QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Selling, general and administrative expenses | |||||||||||
Interest expense | |||||||||||
Other income, net | ( | ( | |||||||||
Income before income taxes | |||||||||||
Income taxes | |||||||||||
Net income | |||||||||||
Less: Noncontrolling interest in subsidiaries' earnings | |||||||||||
Net income attributable to common shareholders | $ | $ | |||||||||
Earnings per share attributable to common shareholders: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Net income | $ | $ | |||||||||
Less: Noncontrolling interests in subsidiaries' earnings | |||||||||||
Net income attributable to common shareholders | |||||||||||
Other comprehensive income (loss), net of tax | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Retirement benefits plan activity | |||||||||||
Other comprehensive (loss) | ( | ( | |||||||||
Less: Other comprehensive income (loss) for noncontrolling interests | ( | ||||||||||
Other comprehensive (loss) attributable to common shareholders | ( | ( | |||||||||
Total comprehensive income attributable to common shareholders | $ | $ | |||||||||
September 30, 2023 | June 30, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities and other investments | |||||||||||
Trade accounts receivable, net | |||||||||||
Non-trade and notes receivable | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment | |||||||||||
Less: Accumulated depreciation | |||||||||||
Property, plant and equipment, net | |||||||||||
Deferred income taxes | |||||||||||
Investments and other assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Current liabilities: | |||||||||||
Notes payable and long-term debt payable within one year | $ | $ | |||||||||
Accounts payable, trade | |||||||||||
Accrued payrolls and other compensation | |||||||||||
Accrued domestic and foreign taxes | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Pensions and other postretirement benefits | |||||||||||
Deferred income taxes | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
EQUITY | |||||||||||
Shareholders’ equity: | |||||||||||
Serial preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive (loss) | ( | ( | |||||||||
Treasury shares, at cost; | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Stock incentive plan compensation | |||||||||||
Deferred income taxes | ( | ||||||||||
Foreign currency transaction (gain) loss | ( | ||||||||||
Loss (gain) on disposal of property, plant and equipment | ( | ||||||||||
Gain on sale of businesses | ( | ( | |||||||||
Gain on marketable securities | ( | ( | |||||||||
Gain on investments | ( | ( | |||||||||
Other | |||||||||||
Changes in assets and liabilities, net of effect of acquisitions and divestitures: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other | ( | ||||||||||
Other assets | ( | ( | |||||||||
Accounts payable, trade | |||||||||||
Accrued payrolls and other compensation | ( | ( | |||||||||
Accrued domestic and foreign taxes | |||||||||||
Other accrued liabilities | |||||||||||
Pensions and other postretirement benefits | ( | ||||||||||
Other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Acquisitions (net of cash of $ | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sale of property, plant and equipment | |||||||||||
Proceeds from sale of businesses | |||||||||||
Purchases of marketable securities and other investments | ( | ( | |||||||||
Maturities and sales of marketable securities and other investments | |||||||||||
Payments of deal-contingent forward contracts | ( | ||||||||||
Other | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Payments for common shares | ( | ( | |||||||||
Acquisition of noncontrolling interests | ( | ||||||||||
Payments for notes payable, net | ( | ( | |||||||||
Proceeds from long-term borrowings | |||||||||||
Payments for long-term borrowings | ( | ( | |||||||||
Financing fees paid | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ( | |||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Motion Systems | $ | $ | ||||||||||||
Flow and Process Control | ||||||||||||||
Filtration and Engineered Materials | ||||||||||||||
Total | $ | $ |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Commercial original equipment manufacturer ("OEM") | $ | $ | ||||||||||||
Commercial aftermarket | ||||||||||||||
Military OEM | ||||||||||||||
Military aftermarket | ||||||||||||||
Total | $ | $ |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
North America | $ | $ | ||||||||||||
Europe | ||||||||||||||
Asia Pacific | ||||||||||||||
Latin America | ||||||||||||||
Total | $ | $ |
September 30, 2023 | June 30, 2023 | |||||||||||||
Contract assets, current (included within Prepaid expenses and other) | $ | $ | ||||||||||||
Contract assets, noncurrent (included within Investments and other assets) | ||||||||||||||
Total contract assets | ||||||||||||||
Contract liabilities, current (included within Other accrued liabilities) | ( | ( | ||||||||||||
Contract liabilities, noncurrent (included within Other liabilities) | ( | ( | ||||||||||||
Total contract liabilities | ( | ( | ||||||||||||
Net contract liabilities | $ | ( | $ | ( |
June 30, 2023 (previously reported) | Measurement Period Adjustments | September 12, 2022 (Final) | |||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Accounts receivable | |||||||||||||||||
Inventories | |||||||||||||||||
Prepaid expenses and other | |||||||||||||||||
Property, plant and equipment | ( | ||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||
Other assets | ( | ||||||||||||||||
Intangible assets | ( | ||||||||||||||||
Goodwill | |||||||||||||||||
Total assets acquired | $ | $ | ( | $ | |||||||||||||
Liabilities: | |||||||||||||||||
Notes payable and long-term debt payable within one year | $ | $ | $ | ||||||||||||||
Accounts payable, trade | ( | ||||||||||||||||
Accrued payrolls and other compensation | ( | ||||||||||||||||
Accrued domestic and foreign taxes | ( | ||||||||||||||||
Other accrued liabilities | |||||||||||||||||
Long-term debt | |||||||||||||||||
Pensions and other postretirement benefits | ( | ||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||
Other liabilities | ( | ||||||||||||||||
Total liabilities assumed | ( | ||||||||||||||||
Net assets acquired | $ | $ | $ |
(Unaudited) | Three Months Ended | ||||
September 30, 2022 | |||||
Net sales | $ | ||||
Net income attributable to common shareholders |
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Numerator: | |||||||||||
Net income attributable to common shareholders | $ | $ | |||||||||
Denominator: | |||||||||||
Basic - weighted average common shares | |||||||||||
Increase in weighted average common shares from dilutive effect of equity-based awards | |||||||||||
Diluted - weighted average common shares, assuming exercise of equity-based awards | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ | |||||||||
September 30, 2023 | June 30, 2023 | |||||||||||||
Notes receivable | $ | $ | ||||||||||||
Accounts receivable, other | ||||||||||||||
Total | $ | $ |
September 30, 2023 | June 30, 2023 | |||||||||||||
Finished products | $ | $ | ||||||||||||
Work in process | ||||||||||||||
Raw materials | ||||||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Diversified Industrial | $ | $ | |||||||||
Aerospace Systems | |||||||||||
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Diversified Industrial | |||||||||||
Aerospace Systems | |||||||||||
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cost of sales | $ | $ | |||||||||
Selling, general and administrative expenses | |||||||||||
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Diversified Industrial | $ | $ | |||||||||
Aerospace Systems |
Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Shares | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | |||||||||||||||||||||||||||||||||||||||||
Acquisition activity | ( | ( | |||||||||||||||||||||||||||||||||||||||
Shares purchased at cost | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Shares | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | |||||||||||||||||||||||||||||||||||||||||
Shares purchased at cost | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Foreign Currency Translation Adjustment | Retirement Benefit Plans | Total | |||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive (loss) before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) | |||||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation Adjustment | Retirement Benefit Plans | Total | |||||||||||||||
Balance at June 30, 2022 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive (loss) before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) | |||||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | ( | $ | ( |
Details about Accumulated Other Comprehensive (Loss) Components | Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) | Consolidated Statement of Income Classification | ||||||||||||
Three Months Ended | ||||||||||||||
September 30, 2023 | ||||||||||||||
Retirement benefit plans | ||||||||||||||
Amortization of prior service cost and initial net obligation | $ | ( | Other income, net | |||||||||||
Recognized actuarial loss | ( | Other income, net | ||||||||||||
Total before tax | ( | |||||||||||||
Tax benefit | ||||||||||||||
Net of tax | $ | ( |
Details about Accumulated Other Comprehensive (Loss) Components | Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) | Consolidated Statement of Income Classification | ||||||||||||
Three Months Ended | ||||||||||||||
September 30, 2022 | ||||||||||||||
Retirement benefit plans | ||||||||||||||
Amortization of prior service cost and initial net obligation | $ | ( | Other income, net | |||||||||||
Recognized actuarial loss | ( | Other income, net | ||||||||||||
Total before tax | ( | |||||||||||||
Tax benefit | ||||||||||||||
Net of tax | $ | ( |
Diversified Industrial Segment | Aerospace Systems Segment | Total | |||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ||||||||||||||
Acquisition | |||||||||||||||||
Divestiture | ( | ( | |||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||
Balance at September 30, 2023 | $ | $ | $ |
September 30, 2023 | June 30, 2023 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
Patents and technology | $ | $ | $ | $ | |||||||||||||||||||
Trade names | |||||||||||||||||||||||
Customer relationships and other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Service cost | $ | $ | |||||||||
Interest cost | |||||||||||
Expected return on plan assets | ( | ( | |||||||||
Amortization of prior service cost | |||||||||||
Amortization of net actuarial loss | |||||||||||
Amortization of initial net obligation | |||||||||||
Net pension (benefit) expense | $ | ( | $ |
September 30, 2023 | June 30, 2023 | |||||||||||||
Carrying value of long-term debt | $ | $ | ||||||||||||
Estimated fair value of long-term debt |
Balance Sheet Caption | September 30, 2023 | June 30, 2023 | ||||||||||||||||||
Net investment hedges | ||||||||||||||||||||
Cross-currency swap contracts | Investments and other assets | $ | $ | |||||||||||||||||
Other derivative contracts | ||||||||||||||||||||
Forward exchange contracts | Non-trade and notes receivable | |||||||||||||||||||
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Deal-contingent forward contracts | $ | $ | ( | ||||||||
Forward exchange contracts | ( | ||||||||||
Costless collar contracts | |||||||||||
Cross-currency swap contracts |
Three Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cross-currency swap contracts | $ | $ | |||||||||
Foreign currency denominated debt |
Quoted Prices | Significant Other | Significant | ||||||||||||||||||||||||
Fair | In Active | Observable | Unobservable | |||||||||||||||||||||||
Value at | Markets | Inputs | Inputs | |||||||||||||||||||||||
September 30, 2023 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Quoted Prices | Significant Other | Significant | ||||||||||||||||||||||||
Fair | In Active | Observable | Unobservable | |||||||||||||||||||||||
Value at | Markets | Inputs | Inputs | |||||||||||||||||||||||
June 30, 2023 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net sales | ||||||||||||||
Diversified Industrial: | ||||||||||||||
North America | $ | $ | ||||||||||||
International | ||||||||||||||
Aerospace Systems | ||||||||||||||
Total net sales | $ | $ | ||||||||||||
Segment operating income | ||||||||||||||
Diversified Industrial: | ||||||||||||||
North America | $ | $ | ||||||||||||
International | ||||||||||||||
Aerospace Systems | ||||||||||||||
Total segment operating income | ||||||||||||||
Corporate general and administrative expenses | ||||||||||||||
Income before interest expense and other expense | ||||||||||||||
Interest expense | ||||||||||||||
Other expense, net | ||||||||||||||
Income before income taxes | $ | $ | ||||||||||||
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Net sales | $ | 4,847 | $ | 4,233 | ||||||||||
Gross profit margin | 36.1 | % | 34.0 | % | ||||||||||
Selling, general and administrative expenses | $ | 874 | $ | 836 | ||||||||||
Selling, general and administrative expenses, as a percent of sales | 18.0 | % | 19.7 | % | ||||||||||
Interest expense | $ | 134 | $ | 118 | ||||||||||
Other income, net | $ | (78) | $ | (20) | ||||||||||
Effective tax rate | 20.6 | % | 22.9 | % | ||||||||||
Net income | $ | 651 | $ | 388 | ||||||||||
Net income, as a percent of sales | 13.4 | % | 9.2 | % |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Expense (income) | ||||||||||||||
Foreign currency transaction (gain) loss | $ | (2) | $ | 36 | ||||||||||
Income related to equity method investments | (38) | (28) | ||||||||||||
Non-service components of retirement benefit cost | (18) | (13) | ||||||||||||
Gain on disposal of assets and divestitures | (12) | (377) | ||||||||||||
Interest income | (4) | (26) | ||||||||||||
Loss on deal-contingent forward contracts | — | 390 | ||||||||||||
Other items, net | (4) | (2) | ||||||||||||
$ | (78) | $ | (20) |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Net sales | ||||||||||||||
North America | $ | 2,230 | $ | 2,132 | ||||||||||
International | 1,389 | 1,355 | ||||||||||||
Operating income | ||||||||||||||
North America | 506 | 453 | ||||||||||||
International | $ | 301 | $ | 294 | ||||||||||
Operating margin | ||||||||||||||
North America | 22.7 | % | 21.2 | % | ||||||||||
International | 21.7 | % | 21.7 | % | ||||||||||
Backlog | $ | 4,538 | $ | 4,901 |
Period Ending September 30, 2023 | ||||||||
Three Months | ||||||||
Diversified Industrial North America – as reported | 4.6 | % | ||||||
Acquisitions | 3.6 | % | ||||||
Currency | 0.5 | % | ||||||
Diversified Industrial North America – without acquisitions and currency1 | 0.5 | % | ||||||
Diversified Industrial International – as reported | 2.5 | % | ||||||
Acquisitions | 2.8 | % | ||||||
Currency | 1.9 | % | ||||||
Diversified Industrial International – without acquisitions and currency1 | (2.2) | % | ||||||
Total Diversified Industrial Segment – as reported | 3.8 | % | ||||||
Acquisitions | 3.3 | % | ||||||
Currency | 1.0 | % | ||||||
Total Diversified Industrial Segment – without acquisitions and currency1 | (0.5) | % |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Diversified Industrial North America | $ | 4 | $ | — | ||||||||||
Diversified Industrial International | 10 | 2 |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Net sales | $ | 1,229 | $ | 746 | ||||||||||
Operating income | $ | 226 | $ | 92 | ||||||||||
Operating margin | 18.4 | % | 12.4 | % | ||||||||||
Backlog | $ | 6,270 | $ | 5,346 |
Three Months Ended | ||||||||||||||
(dollars in millions) | September 30, | |||||||||||||
Expense | 2023 | 2022 | ||||||||||||
Corporate general and administrative expense | $ | 56 | $ | 52 | ||||||||||
Corporate general and administrative expense, as a percent of sales | 1.1 | % | 1.2 | % |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Expense (income) | ||||||||||||||
Foreign currency transaction (gain) loss | $ | (2) | $ | 36 | ||||||||||
Stock-based compensation | 62 | 50 | ||||||||||||
Pensions | (18) | (13) | ||||||||||||
Acquisition-related expenses | — | 108 | ||||||||||||
Loss on deal-contingent forward contracts | — | 390 | ||||||||||||
Gain on disposal of assets and divestitures | (12) | (377) | ||||||||||||
Interest income | (4) | (26) | ||||||||||||
Other items, net | (4) | (2) | ||||||||||||
$ | 22 | $ | 166 |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Cash provided by (used in): | ||||||||||||||
Operating activities | $ | 650 | $ | 457 | ||||||||||
Investing activities | (56) | (7,927) | ||||||||||||
Financing activities | (618) | 1,340 | ||||||||||||
Effect of exchange rates | (2) | (16) | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (26) | $ | (6,146) |
Fitch Ratings | BBB+ | |||||||
Moody's Investors Services, Inc. | Baa1 | |||||||
Standard & Poor's | BBB+ |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||
July 1, 2023 through July 31, 2023 | 40,653 | $ | 394.18 | 40,653 | 7,710,910 | |||||||||||||||||||||
August 1, 2023 through August 31, 2023 | 44,300 | $ | 409.70 | 44,300 | 7,666,610 | |||||||||||||||||||||
September 1, 2023 through September 30, 2023 | 39,543 | $ | 400.14 | 39,543 | 7,627,067 | |||||||||||||||||||||
Total: | 124,496 | 124,496 |
Exhibit No. | Description of Exhibit | |||||||
10(a) | ||||||||
10(b) | ||||||||
31(a) | ||||||||
31(b) | ||||||||
32 | ||||||||
101.INS | Inline XBRL Instance Document.* | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document.* | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document.* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. * | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document.* | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document.* | |||||||
104 | Cover page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
* | Submitted electronically herewith. |
PARKER-HANNIFIN CORPORATION | ||||||||
(Registrant) | ||||||||
/s/ Todd M. Leombruno | ||||||||
Todd M. Leombruno | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Date: | November 7, 2023 |
/s/ Jennifer A. Parmentier | |||||
Jennifer A. Parmentier | |||||
Chief Executive Officer |
/s/ Todd M. Leombruno | |||||
Todd M. Leombruno | |||||
Executive Vice President and Chief Financial Officer | |||||
/s/ Jennifer A. Parmentier | |||||
Name: Jennifer A. Parmentier | |||||
Title: Chief Executive Officer | |||||
/s/ Todd M. Leombruno | |||||
Name: Todd M. Leombruno | |||||
Title: Executive Vice President and Chief Financial Officer | |||||
Consolidated Statement of Income - USD ($) $ in Thousands |
3 Months Ended | |
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Sep. 30, 2023 |
Sep. 30, 2022 |
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Income Statement [Abstract] | ||
Net sales | $ 4,847,488 | $ 4,232,775 |
Cost of sales | 3,097,349 | 2,795,456 |
Selling, general and administrative expenses | 873,691 | 835,804 |
Interest expense | 134,468 | 117,794 |
Other income, net | (78,455) | (19,624) |
Income before income taxes | 820,435 | 503,345 |
Income taxes | 169,363 | 115,308 |
Net income | 651,072 | 388,037 |
Less: Noncontrolling interest in subsidiaries' earnings | 245 | 183 |
Net income attributable to common shareholders | $ 650,827 | $ 387,854 |
Earnings per share attributable to common shareholders: | ||
Basic (in USD per share) | $ 5.07 | $ 3.02 |
Diluted (in USD per share) | $ 4.99 | $ 2.98 |
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
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Sep. 30, 2023 |
Sep. 30, 2022 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 651,072 | $ 388,037 |
Less: Noncontrolling interests in subsidiaries' earnings | 245 | 183 |
Net income attributable to common shareholders | 650,827 | 387,854 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustment | (222,532) | (306,483) |
Retirement benefits plan activity | 818 | 4,771 |
Other comprehensive (loss) | (221,714) | (301,712) |
Less: Other comprehensive income (loss) for noncontrolling interests | 361 | (1,130) |
Other comprehensive (loss) attributable to common shareholders | (222,075) | (300,582) |
Total comprehensive income attributable to common shareholders | $ 428,752 | $ 87,272 |
Consolidated Balance Sheet (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Jun. 30, 2023 |
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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) | 52,570,304 | 52,613,046 |
Consolidated Statement of Cash Flows (Parenthetical) $ in Thousands |
3 Months Ended |
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Sep. 30, 2022
USD ($)
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Statement of Cash Flows [Abstract] | |
Acquisitions, cash acquired | $ 89,704 |
Management representation |
3 Months Ended |
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Sep. 30, 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 September 30, 2023, the results of operations for the three months ended September 30, 2023 and 2022 and cash flows for the three months then ended. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2023 Annual Report on Form 10-K. Subsequent Events The Company has evaluated subsequent events that occurred through the date these financial statements were issued. No subsequent events have occurred that required adjustment to or disclosure in these financial statements.
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New accounting pronouncements |
3 Months Ended |
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Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | New accounting pronouncementsIn September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 adopted the guidance on July 1, 2023, except for the rollforward requirement, which becomes effective July 1, 2024. The adoption did not have a material impact on the Company's consolidated financial statements. |
Revenue recognition |
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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:
Aerospace Systems Segment revenues by primary market:
Total Company revenues by geographic region based on the Company's selling operation's location:
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:
Net contract liabilities at September 30, 2023 decreased from the June 30, 2023 amount primarily due to timing differences between when revenue was recognized and the receipt of advance payments. During the three months ended September 30, 2023, approximately $56 million of revenue was recognized that was included in the contract liabilities at June 30, 2023. 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 September 30, 2023 was $10.8 billion, of which approximately 81 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.
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Acquisitions and divestitures |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and divestitures | Acquisitions and divestitures Acquisitions On September 12, 2022, we completed the acquisition (the "Acquisition") of all the outstanding ordinary shares of Meggitt plc ("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. During the three months ended September 30, 2023, measurement period adjustments did not have a material impact on the Consolidated Statement of Income. The following table presents the final estimated fair values of Meggitt's assets acquired and liabilities assumed on the Acquisition date.
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 final acquisition valuation, we acquired $4.2 billion of customer-related intangible assets, $1.1 billion of technology and $303 million of trade names, each with weighted average estimated useful lives of 21, 22, and 18 years, respectively. These intangible assets were valued using the income approach, which includes significant assumptions around future revenue growth, earnings before interest, taxes, depreciation and amortization, royalty rates and discount rates. Such assumptions are classified as level 3 inputs within the fair value hierarchy. The following table presents unaudited pro forma information for the three months ended September 30, 2022 as if the Acquisition had occurred on July 1, 2021.
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 of 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 $196 million during the three months ended September 30, 2022. 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 2023, we divested the MicroStrain sensing systems business, which was part of the Diversified Industrial Segment, for proceeds of $37 million. The resulting pre-tax gain of $13 million is included in other income, net in the Consolidated Statement of Income. The operating results and net assets of the MicroStrain sensing systems business were immaterial to the Company's consolidated results of operations and financial position. During September 2022, we divested our aircraft wheel and brake business, which was part of the Aerospace Systems Segment, for proceeds of $441 million. The resulting pre-tax gain of $373 million is included in other income, 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.
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Earnings per share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share | Earnings per shareThe following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three months ended September 30, 2023 and 2022.
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Share repurchase program |
3 Months Ended |
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Sep. 30, 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 September 30, 2023, we repurchased 124,496 shares at an average price, including commissions, of $401.62 per share. |
Trade accounts receivable, net |
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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 $32 million at September 30, 2023 and June 30, 2023.Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components:
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Non-trade and notes receivable |
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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 $32 million at September 30, 2023 and June 30, 2023.Non-trade and notes receivable The non-trade and notes receivable caption in the Consolidated Balance Sheet is comprised of the following components:
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Inventories |
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Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | InventoriesThe inventories caption in the Consolidated Balance Sheet is comprised of the following components:
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Supply chain financing |
3 Months Ended |
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Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supply chain financing | Supply chain financingWe have supply chain financing ("SCF") programs with financial intermediaries, which provide certain suppliers the option to be paid by the financial intermediaries earlier than the due date on the applicable invoice. We are not a party to the agreements between the participating financial intermediaries and the suppliers in connection with the programs. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the programs. We do not reimburse suppliers for any costs they incur for participation in the programs and their participation is voluntary. Amounts due to our suppliers that elected to participate in the SCF programs are included in accounts payable, trade on the Consolidated Balance Sheet and payments made under the programs are included within operating activities on the Consolidated Statement of Cash Flows. Accounts payable, trade included approximately $85 million payable to suppliers who have elected to participate in the SCF programs as of September 30, 2023 and June 30, 2023. The amounts settled through the SCF programs and paid to the participating financial intermediaries totaled $72 million and $37 million during the first three months of fiscal 2024 and 2023, respectively. |
Business realignment and acquisition integration charges |
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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 three months of fiscal 2024 and 2023. In both the first three months of fiscal 2024 and 2023, 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 2024 and 2023, a majority of the business realignment charges were incurred in Europe. We believe the realignment actions will positively impact future results of operations, but will not have a material effect on liquidity and sources and uses of capital. Business realignment charges by business segment are as follows:
Reductions to our workforce made in connection with such business realignment charges by business segment are as follows:
The business realignment charges are presented in the Consolidated Statement of Income as follows:
During the first three months of fiscal 2024, approximately $11 million in payments were made relating to business realignment charges. Remaining payments related to business realignment actions of approximately $16 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. We also incurred the following acquisition integration charges: Charges incurred in fiscal 2024 and 2023 relate to the acquisition of Meggitt. In both fiscal 2024 and 2023, these charges were primarily included in selling, general and administrative expenses ("SG&A") within the Consolidated Statement of Income.
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Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Changes in equity for the three months ended September 30, 2023 and 2022 are as follows:
Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the three months ended September 30, 2023 and 2022 are as follows:
Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three months ended September 30, 2023 and 2022 are as follows:
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Goodwill and intangible assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and intangible assets | Goodwill and intangible assets The changes in the carrying amount of goodwill for the three months ended September 30, 2023 are as follows:
Acquisition represents goodwill resulting from the purchase price allocation for the Acquisition during the measurement period. Divestiture represents goodwill associated with the sale of the business. Refer to Note 4 for further discussion. 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:
Total intangible amortization expense for the three months ended September 30, 2023 and 2022 was $156 million and $87 million, respectively. The estimated amortization expense for the five years ending June 30, 2024 through 2028 is $565 million, $543 million, $539 million, $533 million and $524 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 three months ended September 30, 2023 and 2022.
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Retirement benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement benefits | Retirement benefits Net pension (benefit) expense recognized included the following components:
We recognized $0.6 million and $0.2 million in expense related to other postretirement benefits during the three months ended September 30, 2023 and 2022, respectively. Components of retirement benefits expense, other than service cost, are included in other income, net in the Consolidated Statement of Income.
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Debt |
3 Months Ended |
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Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our debt portfolio includes a term loan facility (the “Term Loan Facility”). Interest rates reset every , or six months at the discretion of the Company. At September 30, 2023, the Term Loan Facility had an interest rate of Secured Overnight Financing Rate plus 122.5 bps. Additionally, the provisions of the Term Loan Facility allow for prepayments at the Company's discretion. During the three months ended September 30, 2023, we made principal payments totaling $175 million related to the Term Loan Facility. Refer to the Company’s 2023 Annual Report on Form 10-K for further discussion. Commercial paper notes outstanding at September 30, 2023 and June 30, 2023 were $1.6 billion and $1.8 billion, respectively. Based on the Company’s rating level at September 30, 2023, the most restrictive financial covenant provides that the ratio of debt to debt-shareholders' equity cannot exceed 0.65 to 1.0. At September 30, 2023, our debt to debt-shareholders' equity ratio was 0.54 to 1.0. We are in compliance, and expect to remain in compliance, with all covenants set forth in the credit agreement and indentures.
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Income taxes |
3 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxesWe 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 September 30, 2023, we had gross unrecognized tax benefits of $111 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 $24 million and $2 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 $40 million as a result of the revaluation of existing uncertain tax positions arising from developments in the examination process or the closure of tax statutes. Any increase in the amount of gross unrecognized tax benefits within the next 12 months is expected to be insignificant. |
Financial instruments |
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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. 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:
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, cross-currency swap contracts and certain foreign currency denominated debt designated as net investment hedges, to manage foreign currency transaction and translation risk. The derivative financial instrument contracts are with major investment grade financial institutions, and 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. 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:
The cross-currency swap and forward exchange 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 contracts 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 in other income, net 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:
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:
During the three months ended September 30, 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 September 30, 2023 and June 30, 2023 are as follows:
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 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. The primary investment objective for all investments is the preservation of principal and liquidity while earning income. There are no other financial assets or financial liabilities that are marked to market on a recurring basis.
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Business segment information |
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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.
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Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
New accounting pronouncements (Policies) |
3 Months Ended |
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Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | New accounting pronouncementsIn September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 adopted the guidance on July 1, 2023, except for the rollforward requirement, which becomes effective July 1, 2024. The adoption did not have a material impact on the Company's consolidated financial statements. |
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. Remaining performance obligationsOur 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.
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Revenue recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | Diversified Industrial Segment revenues by technology platform:
Aerospace Systems Segment revenues by primary market:
Total Company revenues by geographic region based on the Company's selling operation's location:
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Contract assets and liabilities | Total contract assets and contract liabilities are as follows:
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Acquisitions and divestitures (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of preliminary estimated fair values of assets acquired and liabilities assumed on the acquisition date | During the three months ended September 30, 2023, measurement period adjustments did not have a material impact on the Consolidated Statement of Income. The following table presents the final estimated fair values of Meggitt's assets acquired and liabilities assumed on the Acquisition date.
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Unaudited pro forma information | The following table presents unaudited pro forma information for the three months ended September 30, 2022 as if the Acquisition had occurred on July 1, 2021.
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Earnings per share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 months ended September 30, 2023 and 2022.
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Non-trade and notes receivable (Tables) |
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Sep. 30, 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:
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Inventories (Tables) |
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Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | The inventories caption in the Consolidated Balance Sheet is comprised of the following components:
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Business realignment and acquisition integration charges (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business realignment charges and acquisition integration charges | Business realignment charges by business segment are as follows:
Reductions to our workforce made in connection with such business realignment charges by business segment are as follows:
The business realignment charges are presented in the Consolidated Statement of Income as follows: We also incurred the following acquisition integration charges:
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Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in equity | Changes in equity for the three months ended September 30, 2023 and 2022 are as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 three months ended September 30, 2023 and 2022 are as follows:
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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 months ended September 30, 2023 and 2022 are as follows:
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Goodwill and intangible assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the three months ended September 30, 2023 are as follows:
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Intangible assets by major category | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets:
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Retirement benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension (benefit) expense | Net pension (benefit) expense recognized included the following components:
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Financial instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 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:
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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:
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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:
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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:
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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 September 30, 2023 and June 30, 2023 are as follows:
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Business segment information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment reporting information |
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Revenue recognition - Revenues by segment and by platform (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | $ 4,847,488 | $ 4,232,775 |
Diversified Industrial Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 3,618,528 | 3,486,773 |
Diversified Industrial Segment | Motion Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 942,314 | 906,014 |
Diversified Industrial Segment | Flow and Process Control | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 1,181,461 | 1,204,464 |
Diversified Industrial Segment | Filtration and Engineered Materials | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | $ 1,494,753 | $ 1,376,295 |
Revenue recognition - Revenues by segment and primary market (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | $ 4,847,488 | $ 4,232,775 |
Aerospace Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 1,228,960 | 746,002 |
Commercial original equipment manufacturer ("OEM") | Aerospace Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 418,616 | 264,310 |
Commercial aftermarket | Aerospace Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 391,206 | 204,640 |
Military OEM | Aerospace Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 263,065 | 170,671 |
Military aftermarket | Aerospace Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | $ 156,073 | $ 106,381 |
Revenue recognition - Revenue by geographic region (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | $ 4,847,488 | $ 4,232,775 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 3,293,091 | 2,834,920 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 941,715 | 753,932 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | 554,405 | 588,398 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts | $ 58,277 | $ 55,525 |
Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current (included within Prepaid expenses and other) | $ 110,055 | $ 123,705 |
Contract assets, noncurrent (included within Investments and other assets) | 24,334 | 23,708 |
Total contract assets | 134,389 | 147,413 |
Contract liabilities, current (included within Other accrued liabilities) | (222,759) | (244,799) |
Contract liabilities, noncurrent (included within Other liabilities) | (53,854) | (78,239) |
Total contract liabilities | (276,613) | (323,038) |
Net contract liabilities | $ (142,224) | $ (175,625) |
Revenue recognition - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 56 |
Remaining performance obligation, amount | $ 10,800 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 81.00% |
Remaining performance obligation, period | 12 months |
Acquisitions and divestitures - Unaudited pro forma information (Details) - Meggitt plc $ in Thousands |
3 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Business Acquisition [Line Items] | |
Net sales | $ 4,614,105 |
Net income attributable to common shareholders | $ 498,375 |
Earnings per share - Computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Numerator: | ||
Net income attributable to common shareholders, basic | $ 650,827 | $ 387,854 |
Net income attributable to common shareholders, diluted | $ 650,827 | $ 387,854 |
Denominator: | ||
Basic - weighted average common shares (in shares) | 128,472,550 | 128,425,002 |
Increase in weighted average common shares from dilutive effect of equity-based awards (in shares) | 1,890,891 | 1,517,406 |
Diluted - weighted average common shares, assuming exercise of equity-based awards (in shares) | 130,363,441 | 129,942,408 |
Basic earnings per share (in USD per share) | $ 5.07 | $ 3.02 |
Diluted earnings per share (in USD per share) | $ 4.99 | $ 2.98 |
Earnings per share - Narrative (Details) - shares |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||
Excluded from the computation of diluted earnings per share since anti-dilutive (in shares) | 172,255 | 887,307 |
Share repurchase program (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Oct. 22, 2014 |
|
Equity [Abstract] | ||
Authorized to be repurchased (in shares) | 35,000,000 | |
Repurchased (in shares) | 124,496 | |
Repurchased, average price (in USD per share) | $ 401.62 |
Trade accounts receivable, net (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Receivables [Abstract] | ||
Allowance for credit losses | $ 32 | $ 32 |
Non-trade and notes receivable (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Receivables [Abstract] | ||
Notes receivable | $ 99,259 | $ 102,288 |
Accounts receivable, other | 196,838 | 206,879 |
Total | $ 296,097 | $ 309,167 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Inventory, Net [Abstract] | ||
Finished products | $ 800,236 | $ 794,128 |
Work in process | 1,571,430 | 1,488,665 |
Raw materials | 657,082 | 625,086 |
Total | $ 3,028,748 | $ 2,907,879 |
Supply chain financing (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2023 |
|
Payables and Accruals [Abstract] | |||
Payable to suppliers who have elected to participate in the supply chain financing programs | $ 85 | $ 85 | |
Amounts settled through supply chain financing programs and paid to participating financial intermediaries | $ 72 | $ 37 |
Business realignment and acquisition integration charges - Business segment information (Details) - Operating Segments $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
employee
|
Sep. 30, 2022
USD ($)
employee
|
|
Diversified Industrial | ||
Restructuring Cost and Reserve [Line Items] | ||
Business realignment charges | $ | $ 12,639 | $ 2,012 |
Number of positions eliminated (employees) | employee | 325 | 51 |
Aerospace Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Business realignment charges | $ | $ 453 | $ 1,849 |
Number of positions eliminated (employees) | employee | 2 | 12 |
Business realignment and acquisition integration charges - Income statement location (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Business realignment charges | $ 6,984 | $ 2,499 |
Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Business realignment charges | $ 6,108 | $ 1,362 |
Business realignment and acquisition integration charges - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Restructuring and Related Activities [Abstract] | |
Payments made relating to business realignment charges | $ 11 |
Remaining payments related to business realignment actions | $ 16 |
Business realignment and acquisition integration charges - Acquisition integration charges related to the Lord and Exotic acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Diversified Industrial | ||
Restructuring Cost and Reserve [Line Items] | ||
Acquisition integration charges | $ 1,139 | $ 186 |
Aerospace Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Acquisition integration charges | $ 5,267 | $ 11,805 |
Goodwill and intangible assets - Changes in carrying amount of goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 10,628,594 |
Acquisition | 10,891 |
Divestiture | (10,520) |
Foreign currency translation | (105,836) |
Ending balance | 10,523,129 |
Diversified Industrial Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 7,682,755 |
Acquisition | 1,113 |
Divestiture | (10,520) |
Foreign currency translation | (83,232) |
Ending balance | 7,590,116 |
Aerospace Systems Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 2,945,839 |
Acquisition | 9,778 |
Divestiture | 0 |
Foreign currency translation | (22,604) |
Ending balance | $ 2,933,013 |
Goodwill and intangible assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 156 | $ 87 |
Estimated amortization expense, year ending June 30, 2024 | 565 | |
Estimated amortization expense, year ending June 30, 2025 | 543 | |
Estimated amortization expense, year ending June 30, 2026 | 539 | |
Estimated amortization expense, year ending June 30, 2027 | 533 | |
Estimated amortization expense, year ending June 30, 2028 | $ 524 |
Goodwill and intangible assets - Intangible assets by major category (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,156,524 | $ 11,285,588 |
Accumulated Amortization | 2,964,566 | 2,834,974 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,104,195 | 2,128,847 |
Accumulated Amortization | 374,104 | 352,040 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,036,723 | 1,047,678 |
Accumulated Amortization | 399,105 | 390,737 |
Customer relationships and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,015,606 | 8,109,063 |
Accumulated Amortization | $ 2,191,357 | $ 2,092,197 |
Retirement benefits - Net pension (benefit) expense (Details) - Pension Plans - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 13,527 | $ 14,253 |
Interest cost | 66,881 | 46,351 |
Expected return on plan assets | (88,248) | (66,345) |
Amortization of prior service cost | 302 | 210 |
Amortization of net actuarial loss | 1,182 | 6,443 |
Amortization of initial net obligation | 0 | 0 |
Net pension (benefit) expense | $ (6,356) | $ 912 |
Retirement benefits - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Other Postretirement Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other postretirement benefits expense | $ 0.6 | $ 0.2 |
Financial instruments - Carrying values and estimated fair values of long-term debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Carrying value of long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 10,641,866 | $ 10,845,359 |
Estimated fair value of long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 9,814,002 | $ 10,221,563 |
Financial instruments - Narrative (Details) - Sep. 30, 2023 € in Millions, ¥ in Millions |
EUR (€) |
JPY (¥) |
---|---|---|
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 value of derivative instruments reported in consolidated balance sheet (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Cross-currency swap contracts | Investments and other assets | ||
Net investment hedges | ||
Cross-currency swap contracts, assets | $ 26,725 | $ 21,578 |
Forward exchange contracts | Non-trade and notes receivable | ||
Other derivative contracts | ||
Other derivative contracts, assets | $ 418 | $ 0 |
Financial instruments - Gain (losses) on derivative financial instruments recorded in consolidated statement if income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Deal-contingent forward contracts | ||
Derivative [Line Items] | ||
Gains (loss) on derivative financial instruments | $ 0 | $ (389,992) |
Forward exchange contracts | ||
Derivative [Line Items] | ||
Gains (loss) on derivative financial instruments | 436 | (1,364) |
Costless collar contracts | ||
Derivative [Line Items] | ||
Gains (loss) on derivative financial instruments | 0 | 5,389 |
Cross-currency swap contracts | ||
Derivative [Line Items] | ||
Gains (loss) on derivative financial instruments | $ 0 | $ 4,659 |
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 | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cross-currency swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ 2,583 | $ 26,819 |
Foreign currency denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ 17,879 | $ 36,139 |
Financial instruments - Financial assets and liabilities measured at fair value (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Assets: | ||
Derivatives | $ 27,143 | $ 21,578 |
Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivatives | 27,143 | 21,578 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivatives | $ 0 | $ 0 |
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