Parker-Hannifin (PH) 10-Q 7 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Dec. 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	Dec. 31, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Outstanding (in shares)	129,365,355

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 3,472,045	$ 3,370,673	$ 6,951,339	$ 6,735,324
Cost of sales	2,602,339	2,564,449	5,197,162	5,087,743
Selling, general and administrative expenses	397,259	408,338	791,581	805,322
Interest expense	47,518	53,133	91,857	106,688
Other (income) expense, net	(6,225)	(15,468)	(20,138)	1,048
Income before income taxes	431,154	360,221	890,877	734,523
Income taxes	119,241	303,899	203,065	392,666
Net income	311,913	56,322	687,812	341,857
Less: Noncontrolling interest in subsidiaries' earnings	176	163	364	301
Net income attributable to common shareholders	$ 311,737	$ 56,159	$ 687,448	$ 341,556
Earnings per share attributable to common shareholders:
Basic (in USD per share)	$ 2.39	$ 0.42	$ 5.23	$ 2.57
Diluted (in USD per share)	$ 2.36	$ 0.41	$ 5.15	$ 2.51

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 311,913	$ 56,322	$ 687,812	$ 341,857
Less: Noncontrolling interests in subsidiaries' earnings	176	163	364	301
Net income attributable to common shareholders	311,737	56,159	687,448	341,556
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustment and other	(43,986)	28,390	(79,111)	101,269
Retirement benefits plan activity	24,527	28,312	48,400	55,047
Other comprehensive (loss) income	(19,459)	56,702	(30,711)	156,316
Less: Other comprehensive income (loss) for noncontrolling interests	55	(73)	(34)	(160)
Other comprehensive (loss) income attributable to common shareholders	(19,514)	56,775	(30,677)	156,476
Total comprehensive income attributable to common shareholders	$ 292,223	$ 112,934	$ 656,771	$ 498,032

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 1,047,385	$ 822,137
Marketable securities and other investments	30,956	32,995
Trade accounts receivable, net	1,938,709	2,145,517
Non-trade and notes receivable	324,254	328,399
Inventories	1,804,564	1,621,304
Prepaid expenses and other	188,868	134,886
Total current assets	5,334,736	5,085,238
Plant and equipment	5,192,144	5,215,253
Less: Accumulated depreciation	3,398,339	3,359,016
Plant and equipment, net	1,793,805	1,856,237
Deferred income taxes	98,779	57,623
Investments and other assets	733,987	801,049
Intangible assets, net	1,883,825	2,015,520
Goodwill	5,462,555	5,504,420
Total assets	15,307,687	15,320,087
Current liabilities:
Notes payable and long-term debt payable within one year	1,144,347	638,466
Accounts payable, trade	1,307,178	1,430,306
Accrued payrolls and other compensation	319,787	427,500
Accrued domestic and foreign taxes	182,617	198,878
Other accrued liabilities	555,005	502,333
Total current liabilities	3,508,934	3,197,483
Long-term debt	4,303,331	4,318,559
Pensions and other postretirement benefits	937,938	1,177,605
Deferred income taxes	286,622	234,858
Other liabilities	449,696	526,089
Total liabilities	9,486,521	9,454,594
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 December 31 and June 30	90,523	90,523
Additional capital	521,854	496,592
Retained earnings	12,114,448	11,625,975
Accumulated other comprehensive (loss)	(1,795,497)	(1,763,086)
Treasury shares, at cost; 51,680,773 shares at December 31 and 48,632,105 shares at June 30	(5,116,119)	(4,590,138)
Total shareholders’ equity	5,815,209	5,859,866
Noncontrolling interests	5,957	5,627
Total equity	5,821,166	5,865,493
Total liabilities and equity	$ 15,307,687	$ 15,320,087

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - $ / shares	Dec. 31, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Serial preferred stock, par value (in USD per share)	$ 0.50	$ 0.50
Serial preferred stock, authorized (in shares)	3,000,000	3,000,000
Serial preferred stock, issued (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.50	$ 0.50
Common stock, authorized (in shares)	600,000,000	600,000,000
Common stock, issued (in shares)	181,046,128	181,046,128
Treasury shares (in shares)	51,680,773	48,632,105

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 687,812	$ 341,857
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	115,000	120,335
Amortization	107,543	113,881
Share incentive plan compensation	64,615	64,267
Deferred income tax expense	47,401	(74,101)
Foreign currency transaction loss	2,526	12,620
Loss (gain) on plant and equipment and intangible assets	3,428	(26,529)
Loss on sale of businesses	623	0
Loss (gain) on marketable securities	5,701	(1)
(Gain) loss on investments	(3,213)	33,759
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, net	185,638	49,986
Inventories	(176,094)	(207,334)
Prepaid expenses	(40,555)	(81,168)
Other assets	14,214	(45,710)
Accounts payable, trade	(120,253)	(92,267)
Accrued payrolls and other compensation	(104,726)	(111,687)
Accrued domestic and foreign taxes	(14,758)	5,796
Other accrued liabilities	18,960	59,003
Pensions and other postretirement benefits	(173,040)	25,379
Other liabilities	(79,782)	268,688
Net cash provided by operating activities	541,040	456,774
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions (net of cash acquired of $690 in 2018)	(2,042)	0
Capital expenditures	(94,426)	(144,781)
Proceeds from sale of plant and equipment	34,121	59,848
Proceeds from sale of businesses	19,540	0
Purchases of marketable securities and other investments	(2,845)	(78,309)
Maturities and sales of marketable securities and other investments	14,432	12,710
Other	(90)	8,706
Net cash (used in) investing activities	(31,310)	(141,826)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	635	2,076
Payments for common shares	(565,970)	(136,436)
Proceeds from notes payable, net	606,019	138,900
Proceeds from long-term borrowings	1	1,718
Payments for long-term borrowings	(100,209)	(12,895)
Dividends	(200,459)	(176,187)
Net cash (used in) financing activities	(259,983)	(182,824)
Effect of exchange rate changes on cash	(24,499)	7,760
Net increase in cash and cash equivalents	225,248	139,884
Cash and cash equivalents at beginning of year	822,137	884,886
Cash and cash equivalents at end of period	$ 1,047,385	$ 1,024,770

Consolidated Statement of Cas_2

Consolidated Statement of Cash Flows (Parenthetical) $ in Thousands	6 Months Ended
	Dec. 31, 2018USD ($)
Statement of Cash Flows [Abstract]
Acquisitions, cash acquired	$ 690

Business Segment Information

Business Segment Information	6 Months Ended
	Dec. 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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Net sales Diversified Industrial: North America $ 1,632,059 $ 1,565,416 $ 3,313,103 $ 3,160,107 International 1,223,679 1,255,569 2,457,445 2,494,343 Aerospace Systems 616,307 549,688 1,180,791 1,080,874 Total net sales $ 3,472,045 $ 3,370,673 $ 6,951,339 $ 6,735,324 Segment operating income Diversified Industrial: North America $ 257,774 $ 225,807 $ 532,885 $ 481,834 International 189,085 164,806 395,179 356,597 Aerospace Systems 121,463 87,148 231,318 164,582 Total segment operating income 568,322 477,761 1,159,382 1,003,013 Corporate general and administrative expenses 63,890 46,942 114,215 88,292 Income before interest expense and other expense 504,432 430,819 1,045,167 914,721 Interest expense 47,518 53,133 91,857 106,688 Other expense 25,760 17,465 62,433 73,510 Income before income taxes $ 431,154 $ 360,221 $ 890,877 $ 734,523

Management representation

Management representation	6 Months Ended
	Dec. 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 December 31, 2018 , the results of operations for the three and six months ended December 31, 2018 and 2017 and cash flows for the six months then ended. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2018 Annual Report on Form 10-K. Interim period results are not necessarily indicative of the results to be expected for the full fiscal year. Certain prior-year amounts have been reclassified to conform to current-year presentation. The Company has evaluated subsequent events that have occurred through the date these financial statements were issued. No subsequent events have occurred that required adjustment to these financial statements.

New accounting pronouncements

New accounting pronouncements	6 Months Ended
	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
New accounting pronouncements	New accounting pronouncements In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-14, "Compensation--Retirement Benefits--Defined Benefit Plans--General." ASU 2018-14 aims to improve disclosure effectiveness by adding, removing or clarifying certain disclosure requirements related to defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company has not yet determined the effect that ASU 2018-14 will have on its financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement." ASU 2018-13 aims to improve disclosure effectiveness by adding, modifying or removing certain disclosure requirements for both recurring and nonrecurring fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the ASU for any removed or modified disclosure. Adoption of additional disclosures may be delayed until their effective dates. The Company has not yet determined the effect that ASU 2018-13 will have on its financial statements. In February 2018, the FASB issued 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 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 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. On July 1, 2018, the Company retrospectively adopted ASU 2017-07 and reclassified prior-year amounts using a practical expedient that permits the usage of amounts previously disclosed in the retirement benefits note. As a result, $4,621 and $4,125 of expense was reclassified from cost of sales and selling, general and administrative expenses, respectively, to other (income) expense, net for the prior-year quarter. Expense of $14,205 and $8,812 was reclassified from cost of sales and selling, general and administrative expenses, respectively, to other (income) expense, net for the first six 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. The Company adopted ASU 2016-16 on July 1, 2018 and recorded a cumulative effect adjustment of approximately $19 million to reduce retained earnings. 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. On July 1, 2018, the Company adopted ASU 2016-15 and retrospectively adjusted its Statement of Cash Flows. These retrospective adjustments were not material. 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 with terms greater than 12 months 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. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize the corresponding assets and lease liabilities. Lessee recognition, measurement, and presentation of expenses and cash flows will not change significantly from existing guidance and lessor accounting is largely unchanged. ASU 2016-02 also changes the definition of a lease and 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. Adoption of this ASU is planned for the beginning of the first quarter of fiscal 2020. 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. ASU 2016-01 also simplifies the impairment assessment of equity investments, eliminates the disclosure of the assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at cost on the balance sheet and requires the exit price to be used when measuring fair value of financial instruments for disclosure purposes. Under ASU 2016-01, changes in fair value (resulting from instrument-specific credit risk) are presented separately in other comprehensive income for liabilities measured using the fair value option. Financial assets and liabilities are presented separately by measurement category and type, either on the balance sheet or in the financial statement disclosures. The Company adopted ASU 2016-01 on July 1, 2018 and reclassified approximately $2 million of unrealized gains from accumulated other comprehensive (loss) to retained earnings. In May 2014, the FASB issued ASU 2014-09, “Revenues with 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 obligation. The Company adopted ASU 2014-09 on July 1, 2018 using the modified retrospective method and recorded a cumulative effect adjustment to increase retained earnings by approximately $5 million . See Note 3 for further discussion.

Revenue recognition

Revenue recognition	6 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognition	Revenue recognition Revenue is derived primarily from the sale of products in a variety of mobile, industrial and aerospace markets. Revenues are recognized when control of the promised goods or services in a contract (i.e., performance obligations) are transferred to the customer. Control is transferred when the customer has the ability to direct the use of and obtain the benefits from the goods or services. A majority of the Company’s revenues are recognized at a point in time when control is transferred to the customer, which is generally at the time of shipment. However, a portion of the Company’s revenues are recognized over time if the customer simultaneously receives control as the Company performs work under a contract, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment. For contracts recognized over time, the Company uses the cost-to-cost, efforts expended or units of delivery method depending on the nature of the contract, including length of production time. A contract’s transaction price is allocated to each distinct performance obligation. When there are multiple performance obligations within a contract, the transaction price is allocated to each performance obligation based on its standalone selling price. The primary method used to estimate a standalone selling price is the price observed in standalone sales to customers of the same product or service. Revenue is recognized when the appropriate revenue recognition criteria for the individual performance obligations have been satisfied. The Company considers the contractual consideration payable by the customer and assesses variable consideration that may affect the total transaction price. Variable consideration primarily includes prompt pay discounts, rebates and volume discounts and is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained in order to avoid a significant reversal of revenue in a future period. These estimates are based on historical experience, anticipated performance under the terms of the contract and the Company’s best judgment at the time. Payment terms vary by customer and the geographical location of the customer. The time between when revenue is recognized and payment is due is not significant. The Company’s contracts with customers generally do not include significant financing components or noncash consideration. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. The costs to obtain a contract where the amortization period for the related asset is one year or less are expensed as incurred. There is generally no unilateral right to return products. The Company primarily offers an assurance-type standard warranty that the product will conform to certain specifications for a defined period of time or period of usage after delivery. This type of warranty does not represent a separate performance obligation. Disaggregation of revenue Revenue from contracts with customers is disaggregated by technology platforms for the Diversified Industrial Segment, by product platforms for the Aerospace Systems Segment and by geographic location for the total Company. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various type of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Contracts consist of individual purchase orders for standard product, blanket purchase orders and production contracts. Blanket purchase orders are often associated with individual purchase orders and have terms and conditions which are subject to a master supply or distributor agreement. Individual production contracts, some of which may include multiple performance obligations, are typically for products to be manufactured to the customer's specifications. Revenue in the Diversified Industrial Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time for installation services or in situations where the product being manufactured has no alternative use and the Company has an enforceable right to payment. Diversified Industrial Segment revenues by technology platform: Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Motion Systems $ 856,357 $ 1,715,930 Flow and Process Control 1,015,200 2,076,264 Filtration and Engineered Materials 984,181 1,978,354 Total $ 2,855,738 $ 5,770,548 The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and which also perform a vital role in naval vessels and land-based weapon systems. Contracts generally consist of blanket purchase orders and individual long-term production contracts. Blanket purchase orders, which have terms and conditions subject to long-term supply agreements, are typically associated with individual purchase orders. Revenue in the Aerospace Systems Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time in situations where the customer controls the asset as it is being produced or the product being manufactured has no alternative use and the Company has an enforceable right to payment. Aerospace Systems Segment revenues by product platform: Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Flight Control Actuation $ 189,670 $ 352,606 Fuel and Inerting 157,262 301,308 Hydraulics 108,893 211,390 Engines 71,647 136,033 Fluid Conveyance 68,868 139,072 Other 19,967 40,382 Total $ 616,307 $ 1,180,791 Total Company revenues by geographic region based on the Company's selling operation's location: Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 North America $ 2,248,806 $ 4,494,897 Europe 714,550 1,440,860 Asia Pacific 465,974 927,614 Latin America 42,715 87,968 Total $ 3,472,045 $ 6,951,339 The majority of revenues from the Aerospace Systems Segment is generated from sales to customers within North America. Contract balances Contract assets and contract liabilities are reported on a contract-by-contract basis. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. Payments from customers are received based on the terms established in the contract with the customer. Total contract assets and contract liabilities are as follows: December 31, 2018 Contract assets, current (included within Prepaid expenses and other) $ 19,263 Contract assets, noncurrent (included within Investments and other assets) 2,328 Total contract assets 21,591 Contract liabilities, current (included within Other accrued liabilities) (65,320 ) Contract liabilities, noncurrent (included within Other liabilities) (468 ) Total contract liabilities (65,788 ) Net contract (liabilities) $ (44,197 ) During the six months ended December 31, 2018 , net contract liabilities increased $6 million from the July 1, 2018 net contract liabilities amount of $38 million . The increase in net contract liabilities was primarily due to advance payments from customers exceeding revenue recognized during the period. During the six months ended December 31, 2018 , approximately $20 million of revenue was recognized that was included in the contract liabilities at July 1, 2018. Remaining performance obligations The Company’s backlog represents written firm orders from a customer to deliver products and, in the case of blanket purchase orders, only includes the portion of the order for which a schedule or release has been agreed to with the customer. The Company believes its backlog represents its unsatisfied or partially unsatisfied performance obligations. Backlog at December 31, 2018 was $4,209 million , of which approximately 92 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter. Adoption of ASU 2014-09 On July 1, 2018, the Company adopted ASU 2014-09 using the modified retrospective approach. The provisions of ASU 2014-09 were applied only to contracts that were not completed as of July 1, 2018. Comparative prior-period financial information has not been restated and continues to be reported under the accounting standards in effect for the comparative prior-year period. The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as of July 1, 2018 related to the adoption of ASU 2014-09 is as follows: Balance as of Cumulative Effect Balance as of June 30, 2018 of Adjustments July 1, 2018 Assets: Trade accounts receivable, net $ 2,145,517 $ (11 ) $ 2,145,506 Inventories 1,621,304 23,205 1,644,509 Prepaid expenses and other 134,886 14,575 149,461 Investments and other assets 801,049 2,020 803,069 Liabilities: Other accrued liabilities $ 502,333 $ 28,288 $ 530,621 Other liabilities 526,089 5,160 531,249 Deferred income taxes 234,858 1,560 236,418 Equity: Retained earnings $ 11,625,975 $ 4,781 $ 11,630,756 The adoption of ASU 2014-09 had an immaterial impact on the Company’s net sales, results of operations and financial position for the three and six months ended December 31, 2018 .

Earnings per share

Earnings per share	6 Months Ended
	Dec. 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 six months ended December 31, 2018 and 2017 . Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Numerator: Net income attributable to common shareholders $ 311,737 $ 56,159 $ 687,448 $ 341,556 Denominator: Basic - weighted average common shares 130,361,273 133,112,568 131,361,464 133,144,766 Increase in weighted average common shares from dilutive effect of equity-based awards 1,949,937 3,082,351 2,088,210 2,729,764 Diluted - weighted average common shares, assuming exercise of equity-based awards 132,311,210 136,194,919 133,449,674 135,874,530 Basic earnings per share $ 2.39 $ 0.42 $ 5.23 $ 2.57 Diluted earnings per share $ 2.36 $ 0.41 $ 5.15 $ 2.51 For the three months ended December 31, 2018 and 2017 , 1,335,187 and 3,245 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. For the six months ended December 31, 2018 and 2017 , 836,099 and 706,512 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	6 Months Ended
	Dec. 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 December 31, 2018 , the Company repurchased 3,008,512 shares at an average price, including commissions, of $166.20 per share. During the six-month period ended December 31, 2018 , the Company repurchased 3,302,453 shares at an average price, including commissions, of $166.54 per share.

Trade accounts receivable, net

Trade accounts receivable, net	6 Months Ended
	Dec. 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 $8,178 and $9,672 at December 31, 2018 and June 30, 2018 , respectively. Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: December 31, June 30, Notes receivable $ 160,380 $ 149,254 Accounts receivable, other 163,874 179,145 Total $ 324,254 $ 328,399

Non-trade and notes receivable

Non-trade and notes receivable	6 Months Ended
	Dec. 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 $8,178 and $9,672 at December 31, 2018 and June 30, 2018 , respectively. Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: December 31, June 30, Notes receivable $ 160,380 $ 149,254 Accounts receivable, other 163,874 179,145 Total $ 324,254 $ 328,399

Inventories

Inventories	6 Months Ended
	Dec. 31, 2018
Inventory, Net [Abstract]
Inventories	Inventories The inventories caption in the Consolidated Balance Sheet is comprised of the following components: December 31, June 30, Finished products $ 737,243 $ 673,323 Work in process 866,357 765,835 Raw materials 200,964 182,146 Total $ 1,804,564 $ 1,621,304

Business realignment charges

Business realignment charges	6 Months Ended
	Dec. 31, 2018
Restructuring and Related Activities [Abstract]
Business realignment charges	Business realignment charges The Company incurred business realignment charges and acquisition integration costs in fiscal 2019 and fiscal 2018 . The acquisition integration costs 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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Diversified Industrial $ 7,382 $ 24,684 $ 15,940 $ 37,947 Aerospace Systems — 692 — 1,455 Other expense 220 — 275 — 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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Diversified Industrial 164 723 365 1,265 Aerospace Systems — 19 — 56 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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Cost of sales $ 3,669 $ 13,657 $ 8,068 $ 22,772 Selling, general and administrative expenses 3,713 11,719 7,872 16,630 Other (income) expense, net 220 — 275 — As of December 31, 2018 , approximately $7 million in severance payments had been made relating to business realignment charges and acquisition integration charges incurred during fiscal 2019 , the remainder of which are expected to be paid by December 31, 2019 . Severance payments relating to prior-year business realignment and acquisition integration actions are being made as required. Remaining severance payments related to current-year and prior-year business realignment actions of approximately $18 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 and acquisition integration actions described above, the timing and amount of which are not known at this time.

Equity

Equity	6 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Equity	Equity Changes in equity for the three months ended December 31, 2018 and 2017 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at September 30, 2018 $ 90,523 $ 503,052 $ 11,902,300 $ (1,775,983 ) $ (4,618,512 ) $ 5,726 $ 6,107,106 Net income 311,737 176 311,913 Other comprehensive income (loss) (19,514 ) 55 (19,459 ) Dividends paid ($0.76 per share) (99,589 ) (99,589 ) Stock incentive plan activity 18,802 2,393 21,195 Shares purchased at cost (500,000 ) (500,000 ) Balance at December 31, 2018 $ 90,523 $ 521,854 $ 12,114,448 $ (1,795,497 ) $ (5,116,119 ) $ 5,957 $ 5,821,166 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at September 30, 2017 $ 90,523 $ 528,956 $ 11,127,641 $ (1,824,503 ) $ (4,397,677 ) $ 5,719 $ 5,530,659 Net income 56,159 163 56,322 Other comprehensive income (loss) 56,775 (73 ) 56,702 Dividends paid ($0.66 per share) (88,083 ) (88,083 ) Stock incentive plan activity 5,047 8,563 13,610 Shares purchased at cost (50,000 ) (50,000 ) Balance at December 31, 2017 $ 90,523 $ 534,003 $ 11,095,717 $ (1,767,728 ) $ (4,439,114 ) $ 5,809 $ 5,519,210 Changes in equity for the six months ended December 31, 2018 and 2017 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at June 30, 2018 $ 90,523 $ 496,592 $ 11,625,975 $ (1,763,086 ) $ (4,590,138 ) $ 5,627 $ 5,865,493 Impact of adoption of accounting standards 1,483 (1,734 ) (251 ) Net income 687,448 364 687,812 Other comprehensive (loss) (30,677 ) (34 ) (30,711 ) Dividends paid ($1.52 per share) (200,458 ) (200,458 ) Stock incentive plan activity 25,262 24,019 49,281 Shares purchased at cost (550,000 ) (550,000 ) Balance at December 31, 2018 $ 90,523 $ 521,854 $ 12,114,448 $ (1,795,497 ) $ (5,116,119 ) $ 5,957 $ 5,821,166 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at June 30, 2017 $ 90,523 $ 543,879 $ 10,930,348 $ (1,924,204 ) $ (4,378,897 ) $ 5,697 $ 5,267,346 Net income 341,556 301 341,857 Other comprehensive income (loss) 156,476 (160 ) 156,316 Dividends paid ($1.32 per share) (176,187 ) (176,187 ) Stock incentive plan activity (9,876 ) 39,783 29,907 Acquisition activity (29 ) (29 ) Shares purchased at cost (100,000 ) (100,000 ) Balance at December 31, 2017 $ 90,523 $ 534,003 $ 11,095,717 $ (1,767,728 ) $ (4,439,114 ) $ 5,809 $ 5,519,210 Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the six months ended December 31, 2018 and 2017 are as follows: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2018 $ (943,477 ) $ (819,609 ) $ (1,763,086 ) Impact of adoption of ASU 2016-01 (1,734 ) — (1,734 ) Other comprehensive loss before reclassifications (82,655 ) — (82,655 ) Amounts reclassified from accumulated other comprehensive (loss) 3,578 48,400 51,978 Balance at December 31, 2018 $ (1,024,288 ) $ (771,209 ) $ (1,795,497 ) 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 101,429 — 101,429 Amounts reclassified from accumulated other comprehensive (loss) — 55,047 55,047 Balance at December 31, 2017 $ (823,913 ) $ (943,815 ) $ (1,767,728 ) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and six months ended December 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 Six Months Ended December 31, 2018 December 31, 2018 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,652 ) $ (3,293 ) Other (income) expense, net Recognized actuarial loss (30,696 ) (59,993 ) Other (income) expense, net Total before tax (32,348 ) (63,286 ) Tax benefit 7,821 14,886 Net of tax $ (24,527 ) $ (48,400 ) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Six Months Ended December 31, 2017 December 31, 2017 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,545 ) $ (3,683 ) Other (income) expense, net Recognized actuarial loss (35,929 ) (74,960 ) Other (income) expense, net Total before tax (37,474 ) (78,643 ) Tax benefit 9,162 23,596 Net of tax $ (28,312 ) $ (55,047 )

Goodwill and intangible assets

Goodwill and intangible assets	6 Months Ended
	Dec. 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 six months ended December 31, 2018 are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance at June 30, 2018 $ 5,405,771 $ 98,649 $ 5,504,420 Acquisition 2,940 — 2,940 Foreign currency translation and other (44,799 ) (6 ) (44,805 ) Balance at December 31, 2018 $ 5,363,912 $ 98,643 $ 5,462,555 The acquisition line represents the goodwill allocation during the measurement period subsequent to the applicable acquisition date. 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: December 31, 2018 June 30, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 261,548 $ 123,194 $ 265,423 $ 117,440 Trademarks 542,931 238,962 546,905 227,580 Customer lists and other 2,440,534 999,032 2,482,079 933,867 Total $ 3,245,013 $ 1,361,188 $ 3,294,407 $ 1,278,887 Total intangible amortization expense for the six months ended December 31, 2018 was $105,090 . The estimated amortization expense for the five years ending June 30, 2019 through 2023 is $196,130 , $185,468 , $180,870 , $175,010 and $167,513 , respectively. Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No material intangible asset impairments occurred during the six months ended December 31, 2018 .

Retirement benefits

Retirement benefits	6 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Retirement benefits	Retirement benefits Net pension benefit cost recognized included the following components: Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Service cost $ 17,983 $ 18,242 $ 38,492 $ 41,300 Interest cost 40,551 36,138 80,417 71,824 Expected return on plan assets (62,701 ) (65,350 ) (125,578 ) (128,526 ) Amortization of prior service cost 1,677 1,511 3,325 3,615 Amortization of net actuarial loss 30,692 35,468 59,985 74,150 Amortization of initial net obligation 4 5 9 10 Net pension benefit cost $ 28,206 $ 26,014 $ 56,650 $ 62,373 During the three months ended December 31, 2018 and 2017 , the Company recognized $631 and $1,091 , respectively, in expense related to other postretirement benefits. During the six months ended December 31, 2018 and 2017 , the Company recognized $1,281 and $2,180 , respectively, in expense related to other postretirement benefits. Components of net pension benefit cost and other postretirement benefit cost, other than service cost, are included in other (income) expense, net in the Consolidated Statement of Income. In September 2018, the Company made a discretionary $200 million cash contribution to its domestic qualified defined benefit plan.

Income taxes

Income taxes	6 Months Ended
	Dec. 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 undistributed foreign earnings and profits). The Securities and Exchange Commission staff issued Staff Accounting Bulletin (SAB) 118, which provided guidance on accounting for the tax effects of the TCJ Act. SAB 118 provided 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, the Company recorded additional tax expense of $14,485 related to the estimated one-time transition tax during the three months ended December 31, 2018 . This adjustment is a result of the Company's analysis of related proposed regulations that were issued subsequent to the recording of the previous provisional amount. The company now considers its provisional accounting for the effects of the TCJ Act, which includes the remeasurement of deferred tax balances and related valuation allowances, the one-time transition tax and the repatriation of undistributed foreign earnings, as being complete and as meeting the recognition guidance under Topic 740. The Company is in the process of evaluating the final transition tax regulations that were published on January 16, 2019. During the period ended September 30, 2018, the Company made the accounting policy election to treat taxes related to Global Intangible Low-Taxed Income as a current period expense when incurred. 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 2012. The Company is also open to assessment for foreign jurisdictions for fiscal years after 2009. 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 December 31, 2018 , the Company had gross unrecognized tax benefits of $146,632 , all of which, if recognized, would affect the effective tax rate. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, is $23,411 . It is reasonably possible that within the next 12 months the amount of gross unrecognized tax benefits could be reduced by up to approximately $110,000 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	6 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [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, equity investments and available-for-sale debt securities. Deposits are recorded at cost, and equity investments and available-for-sale debt securities are recorded at fair value. Changes in fair value related to available-for-sale debt securities are recorded in accumulated other comprehensive (loss). Upon the adoption of ASU 2016-01 on July 1, 2018, changes in fair value of equity investments are recognized in net income. Prior to the adoption of ASU 2016-01, these changes in fair value were recognized in accumulated other comprehensive (loss). Gross unrealized gains and losses related to both equity investments and available-for-sale debt securities were not material as of December 31, 2018 and June 30, 2018 . There were no facts or circumstances that indicated the unrealized losses were other than temporary. The contractual maturities of available-for-sale debt securities were predominantly one to three years at December 31, 2018 and June 30, 2018 . Actual maturities of available-for-sale debt securities may differ from their contractual maturities as the Company has the ability to liquidate the available-for-sale debt securities 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: December 31, June 30, Carrying value of long-term debt $ 4,343,138 $ 4,460,402 Estimated fair value of long-term debt 4,383,759 4,548,796 The fair value of long-term debt is classified within level 2 of the fair value hierarchy. The Company utilizes derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign denominated debt designated as net investment hedges, to manage foreign currency transaction and translation risk. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not hold or issue derivative financial instruments for trading purposes. The Company’s € 700 million aggregate principal amount of Senior Notes due 2025 have been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Senior Notes due 2025 into U.S. dollars is recorded in accumulated other comprehensive (loss) and remains there until the underlying net investment is sold or substantially liquidated. Derivative financial instruments are recognized on the Consolidated Balance Sheet as either assets or liabilities and are measured at fair value. The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption December 31, June 30, Net investment hedges Cross-currency swap contracts Other assets $ 17,126 $ 7,614 Cash flow hedges Costless collar contracts Non-trade and notes receivable 278 932 Costless collar contracts Other accrued liabilities 4,553 236 The cross-currency swap and costless collar contracts are reflected on a gross basis in the Consolidated Balance Sheet. The Company has not entered into any master netting arrangements. Gains or losses on derivatives that are not hedges are adjusted to fair value through the cost of sales caption in the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through accumulated other comprehensive (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings. The cross-currency swap contracts have been designated as hedging instruments. The costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. Gains or losses on derivative financial instruments that were recorded in the Consolidated Statement of Income for the three and six months ended December 31, 2018 and 2017 were not material. Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Cross-currency swap contracts $ 5,700 $ (2,725 ) $ 7,619 $ (9,298 ) Foreign denominated debt 7,144 (10,893 ) 11,271 (27,727 ) 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 six months ended December 31, 2018 and 2017 . A summary of financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2018 and June 30, 2018 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 12,988 $ 12,988 $ — $ — Corporate bonds 4,859 4,859 — — Asset-backed and mortgage-backed securities 6,046 — 6,046 — Derivatives 21,377 — 21,377 — Investments measured at net asset value 7,064 Liabilities: Derivatives 15,856 — 15,856 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 2,956 $ 2,956 $ — $ — Corporate bonds 5,331 5,331 — — Asset-backed and mortgage-backed securities 3,911 — 3,911 — Derivatives 14,110 — 14,110 — Investments measured at net asset value 7,208 Liabilities: Derivatives 5,315 — 5,315 — 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)	6 Months Ended
	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
New accounting pronouncements	New accounting pronouncements In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-14, "Compensation--Retirement Benefits--Defined Benefit Plans--General." ASU 2018-14 aims to improve disclosure effectiveness by adding, removing or clarifying certain disclosure requirements related to defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company has not yet determined the effect that ASU 2018-14 will have on its financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement." ASU 2018-13 aims to improve disclosure effectiveness by adding, modifying or removing certain disclosure requirements for both recurring and nonrecurring fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the ASU for any removed or modified disclosure. Adoption of additional disclosures may be delayed until their effective dates. The Company has not yet determined the effect that ASU 2018-13 will have on its financial statements. In February 2018, the FASB issued 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 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 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. On July 1, 2018, the Company retrospectively adopted ASU 2017-07 and reclassified prior-year amounts using a practical expedient that permits the usage of amounts previously disclosed in the retirement benefits note. As a result, $4,621 and $4,125 of expense was reclassified from cost of sales and selling, general and administrative expenses, respectively, to other (income) expense, net for the prior-year quarter. Expense of $14,205 and $8,812 was reclassified from cost of sales and selling, general and administrative expenses, respectively, to other (income) expense, net for the first six 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. The Company adopted ASU 2016-16 on July 1, 2018 and recorded a cumulative effect adjustment of approximately $19 million to reduce retained earnings. 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. On July 1, 2018, the Company adopted ASU 2016-15 and retrospectively adjusted its Statement of Cash Flows. These retrospective adjustments were not material. 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 with terms greater than 12 months 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. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize the corresponding assets and lease liabilities. Lessee recognition, measurement, and presentation of expenses and cash flows will not change significantly from existing guidance and lessor accounting is largely unchanged. ASU 2016-02 also changes the definition of a lease and 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. Adoption of this ASU is planned for the beginning of the first quarter of fiscal 2020. 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. ASU 2016-01 also simplifies the impairment assessment of equity investments, eliminates the disclosure of the assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at cost on the balance sheet and requires the exit price to be used when measuring fair value of financial instruments for disclosure purposes. Under ASU 2016-01, changes in fair value (resulting from instrument-specific credit risk) are presented separately in other comprehensive income for liabilities measured using the fair value option. Financial assets and liabilities are presented separately by measurement category and type, either on the balance sheet or in the financial statement disclosures. The Company adopted ASU 2016-01 on July 1, 2018 and reclassified approximately $2 million of unrealized gains from accumulated other comprehensive (loss) to retained earnings. In May 2014, the FASB issued ASU 2014-09, “Revenues with 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 obligation. The Company adopted ASU 2014-09 on July 1, 2018 using the modified retrospective method and recorded a cumulative effect adjustment to increase retained earnings by approximately $5 million . See Note 3 for further discussion.
Revenue recognition	The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and which also perform a vital role in naval vessels and land-based weapon systems. Contracts generally consist of blanket purchase orders and individual long-term production contracts. Blanket purchase orders, which have terms and conditions subject to long-term supply agreements, are typically associated with individual purchase orders. Revenue in the Aerospace Systems Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time in situations where the customer controls the asset as it is being produced or the product being manufactured has no alternative use and the Company has an enforceable right to payment. Contract balances Contract assets and contract liabilities are reported on a contract-by-contract basis. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. Payments from customers are received based on the terms established in the contract with the customer. Remaining performance obligations The Company’s backlog represents written firm orders from a customer to deliver products and, in the case of blanket purchase orders, only includes the portion of the order for which a schedule or release has been agreed to with the customer. The Company believes its backlog represents its unsatisfied or partially unsatisfied performance obligations. Revenue is derived primarily from the sale of products in a variety of mobile, industrial and aerospace markets. Revenues are recognized when control of the promised goods or services in a contract (i.e., performance obligations) are transferred to the customer. Control is transferred when the customer has the ability to direct the use of and obtain the benefits from the goods or services. A majority of the Company’s revenues are recognized at a point in time when control is transferred to the customer, which is generally at the time of shipment. However, a portion of the Company’s revenues are recognized over time if the customer simultaneously receives control as the Company performs work under a contract, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment. For contracts recognized over time, the Company uses the cost-to-cost, efforts expended or units of delivery method depending on the nature of the contract, including length of production time. A contract’s transaction price is allocated to each distinct performance obligation. When there are multiple performance obligations within a contract, the transaction price is allocated to each performance obligation based on its standalone selling price. The primary method used to estimate a standalone selling price is the price observed in standalone sales to customers of the same product or service. Revenue is recognized when the appropriate revenue recognition criteria for the individual performance obligations have been satisfied. The Company considers the contractual consideration payable by the customer and assesses variable consideration that may affect the total transaction price. Variable consideration primarily includes prompt pay discounts, rebates and volume discounts and is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained in order to avoid a significant reversal of revenue in a future period. These estimates are based on historical experience, anticipated performance under the terms of the contract and the Company’s best judgment at the time. Payment terms vary by customer and the geographical location of the customer. The time between when revenue is recognized and payment is due is not significant. The Company’s contracts with customers generally do not include significant financing components or noncash consideration. Taxes collected from customers and remitted to governmental authorities are excluded from revenue. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. The costs to obtain a contract where the amortization period for the related asset is one year or less are expensed as incurred. There is generally no unilateral right to return products. The Company primarily offers an assurance-type standard warranty that the product will conform to certain specifications for a defined period of time or period of usage after delivery. This type of warranty does not represent a separate performance obligation. Disaggregation of revenue Revenue from contracts with customers is disaggregated by technology platforms for the Diversified Industrial Segment, by product platforms for the Aerospace Systems Segment and by geographic location for the total Company. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various type of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Contracts consist of individual purchase orders for standard product, blanket purchase orders and production contracts. Blanket purchase orders are often associated with individual purchase orders and have terms and conditions which are subject to a master supply or distributor agreement. Individual production contracts, some of which may include multiple performance obligations, are typically for products to be manufactured to the customer's specifications. Revenue in the Diversified Industrial Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time for installation services or in situations where the product being manufactured has no alternative use and the Company has an enforceable right to payment.

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Schedule of segment reporting information	Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Net sales Diversified Industrial: North America $ 1,632,059 $ 1,565,416 $ 3,313,103 $ 3,160,107 International 1,223,679 1,255,569 2,457,445 2,494,343 Aerospace Systems 616,307 549,688 1,180,791 1,080,874 Total net sales $ 3,472,045 $ 3,370,673 $ 6,951,339 $ 6,735,324 Segment operating income Diversified Industrial: North America $ 257,774 $ 225,807 $ 532,885 $ 481,834 International 189,085 164,806 395,179 356,597 Aerospace Systems 121,463 87,148 231,318 164,582 Total segment operating income 568,322 477,761 1,159,382 1,003,013 Corporate general and administrative expenses 63,890 46,942 114,215 88,292 Income before interest expense and other expense 504,432 430,819 1,045,167 914,721 Interest expense 47,518 53,133 91,857 106,688 Other expense 25,760 17,465 62,433 73,510 Income before income taxes $ 431,154 $ 360,221 $ 890,877 $ 734,523

Revenue recognition (Tables)

Revenue recognition (Tables)	6 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Aerospace Systems Segment revenues by product platform: Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Flight Control Actuation $ 189,670 $ 352,606 Fuel and Inerting 157,262 301,308 Hydraulics 108,893 211,390 Engines 71,647 136,033 Fluid Conveyance 68,868 139,072 Other 19,967 40,382 Total $ 616,307 $ 1,180,791 Total Company revenues by geographic region based on the Company's selling operation's location: Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 North America $ 2,248,806 $ 4,494,897 Europe 714,550 1,440,860 Asia Pacific 465,974 927,614 Latin America 42,715 87,968 Total $ 3,472,045 $ 6,951,339 Diversified Industrial Segment revenues by technology platform: Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Motion Systems $ 856,357 $ 1,715,930 Flow and Process Control 1,015,200 2,076,264 Filtration and Engineered Materials 984,181 1,978,354 Total $ 2,855,738 $ 5,770,548
Contract assets and liabilities	Total contract assets and contract liabilities are as follows: December 31, 2018 Contract assets, current (included within Prepaid expenses and other) $ 19,263 Contract assets, noncurrent (included within Investments and other assets) 2,328 Total contract assets 21,591 Contract liabilities, current (included within Other accrued liabilities) (65,320 ) Contract liabilities, noncurrent (included within Other liabilities) (468 ) Total contract liabilities (65,788 ) Net contract (liabilities) $ (44,197 )
Cumulative effect of changes	The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as of July 1, 2018 related to the adoption of ASU 2014-09 is as follows: Balance as of Cumulative Effect Balance as of June 30, 2018 of Adjustments July 1, 2018 Assets: Trade accounts receivable, net $ 2,145,517 $ (11 ) $ 2,145,506 Inventories 1,621,304 23,205 1,644,509 Prepaid expenses and other 134,886 14,575 149,461 Investments and other assets 801,049 2,020 803,069 Liabilities: Other accrued liabilities $ 502,333 $ 28,288 $ 530,621 Other liabilities 526,089 5,160 531,249 Deferred income taxes 234,858 1,560 236,418 Equity: Retained earnings $ 11,625,975 $ 4,781 $ 11,630,756

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Dec. 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 six months ended December 31, 2018 and 2017 . Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Numerator: Net income attributable to common shareholders $ 311,737 $ 56,159 $ 687,448 $ 341,556 Denominator: Basic - weighted average common shares 130,361,273 133,112,568 131,361,464 133,144,766 Increase in weighted average common shares from dilutive effect of equity-based awards 1,949,937 3,082,351 2,088,210 2,729,764 Diluted - weighted average common shares, assuming exercise of equity-based awards 132,311,210 136,194,919 133,449,674 135,874,530 Basic earnings per share $ 2.39 $ 0.42 $ 5.23 $ 2.57 Diluted earnings per share $ 2.36 $ 0.41 $ 5.15 $ 2.51

Non-trade and notes receivable

Non-trade and notes receivable (Tables)	6 Months Ended
	Dec. 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: December 31, June 30, Notes receivable $ 160,380 $ 149,254 Accounts receivable, other 163,874 179,145 Total $ 324,254 $ 328,399

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Dec. 31, 2018
Inventory, Net [Abstract]
Schedule of inventories	The inventories caption in the Consolidated Balance Sheet is comprised of the following components: December 31, June 30, Finished products $ 737,243 $ 673,323 Work in process 866,357 765,835 Raw materials 200,964 182,146 Total $ 1,804,564 $ 1,621,304

Business realignment charges (T

Business realignment charges (Tables)	6 Months Ended
	Dec. 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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Cost of sales $ 3,669 $ 13,657 $ 8,068 $ 22,772 Selling, general and administrative expenses 3,713 11,719 7,872 16,630 Other (income) expense, net 220 — 275 — Business realignment charges and acquisition integration costs presented in the Business Segment Information are as follows: Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Diversified Industrial $ 7,382 $ 24,684 $ 15,940 $ 37,947 Aerospace Systems — 692 — 1,455 Other expense 220 — 275 — 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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Diversified Industrial 164 723 365 1,265 Aerospace Systems — 19 — 56

Equity (Tables)

Equity (Tables)	6 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Schedule of stockholders equity	Changes in equity for the three months ended December 31, 2018 and 2017 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at September 30, 2018 $ 90,523 $ 503,052 $ 11,902,300 $ (1,775,983 ) $ (4,618,512 ) $ 5,726 $ 6,107,106 Net income 311,737 176 311,913 Other comprehensive income (loss) (19,514 ) 55 (19,459 ) Dividends paid ($0.76 per share) (99,589 ) (99,589 ) Stock incentive plan activity 18,802 2,393 21,195 Shares purchased at cost (500,000 ) (500,000 ) Balance at December 31, 2018 $ 90,523 $ 521,854 $ 12,114,448 $ (1,795,497 ) $ (5,116,119 ) $ 5,957 $ 5,821,166 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at September 30, 2017 $ 90,523 $ 528,956 $ 11,127,641 $ (1,824,503 ) $ (4,397,677 ) $ 5,719 $ 5,530,659 Net income 56,159 163 56,322 Other comprehensive income (loss) 56,775 (73 ) 56,702 Dividends paid ($0.66 per share) (88,083 ) (88,083 ) Stock incentive plan activity 5,047 8,563 13,610 Shares purchased at cost (50,000 ) (50,000 ) Balance at December 31, 2017 $ 90,523 $ 534,003 $ 11,095,717 $ (1,767,728 ) $ (4,439,114 ) $ 5,809 $ 5,519,210 Changes in equity for the six months ended December 31, 2018 and 2017 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at June 30, 2018 $ 90,523 $ 496,592 $ 11,625,975 $ (1,763,086 ) $ (4,590,138 ) $ 5,627 $ 5,865,493 Impact of adoption of accounting standards 1,483 (1,734 ) (251 ) Net income 687,448 364 687,812 Other comprehensive (loss) (30,677 ) (34 ) (30,711 ) Dividends paid ($1.52 per share) (200,458 ) (200,458 ) Stock incentive plan activity 25,262 24,019 49,281 Shares purchased at cost (550,000 ) (550,000 ) Balance at December 31, 2018 $ 90,523 $ 521,854 $ 12,114,448 $ (1,795,497 ) $ (5,116,119 ) $ 5,957 $ 5,821,166 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Interests Total Equity Balance at June 30, 2017 $ 90,523 $ 543,879 $ 10,930,348 $ (1,924,204 ) $ (4,378,897 ) $ 5,697 $ 5,267,346 Net income 341,556 301 341,857 Other comprehensive income (loss) 156,476 (160 ) 156,316 Dividends paid ($1.32 per share) (176,187 ) (176,187 ) Stock incentive plan activity (9,876 ) 39,783 29,907 Acquisition activity (29 ) (29 ) Shares purchased at cost (100,000 ) (100,000 ) Balance at December 31, 2017 $ 90,523 $ 534,003 $ 11,095,717 $ (1,767,728 ) $ (4,439,114 ) $ 5,809 $ 5,519,210
Schedule of accumulated other comprehensive income (loss)	Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the six months ended December 31, 2018 and 2017 are as follows: Foreign Currency Translation Adjustment and Other Retirement Benefit Plans Total Balance at June 30, 2018 $ (943,477 ) $ (819,609 ) $ (1,763,086 ) Impact of adoption of ASU 2016-01 (1,734 ) — (1,734 ) Other comprehensive loss before reclassifications (82,655 ) — (82,655 ) Amounts reclassified from accumulated other comprehensive (loss) 3,578 48,400 51,978 Balance at December 31, 2018 $ (1,024,288 ) $ (771,209 ) $ (1,795,497 ) 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 101,429 — 101,429 Amounts reclassified from accumulated other comprehensive (loss) — 55,047 55,047 Balance at December 31, 2017 $ (823,913 ) $ (943,815 ) $ (1,767,728 )
Schedule of reclassification out of AOCI	Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and six months ended December 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 Six Months Ended December 31, 2018 December 31, 2018 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,652 ) $ (3,293 ) Other (income) expense, net Recognized actuarial loss (30,696 ) (59,993 ) Other (income) expense, net Total before tax (32,348 ) (63,286 ) Tax benefit 7,821 14,886 Net of tax $ (24,527 ) $ (48,400 ) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Six Months Ended December 31, 2017 December 31, 2017 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,545 ) $ (3,683 ) Other (income) expense, net Recognized actuarial loss (35,929 ) (74,960 ) Other (income) expense, net Total before tax (37,474 ) (78,643 ) Tax benefit 9,162 23,596 Net of tax $ (28,312 ) $ (55,047 )

Goodwill and intangible assets

Goodwill and intangible assets (Tables)	6 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The changes in the carrying amount of goodwill for the six months ended December 31, 2018 are as follows: Diversified Industrial Segment Aerospace Systems Segment Total Balance at June 30, 2018 $ 5,405,771 $ 98,649 $ 5,504,420 Acquisition 2,940 — 2,940 Foreign currency translation and other (44,799 ) (6 ) (44,805 ) Balance at December 31, 2018 $ 5,363,912 $ 98,643 $ 5,462,555
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: December 31, 2018 June 30, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 261,548 $ 123,194 $ 265,423 $ 117,440 Trademarks 542,931 238,962 546,905 227,580 Customer lists and other 2,440,534 999,032 2,482,079 933,867 Total $ 3,245,013 $ 1,361,188 $ 3,294,407 $ 1,278,887

Retirement benefits (Tables)

Retirement benefits (Tables)	6 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Schedule of defined benefit plans disclosures	Net pension benefit cost recognized included the following components: Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Service cost $ 17,983 $ 18,242 $ 38,492 $ 41,300 Interest cost 40,551 36,138 80,417 71,824 Expected return on plan assets (62,701 ) (65,350 ) (125,578 ) (128,526 ) Amortization of prior service cost 1,677 1,511 3,325 3,615 Amortization of net actuarial loss 30,692 35,468 59,985 74,150 Amortization of initial net obligation 4 5 9 10 Net pension benefit cost $ 28,206 $ 26,014 $ 56,650 $ 62,373

Financial instruments (Tables)

Financial instruments (Tables)	6 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
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: December 31, June 30, Carrying value of long-term debt $ 4,343,138 $ 4,460,402 Estimated fair value of long-term debt 4,383,759 4,548,796
Schedule of derivative instruments in statement of financial position, fair value	The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption December 31, June 30, Net investment hedges Cross-currency swap contracts Other assets $ 17,126 $ 7,614 Cash flow hedges Costless collar contracts Non-trade and notes receivable 278 932 Costless collar contracts Other accrued liabilities 4,553 236
Schedule of derivative and non-derivative financial instruments, gain (loss) in statement of financial performance	Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows: Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Cross-currency swap contracts $ 5,700 $ (2,725 ) $ 7,619 $ (9,298 ) Foreign denominated debt 7,144 (10,893 ) 11,271 (27,727 )
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 December 31, 2018 and June 30, 2018 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 12,988 $ 12,988 $ — $ — Corporate bonds 4,859 4,859 — — Asset-backed and mortgage-backed securities 6,046 — 6,046 — Derivatives 21,377 — 21,377 — Investments measured at net asset value 7,064 Liabilities: Derivatives 15,856 — 15,856 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 2,956 $ 2,956 $ — $ — Corporate bonds 5,331 5,331 — — Asset-backed and mortgage-backed securities 3,911 — 3,911 — Derivatives 14,110 — 14,110 — Investments measured at net asset value 7,208 Liabilities: Derivatives 5,315 — 5,315 —

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Number of reportable business segments | segment			2
Segment Reporting Information
Net sales	$ 3,472,045	$ 3,370,673	$ 6,951,339	$ 6,735,324
Operating income	504,432	430,819	1,045,167	914,721
Corporate general and administrative expenses	397,259	408,338	791,581	805,322
Interest expense	47,518	53,133	91,857	106,688
Other expense	25,760	17,465	62,433	73,510
Income before income taxes	431,154	360,221	890,877	734,523
North America
Segment Reporting Information
Net sales	2,248,806		4,494,897
Diversified Industrial
Segment Reporting Information
Net sales	2,855,738		5,770,548
Aerospace Systems
Segment Reporting Information
Net sales	616,307		1,180,791
Operating Segments
Segment Reporting Information
Operating income	568,322	477,761	1,159,382	1,003,013
Operating Segments | Diversified Industrial | North America
Segment Reporting Information
Net sales	1,632,059	1,565,416	3,313,103	3,160,107
Operating income	257,774	225,807	532,885	481,834
Operating Segments | Diversified Industrial | International
Segment Reporting Information
Net sales	1,223,679	1,255,569	2,457,445	2,494,343
Operating income	189,085	164,806	395,179	356,597
Operating Segments | Aerospace Systems
Segment Reporting Information
Net sales	616,307	549,688	1,180,791	1,080,874
Operating income	121,463	87,148	231,318	164,582
Corporate, Non-Segment
Segment Reporting Information
Corporate general and administrative expenses	$ 63,890	$ 46,942	$ 114,215	$ 88,292

New accounting pronouncements_2

New accounting pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jul. 01, 2018	Jun. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of sales	$ (2,602,339)	$ (2,564,449)	$ (5,197,162)	$ (5,087,743)
Selling, general and administrative expenses	(397,259)	$ (408,338)	(791,581)	$ (805,322)
Impact of adoption of accounting standards						$ (251)
Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of sales	4,621		14,205
Selling, general and administrative expenses	$ 4,125		$ 8,812
Accounting Standards Update 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adoption of accounting standards					$ (19,000)
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adoption of accounting standards					5,000
Accumulated Other Comprehensive (Loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adoption of accounting standards						(1,734)
Accumulated Other Comprehensive (Loss) | Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adoption of accounting standards					(2,000)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adoption of accounting standards						$ 1,483
Retained Earnings | Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adoption of accounting standards					$ 2,000

Revenue recognition - Revenues

Revenue recognition - Revenues by segment and by platform (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues from contracts	$ 3,472,045	$ 3,370,673	$ 6,951,339	$ 6,735,324
Diversified Industrial Segment
Disaggregation of Revenue [Line Items]
Revenues from contracts	2,855,738		5,770,548
Diversified Industrial Segment | Motion Systems
Disaggregation of Revenue [Line Items]
Revenues from contracts	856,357		1,715,930
Diversified Industrial Segment | Flow and Process Control
Disaggregation of Revenue [Line Items]
Revenues from contracts	1,015,200		2,076,264
Diversified Industrial Segment | Filtration and Engineered Materials
Disaggregation of Revenue [Line Items]
Revenues from contracts	984,181		1,978,354
Aerospace Systems Segment
Disaggregation of Revenue [Line Items]
Revenues from contracts	616,307		1,180,791
Aerospace Systems Segment | Flight Control Actuation
Disaggregation of Revenue [Line Items]
Revenues from contracts	189,670		352,606
Aerospace Systems Segment | Fuel and Inerting
Disaggregation of Revenue [Line Items]
Revenues from contracts	157,262		301,308
Aerospace Systems Segment | Hydraulics
Disaggregation of Revenue [Line Items]
Revenues from contracts	108,893		211,390
Aerospace Systems Segment | Engines
Disaggregation of Revenue [Line Items]
Revenues from contracts	71,647		136,033
Aerospace Systems Segment | Fluid Conveyance
Disaggregation of Revenue [Line Items]
Revenues from contracts	68,868		139,072
Aerospace Systems Segment | Other
Disaggregation of Revenue [Line Items]
Revenues from contracts	$ 19,967		$ 40,382

Revenue recognition - Revenue b

Revenue recognition - Revenue by geographic region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues from contracts	$ 3,472,045	$ 3,370,673	$ 6,951,339	$ 6,735,324
North America
Disaggregation of Revenue [Line Items]
Revenues from contracts	2,248,806		4,494,897
Europe
Disaggregation of Revenue [Line Items]
Revenues from contracts	714,550		1,440,860
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenues from contracts	465,974		927,614
Latin America
Disaggregation of Revenue [Line Items]
Revenues from contracts	$ 42,715		$ 87,968

Revenue recognition - Contract

Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jul. 01, 2018
Revenue from Contract with Customer [Abstract]
Contract assets, current (included within Prepaid expenses and other)	$ 19,263
Contract assets, noncurrent (included within Investments and other assets)	2,328
Total contract assets	21,591
Contract liabilities, current (included within Other accrued liabilities)	(65,320)
Contract liabilities, noncurrent (included within Other liabilities)	(468)
Total contract liabilities	(65,788)
Net contract (liabilities)	$ (44,197)	$ (38,000)

Revenue recognition - Contrac_2

Revenue recognition - Contract balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Jul. 01, 2018
Revenue from Contract with Customer [Abstract]
Change in net contract liabilities, advance payment in excess of revenue recognized	$ 6,000
Net contract (liabilities)	44,197	$ 38,000
Revenue recognized	$ 20,000

Revenue recognition - Remaining

Revenue recognition - Remaining performance obligations (Details) $ in Millions	Dec. 31, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 4,209
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	92.00%
Remaining performance obligation, expected timing of satisfaction, period	1 year

Revenue recognition - Cumulativ

Revenue recognition - Cumulative effect of changes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jul. 01, 2018	Jun. 30, 2018
ASSETS
Trade accounts receivable, net	$ 1,938,709	$ 2,145,506	$ 2,145,517
Inventories	1,804,564	1,644,509	1,621,304
Prepaid expenses and other	188,868	149,461	134,886
Investments and other assets	733,987	803,069	801,049
LIABILITIES
Other accrued liabilities	555,005	530,621	502,333
Other liabilities	449,696	531,249	526,089
Deferred income taxes	286,622	236,418	234,858
EQUITY
Retained earnings	$ 12,114,448	$ 11,630,756	11,625,975
Calculated under Revenue Guidance in Effect before Topic 606
ASSETS
Trade accounts receivable, net			2,145,517
Inventories			1,621,304
Prepaid expenses and other			134,886
Investments and other assets			801,049
LIABILITIES
Other accrued liabilities			502,333
Other liabilities			526,089
Deferred income taxes			234,858
EQUITY
Retained earnings			11,625,975
Cumulative Effect of Adjustments | Accounting Standards Update 2014-09
ASSETS
Trade accounts receivable, net			(11)
Inventories			23,205
Prepaid expenses and other			14,575
Investments and other assets			2,020
LIABILITIES
Other accrued liabilities			28,288
Other liabilities			5,160
Deferred income taxes			1,560
EQUITY
Retained earnings			$ 4,781

Earnings per share - Computatio

Earnings per share - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income attributable to common shareholders	$ 311,737	$ 56,159	$ 687,448	$ 341,556
Denominator:
Basic - weighted average common shares (in shares)	130,361,273	133,112,568	131,361,464	133,144,766
Increase in weighted average common shares from dilutive effect of equity-based awards (in shares)	1,949,937	3,082,351	2,088,210	2,729,764
Diluted - weighted average common shares, assuming exercise of equity-based awards (in shares)	132,311,210	136,194,919	133,449,674	135,874,530
Basic earnings per share (in USD per share)	$ 2.39	$ 0.42	$ 5.23	$ 2.57
Diluted earnings per share (in USD per share)	$ 2.36	$ 0.41	$ 5.15	$ 2.51

Earnings per share - Additional

Earnings per share - Additional information (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Excluded from the computation of diluted earnings per share since anti-dilutive (in shares)	1,335,187	3,245	836,099	706,512

Share repurchase program (Detai

Share repurchase program (Details) - $ / shares	3 Months Ended	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Oct. 22, 2014
Equity [Abstract]
Authorized to be repurchased (in shares)			35,000,000
Repurchased (in shares)	3,008,512	3,302,453
Repurchased, average price (in USD per share)	$ 166.20	$ 166.54

Trade accounts receivable, net

Trade accounts receivable, net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Receivables [Abstract]
Allowance for doubtful accounts	$ 8,178	$ 9,672

Non-trade and notes receivabl_2

Non-trade and notes receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Receivables [Abstract]
Notes receivable	$ 160,380	$ 149,254
Accounts receivable, other	163,874	179,145
Total	$ 324,254	$ 328,399

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jul. 01, 2018	Jun. 30, 2018
Inventory, Net [Abstract]
Finished products	$ 737,243		$ 673,323
Work in process	866,357		765,835
Raw materials	200,964		182,146
Total	$ 1,804,564	$ 1,644,509	$ 1,621,304

Business realignment charges -

Business realignment charges - Business segment information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018USD ($)employee	Dec. 31, 2017USD ($)employee	Dec. 31, 2018USD ($)employee	Dec. 31, 2017USD ($)employee
Other expense
Restructuring Cost and Reserve [Line Items]
Realignment charges and acquisition integration costs	$ 220	$ 0	$ 275	$ 0
Diversified Industrial | Operating Segments
Restructuring Cost and Reserve [Line Items]
Realignment charges and acquisition integration costs	$ 7,382	$ 24,684	$ 15,940	$ 37,947
Number of positions eliminated (by employees) | employee	164	723	365	1,265
Aerospace Systems | Operating Segments
Restructuring Cost and Reserve [Line Items]
Realignment charges and acquisition integration costs	$ 0	$ 692	$ 0	$ 1,455
Number of positions eliminated (by employees) | employee	0	19	0	56

Business realignment charges _2

Business realignment charges - Income statement location (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Cost of sales
Restructuring Cost and Reserve [Line Items]
Realignment charges and acquisition integration costs	$ 3,669	$ 13,657	$ 8,068	$ 22,772
Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Realignment charges and acquisition integration costs	3,713	11,719	7,872	16,630
Other (income) expense, net
Restructuring Cost and Reserve [Line Items]
Realignment charges and acquisition integration costs	$ 220	$ 0	$ 275	$ 0

Business realignment charges _3

Business realignment charges - Additional information (Details) - Employee severance $ in Millions	6 Months Ended
	Dec. 31, 2018USD ($)
Restructuring Cost and Reserve [Line Items]
Severance payments made relating to charges incurred during the fiscal year	$ 7
Remaining severance payments related to current-year and prior-year actions	$ 18

Equity - Changes in equity (Det

Equity - Changes in equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 6,107,106	$ 5,530,659	$ 5,865,493	$ 5,267,346
Impact of adoption of accounting standards					$ (251)
Net income	311,913	56,322	687,812	341,857
Other comprehensive income (loss)	(19,459)	56,702	(30,711)	156,316
Dividends paid	(99,589)	(88,083)	(200,458)	(176,187)
Stock incentive plan activity	21,195	13,610	49,281	29,907
Acquisition activity				(29)
Shares purchased at cost	(500,000)	(50,000)	(550,000)	(100,000)
Ending balance	$ 5,821,166	$ 5,519,210	$ 5,821,166	$ 5,519,210
Cash dividends per common share (in USD per share)	$ 0.76	$ 0.66	$ 1.52	$ 1.32
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 90,523	$ 90,523	$ 90,523	$ 90,523
Ending balance	90,523	90,523	90,523	90,523
Additional Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	503,052	528,956	496,592	543,879
Stock incentive plan activity	18,802	5,047	25,262	(9,876)
Ending balance	521,854	534,003	521,854	534,003
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	11,902,300	11,127,641	11,625,975	10,930,348
Impact of adoption of accounting standards					1,483
Net income	311,737	56,159	687,448	341,556
Dividends paid	(99,589)	(88,083)	(200,458)	(176,187)
Ending balance	12,114,448	11,095,717	12,114,448	11,095,717
Accumulated Other Comprehensive (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(1,775,983)	(1,824,503)	(1,763,086)	(1,924,204)
Impact of adoption of accounting standards					$ (1,734)
Other comprehensive income (loss)	(19,514)	56,775	(30,677)	156,476
Ending balance	(1,795,497)	(1,767,728)	(1,795,497)	(1,767,728)
Treasury Shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(4,618,512)	(4,397,677)	(4,590,138)	(4,378,897)
Stock incentive plan activity	2,393	8,563	24,019	39,783
Shares purchased at cost	(500,000)	(50,000)	(550,000)	(100,000)
Ending balance	(5,116,119)	(4,439,114)	(5,116,119)	(4,439,114)
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	5,726	5,719	5,627	5,697
Net income	176	163	364	301
Other comprehensive income (loss)	55	(73)	(34)	(160)
Acquisition activity				(29)
Ending balance	$ 5,957	$ 5,809	$ 5,957	$ 5,809

Equity - Accumulated other comp

Equity - Accumulated other comprehensive income (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 5,865,493	$ 5,267,346
Impact of adoption of ASU 2016-01			$ (251)
Ending balance	5,821,166	5,519,210
Foreign Currency Translation Adjustment and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(943,477)	(925,342)
Impact of adoption of ASU 2016-01			(1,734)
Other comprehensive income (loss) before reclassifications	(82,655)	101,429
Amounts reclassified from accumulated other comprehensive (loss)	3,578	0
Ending balance	(1,024,288)	(823,913)
Retirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(819,609)	(998,862)
Impact of adoption of ASU 2016-01			0
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive (loss)	48,400	55,047
Ending balance	(771,209)	(943,815)
Accumulated Other Comprehensive (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(1,763,086)	(1,924,204)
Impact of adoption of ASU 2016-01			$ (1,734)
Other comprehensive income (loss) before reclassifications	(82,655)	101,429
Amounts reclassified from accumulated other comprehensive (loss)	51,978	55,047
Ending balance	$ (1,795,497)	$ (1,767,728)

Equity - Reclassifications out

Equity - Reclassifications out of accumulated other comprehensive income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other expense (income), net	$ 6,225	$ 15,468	$ 20,138	$ (1,048)
Tax benefit	(119,241)	(303,899)	(203,065)	(392,666)
Net income	311,913	56,322	687,812	341,857
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of prior service cost and initial net obligation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other expense (income), net	(1,652)	(1,545)	(3,293)	(3,683)
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Recognized actuarial loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other expense (income), net	(30,696)	(35,929)	(59,993)	(74,960)
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Retirement benefit plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	(32,348)	(37,474)	(63,286)	(78,643)
Tax benefit	7,821	9,162	14,886	23,596
Net income	$ (24,527)	$ (28,312)	$ (48,400)	$ (55,047)

Goodwill and intangible asset_2

Goodwill and intangible assets - Changes in carrying amount of goodwill (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2018USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 5,504,420
Acquisition	2,940
Foreign currency translation and other	(44,805)
Ending balance	5,462,555
Diversified Industrial Segment
Goodwill [Roll Forward]
Beginning balance	5,405,771
Acquisition	2,940
Foreign currency translation and other	(44,799)
Ending balance	5,363,912
Aerospace Systems Segment
Goodwill [Roll Forward]
Beginning balance	98,649
Acquisition	0
Foreign currency translation and other	(6)
Ending balance	$ 98,643

Goodwill and intangible asset_3

Goodwill and intangible assets - Intangible assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Finite-Lived Intangible Asset
Gross Carrying Amount	$ 3,245,013	$ 3,294,407
Accumulated Amortization	1,361,188	1,278,887
Patents
Finite-Lived Intangible Asset
Gross Carrying Amount	261,548	265,423
Accumulated Amortization	123,194	117,440
Trademarks
Finite-Lived Intangible Asset
Gross Carrying Amount	542,931	546,905
Accumulated Amortization	238,962	227,580
Customer lists and other
Finite-Lived Intangible Asset
Gross Carrying Amount	2,440,534	2,482,079
Accumulated Amortization	$ 999,032	$ 933,867

Goodwill and intangible asset_4

Goodwill and intangible assets - Additional information (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible amortization expense	$ 105,090
Estimated amortization expense, year ending June 30, 2019	196,130
Estimated amortization expense, year ending June 30, 2020	185,468
Estimated amortization expense, year ending June 30, 2021	180,870
Estimated amortization expense, year ending June 30, 2022	175,010
Estimated amortization expense, year ending June 30, 2023	$ 167,513

Retirement benefits - Net pensi

Retirement benefits - Net pension benefit cost recognized (Details) - Pension Plans - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plans Disclosure
Service cost	$ 17,983	$ 18,242	$ 38,492	$ 41,300
Interest cost	40,551	36,138	80,417	71,824
Expected return on plan assets	(62,701)	(65,350)	(125,578)	(128,526)
Amortization of prior service cost	1,677	1,511	3,325	3,615
Amortization of net actuarial loss	30,692	35,468	59,985	74,150
Amortization of initial net obligation	4	5	9	10
Net pension benefit cost	$ 28,206	$ 26,014	$ 56,650	$ 62,373

Retirement benefits - Additiona

Retirement benefits - Additional information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans
Discretionary cash contribution to defined benefit plan	$ 200,000
Other Postretirement Benefit Plans
Defined Benefit Plans and Other Postretirement Benefit Plans
Net pension benefit cost		$ 631	$ 1,091	$ 1,281	$ 2,180

Income taxes (Details)

Income taxes (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2018USD ($)
Income Tax Disclosure [Abstract]
Income tax expense, tax cuts and jobs act	$ 14,485
Unrecognized tax benefits	146,632
Unrecognized tax benefits that would impact effective tax rate if recognized	146,632
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits	23,411
Decrease in unrecognized tax benefits that is reasonably possible (up to)	$ 110,000

Financial instruments - Carryin

Financial instruments - Carrying and estimated fair value of long-term debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Carrying value of long-term debt	$ 4,343,138	$ 4,460,402
Estimated fair value of long-term debt	$ 4,383,759	$ 4,548,796

Financial instruments - Additio

Financial instruments - Additional information (Details) - EUR (€) € in Millions	Dec. 31, 2018	Jun. 30, 2018
Senior Notes | Senior Notes Due 2025
Debt Instrument [Line Items]
Aggregate principal amount (in EUR)	€ 700
Minimum
Debt Instrument [Line Items]
Contractual maturities of available-for-sale debt	1 year	1 year
Maximum
Debt Instrument [Line Items]
Contractual maturities of available-for-sale debt	3 years	3 years

Financial instruments - Summary

Financial instruments - Summary of the location and fair value of derivative financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Cross-currency swap contracts | Other assets
Derivatives, Fair Value
Net investment hedge, assets	$ 17,126	$ 7,614
Costless collar contracts | Non-trade and notes receivable
Derivatives, Fair Value
Cash flow hedge, assets	278	932
Costless collar contracts | Other accrued liabilities
Derivatives, Fair Value
Cash flow hedge, liability	$ 4,553	$ 236

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		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Cross-currency swap contracts
Derivative Instruments, Gain (Loss)
Derivative and non derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss)	$ 5,700	$ (2,725)	$ 7,619	$ (9,298)
Foreign denominated debt
Derivative Instruments, Gain (Loss)
Derivative and non derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss)	$ 7,144	$ (10,893)	$ 11,271	$ (27,727)

Financial instruments - Financi

Financial instruments - Financial assets and liabilities measured at fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Assets:
Equity securities	$ 12,988
Equity securities		$ 2,956
Derivative asset	21,377	14,110
Liabilities:
Derivative liability	15,856	5,315
Quoted Prices In Active Markets (Level 1)
Assets:
Equity securities	12,988
Equity securities		2,956
Derivative asset	0	0
Liabilities:
Derivative liability	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Equity securities	0
Equity securities		0
Derivative asset	21,377	14,110
Liabilities:
Derivative liability	15,856	5,315
Significant Unobservable Inputs (Level 3)
Assets:
Equity securities	0
Equity securities		0
Derivative asset	0	0
Liabilities:
Derivative liability	0	0
Measured at Net Asset Value
Assets:
Investments measured at net asset value	7,064	7,208
Corporate bonds
Assets:
Debt securities	4,859	5,331
Corporate bonds | Quoted Prices In Active Markets (Level 1)
Assets:
Debt securities	4,859	5,331
Corporate bonds | Significant Other Observable Inputs (Level 2)
Assets:
Debt securities	0	0
Corporate bonds | Significant Unobservable Inputs (Level 3)
Assets:
Debt securities	0	0
Asset-backed and mortgage-backed securities
Assets:
Debt securities	6,046	3,911
Asset-backed and mortgage-backed securities | Quoted Prices In Active Markets (Level 1)
Assets:
Debt securities	0	0
Asset-backed and mortgage-backed securities | Significant Other Observable Inputs (Level 2)
Assets:
Debt securities	6,046	3,911
Asset-backed and mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Assets:
Debt securities	$ 0	$ 0