible due to the insolvency of the debtor. Allowance for doubtful accounts was $10,879 and $14,336 at March 31, 2018 and June 30, 2017 , respectively. Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 163,814 $ 118,351 Accounts receivable, other 164,297 136,636 Total $ 328,111 $ 254,987

Inventories

Inventories	9 Months Ended
	Mar. 31, 2018
Inventory, Net [Abstract]
Inventories	Inventories The inventories caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Finished products $ 719,902 $ 642,788 Work in process 811,898 723,133 Raw materials 200,959 183,573 Total $ 1,732,759 $ 1,549,494

Business realignment charges

Business realignment charges	9 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Business realignment charges	Business realignment charges The Company incurred business realignment charges in fiscal 2018 and fiscal 2017 . The Company also incurred acquisition integration costs in fiscal 2018 related to the fiscal 2017 acquisition of CLARCOR, Inc. Business realignment charges and acquisition integration costs presented in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Diversified Industrial $ 15,643 $ 14,605 $ 53,590 $ 32,164 Aerospace Systems 1,815 1,713 3,270 2,796 Work force reductions in connection with such business realignment charges and acquisition integration costs in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Diversified Industrial 110 312 1,375 642 Aerospace Systems 65 52 121 89 The business realignment charges primarily consist of severance costs related to actions taken under the Company's simplification initiative aimed at reducing organizational and process complexity, as well as plant closures, with the majority of the charges incurred in Europe and North America. The Company believes the realignment actions will positively impact future results of operations but will not have a material effect on liquidity and sources and uses of capital. The business realignment charges and acquisition integration costs are presented in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Cost of sales $ 9,511 $ 10,342 $ 32,283 $ 24,968 Selling, general and administrative expenses 7,723 5,976 24,353 9,992 Other (income), net 224 — 224 — As of March 31, 2018 , approximately $23 million in severance payments had been made relating to business realignment charges incurred during fiscal 2018 , the remainder of which are expected to be paid by March 31, 2019 . Severance payments relating to prior-year business realignment actions are being made as required. Remaining severance payments related to current-year and prior-year business realignment actions of approximately $27 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 business realignment actions described above, the timing and amount of which are not known at this time.

Equity

Equity	9 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Equity	Equity Changes in equity for the three months ended March 31, 2018 and 2017 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2017 $ 5,513,401 $ 5,809 $ 5,519,210 Net income 365,989 141 366,130 Other comprehensive income 118,690 95 118,785 Dividends paid (88,030 ) (115 ) (88,145 ) Stock incentive plan activity 10,303 — 10,303 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2018 $ 5,870,353 $ 5,930 $ 5,876,283 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2016 $ 4,527,709 $ 3,269 $ 4,530,978 Net income 238,673 174 238,847 Other comprehensive income 118,311 301 118,612 Dividends paid (88,171 ) — (88,171 ) Stock incentive plan activity (4,383 ) — (4,383 ) Acquisition activity — 1,843 1,843 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726 Changes in equity for the nine months ended March 31, 2018 and 2017 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2017 $ 5,261,649 $ 5,697 $ 5,267,346 Net income 707,545 442 707,987 Other comprehensive income (loss) 275,166 (64 ) 275,102 Dividends paid (264,217 ) (115 ) (264,332 ) Stock incentive plan activity 40,210 — 40,210 Acquisition activity — (30 ) (30 ) Shares purchased at cost (150,000 ) — (150,000 ) Balance at March 31, 2018 $ 5,870,353 $ 5,930 $ 5,876,283 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2016 $ 4,575,255 $ 3,423 $ 4,578,678 Net income 690,107 378 690,485 Other comprehensive income (loss) (65,068 ) 281 (64,787 ) Dividends paid (256,823 ) (338 ) (257,161 ) Stock incentive plan activity 13,360 — 13,360 Acquisition activity — 1,843 1,843 Shares purchased at cost (214,692 ) — (214,692 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726 9. Equity, cont'd Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the nine months ended March 31, 2018 and 2017 are as follows: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2017 $ (925,342 ) $ (998,862 ) $ (1,924,204 ) Other comprehensive income before reclassifications 194,900 — 194,900 Amounts reclassified from accumulated other comprehensive (loss) — 80,266 80,266 Balance at March 31, 2018 $ (730,442 ) $ (918,596 ) $ (1,649,038 ) Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) Other comprehensive (loss) before reclassifications (169,883 ) — (169,883 ) Amounts reclassified from accumulated other comprehensive (loss) (1,032 ) 105,847 104,815 Balance at March 31, 2017 $ (1,015,036 ) $ (1,277,797 ) $ (2,292,833 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and nine months ended March 31, 2018 and 2017 are as follows: Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2018 March 31, 2018 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,608 ) $ (5,291 ) See Note 11 Recognized actuarial loss (35,606 ) (110,566 ) See Note 11 Total before tax (37,214 ) (115,857 ) Tax benefit 11,996 35,591 Income taxes Net of tax $ (25,218 ) $ (80,266 ) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2017 March 31, 2017 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,735 ) $ (5,202 ) See Note 11 Recognized actuarial loss (53,727 ) (159,946 ) See Note 11 Total before tax (55,462 ) (165,148 ) Tax benefit 19,950 59,301 Income taxes Net of tax $ (35,512 ) $ (105,847 )

Goodwill and intangible assets

Goodwill and intangible assets	9 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and intangible assets	Goodwill and intangible assets The changes in the carrying amount of goodwill for the nine months ended March 31, 2018 are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance at June 30, 2017 $ 5,488,236 $ 98,642 $ 5,586,878 Acquisitions 36,715 — 36,715 Foreign currency translation and other 122,742 23 122,765 Balance at March 31, 2018 $ 5,647,693 $ 98,665 $ 5,746,358 Acquisitions represent adjustments to purchase price allocations during the measurement period subsequent to the applicable acquisition dates. The impact of purchase price allocation adjustments made during the first nine months of fiscal 2018 on the Company's results of operations and financial position were immaterial. Intangible assets are amortized on the straight-line method over their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets: March 31, 2018 June 30, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 269,935 $ 116,041 $ 254,049 $ 100,860 Trademarks 562,788 226,902 553,691 200,413 Customer lists and other 2,561,179 916,300 2,566,983 765,966 Total $ 3,393,902 $ 1,259,243 $ 3,374,723 $ 1,067,239 Total intangible amortization expense for the nine months ended March 31, 2018 was $167,317 . The estimated amortization expense for the five years ending June 30, 2018 through 2022 is $215,358 , $205,011 , $196,150 , $187,346 and $151,183 , respectively. Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No such events or circumstances occurred during the nine months ended March 31, 2018 .

Retirement benefits

Retirement benefits	9 Months Ended
	Mar. 31, 2018
Retirement Benefits [Abstract]
Retirement benefits	Retirement benefits Net pension benefit cost recognized included the following components: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Service cost $ 20,711 $ 23,632 $ 62,011 $ 70,971 Interest cost 36,027 31,734 107,851 93,202 Expected return on plan assets (64,437 ) (59,480 ) (192,963 ) (177,277 ) Amortization of prior service cost 1,575 1,702 5,190 5,101 Amortization of net actuarial loss 36,278 52,805 110,428 158,557 Amortization of initial net obligation 4 4 14 14 Net pension benefit cost $ 30,158 $ 50,397 $ 92,531 $ 150,568 During the three months ended March 31, 2018 and 2017 , the Company recognized $(100) and $1,034 , respectively, in (income) expense related to other postretirement benefits. During the nine months ended March 31, 2018 and 2017 , the Company recognized $2,080 and $3,266 , respectively, in expense related to other postretirement benefits.

Income taxes

Income taxes	9 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income taxes	Income taxes On December 22, 2017, the TCJ Act was enacted into law. The TCJ Act significantly reforms the Internal Revenue Code of 1986, as amended, by among other things, establishing a flat corporate income tax rate of 21 percent and creating a territorial tax system (with a one-time transition tax imposed on previously unremitted foreign earnings and profits). The Securities and Exchange Commission staff issued Staff Accounting Bulletin 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the TCJ Act. SAB 118 provides a measurement period that should not extend beyond one year from the TCJ Act's enactment date for companies to complete the applicable accounting under Topic 740. In accordance with SAB 118, and based on the information available as of December 31, 2017, the Company recorded a net provisional discrete income tax cost of $225 million as a result of the TCJ Act being enacted during the second quarter of fiscal 2018. The reduction in the U.S. corporate tax rate under the TCJ Act required a one-time revaluation of certain tax-related assets and liabilities to reflect their value at the reduced corporate tax rate of 21 percent , which resulted in a decrease in income tax expense for the nine months ended March 31, 2018 of approximately $62 million . The one-time transition tax on previously unremitted foreign earnings and profits resulted in an increase in income tax expense for the nine months ended March 31, 2018 of $287 million . The Company intends to make the election to pay the one-time transition tax over eight years . The amounts recorded for both the revaluation of certain tax-related assets and liabilities and the one-time transition tax on previously unremitted foreign earnings and profits have been recorded as reasonable estimates based on the Company's analysis. No incremental adjustments have been made to these estimates during the three months ended March 31, 2018, as available information has not significantly changed. The Company continues to gather additional information and interpret the law to complete the accounting for these items. Certain provisions of the TCJ Act will impact the Company starting in fiscal 2019. These provisions include, but are not limited to, the creation of the base erosion anti-abuse tax, a general limitation of U.S. federal income taxes on dividends from foreign subsidiaries, a new provision designed to tax global intangible low-taxed income, and the repeal of the domestic production activities deduction. The Company continues to evaluate the future impacts of these provisions and, as of March 31, 2018, has not recorded any impact of the TCJ Act aside from those previously mentioned. The Company and its subsidiaries file income tax returns in the United States and in various foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is open to assessment of its federal income tax returns by the U.S. Internal Revenue Service for fiscal years after 2011, and its state and local returns for fiscal years after 2011. The Company is also open to assessment for foreign jurisdictions for fiscal years after 2007. Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts reflected in the financial statements. As of March 31, 2018 , the Company had gross unrecognized tax benefits of $156,978 . The total amount of gross unrecognized tax benefits that, if recognized, would affect the effective tax rate was $102,871 . If recognized, a significant portion of the gross unrecognized tax benefits would be offset against an asset currently recorded in the Consolidated Balance Sheet. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, is $19,076 . It is reasonably possible that within the next 12 months the amount of gross unrecognized tax benefits could be reduced by up to approximately $120,000 as a result of the revaluation of existing uncertain tax positions arising from developments in the examination process or the closure of tax statutes. Any increase in the amount of gross unrecognized tax benefits within the next 12 months is expected to be insignificant.

Financial instruments

Financial instruments	9 Months Ended
	Mar. 31, 2018
Investments, All Other Investments [Abstract]
Financial instruments	Financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, marketable securities and other investments, accounts receivable and long-term investments as well as obligations under accounts payable, trade, notes payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, accounts receivable, accounts payable, trade and notes payable approximate fair value. Marketable securities and other investments include deposits, which are recorded at cost, and investments classified as available-for-sale, which are recorded at fair value with unrealized gains and losses recorded in accumulated other comprehensive (loss). Gross unrealized gains and losses were not material as of March 31, 2018 and June 30, 2017 . There were no facts or circumstances that indicated the unrealized losses were other than temporary. 13. Financial instruments, cont'd The contractual maturities of available-for-sale investments at March 31, 2018 and June 30, 2017 are as follows: March 31, 2018 June 30, 2017 Amortized Cost Fair Value Amortized Fair Less than one year $ 1,121 $ 1,122 $ 690 $ 693 One to three years 8,736 8,806 7,865 7,924 Above three years 466 467 2,108 2,113 Actual maturities of available-for-sale investments may differ from their contractual maturities as the Company has the ability to liquidate the available-for-sale investments after giving appropriate notice to the issuer. The carrying value of long-term debt and estimated fair value of long-term debt are as follows: March 31, June 30, Carrying value of long-term debt $ 5,437,267 $ 5,383,343 Estimated fair value of long-term debt 5,619,917 5,645,529 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 EUR 700 million aggregate principal amount of Senior Notes due 2025 have been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Senior Notes due 2025 into U.S. dollars is recorded in accumulated other comprehensive (loss) and remains there until the underlying net investment is sold or substantially liquidated. Derivative financial instruments are recognized on the Consolidated Balance Sheet as either assets or liabilities and are measured at fair value. The following summarizes the location and fair value of significant derivative financial instruments reported in the Consolidated Balance Sheet as of March 31, 2018 and June 30, 2017 : Balance Sheet Caption March 31, June 30, Net investment hedges Cross-currency swap contracts Other assets $ — $ 15,135 Cross-currency swap contracts Other liabilities 10,403 — Cash flow hedges Costless collar contracts Non-trade and notes receivable 1,850 430 Costless collar contracts Other accrued liabilities 3,557 2,027 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. 13. Financial instruments, cont'd Gains or losses on derivatives that are not hedges are adjusted to fair value through the cost of sales caption in the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through accumulated other comprehensive (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings. The cross-currency swap contracts have been designated as hedging instruments. The costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. Gains or losses on derivative financial instruments that were recorded in the Consolidated Statement of Income for the three and nine months ended March 31, 2018 and 2017 were not material. Gain (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Cross-currency swap contracts $ (13,374 ) $ (1,278 ) $ (22,672 ) $ 3,741 Foreign denominated debt (15,423 ) (11,009 ) (43,150 ) (11,005 ) There was no ineffectiveness of the cross-currency swap contracts or foreign denominated debt, nor was any portion of these financial instruments excluded from the effectiveness testing, during the nine months ended March 31, 2018 and 2017 . A summary of financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2018 and June 30, 2017 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs March 31, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 3,682 $ 3,682 $ — $ — Corporate bonds 6,026 6,026 — — Asset-backed and mortgage-backed securities 4,369 — 4,369 — Derivatives 2,098 — 2,098 — Investments measured at net asset value 7,614 Liabilities: Derivatives 15,495 — 15,495 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2017 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 3,008 $ 3,008 $ — $ — Corporate bonds 5,968 5,968 — — Asset-backed and mortgage-backed securities 4,762 — 4,762 — Derivatives 16,496 — 16,496 — Investments measured at net asset value 7,073 Liabilities: Derivatives 16,064 — 16,064 — 13. Financial instruments, cont'd The fair values of the equity securities, corporate bonds and asset-backed and mortgage-backed securities are determined using the closing market price reported in the active market in which the fund is traded or the market price for similar assets that are traded in an active market. Derivatives consist of forward exchange, costless collar and cross-currency swap contracts, the fair values of which are calculated using market observable inputs including both spot and forward prices for the same underlying currencies. The calculation of fair value of the cross-currency swap contracts also utilizes a present value cash flow model that has been adjusted to reflect the credit risk of either the Company or the counterparty. Investments measured at net asset value primarily consist of investments in fixed income mutual funds, which are measured at fair value using the net asset value per share practical expedient. These investments have not been categorized in the fair value hierarchy. The Company has the ability to liquidate these investments after giving appropriate notice to the issuer. The primary investment objective for all investments is the preservation of principal and liquidity while earning income. There are no other financial assets or financial liabilities that are marked to market on a recurring basis. Fair values are transferred between levels of the fair value hierarchy when facts and circumstances indicate that a change in the method of estimating the fair value of a financial asset or financial liability is warranted.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	9 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (TCJ Act) reduction of the U.S. federal corporate income tax rate. The amendments also require certain disclosures about stranded tax effects. ASU 2018-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted in any period after the issuance of the update. The amendments in this update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJ Act is recognized. The Company has not yet determined the effect that ASU 2018-02 will have on its financial statements. In August 2017, the FASB issued ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 provides targeted improvements to Topic 815 accounting for hedging activities by expanding an entity’s ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. ASU 2017-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early application is permitted in any interim period after issuance of the update. ASU 2017-12 should be applied using a modified retrospective approach for cash flow and net investment hedge relationships that exist on the date of adoption, and prospectively for presentation and disclosure requirements. The Company has not yet determined the effect that ASU 2017-12 will have on its financial statements. In May 2017, the FASB issued ASU 2017-09, "Scope of Modification Accounting." ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as fair value of the original award; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. During the first quarter of fiscal 2018, the Company adopted ASU 2017-09. The adoption of ASU 2017-09 did not affect the Company's financial statements as there were no modifications of any share-based awards during the first nine months of fiscal 2018. 2. New Accounting Pronouncements, cont'd In March 2017, the FASB issued ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 also provides that only the service cost component is eligible for capitalization, when applicable. ASU 2017-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued. ASU 2017-07 should be applied retrospectively for the income statement presentation of net periodic pension cost and net periodic postretirement benefit cost and prospectively, on or after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost. The Company has not yet determined the effect that ASU 2017-07 will have on its financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. During the first quarter of fiscal 2018, the Company adopted ASU 2017-04. The adoption of ASU 2017-04 did not affect the Company's financial statements as there were no instances of a reporting units carrying value exceeding its fair value for any goodwill impairment tests performed during the first nine months of fiscal 2018. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-16 provides that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in ASU 2016-16 eliminate the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted. The Company currently estimates that the adoption of ASU 2016-16 will eliminate a $58 million income tax deferred charge recorded in the Consolidated Balance Sheet as of March 31, 2018. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides specific guidance on several cash flow classification issues to reduce diversity in practice in how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and should be applied using a retrospective transition method to each period presented. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-15 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. The Company has not yet determined the effect that ASU 2016-13 will have on its financial statements. In 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 2. New Accounting Pronouncements, cont'd 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 May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company currently anticipates using the modified retrospective method to adopt ASU 2014-09. The Company is still in the process of quantifying the impact of the adoption of ASU 2014-09, but at this time the Company does not expect the adoption to have a material impact on its financial statements.

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of segment reporting information	Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Net sales Diversified Industrial: North America $ 1,761,845 $ 1,413,302 $ 4,921,952 $ 3,701,326 International 1,389,332 1,128,886 3,883,675 3,149,777 Aerospace Systems 598,414 576,951 1,679,288 1,681,971 Total net sales $ 3,749,591 $ 3,119,139 $ 10,484,915 $ 8,533,074 Segment operating income Diversified Industrial: North America $ 280,694 $ 227,419 $ 762,528 $ 612,043 International 205,251 152,995 561,848 417,708 Aerospace Systems 106,653 79,967 271,235 225,764 Total segment operating income 592,598 460,381 1,595,611 1,255,515 Corporate general and administrative expenses 54,138 45,747 142,430 120,707 Income before interest expense and other expense 538,460 414,634 1,453,181 1,134,808 Interest expense 54,145 42,057 160,833 109,649 Other expense 14,488 57,514 87,998 97,129 Income before income taxes $ 469,827 $ 315,063 $ 1,204,350 $ 928,030

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per share	The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended March 31, 2018 and 2017 . Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Numerator: Net income attributable to common shareholders $ 365,989 $ 238,673 $ 707,545 $ 690,107 Denominator: Basic - weighted average common shares 133,032,431 133,232,378 133,107,321 133,410,622 Increase in weighted average common shares from dilutive effect of equity-based awards 2,735,849 2,870,596 2,554,064 2,116,573 Diluted - weighted average common shares, assuming exercise of equity-based awards 135,768,280 136,102,974 135,661,385 135,527,195 Basic earnings per share $ 2.75 $ 1.79 $ 5.32 $ 5.17 Diluted earnings per share $ 2.70 $ 1.75 $ 5.22 $ 5.09

Non-trade and notes receivable

Non-trade and notes receivable (Tables)	9 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Schedule of non-trade and notes receivable	The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 163,814 $ 118,351 Accounts receivable, other 164,297 136,636 Total $ 328,111 $ 254,987

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Mar. 31, 2018
Inventory, Net [Abstract]
Schedule of inventories	The inventories caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Finished products $ 719,902 $ 642,788 Work in process 811,898 723,133 Raw materials 200,959 183,573 Total $ 1,732,759 $ 1,549,494

Business realignment charges (T

Business realignment charges (Tables)	9 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Schedule of business realignment charges	The business realignment charges and acquisition integration costs are presented in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Cost of sales $ 9,511 $ 10,342 $ 32,283 $ 24,968 Selling, general and administrative expenses 7,723 5,976 24,353 9,992 Other (income), net 224 — 224 — Business realignment charges and acquisition integration costs presented in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Diversified Industrial $ 15,643 $ 14,605 $ 53,590 $ 32,164 Aerospace Systems 1,815 1,713 3,270 2,796 Work force reductions in connection with such business realignment charges and acquisition integration costs in the Business Segment Information are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Diversified Industrial 110 312 1,375 642 Aerospace Systems 65 52 121 89

Equity (Tables)

Equity (Tables)	9 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of stockholders equity	Changes in equity for the nine months ended March 31, 2018 and 2017 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2017 $ 5,261,649 $ 5,697 $ 5,267,346 Net income 707,545 442 707,987 Other comprehensive income (loss) 275,166 (64 ) 275,102 Dividends paid (264,217 ) (115 ) (264,332 ) Stock incentive plan activity 40,210 — 40,210 Acquisition activity — (30 ) (30 ) Shares purchased at cost (150,000 ) — (150,000 ) Balance at March 31, 2018 $ 5,870,353 $ 5,930 $ 5,876,283 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at June 30, 2016 $ 4,575,255 $ 3,423 $ 4,578,678 Net income 690,107 378 690,485 Other comprehensive income (loss) (65,068 ) 281 (64,787 ) Dividends paid (256,823 ) (338 ) (257,161 ) Stock incentive plan activity 13,360 — 13,360 Acquisition activity — 1,843 1,843 Shares purchased at cost (214,692 ) — (214,692 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726 Changes in equity for the three months ended March 31, 2018 and 2017 are as follows: Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2017 $ 5,513,401 $ 5,809 $ 5,519,210 Net income 365,989 141 366,130 Other comprehensive income 118,690 95 118,785 Dividends paid (88,030 ) (115 ) (88,145 ) Stock incentive plan activity 10,303 — 10,303 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2018 $ 5,870,353 $ 5,930 $ 5,876,283 Shareholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2016 $ 4,527,709 $ 3,269 $ 4,530,978 Net income 238,673 174 238,847 Other comprehensive income 118,311 301 118,612 Dividends paid (88,171 ) — (88,171 ) Stock incentive plan activity (4,383 ) — (4,383 ) Acquisition activity — 1,843 1,843 Shares purchased at cost (50,000 ) — (50,000 ) Balance at March 31, 2017 $ 4,742,139 $ 5,587 $ 4,747,726
Schedule of accumulated other comprehensive income (loss)	Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the nine months ended March 31, 2018 and 2017 are as follows: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2017 $ (925,342 ) $ (998,862 ) $ (1,924,204 ) Other comprehensive income before reclassifications 194,900 — 194,900 Amounts reclassified from accumulated other comprehensive (loss) — 80,266 80,266 Balance at March 31, 2018 $ (730,442 ) $ (918,596 ) $ (1,649,038 ) Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2016 $ (844,121 ) $ (1,383,644 ) $ (2,227,765 ) Other comprehensive (loss) before reclassifications (169,883 ) — (169,883 ) Amounts reclassified from accumulated other comprehensive (loss) (1,032 ) 105,847 104,815 Balance at March 31, 2017 $ (1,015,036 ) $ (1,277,797 ) $ (2,292,833 )
Schedule of reclassification out of AOCI	Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and nine months ended March 31, 2018 and 2017 are as follows: Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2018 March 31, 2018 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,608 ) $ (5,291 ) See Note 11 Recognized actuarial loss (35,606 ) (110,566 ) See Note 11 Total before tax (37,214 ) (115,857 ) Tax benefit 11,996 35,591 Income taxes Net of tax $ (25,218 ) $ (80,266 ) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2017 March 31, 2017 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,735 ) $ (5,202 ) See Note 11 Recognized actuarial loss (53,727 ) (159,946 ) See Note 11 Total before tax (55,462 ) (165,148 ) Tax benefit 19,950 59,301 Income taxes Net of tax $ (35,512 ) $ (105,847 )

Goodwill and intangible assets

Goodwill and intangible assets (Tables)	9 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The changes in the carrying amount of goodwill for the nine months ended March 31, 2018 are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance at June 30, 2017 $ 5,488,236 $ 98,642 $ 5,586,878 Acquisitions 36,715 — 36,715 Foreign currency translation and other 122,742 23 122,765 Balance at March 31, 2018 $ 5,647,693 $ 98,665 $ 5,746,358
Schedule of finite-lived intangible assets by major class	The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets: March 31, 2018 June 30, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 269,935 $ 116,041 $ 254,049 $ 100,860 Trademarks 562,788 226,902 553,691 200,413 Customer lists and other 2,561,179 916,300 2,566,983 765,966 Total $ 3,393,902 $ 1,259,243 $ 3,374,723 $ 1,067,239

Retirement benefits (Tables)

Retirement benefits (Tables)	9 Months Ended
	Mar. 31, 2018
Pension Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Schedule of defined benefit plans disclosures	Net pension benefit cost recognized included the following components: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Service cost $ 20,711 $ 23,632 $ 62,011 $ 70,971 Interest cost 36,027 31,734 107,851 93,202 Expected return on plan assets (64,437 ) (59,480 ) (192,963 ) (177,277 ) Amortization of prior service cost 1,575 1,702 5,190 5,101 Amortization of net actuarial loss 36,278 52,805 110,428 158,557 Amortization of initial net obligation 4 4 14 14 Net pension benefit cost $ 30,158 $ 50,397 $ 92,531 $ 150,568

Financial instruments (Tables)

Financial instruments (Tables)	9 Months Ended
	Mar. 31, 2018
Investments, All Other Investments [Abstract]
Investments classified by contractual maturity date	The contractual maturities of available-for-sale investments at March 31, 2018 and June 30, 2017 are as follows: March 31, 2018 June 30, 2017 Amortized Cost Fair Value Amortized Fair Less than one year $ 1,121 $ 1,122 $ 690 $ 693 One to three years 8,736 8,806 7,865 7,924 Above three years 466 467 2,108 2,113
Schedule of carrying values and estimated fair values of debt instruments	The carrying value of long-term debt and estimated fair value of long-term debt are as follows: March 31, June 30, Carrying value of long-term debt $ 5,437,267 $ 5,383,343 Estimated fair value of long-term debt 5,619,917 5,645,529
Schedule of derivative instruments in statement of financial position, fair value	The following summarizes the location and fair value of significant derivative financial instruments reported in the Consolidated Balance Sheet as of March 31, 2018 and June 30, 2017 : Balance Sheet Caption March 31, June 30, Net investment hedges Cross-currency swap contracts Other assets $ — $ 15,135 Cross-currency swap contracts Other liabilities 10,403 — Cash flow hedges Costless collar contracts Non-trade and notes receivable 1,850 430 Costless collar contracts Other accrued liabilities 3,557 2,027
Schedule of derivative and non-derivative financial instruments, gain (loss) in statement of financial performance	Gain (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2018 2017 2018 2017 Cross-currency swap contracts $ (13,374 ) $ (1,278 ) $ (22,672 ) $ 3,741 Foreign denominated debt (15,423 ) (11,009 ) (43,150 ) (11,005 )
Schedule of financial assets and liabilities measured at fair value	A summary of financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2018 and June 30, 2017 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs March 31, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 3,682 $ 3,682 $ — $ — Corporate bonds 6,026 6,026 — — Asset-backed and mortgage-backed securities 4,369 — 4,369 — Derivatives 2,098 — 2,098 — Investments measured at net asset value 7,614 Liabilities: Derivatives 15,495 — 15,495 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2017 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 3,008 $ 3,008 $ — $ — Corporate bonds 5,968 5,968 — — Asset-backed and mortgage-backed securities 4,762 — 4,762 — Derivatives 16,496 — 16,496 — Investments measured at net asset value 7,073 Liabilities: Derivatives 16,064 — 16,064 —

Management representation (Deta

Management representation (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Mar. 31, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Loss on divestiture		$ 0	$ (42,994)
Diversified Industrial | Certain Aerospace Filtration Businesses | Scenario, Forecast
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Loss on divestiture	$ 48,000

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)
Segment Reporting Information
Number of reportable business segments | segment			2
Net sales	$ 3,749,591	$ 3,119,139	$ 10,484,915	$ 8,533,074
Operating income	538,460	414,634	1,453,181	1,134,808
Corporate general and administrative expenses	420,595	392,036	1,234,729	1,051,583
Interest expense	54,145	42,057	160,833	109,649
Other expense	14,488	57,514	87,998	97,129
Income before income taxes	469,827	315,063	1,204,350	928,030
Operating Segments
Segment Reporting Information
Operating income	592,598	460,381	1,595,611	1,255,515
Corporate, Non-Segment
Segment Reporting Information
Corporate general and administrative expenses	54,138	45,747	142,430	120,707
Diversified Industrial | North America | Operating Segments
Segment Reporting Information
Net sales	1,761,845	1,413,302	4,921,952	3,701,326
Operating income	280,694	227,419	762,528	612,043
Diversified Industrial | International | Operating Segments
Segment Reporting Information
Net sales	1,389,332	1,128,886	3,883,675	3,149,777
Operating income	205,251	152,995	561,848	417,708
Aerospace Systems | Operating Segments
Segment Reporting Information
Net sales	598,414	576,951	1,679,288	1,681,971
Operating income	$ 106,653	$ 79,967	$ 271,235	$ 225,764

New Accounting Pronouncements -

New Accounting Pronouncements - Narrative (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Mar. 31, 2018	Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax deferred charge		$ (36,935)	$ (36,057)
Scenario, Forecast | Accounting Standard Update 2016-16, Year 2018 Effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax deferred charge	$ 58,000

Earnings per share - Reconcilia

Earnings per share - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Net income attributable to common shareholders	$ 365,989	$ 238,673	$ 707,545	$ 690,107
Denominator:
Basic - weighted average common shares (in shares)	133,032,431	133,232,378	133,107,321	133,410,622
Increase in weighted average common shares from dilutive effect of equity-based awards (in shares)	2,735,849	2,870,596	2,554,064	2,116,573
Diluted - weighted average common shares, assuming exercise of equity-based awards (in shares)	135,768,280	136,102,974	135,661,385	135,527,195
Basic earnings per share (in USD per share)	$ 2.75	$ 1.79	$ 5.32	$ 5.17
Diluted earnings per share (in USD per share)	$ 2.70	$ 1.75	$ 5.22	$ 5.09

Earnings per share - Anti-dilut

Earnings per share - Anti-dilutive (Details) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Excluded from the computation of diluted earnings per share since anti-dilutive (in shares)	197,560	717	471,008	1,608,245

Share repurchase program (Detai

Share repurchase program (Details) - $ / shares	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Oct. 22, 2014
Equity [Abstract]
Authorized to be repurchased (in shares)			35,000,000
Repurchased (in shares)	263,179	839,717
Repurchased, average price (in USD per share)	$ 189.98	$ 178.63

Trade accounts receivable, net

Trade accounts receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Receivables [Abstract]
Allowance for doubtful accounts	$ 10,879	$ 14,336

Non-trade and notes receivabl39

Non-trade and notes receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Receivables [Abstract]
Notes receivable	$ 163,814	$ 118,351
Accounts receivable, other	164,297	136,636
Total	$ 328,111	$ 254,987

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Inventory, Net [Abstract]
Finished products	$ 719,902	$ 642,788
Work in process	811,898	723,133
Raw materials	200,959	183,573
Total	$ 1,732,759	$ 1,549,494

Business realignment charges -

Business realignment charges - Business realignment charges (Details) - Operating Segments $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018USD ($)employee	Mar. 31, 2017USD ($)employee	Mar. 31, 2018USD ($)employee	Mar. 31, 2017USD ($)employee
Diversified Industrial
Realignment charges
Realignment charges | $	$ 15,643	$ 14,605	$ 53,590	$ 32,164
Realignment charges, number of positions eliminated (by employees) | employee	110	312	1,375	642
Aerospace Systems
Realignment charges
Realignment charges | $	$ 1,815	$ 1,713	$ 3,270	$ 2,796
Realignment charges, number of positions eliminated (by employees) | employee	65	52	121	89

Business realignment charges 42

Business realignment charges - Income Statement Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Cost of sales
Realignment charges
Realignment charges	$ 9,511	$ 10,342	$ 32,283	$ 24,968
Selling, general and administrative expenses
Realignment charges
Realignment charges	7,723	5,976	24,353	9,992
Other (income), net
Realignment charges
Realignment charges	$ 224	$ 0	$ 224	$ 0

Business realignment charges 43

Business realignment charges - Narrative (Details) - Employee severance $ in Millions	9 Months Ended
	Mar. 31, 2018USD ($)
Realignment charges
Severance payments made relating to charges incurred during the fiscal year	$ 23
Remaining severance payments related to current-year and prior-year actions	$ 27

Equity - Changes in Equity (Det

Equity - Changes in Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 5,519,210	$ 4,530,978	$ 5,267,346	$ 4,578,678
Net income	366,130	238,847	707,987	690,485
Other comprehensive income (loss)	118,785	118,612	275,102	(64,787)
Dividends paid	(88,145)	(88,171)	(264,332)	(257,161)
Stock incentive plan activity	10,303	(4,383)	40,210	13,360
Acquisition activity		1,843	(30)
Acquisition activity				1,843
Shares purchased at cost	(50,000)	(50,000)	(150,000)	(214,692)
Ending balance	5,876,283	4,747,726	5,876,283	4,747,726
Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	5,513,401	4,527,709	5,261,649	4,575,255
Net income	365,989	238,673	707,545	690,107
Other comprehensive income (loss)	118,690	118,311	275,166	(65,068)
Dividends paid	(88,030)	(88,171)	(264,217)	(256,823)
Stock incentive plan activity	10,303	(4,383)	40,210	13,360
Acquisition activity		0	0
Acquisition activity				0
Shares purchased at cost	(50,000)	(50,000)	(150,000)	(214,692)
Ending balance	5,870,353	4,742,139	5,870,353	4,742,139
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	5,809	3,269	5,697	3,423
Net income	141	174	442	378
Other comprehensive income (loss)	95	301	(64)	281
Dividends paid	(115)	0	(115)	(338)
Stock incentive plan activity	0	0	0	0
Acquisition activity		1,843	(30)
Acquisition activity				1,843
Shares purchased at cost	0	0	0	0
Ending balance	$ 5,930	$ 5,587	$ 5,930	$ 5,587

Equity - Accumulated Other Comp

Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 5,519,210	$ 4,530,978	$ 5,267,346	$ 4,578,678
Amounts reclassified from accumulated other comprehensive (loss)	25,218	35,512	80,266	105,847
Ending balance	5,876,283	4,747,726	5,876,283	4,747,726
Foreign Currency Translation Adjustment and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(925,342)	(844,121)
Other comprehensive income (loss) before reclassifications			194,900	(169,883)
Amounts reclassified from accumulated other comprehensive (loss)			0	(1,032)
Ending balance	(730,442)	(1,015,036)	(730,442)	(1,015,036)
Retirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(998,862)	(1,383,644)
Other comprehensive income (loss) before reclassifications			0	0
Amounts reclassified from accumulated other comprehensive (loss)			80,266	105,847
Ending balance	(918,596)	(1,277,797)	(918,596)	(1,277,797)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(1,924,204)	(2,227,765)
Other comprehensive income (loss) before reclassifications			194,900	(169,883)
Amounts reclassified from accumulated other comprehensive (loss)			80,266	104,815
Ending balance	$ (1,649,038)	$ (2,292,833)	$ (1,649,038)	$ (2,292,833)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification from accumulated other comprehensive (loss), current period	$ (37,214)	$ (55,462)	$ (115,857)	$ (165,148)
Tax benefit	11,996	19,950	35,591	59,301
Net of tax	(25,218)	(35,512)	(80,266)	(105,847)
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification from accumulated other comprehensive (loss), current period	(1,608)	(1,735)	(5,291)	(5,202)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification from accumulated other comprehensive (loss), current period	$ (35,606)	$ (53,727)	$ (110,566)	$ (159,946)

Goodwill and intangible asset47

Goodwill and intangible assets - Changes in carrying amount of goodwill (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2018USD ($)
Goodwill
Beginning balance	$ 5,586,878
Acquisitions	36,715
Foreign currency translation and other	122,765
Ending balance	5,746,358
Diversified Industrial
Goodwill
Beginning balance	5,488,236
Acquisitions	36,715
Foreign currency translation and other	122,742
Ending balance	5,647,693
Aerospace Systems
Goodwill
Beginning balance	98,642
Acquisitions	0
Foreign currency translation and other	23
Ending balance	$ 98,665

Goodwill and intangible asset48

Goodwill and intangible assets - Intangible assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Finite-Lived Intangible Asset
Gross Carrying Amount	$ 3,393,902	$ 3,374,723
Accumulated Amortization	1,259,243	1,067,239
Intangible amortization expense	167,317
Estimated amortization expense, year ending June 30, 2018	215,358
Estimated amortization expense, year ending June 30, 2019	205,011
Estimated amortization expense, year ending June 30, 2020	196,150
Estimated amortization expense, year ending June 30, 2021	187,346
Estimated amortization expense, year ending June 30, 2022	151,183
Patents
Finite-Lived Intangible Asset
Gross Carrying Amount	269,935	254,049
Accumulated Amortization	116,041	100,860
Trademarks
Finite-Lived Intangible Asset
Gross Carrying Amount	562,788	553,691
Accumulated Amortization	226,902	200,413
Customer lists and other
Finite-Lived Intangible Asset
Gross Carrying Amount	2,561,179	2,566,983
Accumulated Amortization	$ 916,300	$ 765,966

Retirement benefits - Net pensi

Retirement benefits - Net pension benefit cost recognized (Details) - Pension Plans - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Defined Benefit Plans Disclosure
Service cost	$ 20,711	$ 23,632	$ 62,011	$ 70,971
Interest cost	36,027	31,734	107,851	93,202
Expected return on plan assets	(64,437)	(59,480)	(192,963)	(177,277)
Amortization of prior service cost	1,575	1,702	5,190	5,101
Amortization of net actuarial loss	36,278	52,805	110,428	158,557
Amortization of initial net obligation	4	4	14	14
Net pension benefit cost	$ 30,158	$ 50,397	$ 92,531	$ 150,568

Retirement benefits - Narrative

Retirement benefits - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Other Postretirement Benefit Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net pension benefit cost	$ (100)	$ 1,034	$ 2,080	$ 3,266

Income taxes - Narrative (Detai

Income taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2017	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 225,000	$ (62,000)
Transition tax on previously unremitted foreign earnings		287,000
Unrecognized tax benefits		156,978
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate		102,871
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits		19,076
Decrease in unrecognized tax benefits that is reasonably possible (up to)		$ 120,000

Financial instruments - Availab

Financial instruments - Available-for-Sale Investments - Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Investments, All Other Investments [Abstract]
Less than one year, Amortized Cost	$ 1,121	$ 690
Less than one year, Fair Value	1,122	693
One to three years, Amortized Cost	8,736	7,865
One to three years, Fair Value	8,806	7,924
Above three years, Amortized Cost	466	2,108
Above three years, Fair Value	$ 467	$ 2,113

Financial instruments - Carryin

Financial instruments - Carrying and Estimated Fair Value of Long Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Investments, All Other Investments [Abstract]
Carrying value of long-term debt	$ 5,437,267	$ 5,383,343
Estimated fair value of long-term debt	$ 5,619,917	$ 5,645,529

Financial instruments - Narrati

Financial instruments - Narrative (Details) € in Millions	Mar. 31, 2018EUR (€)
Senior Notes Due 2025 | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount (in EUR)	€ 700

Financial instruments - Summary

Financial instruments - Summary of the Location and Fair Value of Derivative Financial Instruments Reported in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Cross-currency swap contracts | Other assets
Derivatives, Fair Value
Net investment hedge, assets	$ 0	$ 15,135
Cross-currency swap contracts | Other liabilities
Derivatives, Fair Value
Net investment hedge, liability	10,403	0
Costless collar contracts | Non-trade and notes receivable
Derivatives, Fair Value
Cash flow hedge, assets	1,850	430
Costless collar contracts | Other accrued liabilities
Derivatives, Fair Value
Cash flow hedge, liability	$ 3,557	$ 2,027

Financial instruments - Gain (L

Financial instruments - Gain (Losses) on Derivative and Non-Derivative Financial Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Cross-currency swap contracts
Derivative Instruments, Gain (Loss)
Derivative and non derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss)	$ (13,374)	$ (1,278)	$ (22,672)	$ 3,741
Foreign denominated debt
Derivative Instruments, Gain (Loss)
Derivative and non derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss)	$ (15,423)	$ (11,009)	$ (43,150)	$ (11,005)

Financial instruments - Financi

Financial instruments - Financial Assets & Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Derivatives
Liabilities:
Derivative liability	$ 15,495	$ 16,064
Quoted Prices In Active Markets (Level 1) | Derivatives
Liabilities:
Derivative liability	0	0
Significant Other Observable Inputs (Level 2) | Derivatives
Liabilities:
Derivative liability	15,495	16,064
Significant Unobservable Inputs (Level 3) | Derivatives
Liabilities:
Derivative liability	0	0
Equity securities
Assets:
Investments	3,682	3,008
Equity securities | Quoted Prices In Active Markets (Level 1)
Assets:
Investments	3,682	3,008
Equity securities | Significant Other Observable Inputs (Level 2)
Assets:
Investments	0	0
Equity securities | Significant Unobservable Inputs (Level 3)
Assets:
Investments	0	0
Corporate bonds
Assets:
Investments	6,026	5,968
Corporate bonds | Quoted Prices In Active Markets (Level 1)
Assets:
Investments	6,026	5,968
Corporate bonds | Significant Other Observable Inputs (Level 2)
Assets:
Investments	0	0
Corporate bonds | Significant Unobservable Inputs (Level 3)
Assets:
Investments	0	0
Asset-backed and mortgage-backed securities
Assets:
Investments	4,369	4,762
Asset-backed and mortgage-backed securities | Quoted Prices In Active Markets (Level 1)
Assets:
Investments	0	0
Asset-backed and mortgage-backed securities | Significant Other Observable Inputs (Level 2)
Assets:
Investments	4,369	4,762
Asset-backed and mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Assets:
Investments	0	0
Derivatives
Assets:
Derivative asset	2,098	16,496
Derivatives | Quoted Prices In Active Markets (Level 1)
Assets:
Derivative asset	0	0
Derivatives | Significant Other Observable Inputs (Level 2)
Assets:
Derivative asset	2,098	16,496
Derivatives | Significant Unobservable Inputs (Level 3)
Assets:
Derivative asset	0	0
Investments measured at net asset value
Assets:
Investments	$ 7,614	$ 7,073