Cover Page
Cover Page | 9 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
Document Transition Report | false |
Entity File Number | 1-4982 |
Entity Registrant Name | PARKER-HANNIFIN CORPORATION |
Entity Incorporation, State or Country Code | OH |
Entity Tax Identification Number | 34-0451060 |
Entity Address, Address Line One | 6035 Parkland Boulevard, |
Entity Address, City or Town | Cleveland, |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44124-4141 |
City Area Code | 216 |
Local Phone Number | 896-3000 |
Title of 12(b) Security | Common Shares, $.50 par value |
Trading Symbol | PH |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 128,296,105 |
Entity Central Index Key | 0000076334 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | [1] | Mar. 31, 2023 | Mar. 31, 2022 | [1] | |
Income Statement [Abstract] | ||||||
Net sales | $ 5,061,665 | $ 4,086,387 | $ 13,969,251 | $ 11,673,776 | ||
Cost of sales | 3,340,764 | 2,709,407 | 9,373,032 | 7,781,384 | ||
Selling, general and administrative expenses | 868,393 | 640,498 | 2,519,163 | 1,853,105 | ||
Interest expense | 151,993 | 63,272 | 416,718 | 183,982 | ||
Other (income) expense, net | (55,866) | 239,221 | (116,131) | 359,247 | ||
Income before income taxes | 756,381 | 433,989 | 1,776,469 | 1,496,058 | ||
Income taxes | 165,421 | 85,901 | 402,011 | 308,778 | ||
Net income | 590,960 | 348,088 | 1,374,458 | 1,187,280 | ||
Less: Noncontrolling interest in subsidiaries' earnings | 71 | 71 | 478 | 506 | ||
Net income attributable to common shareholders | $ 590,889 | $ 348,017 | $ 1,373,980 | $ 1,186,774 | ||
Earnings per share attributable to common shareholders: | ||||||
Basic (in USD per share) | $ 4.61 | $ 2.71 | $ 10.71 | $ 9.23 | ||
Diluted (in USD per share) | $ 4.54 | $ 2.67 | $ 10.58 | $ 9.10 | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 590,960 | $ 348,088 | [1] | $ 1,374,458 | $ 1,187,280 | [1] |
Less: Noncontrolling interests in subsidiaries' earnings | 71 | 71 | [1] | 478 | 506 | [1] |
Net income attributable to common shareholders | 590,889 | 348,017 | [1] | 1,373,980 | 1,186,774 | [1] |
Other comprehensive income (loss), net of tax | ||||||
Foreign currency translation adjustment | 92,106 | (16,898) | 145,997 | (56,730) | ||
Retirement benefits plan activity | (1,364) | 30,455 | 8,397 | 91,335 | ||
Other comprehensive income | 90,742 | 13,557 | 154,394 | 34,605 | ||
Less: Other comprehensive (loss) for noncontrolling interests | (299) | (276) | (176) | (862) | ||
Other comprehensive income attributable to common shareholders | 91,041 | 13,833 | 154,570 | 35,467 | ||
Total comprehensive income attributable to common shareholders | $ 681,930 | $ 361,850 | $ 1,528,550 | $ 1,222,241 | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 534,831 | $ 535,799 |
Marketable securities and other investments | 23,466 | 27,862 |
Trade accounts receivable, net | 2,881,534 | 2,341,504 |
Non-trade and notes receivable | 349,903 | 543,757 |
Inventories | 3,067,614 | 2,214,553 |
Prepaid expenses and other | 376,066 | 6,383,169 |
Total current assets | 7,233,414 | 12,046,644 |
Property, plant and equipment | 6,807,734 | 5,897,955 |
Less: Accumulated depreciation | 3,963,939 | 3,775,197 |
Property, plant and equipment, net | 2,843,795 | 2,122,758 |
Deferred income taxes | 131,782 | 110,585 |
Investments and other assets | 1,188,671 | 788,057 |
Intangible assets, net | 8,287,517 | 3,135,817 |
Goodwill | 10,830,548 | 7,740,082 |
Total assets | 30,515,727 | 25,943,943 |
Current liabilities: | ||
Notes payable and long-term debt payable within one year | 1,992,919 | 1,724,310 |
Accounts payable, trade | 2,080,147 | 1,731,925 |
Accrued payrolls and other compensation | 543,527 | 470,132 |
Accrued domestic and foreign taxes | 270,807 | 250,292 |
Other accrued liabilities | 900,769 | 1,682,659 |
Total current liabilities | 5,788,169 | 5,859,318 |
Long-term debt | 11,412,304 | 9,755,825 |
Pensions and other postretirement benefits | 781,139 | 639,939 |
Deferred income taxes | 1,780,533 | 307,044 |
Other liabilities | 960,417 | 521,897 |
Total liabilities | 20,722,562 | 17,084,023 |
Shareholders’ equity: | ||
Serial preferred stock, $.50 par value; authorized 3,000,000 shares; none issued | 0 | 0 |
Common stock, $.50 par value; authorized 600,000,000 shares; issued 181,046,128 shares at March 31 and June 30 | 90,523 | 90,523 |
Additional capital | 355,754 | 327,307 |
Retained earnings | 16,522,900 | 15,661,808 |
Accumulated other comprehensive (loss) | (1,388,628) | (1,543,198) |
Treasury shares, at cost; 52,750,023 shares at March 31 and 52,594,956 shares at June 30 | (5,799,252) | (5,688,429) |
Total shareholders’ equity | 9,781,297 | 8,848,011 |
Noncontrolling interests | 11,868 | 11,909 |
Total equity | 9,793,165 | 8,859,920 |
Total liabilities and equity | $ 30,515,727 | $ 25,943,943 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Mar. 31, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Serial preferred stock, par value (in USD per share) | $ 0.50 | $ 0.50 |
Serial preferred stock, authorized (in shares) | 3,000,000 | 3,000,000 |
Serial preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.50 | $ 0.50 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 181,046,128 | 181,046,128 |
Treasury shares (in shares) | 52,750,023 | 52,594,956 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 1,374,458 | $ 1,187,280 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 234,649 | 194,945 | |
Amortization | 374,417 | 237,377 | |
Share incentive plan compensation | 117,536 | 109,781 | |
Deferred income taxes | 89,805 | (174,270) | |
Foreign currency transaction loss (gain) | 54,927 | (26,970) | |
Gain on disposal of property, plant and equipment | (1,270) | (6,782) | |
Gain on sale of businesses | (366,345) | (1,472) | |
(Gain) loss on marketable securities | (1,391) | 2,280 | |
Gain on investments | (4,341) | (2,024) | |
Other | 18,890 | 66,386 | |
Changes in assets and liabilities, net of effect of acquisitions and divestitures: | |||
Accounts receivable, net | (110,317) | (163,900) | |
Inventories | (27,491) | (274,717) | |
Prepaid expenses and other | (64,350) | 24,061 | |
Other assets | (194,069) | (17,317) | |
Accounts payable, trade | 118,756 | 91,531 | |
Accrued payrolls and other compensation | (19,357) | (80,483) | |
Accrued domestic and foreign taxes | 36,208 | 44,266 | |
Other accrued liabilities | 141,891 | 372,491 | |
Pensions and other postretirement benefits | 46,681 | (20,460) | |
Other liabilities | (24,393) | (13,565) | |
Net cash provided by operating activities | 1,794,894 | 1,548,438 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisitions (net of cash of $89,704 in 2023) | (7,146,110) | 0 | |
Capital expenditures | (272,603) | (158,864) | |
Proceeds from sale of property, plant and equipment | 11,821 | 29,320 | |
Proceeds from sale of businesses | 471,720 | 3,366 | |
Purchases of marketable securities and other investments | (31,275) | (20,012) | |
Maturities and sales of marketable securities and other investments | 35,075 | 17,662 | |
Payments of deal-contingent forward contracts | (1,405,418) | 0 | |
Other | 251,875 | 2,766 | |
Net cash used in investing activities | (8,084,915) | (125,762) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options | 2,820 | 2,566 | |
Payments for common shares | (202,731) | (374,996) | |
Proceeds from notes payable, net | 258,458 | 1,621,483 | |
Proceeds from long-term borrowings | 2,011,949 | 10,667 | |
Payments for long-term borrowings | (1,363,596) | (9,708) | |
Financing fees paid | (8,911) | (52,655) | |
Dividends paid | (513,232) | (398,099) | |
Net cash provided by financing activities | 184,757 | 799,258 | |
Effect of exchange rate changes on cash | (7,781) | 106 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (6,113,045) | 2,222,040 | |
Cash, cash equivalents and restricted cash at beginning of year | 6,647,876 | 733,117 | |
Cash, cash equivalents and restricted cash at end of period | $ 534,831 | $ 2,955,157 | |
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) $ in Thousands | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Statement of Cash Flows [Abstract] | |
Acquisitions, cash acquired | $ 89,704 |
Management representation
Management representation | 9 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management representation | As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires, the terms "Company", "Parker", "we" or "us" refer to Parker-Hannifin Corporation and its subsidiaries.Management representation In the opinion of the management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company's financial position as of March 31, 2023, the results of operations for the three and nine months ended March 31, 2023 and 2022 and cash flows for the nine months then ended. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2022 Annual Report on Form 10-K. The future impacts of the Russia-Ukraine war and the novel coronavirus ("COVID-19") pandemic and their residual effects, including economic uncertainty, inflationary environment and disruption within the global supply chain, labor markets and aerospace industry, on our business remain uncertain. Therefore, accounting estimates and assumptions may change over time in response to these impacts. Interim period results are not necessarily indicative of the results to be expected for the full fiscal year. Reclassification Certain prior-year amounts in the Consolidated Statement of Income have been reclassified to conform to the current-year presentation. Effective July 1, 2022, we began classifying certain expenses, previously classified as cost of sales, as selling, general and administrative expenses ("SG&A") or within other (income) expense, net. During the integration of recently acquired businesses, the Company has seen diversity in practice of the classification of certain expenses, and the reclassification was made to better align the presentation of expenses on the Consolidated Statement of Income with management’s internal reporting. The expenses reclassified from cost of sales to SG&A relate to certain administrative activities conducted in production facilities and research and development. Foreign currency transaction expense was also reclassified from cost of sales to other (income) expense, net on the Consolidated Statement of Income. These reclassifications had no impact on net income, earnings per share, cash flows, segment reporting or the financial position of the Company. During the three months ended March 31, 2022, the reclassifications resulted in a $219 million decrease to cost of sales, a $228 million increase to SG&A and a $9 million decrease to other (income) expense, net. During the nine months ended March 31, 2022, the reclassifications resulted in a $625 million decrease to cost of sales, a $652 million increase to SG&A and a $27 million decrease to other (income) expense, net. Subsequent Events The Company has evaluated subsequent events that occurred through the date these financial statements were issued. On May 4, 2023, the Company called $600 million aggregate principal amount of private placement notes assumed in the acquisition ("Acquisition") of Meggitt plc ("Meggitt") and will redeem them at par plus accrued and unpaid interest in June 2023. |
New accounting pronouncements
New accounting pronouncements | 9 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | New accounting pronouncementsIn November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance," which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and does not expect it to be material.In September 2022, the FASB issued ASU 2022-04, "Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations," which requires a buyer in a supplier finance program to disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs, including the outstanding amount under the program, the balance sheet presentation of the outstanding amount, and a rollforward of the obligations in the program. This ASU should be adopted retrospectively for each balance sheet period presented; however, the rollforward information should be provided prospectively. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and does not expect it to be material. |
Revenue recognition
Revenue recognition | 9 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | Revenue recognition Revenue is derived primarily from the sale of products in a variety of mobile, industrial and aerospace markets. A majority of the Company’s revenues are recognized at a point in time. However, a portion of the Company’s revenues are recognized over time. Diversified Industrial Segment revenues by technology platform: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Motion Systems $ 1,017,974 $ 895,839 $ 2,837,403 $ 2,568,166 Flow and Process Control 1,298,204 1,197,590 3,675,928 3,386,417 Filtration and Engineered Materials 1,550,927 1,360,643 4,378,931 3,875,843 Total $ 3,867,105 $ 3,454,072 $ 10,892,262 $ 9,830,426 Aerospace Systems Segment revenues by primary market: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Commercial original equipment manufacturer ("OEM") $ 398,502 $ 226,976 $ 1,045,850 $ 649,631 Commercial aftermarket 381,883 128,486 938,129 367,530 Military OEM 244,451 176,242 649,179 531,348 Military aftermarket 169,724 100,611 443,831 294,841 Total $ 1,194,560 $ 632,315 $ 3,076,989 $ 1,843,350 Upon completing the Acquisition, we reviewed the disaggregation of revenue disclosure for the Aerospace Systems Segment and believe that disaggregation by primary market provides more meaningful information than disaggregation by product platform. Total Company revenues by geographic region based on the Company's selling operation's location: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 North America $ 3,364,157 $ 2,645,106 $ 9,278,815 $ 7,451,153 Europe 1,054,157 829,392 2,750,159 2,344,533 Asia Pacific 590,017 560,250 1,777,550 1,735,574 Latin America 53,334 51,639 162,727 142,516 Total $ 5,061,665 $ 4,086,387 $ 13,969,251 $ 11,673,776 The majority of revenues from the Aerospace Systems Segment are 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: March 31, June 30, Contract assets, current (included within Prepaid expenses and other) $ 116,516 $ 28,546 Contract assets, noncurrent (included within Investments and other assets) 25,800 794 Total contract assets 142,316 29,340 Contract liabilities, current (included within Other accrued liabilities) (235,206) (60,472) Contract liabilities, noncurrent (included within Other liabilities) (105,195) (2,225) Total contract liabilities (340,401) (62,697) Net contract liabilities $ (198,085) $ (33,357) Net contract liabilities at March 31, 2023 increased from the June 30, 2022 amount primarily due to timing differences between when revenue was recognized and the receipt of advance payments as well as acquiring Meggitt's contract liabilities in excess of Meggitt's contract assets. During the nine months ended March 31, 2023, approximately $39 million of revenue was recognized that was included in the contract liabilities at June 30, 2022. Remaining performance obligations Our backlog represents written firm orders from a customer to deliver products and, in the case of blanket purchase orders, only includes the portion of the order for which a schedule or release has been agreed to with the customer. We believe our backlog represents our unsatisfied or partially unsatisfied performance obligations. Backlog at March 31, 2023 was $10.9 billion, of which approximately 84 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter. |
Acquisitions and divestitures
Acquisitions and divestitures | 9 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and divestitures | Acquisitions and divestitures Acquisitions On September 12, 2022, we completed the Acquisition of all the outstanding ordinary shares of Meggitt for 800 pence per share, resulting in an aggregate cash purchase price of $7.2 billion, including the assumption of debt. Meggitt is a leader in design, manufacturing and aftermarket support of technologically differentiated systems and equipment in aerospace, defense and selected energy markets with annual sales of approximately $2.1 billion for the year ended December 31, 2021. For segment reporting purposes, approximately 82 percent of Meggitt's sales are included in the Aerospace Systems Segment, while the remaining 18 percent are included in the Diversified Industrial Segment. Assets acquired and liabilities assumed are recognized at their respective fair values as of the Acquisition date. The process of estimating the fair values of certain tangible assets, identifiable intangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. The following table presents the preliminary estimated fair values of Meggitt's assets acquired and liabilities assumed on the Acquisition date. These preliminary estimates are based on available information and will be revised during the measurement period, not to exceed 12 months from the Acquisition date, as third-party valuations are finalized, additional information becomes available and as additional analysis is performed. Such revisions may have a material impact on our results of operations and financial position within the measurement period. During the current-year quarter and nine months ended March 31, 2023, these revisions did not have a material impact on the Consolidated Statement of Income. September 12, 2022 (previously reported) Measurement Period Adjustments September 12, 2022 (revised) Assets: Cash and cash equivalents $ 89,704 $ — $ 89,704 Accounts receivable 427,255 (10,687) 416,568 Inventories 833,602 (16,472) 817,130 Prepaid expenses and other 125,763 (1,525) 124,238 Property, plant and equipment 675,232 (10,071) 665,161 Deferred income taxes 5,720 27,022 32,742 Other assets 219,472 (52,072) 167,400 Intangible assets 5,418,795 27,305 5,446,100 Goodwill 2,830,845 185,440 3,016,285 Total assets acquired $ 10,626,388 $ 148,940 $ 10,775,328 Liabilities: Notes payable and long-term debt payable within one year $ 306,266 $ 3,288 $ 309,554 Accounts payable, trade 219,780 (17) 219,763 Accrued payrolls and other compensation 89,226 (2,204) 87,022 Other accrued liabilities 367,605 (60,339) 307,266 Long-term debt 669,321 40,042 709,363 Pensions and other postretirement benefits 85,899 12,827 98,726 Deferred income taxes 1,274,726 95,626 1,370,352 Other liabilities 377,751 59,717 437,468 Total liabilities assumed 3,390,574 148,940 3,539,514 Net assets acquired $ 7,235,814 $ — $ 7,235,814 Goodwill is calculated as the excess of the purchase price over the net assets acquired and represents cost synergies and enhancements to our existing technologies. For tax purposes, Meggitt's goodwill is not deductible. Based upon a preliminary acquisition valuation, we acquired $4.0 billion of customer-related intangible assets, $1.1 billion of patents and technology and $332 million of trademarks, each with estimated useful lives of 20 years. The fair value of the assets acquired includes $89 million and $86 million of operating and finance lease right-of-use assets, respectively. The fair value of liabilities assumed includes $145 million and $89 million of operating and finance lease liabilities, respectively, of which, $19 million and $3 million of operating and finance lease liabilities, respectively, are current liabilities. Long-term debt assumed includes $900 million aggregate principal amount of private placement notes with fixed interest rates ranging from 2.78 percent to 3.60 percent, and maturity dates ranging from July 2023 to July 2026. In October 2022, we paid off $300 million aggregate principal amount of private placement notes in two tranches pursuant to an offer to noteholders according to change in control provisions. These notes carried fixed interest rates of 2.78 percent and 3.00 percent and had maturity dates of November 2023 and November 2025, respectively. Upon acquiring Meggitt, we also assumed $127 million of liabilities associated with environmental matters. The environmental matters primarily relate to known exposures arising from environmental litigation, investigations and remediation of certain sites for which Meggitt has been identified as a potentially responsible party. The liabilities are based on outcomes of litigation and estimates of the level and timing of remediation costs, including the period of operating and monitoring activities required. Our consolidated financial statements for the three and nine months ended March 31, 2023 include the results of operations of Meggitt from the date of acquisition through March 31, 2023. Net sales and segment operating loss attributable to Meggitt during the three months ended March 31, 2023 was $624 million and $4 million, respectively. Net sales and segment operating loss attributable to Meggitt during the nine months ended March 31, 2023 was $1.4 billion and $120 million, respectively. Segment operating loss attributable to Meggitt includes estimated amortization and depreciation expense associated with the preliminary fair value estimates of intangible assets, plant and equipment, and inventory, as well as acquisition integration charges. Refer to Note 10 for further discussion of acquisition integration charges. Acquisition-related transaction costs totaled $112 million for the nine months ended March 31, 2023. These costs are included in SG&A in the Consolidated Statement of Income. The following table presents unaudited pro forma information for the three and nine months ended March 31, 2023 and 2022 as if the Acquisition had occurred on July 1, 2021. Three Months Ended Nine Months Ended (Unaudited) March 31, March 31, 2023 2022 2023 2022 Net sales $ 5,061,665 $ 4,549,854 $ 14,350,581 $ 13,189,507 Net income attributable to common shareholders 612,049 424,025 1,244,907 977,102 The historical consolidated financial information of Parker and Meggitt has been adjusted in the pro forma information in the table above to give effect to events that are directly attributable to the Acquisition and factually supportable. To reflect the occurrence of the Acquisition on July 1, 2021, the unaudited pro forma information includes adjustments for the amortization of the step-up inventory to fair value and incremental depreciation and amortization expense resulting from the fair value adjustments to property, plant and equipment and intangible assets. These adjustments were based upon a preliminary purchase price allocation. Additionally, adjustments to financing costs and income tax expense were also made to reflect the capital structure and anticipated effective tax rate of the combined entity. Additionally, the pro forma information includes adjustments for nonrecurring transactions directly related to the Acquisition, including the gain on the divestiture of the aircraft wheel and brake business, loss on deal-contingent forward contracts, and transaction costs. These non-recurring adjustments totaled $(1) million and $196 million during the three months ended March 31, 2023 and 2022, respectively, and $197 million and $177 million during the nine months ended March 31, 2023 and 2022, respectively. The resulting pro forma amounts are not necessarily indicative of the results that would have been obtained if the Acquisition had occurred as of the beginning of the period presented or that may occur in the future, and do not reflect future synergies, integration costs or other such costs or savings. Divestitures During September 2022, we divested our aircraft wheel and brake business, which was part of the Aerospace Systems Segment, for proceeds of $443 million. The resulting pre-tax gain of $374 million is included in other (income) expense, net in the Consolidated Statement of Income. The operating results and net assets of the aircraft wheel and brake business were immaterial to the Company's consolidated results of operations and financial position. As of June 30, 2022, the aggregate carrying amount of aircraft wheel and brake assets held for sale was $66 million. These assets primarily included goodwill and inventory and were recorded within prepaid expenses and other assets in the Consolidated Balance Sheet. Goodwill was allocated to the aircraft wheel and brake business using the relative fair value method. During March 2023, we divested a French aerospace business, which was part of the Aerospace Systems Segment, for proceeds of $27 million. The resulting pre-tax loss of $12 million is included in other (income) expense, net in the Consolidated Statement of Income. The operating results and net assets of the French aerospace business were immaterial to the Company's consolidated results of operations and financial position. Restricted Cash At June 30, 2022, prepaid expenses and other in the Consolidated Balance Sheet included a $6.1 billion balance in an escrow account restricted to payments for the Acquisition. These funds were used to finance a portion of the Acquisition, and there was no restricted cash at March 31, 2023. |
Earnings per share
Earnings per share | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended March 31, 2023 and 2022. Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Numerator: Net income attributable to common shareholders $ 590,889 $ 348,017 $ 1,373,980 $ 1,186,774 Denominator: Basic - weighted average common shares 128,293,039 128,426,675 128,343,788 128,549,040 Increase in weighted average common shares from dilutive effect of equity-based awards 1,858,448 1,916,906 1,488,201 1,889,553 Diluted - weighted average common shares, assuming exercise of equity-based awards 130,151,487 130,343,581 129,831,989 130,438,593 Basic earnings per share $ 4.61 $ 2.71 $ 10.71 $ 9.23 Diluted earnings per share $ 4.54 $ 2.67 $ 10.58 $ 9.10 For the three months ended March 31, 2023 and 2022, 124,025 and 493,609 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the nine months ended March 31, 2023 and 2022, 1,011,006 and 384,955 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. |
Share repurchase program
Share repurchase program | 9 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Share repurchase program | Share repurchase programThe 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 months ended March 31, 2023, we repurchased 152,388 shares at an average price, including commissions, of $328.11 per share. During the nine months ended March 31, 2023, we repurchased 514,612 shares at an average price, including commissions, of $291.48 per share. |
Trade accounts receivable, net
Trade accounts receivable, net | 9 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Trade accounts receivable, net | Trade accounts receivable, netTrade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. We evaluate the collectibility of our receivables based on historical experience and current and forecasted economic conditions based on management's judgment. Additionally, receivables are written off to bad debt when management makes a final determination of uncollectibility. Allowance for credit losses was $33 million and $10 million at March 31, 2023 and June 30, 2022, respectively. The increase in the allowance for credit losses from the June 30, 2022 amount is primarily due to the Acquisition.Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 112,585 $ 103,558 Cash collateral receivable (a) — 250,000 Accounts receivable, other 237,318 190,199 Total $ 349,903 $ 543,757 (a) The cash collateral receivable at June 30, 2022 related to the deal-contingent forward contracts settled in the first three months of fiscal 2023. |
Non-trade and notes receivable
Non-trade and notes receivable | 9 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Non-trade and notes receivable | Trade accounts receivable, netTrade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. We evaluate the collectibility of our receivables based on historical experience and current and forecasted economic conditions based on management's judgment. Additionally, receivables are written off to bad debt when management makes a final determination of uncollectibility. Allowance for credit losses was $33 million and $10 million at March 31, 2023 and June 30, 2022, respectively. The increase in the allowance for credit losses from the June 30, 2022 amount is primarily due to the Acquisition.Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 112,585 $ 103,558 Cash collateral receivable (a) — 250,000 Accounts receivable, other 237,318 190,199 Total $ 349,903 $ 543,757 (a) The cash collateral receivable at June 30, 2022 related to the deal-contingent forward contracts settled in the first three months of fiscal 2023. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2023 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The inventories caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Finished products $ 831,620 $ 811,702 Work in process 1,569,885 1,128,501 Raw materials 666,109 274,350 Total $ 3,067,614 $ 2,214,553 |
Business realignment and acquis
Business realignment and acquisition integration charges | 9 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Business realignment and acquisition integration charges | Business realignment and acquisition integration charges We incurred business realignment and acquisition integration charges in the first nine months of fiscal 2023 and 2022. In both the first nine months of fiscal 2023 and 2022, business realignment charges included severance costs related to actions taken under the Company's simplification initiative aimed at reducing organizational and process complexity, as well as plant closures. In fiscal 2023, a majority of the business realignment charges were incurred in Europe. In fiscal 2022, a majority of the business realignment charges were incurred in North America and Europe. We believe the realignment actions will positively impact future results of operations, but will not have a material effect on liquidity and sources and uses of capital. Business realignment charges by business segment are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Diversified Industrial $ 8,075 $ 2,771 $ 14,464 $ 8,835 Aerospace Systems 166 318 3,016 913 Other (income) expense, net — 63 — 63 Reductions to our workforce made in connection with such business realignment charges by business segment are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Diversified Industrial 282 50 499 133 Aerospace Systems 14 4 30 9 The business realignment charges are presented in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022* 2023 2022* Cost of sales $ 5,033 $ 1,178 $ 10,746 $ 2,311 Selling, general and administrative expenses 3,208 1,911 6,734 7,437 Other (income) expense, net — 63 — 63 *Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. During the first nine months of fiscal 2023, approximately $15 million in payments were made relating to business realignment charges. Remaining payments related to business realignment actions of approximately $11 million, a majority of which are expected to be paid by December 31, 2023, are primarily reflected within the other accrued liabilities caption in the Consolidated Balance Sheet. Additional charges may be recognized in future periods related to the business realignment actions described above, the timing and amount of which are not known at this time. In addition to the business realignment charges discussed above, we also incurred $20 million of expense in the prior-year quarter and first nine months of fiscal 2022 as a result of our exit of business operations in Russia. These charges primarily consisted of write-downs of inventory and other working capital items and $8 million of foreign currency translation expense reclassified from accumulated other comprehensive income. Within the business segment information in Note 17, $7 million of expense was recorded in the other (income) expense, net caption, while the remainder of the charge was split evenly between the Aerospace Systems Segment and the Diversified Industrial International businesses. We also incurred the following acquisition integration charges: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Diversified Industrial $ 5,395 $ 933 $ 7,276 $ 2,942 Aerospace Systems 25,849 — 69,377 — |
Equity
Equity | 9 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity Changes in equity for the three months ended March 31, 2023 and 2022 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at December 31, 2022 $ 90,523 $ 377,871 $ 16,102,883 $ (1,479,669) $ (5,769,228) $ 12,096 $ 9,334,476 Net income 590,889 71 590,960 Other comprehensive income (loss) 91,041 (299) 90,742 Dividends paid ($1.33 per share) (170,872) (170,872) Stock incentive plan activity (22,117) 19,976 (2,141) Shares purchased at cost (50,000) (50,000) Balance at March 31, 2023 $ 90,523 $ 355,754 $ 16,522,900 $ (1,388,628) $ (5,799,252) $ 11,868 $ 9,793,165 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at December 31, 2021 $ 90,523 $ 344,312 $ 15,488,764 $ (1,545,093) $ (5,623,424) $ 13,198 $ 8,768,280 Net income 348,017 71 348,088 Other comprehensive income (loss) 13,833 (276) 13,557 Dividends paid ($1.03 per share) (132,543) (132,543) Stock incentive plan activity 19,055 6,422 25,477 Shares purchased at cost (50,000) (50,000) Balance at March 31, 2022 $ 90,523 $ 363,367 $ 15,704,238 $ (1,531,260) $ (5,667,002) $ 12,993 $ 8,972,859 Changes in equity for the nine months ended March 31, 2023 and 2022 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at June 30, 2022 $ 90,523 $ 327,307 $ 15,661,808 $ (1,543,198) $ (5,688,429) $ 11,909 $ 8,859,920 Net income 1,373,980 478 1,374,458 Other comprehensive income (loss) 154,570 (176) 154,394 Dividends paid ($3.99 per share) (512,888) (343) (513,231) Stock incentive plan activity 28,447 39,177 67,624 Shares purchased at cost (150,000) (150,000) Balance at March 31, 2023 $ 90,523 $ 355,754 $ 16,522,900 $ (1,388,628) $ (5,799,252) $ 11,868 $ 9,793,165 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at June 30, 2021 $ 90,523 $ 329,619 $ 14,915,497 $ (1,566,727) $ (5,370,605) $ 15,363 $ 8,413,670 Net income 1,186,774 506 1,187,280 Other comprehensive income (loss) 35,467 (862) 34,605 Dividends paid ($3.09 per share) (398,033) (66) (398,099) Stock incentive plan activity 33,748 33,937 67,685 Liquidation activity (1,948) (1,948) Shares purchased at cost (330,334) (330,334) Balance at March 31, 2022 $ 90,523 $ 363,367 $ 15,704,238 $ (1,531,260) $ (5,667,002) $ 12,993 $ 8,972,859 Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the nine months ended March 31, 2023 and 2022 are as follows: Foreign Currency Translation Adjustment Retirement Benefit Plans Total Balance at June 30, 2022 $ (1,149,071) $ (394,127) $ (1,543,198) Other comprehensive income before reclassifications 146,173 — 146,173 Amounts reclassified from accumulated other comprehensive (loss) — 8,397 8,397 Balance at March 31, 2023 $ (1,002,898) $ (385,730) $ (1,388,628) Foreign Currency Translation Adjustment Retirement Benefit Plans Total Balance at June 30, 2021 $ (865,865) $ (700,862) $ (1,566,727) Other comprehensive (loss) before reclassifications (63,515) — (63,515) Amounts reclassified from accumulated other comprehensive (loss) 7,647 91,335 98,982 Balance at March 31, 2022 $ (921,733) $ (609,527) $ (1,531,260) Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and nine months ended March 31, 2023 and 2022 are as follows: Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2023 March 31, 2023 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (227) $ (679) Other (income) expense, net Recognized actuarial gain (loss) 1,057 (11,422) Other (income) expense, net Divestiture activity 587 587 Other (income) expense, net Total before tax 1,417 (11,514) Tax benefit (53) 3,117 Net of tax $ 1,364 $ (8,397) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2022 March 31, 2022 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,030) $ (3,090) Other (income) expense, net Recognized actuarial loss (39,292) (117,852) Other (income) expense, net Total before tax (40,322) (120,942) Tax benefit 9,867 29,607 Net of tax $ (30,455) $ (91,335) |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets The changes in the carrying amount of goodwill for the nine months ended March 31, 2023 are as follows: Diversified Industrial Aerospace Total Balance at June 30, 2022 $ 7,185,981 $ 554,101 $ 7,740,082 Acquisition 30,329 2,985,956 3,016,285 Divestitures (1,064) (2,232) (3,296) Foreign currency translation 30,297 47,180 77,477 Balance at March 31, 2023 $ 7,245,543 $ 3,585,005 $ 10,830,548 Acquisition represents goodwill resulting from the preliminary purchase price allocation for the Acquisition during the measurement period. Divestitures represent goodwill associated with the sale of businesses. Refer to Note 4 for further discussion. Goodwill is tested for impairment at the reporting unit level annually and between annual tests whenever events or circumstances indicate that the carrying value of a reporting unit may exceed its fair value. At December 31, 2022, the Company performed its fiscal 2023 annual goodwill impairment test, which indicated no impairment existed. Intangible assets are amortized using the straight-line method over their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets: March 31, 2023 June 30, 2022 Gross Carrying Accumulated Gross Carrying Accumulated Patents and technology $ 2,107,573 $ 326,954 $ 990,775 $ 259,587 Trademarks 1,068,997 376,099 727,820 339,244 Customer lists and other 7,815,973 2,001,973 3,735,042 1,718,989 Total $ 10,992,543 $ 2,705,026 $ 5,453,637 $ 2,317,820 Total intangible amortization expense for the nine months ended March 31, 2023 and 2022 was $374 million and $237 million, respectively. The estimated amortization expense for the five years ending June 30, 2023 through 2027 is $520 million, $564 million, $556 million, $551 million and $545 million, 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 nine months ended March 31, 2023 and 2022. |
Retirement benefits
Retirement benefits | 9 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Net pension benefit expense recognized included the following components: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Service cost $ 14,599 $ 18,238 $ 42,534 $ 57,599 Interest cost 59,021 27,953 166,456 82,941 Expected return on plan assets (80,137) (67,024) (228,695) (201,487) Amortization of prior service cost 227 1,028 679 3,084 Amortization of net actuarial (gain) loss (657) 39,570 12,625 118,186 Amortization of initial net obligation — 2 — 6 Net pension benefit expense $ (6,947) $ 19,767 $ (6,401) $ 60,329 We recognized $0.5 million and $0.1 million in expense related to other postretirement benefits during the three months ended March 31, 2023 and 2022, respectively. During the nine months ended March 31, 2023 and 2022, we recognized $1.2 million and $0.7 million, respectively, in expense related to other postretirement benefits. Components of retirement benefits expense, other than service cost, are included in other (income) expense, net in the Consolidated Statement of Income. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt In connection with the Acquisition, the Company entered into a bridge credit agreement on August 2, 2021 (the "Bridge Credit Agreement"). Under the Bridge Credit Agreement, the lenders committed to provide senior, unsecured financing in the aggregate principal amount of £6.5 billion at August 2, 2021. In July 2022, after consideration of the escrow balance and funds available under the delayed-draw term loan facility (the “Term Loan Facility”), we reduced the aggregate committed principal amount of the Bridge Credit Agreement to zero, and the Bridge Credit Agreement was terminated. In September 2022, the Company fully drew against the $2.0 billion delayed-draw Term Loan Facility, which will mature in its entirety in September 2025. We used the proceeds of the Term Loan Facility to finance a portion of the Acquisition. At March 31, 2023, the Term Loan Facility had an interest rate of LIBOR plus 112.5 bps. Interest payments are made at the interest reset dates, which are either one three In September 2022, $300 million aggregate principal amount of medium-term notes matured. We also assumed debt associated with the Acquisition. Refer to Note 4 for further discussion of assumed debt. Commercial paper notes outstanding at March 31, 2023 and June 30, 2022 were $1.7 billion and $1.4 billion, respectively. |
Income taxes
Income taxes | 9 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes On August 16, 2022, the U.S. federal government enacted the Inflation Reduction Act of 2022. The bill includes numerous tax provisions, including a 15 percent corporate minimum tax as well as a one percent excise tax on share repurchases. The income tax provisions are effective for fiscal years beginning after December 31, 2022. The one percent excise tax on share repurchases is effective as of January 1, 2023. Based on our current analysis of the provisions, the legislation will not have a material impact on our consolidated financial statements. We file income tax returns in the United States and in various foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. We are open to assessment on our U.S. federal income tax returns by the Internal Revenue Service for fiscal years after 2013, and our state and local returns for fiscal years after 2016. We are also open to assessment for significant foreign jurisdictions for fiscal years after 2011. Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts reflected in the financial statements. As of March 31, 2023, we had gross unrecognized tax benefits of $113 million, all of which, if recognized, would impact the effective tax rate. The accrued interest and accrued penalties related to the gross unrecognized tax benefits, excluded from the amount above, is $22 million and $7 million, respectively. It is reasonably possible that within the next 12 months the amount of gross unrecognized tax benefits could be reduced by up to approximately $50 million as a result of the revaluation of existing uncertain tax positions arising from developments in the examination process or the closure of tax statutes. Any increase in the amount of gross unrecognized tax benefits within the next 12 months is expected to be insignificant. |
Financial instruments
Financial instruments | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial instruments | Financial instruments Our financial instruments consist primarily of cash and cash equivalents, marketable securities and other investments, accounts receivable and long-term investments, as well as obligations under accounts payable, trade, notes payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, accounts receivable, accounts payable, trade and notes payable approximate fair value. Marketable securities and other investments include deposits and equity investments. Deposits are recorded at cost, and equity investments are recorded at fair value. Changes in fair value related to equity investments are recorded in net income. Unrealized gains and losses related to equity investments were not material as of March 31, 2023 and 2022. The carrying value of long-term debt, which excludes the impact of net unamortized debt issuance costs, and estimated fair value of long-term debt are as follows: March 31, June 30, Carrying value of long-term debt $ 11,794,606 $ 10,145,077 Estimated fair value of long-term debt 11,375,743 9,709,407 The fair value of long-term debt is classified within level 2 of the fair value hierarchy. We utilize derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign currency denominated debt designated as net investment hedges, to manage foreign currency transaction and translation risk. Additionally, we acquired forward exchange contracts and cross-currency swap contracts in connection with the Acquisition. The derivative financial instrument contracts are with major investment grade financial institutions, and we do not anticipate any material non-performance by any of the counterparties. We do not hold or issue derivative financial instruments for trading purposes. The Company’s €700 million aggregate principal amount of Senior Notes due 2025 have been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Senior Notes due 2025 into U.S. dollars is recorded in accumulated other comprehensive (loss) and remains there until the underlying net investment is sold or substantially liquidated. In connection with closing the Acquisition, the Company settled its deal-contingent forward contracts, which had an aggregate notional amount of £6.4 billion, during September 2022. In July 2022, the Company received, and subsequently deposited into the escrow account, the $250 million cash collateral previously posted in accordance with the credit support annex attached to the deal-contingent forward contracts. The cash flows associated with this activity are reflected within cash flows from investing activities on the Consolidated Statement of Cash Flows. Derivative financial instruments are recognized on the Consolidated Balance Sheet as either assets or liabilities and are measured at fair value. The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption March 31, June 30, Net investment hedges Cross-currency swap contracts Investments and other assets $ 45,552 $ 21,444 Other derivative contracts Forward exchange contracts Non-trade and notes receivable 12,076 20,976 Forward exchange contracts Other accrued liabilities 12,932 5,651 Forward exchange contracts Other liabilities 1,797 — Deal-contingent forward contracts Other accrued liabilities — 1,015,426 Costless collar contracts Non-trade and notes receivable 6,861 351 Costless collar contracts Other accrued liabilities 1,202 1,578 The cross-currency swap, forward exchange, deal-contingent forward and costless collar contracts are reflected on a gross basis in the Consolidated Balance Sheet. We have not entered into any master netting arrangements. The €69 million, €290 million and ¥2,149 million of cross-currency swap contracts have been designated as hedging instruments. The forward exchange, deal-contingent forward and costless collar contracts, as well as cross-currency swap contracts acquired as part of the Acquisition, have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions. The forward exchange, costless collar contracts, and deal-contingent forward contracts, as well as cross-currency swap contracts acquired as part of the Acquisition, are adjusted to fair value by recording gains and losses through the other (income) expense, net caption in the Consolidated Statement of Income. Derivatives designated as hedges are adjusted to fair value by recording gains and losses through accumulated other comprehensive (loss) on the Consolidated Balance Sheet until the hedged item is recognized in earnings. We assess the effectiveness of the €69 million, €290 million and ¥2,149 million of cross-currency swap contracts designated as hedging instruments using the spot method. Under this method, the periodic interest settlements are recognized directly in earnings through interest expense. Gains (losses) on derivative financial instruments were recorded in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Deal-contingent forward contracts $ — $ (246,983) $ (389,992) $ (396,365) Forward exchange contracts 7,378 24,201 (7,425) 46,953 Costless collar contracts 4,308 (1,751) 9,632 (4,625) Cross-currency swap contracts (2,976) — (18,739) — Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) on the Consolidated Balance Sheet are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Cross-currency swap contracts $ 16,085 $ 887 $ 17,196 $ 30,205 Foreign currency denominated debt (7,391) 16,194 (18,880) 41,843 During the nine months ended March 31, 2023 and 2022, the periodic interest settlements related to the cross-currency swap contracts were not material. A summary of financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2023 and June 30, 2022 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs March 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Derivatives $ 64,489 $ — $ 64,489 $ — Liabilities: Derivatives 15,931 — 15,931 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2022 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 13,038 $ 13,038 $ — $ — Derivatives 42,771 — 42,771 — Liabilities: Derivatives 1,022,655 — 1,022,655 — The fair values of the equity securities are determined using the closing market price reported in the active market in which the fund is traded. Derivatives consist of forward exchange, deal-contingent forward, costless collar and cross-currency swap contracts, the fair values of which are calculated using market observable inputs including both spot and forward prices for the same underlying currencies. The calculation of the fair value of the cross-currency swap contracts also utilizes a present value cash flow model that has been adjusted to reflect the credit risk of either the Company or the counterparty. The primary investment objective for all investments is the preservation of principal and liquidity while earning income. |
Business segment information
Business segment information | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business segment information | Business segment information The Company operates in two reportable business segments: Diversified Industrial and Aerospace Systems. Both segments utilize eight core technologies, including hydraulics, pneumatics, electromechanical, filtration, fluid and gas handling, process control, engineered materials and climate control, to drive superior customer problem solving and value creation. 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 significant international operations. Sales are made directly to major 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 and regional transport, business jet, military, and helicopter markets. The Aerospace Systems Segment provides a full range of systems and components for hydraulic, pneumatic, fuel, oil, actuation, sensing, braking, thermal management, and electric power applications. Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Net sales Diversified Industrial: North America $ 2,342,590 $ 2,014,715 $ 6,615,035 $ 5,615,454 International 1,524,515 1,439,357 4,277,227 4,214,972 Aerospace Systems 1,194,560 632,315 3,076,989 1,843,350 Total net sales $ 5,061,665 $ 4,086,387 $ 13,969,251 $ 11,673,776 Segment operating income Diversified Industrial: North America $ 489,349 $ 413,998 $ 1,362,256 $ 1,085,117 International 329,498 298,475 908,958 881,206 Aerospace Systems 133,905 119,016 234,849 352,063 Total segment operating income 952,752 831,489 2,506,063 2,318,386 Corporate general and administrative expenses 45,780 57,405 146,341 149,064 Income before interest expense and other expense 906,972 774,084 2,359,722 2,169,322 Interest expense 151,993 63,272 416,718 183,982 Other (income) expense, net (1,402) 276,823 166,535 489,282 Income before income taxes $ 756,381 $ 433,989 $ 1,776,469 $ 1,496,058 |
New accounting pronouncements (
New accounting pronouncements (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | New accounting pronouncementsIn November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance," which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and does not expect it to be material.In September 2022, the FASB issued ASU 2022-04, "Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations," which requires a buyer in a supplier finance program to disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs, including the outstanding amount under the program, the balance sheet presentation of the outstanding amount, and a rollforward of the obligations in the program. This ASU should be adopted retrospectively for each balance sheet period presented; however, the rollforward information should be provided prospectively. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and does not expect it to be material. |
Revenue recognition | Revenue is derived primarily from the sale of products in a variety of mobile, industrial and aerospace markets. A majority of the Company’s revenues are recognized at a point in time. However, a portion of the Company’s revenues are recognized over time. 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. |
Revenue recognition (Tables)
Revenue recognition (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Diversified Industrial Segment revenues by technology platform: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Motion Systems $ 1,017,974 $ 895,839 $ 2,837,403 $ 2,568,166 Flow and Process Control 1,298,204 1,197,590 3,675,928 3,386,417 Filtration and Engineered Materials 1,550,927 1,360,643 4,378,931 3,875,843 Total $ 3,867,105 $ 3,454,072 $ 10,892,262 $ 9,830,426 Aerospace Systems Segment revenues by primary market: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Commercial original equipment manufacturer ("OEM") $ 398,502 $ 226,976 $ 1,045,850 $ 649,631 Commercial aftermarket 381,883 128,486 938,129 367,530 Military OEM 244,451 176,242 649,179 531,348 Military aftermarket 169,724 100,611 443,831 294,841 Total $ 1,194,560 $ 632,315 $ 3,076,989 $ 1,843,350 Total Company revenues by geographic region based on the Company's selling operation's location: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 North America $ 3,364,157 $ 2,645,106 $ 9,278,815 $ 7,451,153 Europe 1,054,157 829,392 2,750,159 2,344,533 Asia Pacific 590,017 560,250 1,777,550 1,735,574 Latin America 53,334 51,639 162,727 142,516 Total $ 5,061,665 $ 4,086,387 $ 13,969,251 $ 11,673,776 |
Contract assets and liabilities | Total contract assets and contract liabilities are as follows: March 31, June 30, Contract assets, current (included within Prepaid expenses and other) $ 116,516 $ 28,546 Contract assets, noncurrent (included within Investments and other assets) 25,800 794 Total contract assets 142,316 29,340 Contract liabilities, current (included within Other accrued liabilities) (235,206) (60,472) Contract liabilities, noncurrent (included within Other liabilities) (105,195) (2,225) Total contract liabilities (340,401) (62,697) Net contract liabilities $ (198,085) $ (33,357) |
Acquisitions and divestitures (
Acquisitions and divestitures (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of preliminary estimated fair values of assets acquired and liabilities assumed on the acquisition date | The following table presents the preliminary estimated fair values of Meggitt's assets acquired and liabilities assumed on the Acquisition date. These preliminary estimates are based on available information and will be revised during the measurement period, not to exceed 12 months from the Acquisition date, as third-party valuations are finalized, additional information becomes available and as additional analysis is performed. Such revisions may have a material impact on our results of operations and financial position within the measurement period. During the current-year quarter and nine months ended March 31, 2023, these revisions did not have a material impact on the Consolidated Statement of Income. September 12, 2022 (previously reported) Measurement Period Adjustments September 12, 2022 (revised) Assets: Cash and cash equivalents $ 89,704 $ — $ 89,704 Accounts receivable 427,255 (10,687) 416,568 Inventories 833,602 (16,472) 817,130 Prepaid expenses and other 125,763 (1,525) 124,238 Property, plant and equipment 675,232 (10,071) 665,161 Deferred income taxes 5,720 27,022 32,742 Other assets 219,472 (52,072) 167,400 Intangible assets 5,418,795 27,305 5,446,100 Goodwill 2,830,845 185,440 3,016,285 Total assets acquired $ 10,626,388 $ 148,940 $ 10,775,328 Liabilities: Notes payable and long-term debt payable within one year $ 306,266 $ 3,288 $ 309,554 Accounts payable, trade 219,780 (17) 219,763 Accrued payrolls and other compensation 89,226 (2,204) 87,022 Other accrued liabilities 367,605 (60,339) 307,266 Long-term debt 669,321 40,042 709,363 Pensions and other postretirement benefits 85,899 12,827 98,726 Deferred income taxes 1,274,726 95,626 1,370,352 Other liabilities 377,751 59,717 437,468 Total liabilities assumed 3,390,574 148,940 3,539,514 Net assets acquired $ 7,235,814 $ — $ 7,235,814 |
Unaudited pro forma information | The following table presents unaudited pro forma information for the three and nine months ended March 31, 2023 and 2022 as if the Acquisition had occurred on July 1, 2021. Three Months Ended Nine Months Ended (Unaudited) March 31, March 31, 2023 2022 2023 2022 Net sales $ 5,061,665 $ 4,549,854 $ 14,350,581 $ 13,189,507 Net income attributable to common shareholders 612,049 424,025 1,244,907 977,102 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended March 31, 2023 and 2022. Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Numerator: Net income attributable to common shareholders $ 590,889 $ 348,017 $ 1,373,980 $ 1,186,774 Denominator: Basic - weighted average common shares 128,293,039 128,426,675 128,343,788 128,549,040 Increase in weighted average common shares from dilutive effect of equity-based awards 1,858,448 1,916,906 1,488,201 1,889,553 Diluted - weighted average common shares, assuming exercise of equity-based awards 130,151,487 130,343,581 129,831,989 130,438,593 Basic earnings per share $ 4.61 $ 2.71 $ 10.71 $ 9.23 Diluted earnings per share $ 4.54 $ 2.67 $ 10.58 $ 9.10 |
Non-trade and notes receivable
Non-trade and notes receivable (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Non-trade and notes receivable | The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Notes receivable $ 112,585 $ 103,558 Cash collateral receivable (a) — 250,000 Accounts receivable, other 237,318 190,199 Total $ 349,903 $ 543,757 (a) The cash collateral receivable at June 30, 2022 related to the deal-contingent forward contracts settled in the first three months of fiscal 2023. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Inventory, Net [Abstract] | |
Inventories | The inventories caption in the Consolidated Balance Sheet is comprised of the following components: March 31, June 30, Finished products $ 831,620 $ 811,702 Work in process 1,569,885 1,128,501 Raw materials 666,109 274,350 Total $ 3,067,614 $ 2,214,553 |
Business realignment and acqu_2
Business realignment and acquisition integration charges (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Business realignment charges and acquisition integration charges | Business realignment charges by business segment are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Diversified Industrial $ 8,075 $ 2,771 $ 14,464 $ 8,835 Aerospace Systems 166 318 3,016 913 Other (income) expense, net — 63 — 63 Reductions to our workforce made in connection with such business realignment charges by business segment are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Diversified Industrial 282 50 499 133 Aerospace Systems 14 4 30 9 The business realignment charges are presented in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022* 2023 2022* Cost of sales $ 5,033 $ 1,178 $ 10,746 $ 2,311 Selling, general and administrative expenses 3,208 1,911 6,734 7,437 Other (income) expense, net — 63 — 63 *Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. We also incurred the following acquisition integration charges: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Diversified Industrial $ 5,395 $ 933 $ 7,276 $ 2,942 Aerospace Systems 25,849 — 69,377 — |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Changes in equity | Changes in equity for the three months ended March 31, 2023 and 2022 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at December 31, 2022 $ 90,523 $ 377,871 $ 16,102,883 $ (1,479,669) $ (5,769,228) $ 12,096 $ 9,334,476 Net income 590,889 71 590,960 Other comprehensive income (loss) 91,041 (299) 90,742 Dividends paid ($1.33 per share) (170,872) (170,872) Stock incentive plan activity (22,117) 19,976 (2,141) Shares purchased at cost (50,000) (50,000) Balance at March 31, 2023 $ 90,523 $ 355,754 $ 16,522,900 $ (1,388,628) $ (5,799,252) $ 11,868 $ 9,793,165 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at December 31, 2021 $ 90,523 $ 344,312 $ 15,488,764 $ (1,545,093) $ (5,623,424) $ 13,198 $ 8,768,280 Net income 348,017 71 348,088 Other comprehensive income (loss) 13,833 (276) 13,557 Dividends paid ($1.03 per share) (132,543) (132,543) Stock incentive plan activity 19,055 6,422 25,477 Shares purchased at cost (50,000) (50,000) Balance at March 31, 2022 $ 90,523 $ 363,367 $ 15,704,238 $ (1,531,260) $ (5,667,002) $ 12,993 $ 8,972,859 Changes in equity for the nine months ended March 31, 2023 and 2022 are as follows: Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at June 30, 2022 $ 90,523 $ 327,307 $ 15,661,808 $ (1,543,198) $ (5,688,429) $ 11,909 $ 8,859,920 Net income 1,373,980 478 1,374,458 Other comprehensive income (loss) 154,570 (176) 154,394 Dividends paid ($3.99 per share) (512,888) (343) (513,231) Stock incentive plan activity 28,447 39,177 67,624 Shares purchased at cost (150,000) (150,000) Balance at March 31, 2023 $ 90,523 $ 355,754 $ 16,522,900 $ (1,388,628) $ (5,799,252) $ 11,868 $ 9,793,165 Common Stock Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Shares Noncontrolling Total Equity Balance at June 30, 2021 $ 90,523 $ 329,619 $ 14,915,497 $ (1,566,727) $ (5,370,605) $ 15,363 $ 8,413,670 Net income 1,186,774 506 1,187,280 Other comprehensive income (loss) 35,467 (862) 34,605 Dividends paid ($3.09 per share) (398,033) (66) (398,099) Stock incentive plan activity 33,748 33,937 67,685 Liquidation activity (1,948) (1,948) Shares purchased at cost (330,334) (330,334) Balance at March 31, 2022 $ 90,523 $ 363,367 $ 15,704,238 $ (1,531,260) $ (5,667,002) $ 12,993 $ 8,972,859 |
Changes in accumulated other comprehensive income (loss) in shareholders' equity by component | Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the nine months ended March 31, 2023 and 2022 are as follows: Foreign Currency Translation Adjustment Retirement Benefit Plans Total Balance at June 30, 2022 $ (1,149,071) $ (394,127) $ (1,543,198) Other comprehensive income before reclassifications 146,173 — 146,173 Amounts reclassified from accumulated other comprehensive (loss) — 8,397 8,397 Balance at March 31, 2023 $ (1,002,898) $ (385,730) $ (1,388,628) Foreign Currency Translation Adjustment Retirement Benefit Plans Total Balance at June 30, 2021 $ (865,865) $ (700,862) $ (1,566,727) Other comprehensive (loss) before reclassifications (63,515) — (63,515) Amounts reclassified from accumulated other comprehensive (loss) 7,647 91,335 98,982 Balance at March 31, 2022 $ (921,733) $ (609,527) $ (1,531,260) |
Reclassifications out of accumulated other comprehensive income (loss) in shareholders' equity | Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and nine months ended March 31, 2023 and 2022 are as follows: Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2023 March 31, 2023 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (227) $ (679) Other (income) expense, net Recognized actuarial gain (loss) 1,057 (11,422) Other (income) expense, net Divestiture activity 587 587 Other (income) expense, net Total before tax 1,417 (11,514) Tax benefit (53) 3,117 Net of tax $ 1,364 $ (8,397) Details about Accumulated Other Comprehensive (Loss) Components Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) Consolidated Statement of Income Classification Three Months Ended Nine Months Ended March 31, 2022 March 31, 2022 Retirement benefit plans Amortization of prior service cost and initial net obligation $ (1,030) $ (3,090) Other (income) expense, net Recognized actuarial loss (39,292) (117,852) Other (income) expense, net Total before tax (40,322) (120,942) Tax benefit 9,867 29,607 Net of tax $ (30,455) $ (91,335) |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the nine months ended March 31, 2023 are as follows: Diversified Industrial Aerospace Total Balance at June 30, 2022 $ 7,185,981 $ 554,101 $ 7,740,082 Acquisition 30,329 2,985,956 3,016,285 Divestitures (1,064) (2,232) (3,296) Foreign currency translation 30,297 47,180 77,477 Balance at March 31, 2023 $ 7,245,543 $ 3,585,005 $ 10,830,548 |
Intangible assets by major category | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets: March 31, 2023 June 30, 2022 Gross Carrying Accumulated Gross Carrying Accumulated Patents and technology $ 2,107,573 $ 326,954 $ 990,775 $ 259,587 Trademarks 1,068,997 376,099 727,820 339,244 Customer lists and other 7,815,973 2,001,973 3,735,042 1,718,989 Total $ 10,992,543 $ 2,705,026 $ 5,453,637 $ 2,317,820 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Net pension benefit expense | Net pension benefit expense recognized included the following components: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Service cost $ 14,599 $ 18,238 $ 42,534 $ 57,599 Interest cost 59,021 27,953 166,456 82,941 Expected return on plan assets (80,137) (67,024) (228,695) (201,487) Amortization of prior service cost 227 1,028 679 3,084 Amortization of net actuarial (gain) loss (657) 39,570 12,625 118,186 Amortization of initial net obligation — 2 — 6 Net pension benefit expense $ (6,947) $ 19,767 $ (6,401) $ 60,329 |
Financial instruments (Tables)
Financial instruments (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying values and estimated fair values of long-term debt | The carrying value of long-term debt, which excludes the impact of net unamortized debt issuance costs, and estimated fair value of long-term debt are as follows: March 31, June 30, Carrying value of long-term debt $ 11,794,606 $ 10,145,077 Estimated fair value of long-term debt 11,375,743 9,709,407 |
Fair value derivative instruments reported in consolidated balance sheet | The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows: Balance Sheet Caption March 31, June 30, Net investment hedges Cross-currency swap contracts Investments and other assets $ 45,552 $ 21,444 Other derivative contracts Forward exchange contracts Non-trade and notes receivable 12,076 20,976 Forward exchange contracts Other accrued liabilities 12,932 5,651 Forward exchange contracts Other liabilities 1,797 — Deal-contingent forward contracts Other accrued liabilities — 1,015,426 Costless collar contracts Non-trade and notes receivable 6,861 351 Costless collar contracts Other accrued liabilities 1,202 1,578 |
Gain (losses) on derivative financial instruments recorded in consolidated statement if income | Gains (losses) on derivative financial instruments were recorded in the Consolidated Statement of Income as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Deal-contingent forward contracts $ — $ (246,983) $ (389,992) $ (396,365) Forward exchange contracts 7,378 24,201 (7,425) 46,953 Costless collar contracts 4,308 (1,751) 9,632 (4,625) Cross-currency swap contracts (2,976) — (18,739) — |
Derivative and non-derivative financial instruments, gain (losses) recorded in accumulated other comprehensive (loss) | Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) on the Consolidated Balance Sheet are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Cross-currency swap contracts $ 16,085 $ 887 $ 17,196 $ 30,205 Foreign currency denominated debt (7,391) 16,194 (18,880) 41,843 |
Financial assets and liabilities measured at fair value on a recurring basis | A summary of financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2023 and June 30, 2022 are as follows: Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs March 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Derivatives $ 64,489 $ — $ 64,489 $ — Liabilities: Derivatives 15,931 — 15,931 — Quoted Prices Significant Other Significant Fair In Active Observable Unobservable Value at Markets Inputs Inputs June 30, 2022 (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 13,038 $ 13,038 $ — $ — Derivatives 42,771 — 42,771 — Liabilities: Derivatives 1,022,655 — 1,022,655 — |
Business segment information (T
Business segment information (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment reporting information | Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Net sales Diversified Industrial: North America $ 2,342,590 $ 2,014,715 $ 6,615,035 $ 5,615,454 International 1,524,515 1,439,357 4,277,227 4,214,972 Aerospace Systems 1,194,560 632,315 3,076,989 1,843,350 Total net sales $ 5,061,665 $ 4,086,387 $ 13,969,251 $ 11,673,776 Segment operating income Diversified Industrial: North America $ 489,349 $ 413,998 $ 1,362,256 $ 1,085,117 International 329,498 298,475 908,958 881,206 Aerospace Systems 133,905 119,016 234,849 352,063 Total segment operating income 952,752 831,489 2,506,063 2,318,386 Corporate general and administrative expenses 45,780 57,405 146,341 149,064 Income before interest expense and other expense 906,972 774,084 2,359,722 2,169,322 Interest expense 151,993 63,272 416,718 183,982 Other (income) expense, net (1,402) 276,823 166,535 489,282 Income before income taxes $ 756,381 $ 433,989 $ 1,776,469 $ 1,496,058 |
Management representation (Deta
Management representation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
May 04, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease to cost of sales | $ (3,340,764) | $ (2,709,407) | [1] | $ (9,373,032) | $ (7,781,384) | [1] | |
Increase to selling, general and administrative expenses | 868,393 | 640,498 | [1] | 2,519,163 | 1,853,105 | [1] | |
Decrease to other (income) expense, net | $ (55,866) | 239,221 | [1] | $ (116,131) | 359,247 | [1] | |
Meggitt plc | Private Placement Notes | Subsequent Event | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Proceeds from issuance of debt | $ 600,000 | ||||||
Revision of Prior Period, Reclassification, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease to cost of sales | 219,000 | 625,000 | |||||
Increase to selling, general and administrative expenses | 228,000 | 652,000 | |||||
Decrease to other (income) expense, net | $ 9,000 | $ 27,000 | |||||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Revenue recognition - Revenues
Revenue recognition - Revenues by segment and by platform (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | $ 5,061,665 | $ 4,086,387 | [1] | $ 13,969,251 | $ 11,673,776 | [1] |
Diversified Industrial Segment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 3,867,105 | 3,454,072 | 10,892,262 | 9,830,426 | ||
Diversified Industrial Segment | Motion Systems | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 1,017,974 | 895,839 | 2,837,403 | 2,568,166 | ||
Diversified Industrial Segment | Flow and Process Control | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 1,298,204 | 1,197,590 | 3,675,928 | 3,386,417 | ||
Diversified Industrial Segment | Filtration and Engineered Materials | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | $ 1,550,927 | $ 1,360,643 | $ 4,378,931 | $ 3,875,843 | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Revenue recognition - Revenue_2
Revenue recognition - Revenues by segment and primary market (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | $ 5,061,665 | $ 4,086,387 | [1] | $ 13,969,251 | $ 11,673,776 | [1] |
Aerospace Systems | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 1,194,560 | 632,315 | 3,076,989 | 1,843,350 | ||
Commercial original equipment manufacturer ("OEM") | Aerospace Systems | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 398,502 | 226,976 | 1,045,850 | 649,631 | ||
Commercial aftermarket | Aerospace Systems | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 381,883 | 128,486 | 938,129 | 367,530 | ||
Military OEM | Aerospace Systems | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 244,451 | 176,242 | 649,179 | 531,348 | ||
Military aftermarket | Aerospace Systems | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | $ 169,724 | $ 100,611 | $ 443,831 | $ 294,841 | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Revenue recognition - Revenue b
Revenue recognition - Revenue by geographic region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | $ 5,061,665 | $ 4,086,387 | [1] | $ 13,969,251 | $ 11,673,776 | [1] |
North America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 3,364,157 | 2,645,106 | 9,278,815 | 7,451,153 | ||
Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 1,054,157 | 829,392 | 2,750,159 | 2,344,533 | ||
Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | 590,017 | 560,250 | 1,777,550 | 1,735,574 | ||
Latin America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts | $ 53,334 | $ 51,639 | $ 162,727 | $ 142,516 | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Revenue recognition - Contract
Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current (included within Prepaid expenses and other) | $ 116,516 | $ 28,546 |
Contract assets, noncurrent (included within Investments and other assets) | 25,800 | 794 |
Total contract assets | 142,316 | 29,340 |
Contract liabilities, current (included within Other accrued liabilities) | (235,206) | (60,472) |
Contract liabilities, noncurrent (included within Other liabilities) | (105,195) | (2,225) |
Total contract liabilities | (340,401) | (62,697) |
Net contract liabilities | $ (198,085) | $ (33,357) |
Revenue recognition - Narrative
Revenue recognition - Narrative (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 39 |
Remaining performance obligation, amount | $ 10,900 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 84% |
Remaining performance obligation, period | 12 months |
Acquisitions and divestitures -
Acquisitions and divestitures - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 12, 2022 USD ($) | Mar. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) tranche | Sep. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Sep. 12, 2022 £ / shares | Sep. 12, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of businesses | $ 471,720 | $ 3,366 | |||||||||
Aircraft Wheel And Brake Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of businesses | $ 443,000 | ||||||||||
Pre-tax gain (loss) related to divestiture | $ 374,000 | ||||||||||
Aircraft Wheel And Brake Business | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate carrying amount of assets sold | $ 66,000 | ||||||||||
French Aerospace Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of businesses | $ 27,000 | ||||||||||
Pre-tax gain (loss) related to divestiture | (12,000) | ||||||||||
Meggitt plc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Price per share of stock acquired (in pounds per share) | £ / shares | £ 8 | ||||||||||
Purchase price to acquire business | $ 7,200,000 | ||||||||||
Aggregate annual sales for business, to be acquired, for their most recent fiscal year prior to acquisition | $ 2,100,000 | ||||||||||
Operating lease right of use assets | $ 89,000 | ||||||||||
Finance lease right-of-use assets | 86,000 | ||||||||||
Operating lease liability | 145,000 | ||||||||||
Finance lease liability | 89,000 | ||||||||||
Operating lease liability, current | 19,000 | ||||||||||
Finance lease liability, current | 3,000 | ||||||||||
Liabilities assumed, environmental matters | 127,000 | ||||||||||
Net sales, from date of acquisition | $ 624,000 | 1,400,000 | |||||||||
Operating loss, from date of acquisition | 4,000 | 120,000 | |||||||||
Acquisition-related transaction costs | 112,000 | ||||||||||
Acquisition-relate nonrecurring adjustments | (1,000) | $ 196,000 | 197,000 | $ 177,000 | |||||||
Restricted cash | $ 0 | $ 0 | $ 0 | $ 6,100,000 | |||||||
Meggitt plc | Private Placement Notes | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt assumed, private placement notes | $ 900,000 | ||||||||||
Repayments of debt | $ 300,000 | ||||||||||
Number of tranches, debt repaid | tranche | 2 | ||||||||||
Meggitt plc | Aerospace Systems | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of revenue per segment | 82% | ||||||||||
Meggitt plc | Diversified Industrial | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of revenue per segment | 18% | ||||||||||
Meggitt plc | Minimum | Private Placement Notes | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt assumed, private placement notes, stated percentage | 2.78% | 2.78% | |||||||||
Meggitt plc | Maximum | Private Placement Notes | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt assumed, private placement notes, stated percentage | 3% | 3.60% | |||||||||
Meggitt plc | Customer- Related Intangible Assets | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets acquired | $ 4,000,000 | ||||||||||
Weighted average useful life of intangible assets | 20 years | ||||||||||
Meggitt plc | Patents and technology | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets acquired | 1,100,000 | ||||||||||
Weighted average useful life of intangible assets | 20 years | ||||||||||
Meggitt plc | Trademarks | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets acquired | $ 332,000 | ||||||||||
Weighted average useful life of intangible assets | 20 years |
Acquisitions and divestitures_2
Acquisitions and divestitures - Schedule of assets and liabilities assumed on acquisition date (Details) - USD ($) $ in Thousands | Sep. 12, 2022 | Mar. 31, 2023 | Jun. 30, 2022 |
Assets: | |||
Goodwill | $ 10,830,548 | $ 7,740,082 | |
Meggitt plc | |||
Assets: | |||
Cash and cash equivalents | $ 89,704 | ||
Measurement period adjustments, cash and cash equivalents | 0 | ||
Accounts receivable | 416,568 | ||
Measurement period adjustments, accounts receivable | (10,687) | ||
Inventories | 817,130 | ||
Measurement period adjustments, inventory | (16,472) | ||
Prepaid expenses and other | 124,238 | ||
Measurement period adjustments, prepaid expenses and other | (1,525) | ||
Property, plant and equipment | 665,161 | ||
Measurement period adjustments, property, plant and equipment | (10,071) | ||
Deferred income taxes | 32,742 | ||
Measurement period adjustments, deferred income taxes | 27,022 | ||
Other assets | 167,400 | ||
Measurement period adjustments, other assets | (52,072) | ||
Intangible assets | 5,446,100 | ||
Measurement period adjustments, intangible assets | 27,305 | ||
Goodwill | 3,016,285 | ||
Measurement period adjustments, goodwill | 185,440 | ||
Total assets acquired | 10,775,328 | ||
Measurement period adjustments, total assets acquired | 148,940 | ||
Liabilities: | |||
Notes payable and long-term debt payable within one year | 309,554 | ||
Measurement period adjustments, notes payable and long-term debt payable within one year | 3,288 | ||
Accounts payable, trade | 219,763 | ||
Measurement period adjustments, accounts payable, trade | (17) | ||
Accrued payrolls and other compensation | 87,022 | ||
Measurement period adjustments, accrued payrolls and other compensation | (2,204) | ||
Other accrued liabilities | 307,266 | ||
Measurement period adjustments, other accrued liabilities | (60,339) | ||
Long-term debt | 709,363 | ||
Measurement period adjustments, long-term debt | 40,042 | ||
Pensions and other postretirement benefits | 98,726 | ||
Measurement period adjustments, pensions and other postretirement benefits | 12,827 | ||
Deferred income taxes | 1,370,352 | ||
Measurement period adjustments, deferred income taxes | 95,626 | ||
Other liabilities | 437,468 | ||
Measurement period adjustments, other liabilities | 59,717 | ||
Total liabilities assumed | 3,539,514 | ||
Measurement period adjustments, total liabilities assumed | 148,940 | ||
Net assets acquired | 7,235,814 | ||
Measurement period adjustments, net assets acquired | 0 | ||
Meggitt plc | Previously Reported | |||
Assets: | |||
Cash and cash equivalents | 89,704 | ||
Accounts receivable | 427,255 | ||
Inventories | 833,602 | ||
Prepaid expenses and other | 125,763 | ||
Property, plant and equipment | 675,232 | ||
Deferred income taxes | 5,720 | ||
Other assets | 219,472 | ||
Intangible assets | 5,418,795 | ||
Goodwill | 2,830,845 | ||
Total assets acquired | 10,626,388 | ||
Liabilities: | |||
Notes payable and long-term debt payable within one year | 306,266 | ||
Accounts payable, trade | 219,780 | ||
Accrued payrolls and other compensation | 89,226 | ||
Other accrued liabilities | 367,605 | ||
Long-term debt | 669,321 | ||
Pensions and other postretirement benefits | 85,899 | ||
Deferred income taxes | 1,274,726 | ||
Other liabilities | 377,751 | ||
Total liabilities assumed | 3,390,574 | ||
Net assets acquired | $ 7,235,814 |
Acquisitions and divestitures_3
Acquisitions and divestitures - Unaudited pro forma information (Details) - Meggitt plc - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 5,061,665 | $ 4,549,854 | $ 14,350,581 | $ 13,189,507 |
Net income attributable to common shareholders | $ 612,049 | $ 424,025 | $ 1,244,907 | $ 977,102 |
Earnings per share - Computatio
Earnings per share - Computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
Numerator: | ||||||
Net income attributable to common shareholders, basic | $ 590,889 | $ 348,017 | [1] | $ 1,373,980 | $ 1,186,774 | [1] |
Net income attributable to common shareholders, diluted | $ 590,889 | $ 348,017 | $ 1,373,980 | $ 1,186,774 | ||
Denominator: | ||||||
Basic - weighted average common shares (in shares) | 128,293,039 | 128,426,675 | 128,343,788 | 128,549,040 | ||
Increase in weighted average common shares from dilutive effect of equity-based awards (in shares) | 1,858,448 | 1,916,906 | 1,488,201 | 1,889,553 | ||
Diluted - weighted average common shares, assuming exercise of equity-based awards (in shares) | 130,151,487 | 130,343,581 | 129,831,989 | 130,438,593 | ||
Basic earnings per share (in USD per share) | $ 4.61 | $ 2.71 | [1] | $ 10.71 | $ 9.23 | [1] |
Diluted earnings per share (in USD per share) | $ 4.54 | $ 2.67 | [1] | $ 10.58 | $ 9.10 | [1] |
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Excluded from the computation of diluted earnings per share since anti-dilutive (in shares) | 124,025 | 493,609 | 1,011,006 | 384,955 |
Share repurchase program (Detai
Share repurchase program (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Oct. 22, 2014 | |
Equity [Abstract] | |||
Authorized to be repurchased (in shares) | 35,000,000 | ||
Repurchased (in shares) | 152,388 | 514,612 | |
Repurchased, average price (in USD per share) | $ 328.11 | $ 291.48 |
Trade accounts receivable, net
Trade accounts receivable, net (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Jun. 30, 2022 |
Receivables [Abstract] | ||
Allowance for credit losses | $ 33 | $ 10 |
Non-trade and notes receivabl_2
Non-trade and notes receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Receivables [Abstract] | ||
Notes receivable | $ 112,585 | $ 103,558 |
Cash collateral receivable | 0 | 250,000 |
Accounts receivable, other | 237,318 | 190,199 |
Total | $ 349,903 | $ 543,757 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Inventory, Net [Abstract] | ||
Finished products | $ 831,620 | $ 811,702 |
Work in process | 1,569,885 | 1,128,501 |
Raw materials | 666,109 | 274,350 |
Total | $ 3,067,614 | $ 2,214,553 |
Business realignment and acqu_3
Business realignment and acquisition integration charges - Business segment information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 USD ($) employee | Mar. 31, 2022 USD ($) employee | Mar. 31, 2023 USD ($) employee | Mar. 31, 2022 USD ($) employee | |
Segment Reconciling Items | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 0 | $ 63 | $ 0 | $ 63 |
Diversified Industrial | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 8,075 | $ 2,771 | $ 14,464 | $ 8,835 |
Number of positions eliminated (employees) | employee | 282 | 50 | 499 | 133 |
Aerospace Systems | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 166 | $ 318 | $ 3,016 | $ 913 |
Number of positions eliminated (employees) | employee | 14 | 4 | 30 | 9 |
Business realignment and acqu_4
Business realignment and acquisition integration charges - Income statement location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 5,033 | $ 1,178 | $ 10,746 | $ 2,311 |
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | 3,208 | 1,911 | 6,734 | 7,437 |
Other (income) expense, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 0 | $ 63 | $ 0 | $ 63 |
Business realignment and acqu_5
Business realignment and acquisition integration charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Payments made relating to business realignment charges | $ 15 | ||
Remaining payments related to business realignment actions | $ 11 | ||
Expense from exit of business operations in Russia | $ 20 | $ 20 | |
Foreign currency translation expense | (8) | ||
Nonoperating Income (Expense) | |||
Restructuring Cost and Reserve [Line Items] | |||
Expense from exit of business operations in Russia | $ 7 |
Business realignment and acqu_6
Business realignment and acquisition integration charges - Acquisition integration charges related to the Lord and Exotic acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Diversified Industrial | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition integration charges | $ 5,395 | $ 933 | $ 7,276 | $ 2,942 |
Aerospace Systems | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition integration charges | $ 25,849 | $ 0 | $ 69,377 | $ 0 |
Equity - Changes in equity (Det
Equity - Changes in equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 9,334,476 | $ 8,768,280 | $ 8,859,920 | $ 8,413,670 | ||
Net income | 590,960 | 348,088 | [1] | 1,374,458 | 1,187,280 | [1] |
Other comprehensive income (loss) | 90,742 | 13,557 | 154,394 | 34,605 | ||
Dividends paid | $ (170,872) | $ (132,543) | $ (513,231) | $ (398,099) | ||
Dividends paid (in USD per share) | $ 1.33 | $ 1.03 | $ 3.99 | $ 3.09 | ||
Stock incentive plan activity | $ (2,141) | $ 25,477 | $ 67,624 | $ 67,685 | ||
Liquidation activity | (1,948) | |||||
Shares purchased at cost | (50,000) | (50,000) | (150,000) | (330,334) | ||
Ending balance | 9,793,165 | 8,972,859 | 9,793,165 | 8,972,859 | ||
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 | 377,871 | 344,312 | 327,307 | 329,619 | ||
Stock incentive plan activity | (22,117) | 19,055 | 28,447 | 33,748 | ||
Ending balance | 355,754 | 363,367 | 355,754 | 363,367 | ||
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 16,102,883 | 15,488,764 | 15,661,808 | 14,915,497 | ||
Net income | 590,889 | 348,017 | 1,373,980 | 1,186,774 | ||
Dividends paid | (170,872) | (132,543) | (512,888) | (398,033) | ||
Ending balance | 16,522,900 | 15,704,238 | 16,522,900 | 15,704,238 | ||
Accumulated Other Comprehensive (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (1,479,669) | (1,545,093) | (1,543,198) | (1,566,727) | ||
Other comprehensive income (loss) | 91,041 | 13,833 | 154,570 | 35,467 | ||
Ending balance | (1,388,628) | (1,531,260) | (1,388,628) | (1,531,260) | ||
Treasury Shares | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (5,769,228) | (5,623,424) | (5,688,429) | (5,370,605) | ||
Stock incentive plan activity | 19,976 | 6,422 | 39,177 | 33,937 | ||
Shares purchased at cost | (50,000) | (50,000) | (150,000) | (330,334) | ||
Ending balance | (5,799,252) | (5,667,002) | (5,799,252) | (5,667,002) | ||
Noncontrolling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 12,096 | 13,198 | 11,909 | 15,363 | ||
Net income | 71 | 71 | 478 | 506 | ||
Other comprehensive income (loss) | (299) | (276) | (176) | (862) | ||
Dividends paid | (343) | (66) | ||||
Liquidation activity | (1,948) | |||||
Ending balance | $ 11,868 | $ 12,993 | $ 11,868 | $ 12,993 | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Equity - Changes in accumulated
Equity - Changes in accumulated other comprehensive income (loss) in shareholders' equity by component (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 8,859,920 | $ 8,413,670 |
Ending balance | 9,793,165 | 8,972,859 |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,149,071) | (865,865) |
Other comprehensive income (loss) before reclassifications | 146,173 | (63,515) |
Amounts reclassified from accumulated other comprehensive (loss) | 0 | 7,647 |
Ending balance | (1,002,898) | (921,733) |
Retirement Benefit Plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (394,127) | (700,862) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (loss) | 8,397 | 91,335 |
Ending balance | (385,730) | (609,527) |
Accumulated Other Comprehensive (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,543,198) | (1,566,727) |
Other comprehensive income (loss) before reclassifications | 146,173 | (63,515) |
Amounts reclassified from accumulated other comprehensive (loss) | 8,397 | 98,982 |
Ending balance | $ (1,388,628) | $ (1,531,260) |
Equity - Reclassifications out
Equity - Reclassifications out of accumulated other comprehensive income (loss) in shareholders' equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other (income) expense, net | $ 55,866 | $ (239,221) | [1] | $ 116,131 | $ (359,247) | [1] |
Income before income taxes | 756,381 | 433,989 | [1] | 1,776,469 | 1,496,058 | [1] |
Tax benefit | (165,421) | (85,901) | [1] | (402,011) | (308,778) | [1] |
Net income | 590,960 | 348,088 | [1] | 1,374,458 | 1,187,280 | [1] |
Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) | Amortization of prior service cost and initial net obligation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other (income) expense, net | (227) | (1,030) | (679) | (3,090) | ||
Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) | Recognized actuarial gain (loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other (income) expense, net | 1,057 | (39,292) | (11,422) | (117,852) | ||
Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) | Divestiture activity | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other (income) expense, net | 587 | 587 | ||||
Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) | Retirement benefit plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Income before income taxes | 1,417 | (40,322) | (11,514) | (120,942) | ||
Tax benefit | (53) | 9,867 | 3,117 | 29,607 | ||
Net income | $ 1,364 | $ (30,455) | $ (8,397) | $ (91,335) | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |
Goodwill and intangible asset_2
Goodwill and intangible assets - Changes in carrying amount of goodwill (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 7,740,082 |
Acquisition | 3,016,285 |
Divestitures | (3,296) |
Foreign currency translation | 77,477 |
Ending balance | 10,830,548 |
Diversified Industrial Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 7,185,981 |
Acquisition | 30,329 |
Divestitures | (1,064) |
Foreign currency translation | 30,297 |
Ending balance | 7,245,543 |
Aerospace Systems Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 554,101 |
Acquisition | 2,985,956 |
Divestitures | (2,232) |
Foreign currency translation | 47,180 |
Ending balance | $ 3,585,005 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 374 | $ 237 |
Estimated amortization expense, year ending June 30, 2023 | 520 | |
Estimated amortization expense, year ending June 30, 2024 | 564 | |
Estimated amortization expense, year ending June 30, 2025 | 556 | |
Estimated amortization expense, year ending June 30, 2026 | 551 | |
Estimated amortization expense, year ending June 30, 2027 | $ 545 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Intangible assets by major category (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,992,543 | $ 5,453,637 |
Accumulated Amortization | 2,705,026 | 2,317,820 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,107,573 | 990,775 |
Accumulated Amortization | 326,954 | 259,587 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,068,997 | 727,820 |
Accumulated Amortization | 376,099 | 339,244 |
Customer lists and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,815,973 | 3,735,042 |
Accumulated Amortization | $ 2,001,973 | $ 1,718,989 |
Retirement benefits - Net pensi
Retirement benefits - Net pension benefit expense (Details) - Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 14,599 | $ 18,238 | $ 42,534 | $ 57,599 |
Interest cost | 59,021 | 27,953 | 166,456 | 82,941 |
Expected return on plan assets | (80,137) | (67,024) | (228,695) | (201,487) |
Amortization of prior service cost | 227 | 1,028 | 679 | 3,084 |
Amortization of net actuarial (gain) loss | (657) | 39,570 | 12,625 | 118,186 |
Amortization of initial net obligation | 0 | 2 | 0 | 6 |
Net pension benefit expense | $ (6,947) | $ 19,767 | $ (6,401) | $ 60,329 |
Retirement benefits - Narrative
Retirement benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Other postretirement benefits expense | $ 0.5 | $ 0.1 | $ 1.2 | $ 0.7 |
Debt (Details)
Debt (Details) $ in Thousands, £ in Millions | 1 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jul. 31, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Aug. 02, 2021 GBP (£) | |
Line of Credit Facility [Line Items] | ||||||
Proceeds from long-term borrowings | $ 2,011,949 | $ 10,667 | ||||
Payments for long-term borrowings | 1,363,596 | $ 9,708 | ||||
Commercial paper | $ 1,700,000 | $ 1,400,000 | ||||
Debt to debt-shareholders' equity ratio | 0.58 | |||||
Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt to debt-shareholders' equity ratio, covenant, maximum | 0.65 | |||||
Medium-Term Note, $300 Million | Medium-term Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt matured amount | $ 300,000 | |||||
Line of Credit | Bridge Credit Agreement | Bridge Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate principal amount | £ | £ 0 | £ 6,500 | ||||
Line of Credit | Term Loan Facility | Loans Payable | ||||||
Line of Credit Facility [Line Items] | ||||||
Proceeds from long-term borrowings | $ 2,000,000 | |||||
Payments for long-term borrowings | $ 750,000 | |||||
Line of Credit | Term Loan Facility | Loans Payable | Debt Instrument, Periodic Payment, Interest, Period One | ||||||
Line of Credit Facility [Line Items] | ||||||
Periodic payment, interest, period | 1 month | |||||
Line of Credit | Term Loan Facility | Loans Payable | Debt Instrument, Periodic Payment, Interest, Period Two | ||||||
Line of Credit Facility [Line Items] | ||||||
Periodic payment, interest, period | 3 months | |||||
Line of Credit | Term Loan Facility | Loans Payable | Debt Instrument, Periodic Payment, Interest, Period Three | ||||||
Line of Credit Facility [Line Items] | ||||||
Periodic payment, interest, period | 6 months | |||||
Line of Credit | Term Loan Facility | Loans Payable | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.125% |
Income taxes (Details)
Income taxes (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 113 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 113 |
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits | 22 |
Accrued penalties related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits | 7 |
Decrease in unrecognized tax benefits that is reasonably possible (up to) | $ 50 |
Financial instruments - Carryin
Financial instruments - Carrying values and estimated fair values of long-term debt (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Carrying value of long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 11,794,606,000 | $ 10,145,077,000 |
Estimated fair value of long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 11,375,743,000 | $ 9,709,407,000 |
Financial instruments - Narrati
Financial instruments - Narrative (Details) € in Millions, ¥ in Millions, $ in Millions, £ in Billions | 1 Months Ended | |||
Jul. 31, 2022 USD ($) | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 JPY (¥) | Sep. 30, 2022 GBP (£) | |
Deal-contingent forward contracts | ||||
Debt Instrument [Line Items] | ||||
Notional amount of settled derivative | £ | £ 6.4 | |||
Decrease in cash collateral held in credit support annex related to deal-contingent forward contracts | $ | $ 250 | |||
Currency Swap, Due November 2034 | ||||
Debt Instrument [Line Items] | ||||
Notional amount of derivative | € 69 | ¥ 2,149 | ||
Currency Swap, Due May 2038 | ||||
Debt Instrument [Line Items] | ||||
Notional amount of derivative | 290 | |||
Senior Notes | Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount (in EUR) | € 700 |
Financial instruments - Fair va
Financial instruments - Fair value of derivative instruments reported in consolidated balance sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Cross-currency swap contracts | Investments and other assets | ||
Net investment hedges | ||
Cross-currency swap contracts, assets | $ 45,552 | $ 21,444 |
Forward exchange contracts | Non-trade and notes receivable | ||
Other derivative contracts | ||
Other derivative contracts, assets | 12,076 | 20,976 |
Forward exchange contracts | Other accrued liabilities | ||
Other derivative contracts | ||
Other derivative contracts, liabilities | 12,932 | 5,651 |
Forward exchange contracts | Other liabilities | ||
Other derivative contracts | ||
Other derivative contracts, liabilities | 1,797 | 0 |
Deal-contingent forward contracts | Other accrued liabilities | ||
Other derivative contracts | ||
Other derivative contracts, liabilities | 0 | 1,015,426 |
Costless collar contracts | Non-trade and notes receivable | ||
Other derivative contracts | ||
Other derivative contracts, assets | 6,861 | 351 |
Costless collar contracts | Other accrued liabilities | ||
Other derivative contracts | ||
Other derivative contracts, liabilities | $ 1,202 | $ 1,578 |
Financial instruments - Gain (l
Financial instruments - Gain (losses) on derivative financial instruments recorded in consolidated statement if income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Deal-contingent forward contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | $ 0 | $ (246,983) | $ (389,992) | $ (396,365) |
Forward exchange contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | 7,378 | 24,201 | (7,425) | 46,953 |
Costless collar contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | 4,308 | (1,751) | 9,632 | (4,625) |
Cross-currency swap contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | $ (2,976) | $ 0 | $ (18,739) | $ 0 |
Financial instruments - Gain _2
Financial instruments - Gain (losses) on derivative and non-derivative financial instruments recorded in accumulated other comprehensive (loss) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cross-currency swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ 16,085 | $ 887 | $ 17,196 | $ 30,205 |
Foreign currency denominated debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ (7,391) | $ 16,194 | $ (18,880) | $ 41,843 |
Financial instruments - Financi
Financial instruments - Financial assets and liabilities measured at fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Assets: | ||
Equity securities | $ 13,038 | |
Derivatives | $ 64,489 | 42,771 |
Liabilities: | ||
Derivatives | 15,931 | 1,022,655 |
Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Equity securities | 13,038 | |
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Equity securities | 0 | |
Derivatives | 64,489 | 42,771 |
Liabilities: | ||
Derivatives | 15,931 | 1,022,655 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Equity securities | 0 | |
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Business segment information (D
Business segment information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |||
Segment Reporting [Abstract] | ||||||
Number of reportable business segments | segment | 2 | |||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 5,061,665 | $ 4,086,387 | [1] | $ 13,969,251 | $ 11,673,776 | [1] |
Operating income | 906,972 | 774,084 | 2,359,722 | 2,169,322 | ||
Selling, general and administrative expenses | 868,393 | 640,498 | [1] | 2,519,163 | 1,853,105 | [1] |
Interest expense | 151,993 | 63,272 | [1] | 416,718 | 183,982 | [1] |
Other (income) expense, net | (1,402) | 276,823 | 166,535 | 489,282 | ||
Income before income taxes | 756,381 | 433,989 | [1] | 1,776,469 | 1,496,058 | [1] |
North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 3,364,157 | 2,645,106 | 9,278,815 | 7,451,153 | ||
Diversified Industrial | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 3,867,105 | 3,454,072 | 10,892,262 | 9,830,426 | ||
Aerospace Systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,194,560 | 632,315 | 3,076,989 | 1,843,350 | ||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 5,061,665 | 4,086,387 | 13,969,251 | 11,673,776 | ||
Operating income | 952,752 | 831,489 | 2,506,063 | 2,318,386 | ||
Operating Segments | Diversified Industrial | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 2,342,590 | 2,014,715 | 6,615,035 | 5,615,454 | ||
Operating income | 489,349 | 413,998 | 1,362,256 | 1,085,117 | ||
Operating Segments | Diversified Industrial | International | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,524,515 | 1,439,357 | 4,277,227 | 4,214,972 | ||
Operating income | 329,498 | 298,475 | 908,958 | 881,206 | ||
Operating Segments | Aerospace Systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,194,560 | 632,315 | 3,076,989 | 1,843,350 | ||
Operating income | 133,905 | 119,016 | 234,849 | 352,063 | ||
Corporate, Non-Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Selling, general and administrative expenses | $ 45,780 | $ 57,405 | $ 146,341 | $ 149,064 | ||
[1]*Prior period amounts have been reclassified to reflect the income statement reclassification as described in Note 1. |