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 | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less: Noncontrolling interests in subsidiaries' earnings | |||||||||||||||||||||||
Net income attributable to common shareholders | |||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Retirement benefits plan activity | ( | ||||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | |||||||||||||||||||||
Less: Other comprehensive (loss) income for noncontrolling interests | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income attributable to common shareholders | ( | ( | |||||||||||||||||||||
Total comprehensive income attributable to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2024 | 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 | $ | $ |
Nine Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
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 property, plant and equipment and intangible assets | ( | ||||||||||
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) proceeds from 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 | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Motion Systems | $ | $ | $ | $ | ||||||||||||||||||||||
Flow and Process Control | ||||||||||||||||||||||||||
Filtration and Engineered Materials | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Commercial original equipment manufacturer ("OEM") | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial aftermarket | ||||||||||||||||||||||||||
Military OEM | ||||||||||||||||||||||||||
Military aftermarket | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
North America | $ | $ | $ | $ | ||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Asia Pacific | ||||||||||||||||||||||||||
Latin America | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2024 | 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 | Nine Months Ended | |||||||||
March 31, 2023 | March 31, 2023 | ||||||||||
Net sales | $ | $ | |||||||||
Net income attributable to common shareholders |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
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 | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2024 | June 30, 2023 | |||||||||||||
Notes receivable | $ | $ | ||||||||||||
Accounts receivable, other | ||||||||||||||
Total | $ | $ |
March 31, 2024 | June 30, 2023 | |||||||||||||
Finished products | $ | $ | ||||||||||||
Work in process | ||||||||||||||
Raw materials | ||||||||||||||
Total | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Diversified Industrial | $ | $ | $ | $ | |||||||||||||||||||
Aerospace Systems | ( | ||||||||||||||||||||||
Other (income) expense, net |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Diversified Industrial | |||||||||||||||||||||||
Aerospace Systems | ( | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Other income, net |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Diversified Industrial | $ | $ | $ | $ | |||||||||||||||||||
Aerospace Systems |
Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Shares | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | ( | ( | |||||||||||||||||||||||||||||||||||||||
Shares purchased at cost | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Shares | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | ( | ( | |||||||||||||||||||||||||||||||||||||||
Shares purchased at cost | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
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 March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
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 income (loss) | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | |||||||||||||||||||||||||||||||||||||||||
Shares purchased at cost | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustment | Retirement Benefit Plans | Total | |||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive income before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) | |||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation Adjustment | Retirement Benefit Plans | Total | |||||||||||||||
Balance at June 30, 2022 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) | |||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | ( |
Details about Accumulated Other Comprehensive (Loss) Components | Income (Expense) Reclassified from Accumulated Other Comprehensive (Loss) | Consolidated Statement of Income Classification | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
March 31, 2024 | March 31, 2024 | |||||||||||||||||||
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 | Nine Months Ended | |||||||||||||||||||
March 31, 2023 | March 31, 2023 | |||||||||||||||||||
Retirement benefit plans | ||||||||||||||||||||
Amortization of prior service cost and initial net obligation | $ | ( | $ | ( | Other income, net | |||||||||||||||
Recognized actuarial gain (loss) | ( | Other income, net | ||||||||||||||||||
Divestiture activity | Other income, net | |||||||||||||||||||
Total before tax | ( | |||||||||||||||||||
Tax benefit | ( | |||||||||||||||||||
Net of tax | $ | $ | ( |
Diversified Industrial Segment | Aerospace Systems Segment | Total | |||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ||||||||||||||
Acquisition | |||||||||||||||||
Divestitures | ( | ( | |||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||
Balance at March 31, 2024 | $ | $ | $ |
March 31, 2024 | 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 | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Amortization of net actuarial loss (gain) | ( | ||||||||||||||||||||||
Net pension (benefit) expense | $ | ( | $ | ( | $ | ( | $ | ( |
March 31, 2024 | June 30, 2023 | |||||||||||||
Carrying value of long-term debt | $ | $ | ||||||||||||
Estimated fair value of long-term debt |
Balance Sheet Caption | March 31, 2024 | June 30, 2023 | ||||||||||||||||||
Net investment hedges | ||||||||||||||||||||
Cross-currency swap contracts | Investments and other assets | $ | $ | |||||||||||||||||
Cross-currency swap contracts | Other liabilities | |||||||||||||||||||
Other derivative contracts | ||||||||||||||||||||
Forward exchange contracts | Non-trade and notes receivable | |||||||||||||||||||
Forward exchange contracts | Other accrued liabilities | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Deal-contingent forward contracts | $ | $ | $ | $ | ( | ||||||||||||||||||
Forward exchange contracts | ( | ||||||||||||||||||||||
Costless collar contracts | |||||||||||||||||||||||
Cross-currency swap contracts | ( | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cross-currency swap contracts | $ | $ | $ | ( | $ | ||||||||||||||||||
Foreign currency denominated debt | ( | ( |
Quoted Prices | Significant Other | Significant | ||||||||||||||||||||||||
Fair | In Active | Observable | Unobservable | |||||||||||||||||||||||
Value at | Markets | Inputs | Inputs | |||||||||||||||||||||||
March 31, 2024 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
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 | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
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 (income) expense, net | ||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Other (income) expense, net | ( | ( | ( | |||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net sales | $ | 5,074 | $ | 5,062 | $ | 14,743 | $ | 13,969 | ||||||||||||||||||
Gross profit margin | 35.4 | % | 34.0 | % | 35.7 | % | 32.9 | % | ||||||||||||||||||
Selling, general and administrative expenses | $ | 816 | $ | 868 | $ | 2,497 | $ | 2,519 | ||||||||||||||||||
Selling, general and administrative expenses, as a percent of sales | 16.1 | % | 17.2 | % | 16.9 | % | 18.0 | % | ||||||||||||||||||
Interest expense | $ | 124 | $ | 152 | $ | 387 | $ | 417 | ||||||||||||||||||
Other income, net | $ | (65) | $ | (56) | $ | (229) | $ | (116) | ||||||||||||||||||
Effective tax rate | 21.0 | % | 21.9 | % | 21.0 | % | 22.6 | % | ||||||||||||||||||
Net income | $ | 727 | $ | 591 | $ | 2,060 | $ | 1,374 | ||||||||||||||||||
Net income, as a percent of sales | 14.3 | % | 11.7 | % | 14.0 | % | 9.8 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Expense (income) | ||||||||||||||||||||||||||
Foreign currency transaction (gain) loss | $ | (11) | $ | (4) | $ | (27) | $ | 55 | ||||||||||||||||||
Income related to equity method investments | (39) | (35) | (114) | (89) | ||||||||||||||||||||||
Non-service components of retirement benefit cost | (18) | (21) | (53) | (48) | ||||||||||||||||||||||
Loss (gain) on disposal of assets and divestitures | 3 | 12 | (18) | (368) | ||||||||||||||||||||||
Interest income | (3) | (7) | (8) | (39) | ||||||||||||||||||||||
Loss on deal-contingent forward contracts | — | — | — | 390 | ||||||||||||||||||||||
Other items, net | 3 | (1) | (9) | (17) | ||||||||||||||||||||||
$ | (65) | $ | (56) | $ | (229) | $ | (116) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
North America | $ | 2,231 | $ | 2,343 | $ | 6,572 | $ | 6,615 | ||||||||||||||||||
International | 1,434 | 1,525 | 4,227 | 4,277 | ||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
North America | 490 | 489 | 1,458 | 1,362 | ||||||||||||||||||||||
International | $ | 310 | $ | 329 | $ | 901 | $ | 909 | ||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||
North America | 22.0 | % | 20.9 | % | 22.2 | % | 20.6 | % | ||||||||||||||||||
International | 21.6 | % | 21.6 | % | 21.3 | % | 21.3 | % | ||||||||||||||||||
Backlog | $ | 4,364 | $ | 5,090 | $ | 4,364 | $ | 5,090 |
Period Ending March 31, 2024 | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Diversified Industrial North America – as reported | (4.7) | % | (0.7) | % | ||||||||||
Acquisitions | — | % | 1.2 | % | ||||||||||
Divestitures | (0.4) | % | (0.2) | % | ||||||||||
Currency | 0.3 | % | 0.3 | % | ||||||||||
Diversified Industrial North America – without acquisitions, divestitures and currency1 | (4.6) | % | (2.0) | % | ||||||||||
Diversified Industrial International – as reported | (5.9) | % | (1.2) | % | ||||||||||
Acquisitions | — | % | 0.9 | % | ||||||||||
Currency | (2.8) | % | (0.3) | % | ||||||||||
Diversified Industrial International – without acquisitions and currency1 | (3.1) | % | (1.8) | % | ||||||||||
Total Diversified Industrial Segment – as reported | (5.2) | % | (0.9) | % | ||||||||||
Acquisitions | — | % | 1.1 | % | ||||||||||
Divestitures | (0.2) | % | (0.1) | % | ||||||||||
Currency | (1.0) | % | — | % | ||||||||||
Total Diversified Industrial Segment – without acquisitions, divestitures and currency1 | (4.0) | % | (1.9) | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Diversified Industrial North America | $ | 4 | $ | 3 | $ | 11 | $ | 6 | ||||||||||||||||||
Diversified Industrial International | 4 | 10 | 25 | 16 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net sales | $ | 1,409 | $ | 1,195 | $ | 3,944 | $ | 3,077 | ||||||||||||||||||
Operating income | $ | 289 | $ | 134 | $ | 779 | $ | 235 | ||||||||||||||||||
Operating margin | 20.5 | % | 11.2 | % | 19.7 | % | 7.6 | % | ||||||||||||||||||
Backlog | $ | 6,465 | $ | 5,766 | $ | 6,465 | $ | 5,766 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Expense | ||||||||||||||||||||||||||
Corporate general and administrative expense | $ | 57 | $ | 46 | $ | 162 | $ | 146 | ||||||||||||||||||
Corporate general and administrative expense, as a percent of sales | 1.1 | % | 0.9 | % | 1.1 | % | 1.0 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Expense (income) | ||||||||||||||||||||||||||
Foreign currency transaction (gain) loss | $ | (11) | $ | (4) | $ | (27) | $ | 55 | ||||||||||||||||||
Stock-based compensation | 11 | 9 | 84 | 69 | ||||||||||||||||||||||
Non-service components of retirement benefit cost | (18) | (21) | (53) | (48) | ||||||||||||||||||||||
Acquisition-related expenses | — | 1 | — | 112 | ||||||||||||||||||||||
Loss on deal-contingent forward contracts | — | — | — | 390 | ||||||||||||||||||||||
Loss (gain) on disposal of assets and divestitures | 3 | 12 | (18) | (368) | ||||||||||||||||||||||
Interest income | (3) | (7) | (8) | (39) | ||||||||||||||||||||||
Other items, net | 7 | 9 | 2 | (4) | ||||||||||||||||||||||
$ | (11) | $ | (1) | $ | (20) | $ | 167 |
Nine Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(dollars in millions) | 2024 | 2023 | ||||||||||||
Cash provided by (used in): | ||||||||||||||
Operating activities | $ | 2,147 | $ | 1,795 | ||||||||||
Investing activities | (194) | (8,085) | ||||||||||||
Financing activities | (2,006) | 185 | ||||||||||||
Effect of exchange rates | (17) | (8) | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (70) | $ | (6,113) |
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) | ||||||||||||||||||||||
January 1, 2024 through January 31, 2024 | 36,300 | $ | 462.10 | 36,300 | 7,469,624 | |||||||||||||||||||||
February 1, 2024 through February 29, 2024 | 31,700 | $ | 512.85 | 31,700 | 7,437,924 | |||||||||||||||||||||
March 1, 2024 through March 31, 2024 | 29,900 | $ | 539.58 | 29,900 | 7,408,024 | |||||||||||||||||||||
Total: | 97,900 | 97,900 |
Exhibit No. | Description of Exhibit | |||||||
10(a) | ||||||||
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: | May 3, 2024 |
Peer Group (as defined in the LTIP Plan): | |||||
•Caterpillar Inc. | •Ingersoll Rand Inc. | ||||
•Cummins Inc. | •ITT Inc. | ||||
•Deere & Company | •Johnson Controls International plc | ||||
•Dover Corporation | •Moog Inc. | ||||
•Eaton Corporation plc | •Raytheon Technologies Corp. | ||||
•Emerson Electric Co. | •Rockwell Automation Inc. | ||||
•Flowserve Corporation | •Textron Inc. | ||||
•Fortive Corporation | •Trane Technologies plc | ||||
•Honeywell International Inc. | •3M Co. | ||||
•Illinois Tool Works Inc. |
Peer Performance Measure: | Weight: | ||||
Revenue Growth | 40% | ||||
Earnings Per Share Growth | 40% | ||||
Average Return on Invested Capital | 20% |
Company Percentile Ranking Among Peer Group: | % of Allocable Target Shares Earned: | ||||
75th percentile or higher | 200% | ||||
50th percentile | 100% (Target Shares) | ||||
25th percentile | 50% | ||||
lower than 25th percentile | 0% |
/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 | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Statement [Abstract] | ||||
Net sales | $ 5,074,356 | $ 5,061,665 | $ 14,742,791 | $ 13,969,251 |
Cost of sales | 3,279,650 | 3,340,764 | 9,478,961 | 9,373,032 |
Selling, general and administrative expenses | 816,337 | 868,393 | 2,496,830 | 2,519,163 |
Interest expense | 123,732 | 151,993 | 387,229 | 416,718 |
Other income, net | (65,406) | (55,866) | (228,872) | (116,131) |
Income before income taxes | 920,043 | 756,381 | 2,608,643 | 1,776,469 |
Income taxes | 193,309 | 165,421 | 548,780 | 402,011 |
Net income | 726,734 | 590,960 | 2,059,863 | 1,374,458 |
Less: Noncontrolling interest in subsidiaries' earnings | 160 | 71 | 611 | 478 |
Net income attributable to common shareholders | $ 726,574 | $ 590,889 | $ 2,059,252 | $ 1,373,980 |
Earnings per share attributable to common shareholders: | ||||
Basic (in USD per share) | $ 5.65 | $ 4.61 | $ 16.03 | $ 10.71 |
Diluted (in USD per share) | $ 5.56 | $ 4.54 | $ 15.82 | $ 10.58 |
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 726,734 | $ 590,960 | $ 2,059,863 | $ 1,374,458 |
Less: Noncontrolling interests in subsidiaries' earnings | 160 | 71 | 611 | 478 |
Net income attributable to common shareholders | 726,574 | 590,889 | 2,059,252 | 1,373,980 |
Other comprehensive (loss) income, net of tax | ||||
Foreign currency translation adjustment | (168,919) | 92,106 | (119,216) | 145,997 |
Retirement benefits plan activity | 1,369 | (1,364) | 4,098 | 8,397 |
Other comprehensive (loss) income | (167,550) | 90,742 | (115,118) | 154,394 |
Less: Other comprehensive (loss) income for noncontrolling interests | (392) | (299) | 384 | (176) |
Other comprehensive (loss) income attributable to common shareholders | (167,158) | 91,041 | (115,502) | 154,570 |
Total comprehensive income attributable to common shareholders | $ 559,416 | $ 681,930 | $ 1,943,750 | $ 1,528,550 |
Consolidated Balance Sheet (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
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) | 52,505,138 | 52,613,046 |
Consolidated Statement of Cash Flows (Parenthetical) $ in Thousands |
9 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Statement of Cash Flows [Abstract] | |
Acquisitions, cash acquired | $ 89,704 |
Management representation |
9 Months Ended |
---|---|
Mar. 31, 2024 | |
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 representationIn the opinion of the management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company's financial position as of March 31, 2024, the results of operations for the three and nine months ended March 31, 2024 and 2023 and cash flows for the nine months then ended. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 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.
|
New accounting pronouncements |
9 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | New accounting pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which enhances the disclosure requirements for income taxes primarily related to the rate reconciliation and income taxes paid information. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendment should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the impact this guidance will have on the Company's disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact this guidance will have on the Company's disclosures. In September 2022, the FASB issued ASU 2022-04, "Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations," which requires a buyer in a supplier finance program to disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs, including the outstanding amount under the program, the balance sheet presentation of the outstanding amount, and a rollforward of the obligations in the program. This ASU should be adopted retrospectively for each balance sheet period presented; however, the rollforward information should be provided prospectively. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company 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 |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2024 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 nine months ended March 31, 2024, approximately $169 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 March 31, 2024 was $10.8 billion, of which approximately 76 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 measurement period which ended in September 2023, 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 and nine months ended March 31, 2023 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 $(1) million and $197 million during the three and nine months ended March 31, 2023, respectively. The resulting pro forma amounts are not necessarily indicative of the results that would have been obtained if the Acquisition had occurred as of the beginning of the period presented or that may occur in the future, and do not reflect future synergies, integration costs or other such costs or savings. Divestitures During December 2023, we divested our Filter Resources business, which was part of the Diversified Industrial Segment, for proceeds of $37 million. The resulting pre-tax gain of $12 million is included in other income, net in the Consolidated Statement of Income. The operating results and net assets of the Filter Resources business were immaterial to the Company's consolidated results of operations and financial position. 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 March 2023, we divested a French aerospace business, which was part of the Aerospace Systems Segment, for proceeds of $27 million. The resulting pre-tax loss of $12 million is included in other income, net in the Consolidated Statement of Income. The operating results and net assets of the French aerospace business were immaterial to the Company's consolidated results of operations and financial position. During September 2022, we divested our aircraft wheel and brake business, which was part of the Aerospace Systems Segment, for proceeds of $443 million. The resulting pre-tax gain of $374 million is included in other income, 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 share The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended March 31, 2024 and 2023.
For the three months ended March 31, 2024 and 2023, 113,956 and 124,025 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the nine months ended March 31, 2024 and 2023, 400,506 and 1,011,006 common shares subject to equity-based awards, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.
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Share repurchase program |
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Mar. 31, 2024 | |
Equity [Abstract] | |
Share repurchase program | Share repurchase programThe Company has a program to repurchase its common shares. On October 22, 2014, the Board of Directors of the Company approved an increase in the overall number of shares authorized for repurchase under the program so that, beginning on such date, the aggregate number of shares authorized for repurchase was 35 million. There is no limitation on the number of shares that can be repurchased in a fiscal year. There is no expiration date for this program. Repurchases may be funded primarily from operating cash flows and commercial paper borrowings and the shares are initially held as treasury shares. During the three months ended March 31, 2024, we repurchased 97,900 shares at an average price, including commissions, of $502.22 per share. During the nine months ended March 31, 2024, we repurchased 343,539 shares at an average price, including commissions, of $434.21 per share. |
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Trade accounts receivable, net | Trade accounts receivable, net Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. 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 $21 million and $32 million at March 31, 2024 and June 30, 2023, respectively. Non-trade and notes receivableThe 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 | Trade accounts receivable, net Trade accounts receivable are initially recorded at their net collectible amount and are generally recorded at the time the revenue from the sales transaction is recorded. 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 $21 million and $32 million at March 31, 2024 and June 30, 2023, respectively. Non-trade and notes receivableThe 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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Inventories | Inventories The inventories caption in the Consolidated Balance Sheet is comprised of the following components:
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Supply chain financing |
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Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Supply chain financing | Supply chain financing We 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 SCF programs. We do not reimburse suppliers for any costs they incur for participation in the SCF 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 SCF programs are included within operating activities on the Consolidated Statement of Cash Flows. Accounts payable, trade included approximately $103 million and $85 million payable to suppliers who have elected to participate in the SCF programs as of March 31, 2024 and June 30, 2023, respectively. The amounts settled through the SCF programs and paid to the participating financial intermediaries totaled $221 million and $184 million during the first nine months of fiscal 2024 and 2023, respectively.
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Business realignment and acquisition integration charges |
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Business realignment and acquisition integration charges | Business realignment and acquisition integration charges We incurred business realignment and acquisition integration charges in the first nine months of fiscal 2024 and 2023, which 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 nine months of fiscal 2024, approximately $33 million in payments were made relating to business realignment charges. Remaining payments related to business realignment actions of approximately $15 million, a majority of which are expected to be paid by June 30, 2024, 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. 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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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Changes in equity for the three months ended March 31, 2024 and 2023 are as follows:
Changes in equity for the nine months ended March 31, 2024 and 2023 are as follows:
Changes in accumulated other comprehensive (loss) in shareholders' equity by component for the nine months ended March 31, 2024 and 2023 are as follows:
Significant reclassifications out of accumulated other comprehensive (loss) in shareholders' equity for the three and nine months ended March 31, 2024 and 2023 are as follows:
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Goodwill and intangible assets |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and intangible assets | Goodwill and intangible assets The changes in the carrying amount of goodwill for the nine months ended March 31, 2024 are as follows:
Acquisition represents goodwill resulting from the purchase price allocation for the Acquisition during the measurement period. Divestitures represents goodwill associated with the sale of the businesses. Refer to Note 4 for further discussion. Goodwill is tested for impairment at the reporting unit level annually and between annual tests whenever events or circumstances indicate that the carrying value of a reporting unit may exceed its fair value. At December 31, 2023, the Company performed its fiscal 2024 annual goodwill impairment test, which indicated no impairment existed. Intangible assets are amortized using the straight-line method over their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets:
Total intangible asset amortization expense for the nine months ended March 31, 2024 and 2023 was $439 million and $374 million, respectively. The estimated amortization expense for the five years ending June 30, 2024 through 2028 is $580 million, $551 million, $546 million, $541 million and $531 million, respectively. Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No material intangible asset impairments occurred during the nine months ended March 31, 2024 and 2023.
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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 $0.5 million and $0.5 million in expense related to other postretirement benefits during the three months ended March 31, 2024 and 2023, respectively. During the nine months ended March 31, 2024 and 2023, we recognized $1.6 million and $1.2 million, respectively, in expense related to other postretirement benefits. 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 |
9 Months Ended |
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Mar. 31, 2024 | |
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 March 31, 2024, 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 nine months ended March 31, 2024, we made principal payments totaling $250 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 March 31, 2024 and June 30, 2023 were $0.8 billion and $1.8 billion, respectively. Based on the Company’s rating level at March 31, 2024, the most restrictive financial covenant provides that the ratio of debt to debt-shareholders' equity cannot exceed 0.65 to 1.0. At March 31, 2024, our debt to debt-shareholders' equity ratio was 0.50 to 1.0. We are in compliance, and expect to remain in compliance, with all covenants set forth in the credit agreement and indentures governing certain debt securities.
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Income taxes |
9 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We file income tax returns in the United States and in various foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. We are open to assessment on our U.S. federal income tax returns by the Internal Revenue Service for fiscal years after 2013, and our state and local returns for fiscal years after 2016. We are also open to assessment for significant foreign jurisdictions for fiscal years after 2011. Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts reflected in the financial statements. As of March 31, 2024, we had gross unrecognized tax benefits of $99 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 $26 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.
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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 ¥2.1 billion 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, 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 ¥2.1 billion 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 that were recorded in the Consolidated Statement of Income are 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 nine months ended March 31, 2024 and 2023, the periodic interest settlements related to the cross-currency swap contracts were not material. A summary of financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2024 and June 30, 2023 are as follows:
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 objective for all derivatives is to manage foreign currency transaction and translation risk. 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 |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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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Mar. 31, 2024 | |
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) |
9 Months Ended |
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Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which enhances the disclosure requirements for income taxes primarily related to the rate reconciliation and income taxes paid information. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendment should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the impact this guidance will have on the Company's disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact this guidance will have on the Company's disclosures. In September 2022, the FASB issued ASU 2022-04, "Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations," which requires a buyer in a supplier finance program to disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs, including the outstanding amount under the program, the balance sheet presentation of the outstanding amount, and a rollforward of the obligations in the program. This ASU should be adopted retrospectively for each balance sheet period presented; however, the rollforward information should be provided prospectively. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company 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.
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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 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.
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Revenue recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 | 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 and nine months ended March 31, 2023 as if the Acquisition had occurred on July 1, 2021.
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Earnings per share (Tables) |
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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 and nine months ended March 31, 2024 and 2023.
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Non-trade and notes receivable (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in equity | Changes in equity for the three months ended March 31, 2024 and 2023 are as follows:
Changes in equity for the nine months ended March 31, 2024 and 2023 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 nine months ended March 31, 2024 and 2023 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 and nine months ended March 31, 2024 and 2023 are as follows:
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Goodwill and intangible assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the nine months ended March 31, 2024 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) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net pension (benefit) expense | Net pension (benefit) expense recognized included the following components:
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Financial instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 that were recorded in the Consolidated Statement of Income are 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 March 31, 2024 and June 30, 2023 are as follows:
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Business segment information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment reporting information |
|
Revenue recognition - Revenues by segment and by platform (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | $ 5,074,356 | $ 5,061,665 | $ 14,742,791 | $ 13,969,251 |
Diversified Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 3,665,643 | 3,867,105 | 10,798,644 | 10,892,262 |
Diversified Industrial Segment | Motion Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 942,667 | 1,017,974 | 2,802,947 | 2,837,403 |
Diversified Industrial Segment | Flow and Process Control | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 1,185,622 | 1,298,204 | 3,489,483 | 3,675,928 |
Diversified Industrial Segment | Filtration and Engineered Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | $ 1,537,354 | $ 1,550,927 | $ 4,506,214 | $ 4,378,931 |
Revenue recognition - Revenues by segment and primary market (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | $ 5,074,356 | $ 5,061,665 | $ 14,742,791 | $ 13,969,251 |
Aerospace Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 1,408,713 | 1,194,560 | 3,944,147 | 3,076,989 |
Aerospace Systems | Commercial original equipment manufacturer ("OEM") | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 471,870 | 398,502 | 1,315,254 | 1,045,850 |
Aerospace Systems | Commercial aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 482,477 | 381,883 | 1,311,445 | 938,129 |
Aerospace Systems | Military OEM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 260,818 | 244,451 | 787,196 | 649,179 |
Aerospace Systems | Military aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | $ 193,548 | $ 169,724 | $ 530,252 | $ 443,831 |
Revenue recognition - Revenue by geographic region (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | $ 5,074,356 | $ 5,061,665 | $ 14,742,791 | $ 13,969,251 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 3,438,587 | 3,364,157 | 9,965,836 | 9,278,815 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 1,026,035 | 1,054,157 | 2,915,334 | 2,750,159 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | 554,991 | 590,017 | 1,693,316 | 1,777,550 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts | $ 54,743 | $ 53,334 | $ 168,305 | $ 162,727 |
Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current (included within Prepaid expenses and other) | $ 132,237 | $ 123,705 |
Contract assets, noncurrent (included within Investments and other assets) | 17,976 | 23,708 |
Total contract assets | 150,213 | 147,413 |
Contract liabilities, current (included within Other accrued liabilities) | (211,777) | (244,799) |
Contract liabilities, noncurrent (included within Other liabilities) | (72,306) | (78,239) |
Total contract liabilities | (284,083) | (323,038) |
Net contract liabilities | $ (133,870) | $ (175,625) |
Revenue recognition - Narrative (Details) $ in Millions |
9 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 169 |
Remaining performance obligation, amount | $ 10,800 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 76.00% |
Remaining performance obligation, period | 12 months |
Acquisitions and divestitures - Unaudited pro forma information (Details) - Meggitt plc - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2023 |
|
Business Acquisition [Line Items] | ||
Net sales | $ 5,061,665 | $ 14,350,581 |
Net income attributable to common shareholders | $ 612,049 | $ 1,244,907 |
Earnings per share - Computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Numerator: | ||||
Net income attributable to common shareholders, basic | $ 726,574 | $ 590,889 | $ 2,059,252 | $ 1,373,980 |
Net income attributable to common shareholders, diluted | $ 726,574 | $ 590,889 | $ 2,059,252 | $ 1,373,980 |
Denominator: | ||||
Basic - weighted average common shares (in shares) | 128,502,829 | 128,293,039 | 128,467,209 | 128,343,788 |
Increase in weighted average common shares from dilutive effect of equity-based awards (in shares) | 2,090,197 | 1,858,448 | 1,702,122 | 1,488,201 |
Diluted - weighted average common shares, assuming exercise of equity-based awards (in shares) | 130,593,026 | 130,151,487 | 130,169,331 | 129,831,989 |
Basic earnings per share (in USD per share) | $ 5.65 | $ 4.61 | $ 16.03 | $ 10.71 |
Diluted earnings per share (in USD per share) | $ 5.56 | $ 4.54 | $ 15.82 | $ 10.58 |
Earnings per share - Narrative (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||||
Excluded from the computation of diluted earnings per share since anti-dilutive (in shares) | 113,956 | 124,025 | 400,506 | 1,011,006 |
Share repurchase program (Details) - $ / shares |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2024 |
Oct. 22, 2014 |
|
Equity [Abstract] | |||
Authorized to be repurchased (in shares) | 35,000,000 | ||
Repurchased (in shares) | 97,900 | 343,539 | |
Repurchased, average price (in USD per share) | $ 502.22 | $ 434.21 |
Trade accounts receivable, net (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Receivables [Abstract] | ||
Allowance for credit losses | $ 21 | $ 32 |
Non-trade and notes receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Receivables [Abstract] | ||
Notes receivable | $ 87,475 | $ 102,288 |
Accounts receivable, other | 222,880 | 206,879 |
Total | $ 310,355 | $ 309,167 |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Inventory, Net [Abstract] | ||
Finished products | $ 821,422 | $ 794,128 |
Work in process | 1,526,113 | 1,488,665 |
Raw materials | 618,801 | 625,086 |
Total | $ 2,966,336 | $ 2,907,879 |
Supply chain financing (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Jun. 30, 2023 |
|
Payables and Accruals [Abstract] | |||
Payable to suppliers who have elected to participate in the supply chain financing programs | $ 103 | $ 85 | |
Amounts settled through supply chain financing programs and paid to participating financial intermediaries | $ 221 | $ 184 |
Business realignment and acquisition integration charges - Business segment information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
employee
|
Mar. 31, 2023
USD ($)
employee
|
Mar. 31, 2024
USD ($)
employee
|
Mar. 31, 2023
USD ($)
employee
|
|
Other income, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 1,527 | $ 0 | $ 2,719 | $ 0 |
Diversified Industrial | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 6,953 | $ 8,075 | $ 32,877 | $ 14,464 |
Number of positions eliminated (employees) | employee | 143 | 282 | 658 | 499 |
Aerospace Systems | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ (12) | $ 166 | $ 318 | $ 3,016 |
Number of positions eliminated (employees) | employee | (1) | 14 | 1 | 30 |
Business realignment and acquisition integration charges - Income statement location (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 3,014 | $ 5,033 | $ 18,465 | $ 10,746 |
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | 3,927 | 3,208 | 14,730 | 6,734 |
Other income, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business realignment charges | $ 1,527 | $ 0 | $ 2,719 | $ 0 |
Business realignment and acquisition integration charges - Narrative (Details) $ in Millions |
9 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Restructuring and Related Activities [Abstract] | |
Payments made relating to business realignment charges | $ 33 |
Remaining payments related to business realignment actions | $ 15 |
Business realignment and acquisition integration charges - Acquisition integration charges related to the Lord and Exotic acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Diversified Industrial | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition integration charges | $ 1,292 | $ 5,395 | $ 3,302 | $ 7,276 |
Aerospace Systems | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition integration charges | $ 11,964 | $ 25,849 | $ 26,374 | $ 69,377 |
Equity - Changes in equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 11,312,379 | $ 9,334,476 | $ 10,338,279 | $ 8,859,920 |
Net income | 726,734 | 590,960 | 2,059,863 | 1,374,458 |
Other comprehensive (loss) income | (167,550) | 90,742 | (115,118) | 154,394 |
Dividends paid | (190,468) | (170,872) | (571,583) | (513,231) |
Stock incentive plan activity | (31,508) | (2,141) | 40,161 | 67,624 |
Acquisition activity | (2,014) | |||
Shares purchased at cost | (49,166) | (50,000) | (149,167) | (150,000) |
Ending balance | $ 11,600,421 | $ 9,793,165 | $ 11,600,421 | $ 9,793,165 |
Dividends paid (in USD per share) | $ 1.48 | $ 1.33 | $ 4.44 | $ 3.99 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 90,523 | $ 90,523 | $ 90,523 | $ 90,523 |
Ending balance | 90,523 | 90,523 | 90,523 | 90,523 |
Additional Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 352,817 | 377,871 | 305,522 | 327,307 |
Stock incentive plan activity | (57,087) | (22,117) | (10,207) | 28,447 |
Acquisition activity | 415 | |||
Ending balance | 295,730 | 355,754 | 295,730 | 355,754 |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 17,993,453 | 16,102,883 | 17,041,502 | 15,661,808 |
Net income | 726,574 | 590,889 | 2,059,252 | 1,373,980 |
Dividends paid | (190,468) | (170,872) | (571,195) | (512,888) |
Ending balance | 18,529,559 | 16,522,900 | 18,529,559 | 16,522,900 |
Accumulated Other Comprehensive (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (1,241,216) | (1,479,669) | (1,292,872) | (1,543,198) |
Other comprehensive (loss) income | (167,158) | 91,041 | (115,502) | 154,570 |
Ending balance | (1,408,374) | (1,388,628) | (1,408,374) | (1,388,628) |
Treasury Shares | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (5,892,999) | (5,769,228) | (5,817,787) | (5,688,429) |
Stock incentive plan activity | 25,579 | 19,976 | 50,368 | 39,177 |
Shares purchased at cost | (49,166) | (50,000) | (149,167) | (150,000) |
Ending balance | (5,916,586) | (5,799,252) | (5,916,586) | (5,799,252) |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 9,801 | 12,096 | 11,391 | 11,909 |
Net income | 160 | 71 | 611 | 478 |
Other comprehensive (loss) income | (392) | (299) | 384 | (176) |
Dividends paid | (388) | (343) | ||
Acquisition activity | (2,429) | |||
Ending balance | $ 9,569 | $ 11,868 | $ 9,569 | $ 11,868 |
Goodwill and intangible assets - Changes in carrying amount of goodwill (Details) $ in Thousands |
9 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 10,628,594 |
Acquisition | 10,891 |
Divestitures | (25,387) |
Foreign currency translation | (34,791) |
Ending balance | 10,579,307 |
Diversified Industrial Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 7,682,755 |
Acquisition | 1,113 |
Divestitures | (25,387) |
Foreign currency translation | (29,859) |
Ending balance | 7,628,622 |
Aerospace Systems Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 2,945,839 |
Acquisition | 9,778 |
Divestitures | 0 |
Foreign currency translation | (4,932) |
Ending balance | $ 2,950,685 |
Goodwill and intangible assets - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 439 | $ 374 |
Estimated amortization expense, year ending June 30, 2024 | 580 | |
Estimated amortization expense, year ending June 30, 2025 | 551 | |
Estimated amortization expense, year ending June 30, 2026 | 546 | |
Estimated amortization expense, year ending June 30, 2027 | 541 | |
Estimated amortization expense, year ending June 30, 2028 | $ 531 |
Goodwill and intangible assets - Intangible assets by major category (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,213,687 | $ 11,285,588 |
Accumulated Amortization | 3,251,730 | 2,834,974 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,117,511 | 2,128,847 |
Accumulated Amortization | 426,869 | 352,040 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,042,091 | 1,047,678 |
Accumulated Amortization | 428,015 | 390,737 |
Customer relationships and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,054,085 | 8,109,063 |
Accumulated Amortization | $ 2,396,846 | $ 2,092,197 |
Retirement benefits - Net pension (benefit) expense (Details) - Pension Plans - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 12,646 | $ 14,599 | $ 38,593 | $ 42,534 |
Interest cost | 67,644 | 59,021 | 202,077 | 166,456 |
Expected return on plan assets | (88,381) | (80,137) | (264,862) | (228,695) |
Amortization of prior service cost | 319 | 227 | 955 | 679 |
Amortization of net actuarial loss (gain) | 1,992 | (657) | 5,967 | 12,625 |
Net pension (benefit) expense | $ (5,780) | $ (6,947) | $ (17,270) | $ (6,401) |
Retirement benefits - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Other postretirement benefits expense | $ 0.5 | $ 0.5 | $ 1.6 | $ 1.2 |
Financial instruments - Carrying values and estimated fair values of long-term debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Carrying value of long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 10,585,086 | $ 10,845,359 |
Estimated fair value of long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 10,086,962 | $ 10,221,563 |
Financial instruments - Narrative (Details) - Mar. 31, 2024 € in Millions, ¥ in Billions |
EUR (€) |
JPY (¥) |
---|---|---|
Currency Swap, Due November 2034 | ||
Debt Instrument [Line Items] | ||
Notional amount of derivative | € 69 | ¥ 2.1 |
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 |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Cross-currency swap contracts | Investments and other assets | ||
Net investment hedges | ||
Cross-currency swap contracts, assets | $ 8,005 | $ 21,578 |
Cross-currency swap contracts | Other liabilities | ||
Net investment hedges | ||
Cross-currency swap contracts, liability | 1,584 | 0 |
Forward exchange contracts | Non-trade and notes receivable | ||
Other derivative contracts | ||
Other derivative contracts, assets | 6,269 | 0 |
Forward exchange contracts | Other accrued liabilities | ||
Other derivative contracts | ||
Other derivative contracts, liabilities | $ 24 | $ 0 |
Financial instruments - Gain (losses) on derivative financial instruments recorded in consolidated statement if income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Deal-contingent forward contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | $ 0 | $ 0 | $ 0 | $ (389,992) |
Forward exchange contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | 9,192 | 7,378 | 7,379 | (7,425) |
Costless collar contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | 0 | 4,308 | 0 | 9,632 |
Cross-currency swap contracts | ||||
Derivative [Line Items] | ||||
Gains (loss) on derivative financial instruments | $ 0 | $ (2,976) | $ 0 | $ (18,739) |
Financial instruments - Gain (losses) on derivative and non-derivative financial instruments recorded in accumulated other comprehensive (loss) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cross-currency swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ 2,519 | $ 16,085 | $ (12,798) | $ 17,196 |
Foreign currency denominated debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative and non-derivative instruments gain (loss) recognized in accumulated other comprehensive income (loss) | $ 13,237 | $ (7,391) | $ 6,536 | $ (18,880) |
Financial instruments - Financial assets and liabilities measured at fair value (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Assets: | ||
Derivatives | $ 14,274 | $ 21,578 |
Liabilities: | ||
Derivatives | 1,608 | |
Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivatives | 14,274 | 21,578 |
Liabilities: | ||
Derivatives | 1,608 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivatives | 0 | $ 0 |
Liabilities: | ||
Derivatives | $ 0 |
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