10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2011

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                          to                         

Commission File No. 1-4982

PARKER-HANNIFIN CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	34-0451060
(State or other jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
6035 Parkland Boulevard, Cleveland, Ohio	44124-4141
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (216) 896-3000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on which Registered
Common Shares, $.50 par value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  x    No  ¨

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K  ¨.

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer:	x	Accelerated Filer:	¨
Non-Accelerated Filer:	¨	Smaller Reporting Company:	¨
(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The aggregate market value of the outstanding common stock held by non-affiliates of the Registrant as of December 31, 2010, excluding, for purpose of this computation only, stock holdings of the Registrant’s Directors and Officers: $13,856,268,971.

The number of Common Shares outstanding on July 31, 2011 was 155,061,050.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the following documents are incorporated by reference:

(1) Annual Report to Shareholders of the Company for the fiscal year ended June 30, 2011 is incorporated by reference into Parts I and II hereof.

(2) Definitive Proxy Statement for the Company’s 2011 Annual Meeting of Shareholders to be held on October 26, 2011 is incorporated by reference into Part III hereof.

PARKER-HANNIFIN CORPORATION

FORM 10-K

Fiscal Year Ended June 30, 2011

PART I

ITEM 1. Business. Parker-Hannifin Corporation is a leading worldwide diversified manufacturer of motion and control technologies and systems, including fluid power systems, electromechanical controls and related components. Fluid power involves the transfer and control of power through the medium of liquid, gas or air, in hydraulic, pneumatic and vacuum applications. Fluid power systems move and position materials, control machines, vehicles and equipment and improve industrial efficiency and productivity. Components of a simple fluid power system include one or more pumps which generate pressure, one or more valves which control the flow of the fluid, one or more actuators which translate the pressure from the fluid into mechanical energy, one or more filters to ensure proper fluid condition and numerous hoses, couplings, fittings and seals. Electromechanical controls involve the use of electronic components and systems to control motion and precisely locate or vary speed in automation and aerospace applications. In addition to motion and control products, the Company also is a leading worldwide producer of fluid purification, fluid and fuel control, process instrumentation, air conditioning, refrigeration, electromagnetic shielding and thermal management products and systems.

The Company was incorporated in Ohio in 1938. Its principal executive offices are located at 6035 Parkland Boulevard, Cleveland, Ohio 44124-4141, telephone (216) 896-3000. As used in this Annual Report on Form 10-K, unless the context otherwise requires, the term “Company” or “Parker” refers to Parker-Hannifin Corporation and its subsidiaries.

The Company’s investor relations internet website address is www.phstock.com. The Company makes available free of charge on or through its website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after filing or furnishing such material electronically with the Securities and Exchange Commission. The information contained on or accessible through the Company’s website is not part of this Annual Report on Form 10-K.

The Board of Directors has adopted a written charter for each of the committees of the Board of Directors. These charters, as well as the Company’s Code of Conduct, Board of Directors Guidelines on Significant Corporate Governance Issues and Independence Standards for Directors, are posted and available on the Company’s investor relations internet website at www.phstock.com under the Corporate Governance page. Shareholders may request copies of these corporate governance documents, free of charge, by writing to Parker-Hannifin Corporation, 6035 Parkland Boulevard, Cleveland, Ohio 44124-4141, Attention: Secretary, or by calling (216) 896-3000.

- 1 -

The Company’s manufacturing, service, sales, distribution and administrative facilities are located in 39 states within the United States and in 46 other countries. The Company’s technologies and systems are used in the products of its three principal business segments: Industrial; Aerospace; and Climate & Industrial Controls. The Company’s products are sold as original and replacement equipment through sales and distribution centers worldwide. The Company markets its products through direct-sales employees, independent distributors and sales representatives. Parker products are supplied to approximately 470,000 customers in virtually every significant manufacturing, transportation and processing industry. For the fiscal year ended June 30, 2011, total net sales were $12.3 billion. Industrial Segment products accounted for 76%, Aerospace Segment products accounted for 16%, and Climate & Industrial Controls Segment products accounted for 8% of those net sales.

Markets

The Company’s technologies and systems are used throughout various industries and in various applications. The approximately 470,000 customers who purchase the Company’s products are found throughout virtually every significant manufacturing, transportation and processing industry. No single customer accounted for more than 3% of the Company’s total net sales for the fiscal year ended June 30, 2011.

Industrial Segment. Sales of Industrial Segment products are made primarily to original equipment manufacturers and their replacement markets in virtually all major manufacturing, transportation and processing industries. The major markets for products of the Industrial Segment are listed below by Group:

Automation Group:	•    Alternative energy •    Converting and packaging •    Factory automation •    Food production machinery •    Life sciences and medical •    Material handling •    Paper machinery	•    Primary metals •    Robotics •    Safety and security •    Semiconductor and electronics •    Transportation and mobile
Filtration Group:	•    Food and beverage •    Industrial machinery •    Life sciences •    Marine •    Mobile equipment	•    Oil and gas •    Power generation •    Process •    Transportation •    Water
Fluid Connectors Group:	•    Aerial lift •    Agriculture •    Bulk chemical handling •    Construction machinery •    Food and beverage •    Fuel and gas delivery •    Industrial machinery	•    Life sciences •    Marine •    Mining •    Mobile equipment •    Oil and gas •    Renewable energy •    Transportation

- 2 -

Hydraulics Group:	•    Aerial lift •    Agriculture •    Construction machinery •    Forestry •    Industrial machinery •    Machine tool •    Material handling	•    Marine •    Mining •    Oil and gas •    Power generation •    Renewable energy •    Truck hydraulics •    Factory automation
Instrumentation Group:	•    Chemical and refining •    Food and beverage •    Medical and dental	•    Microelectronics •    Oil and gas •    Power generation
Seal Group:	•    Aerospace •    Chemical processing •    Consumer •    Energy •    Oil and gas •    Fluid power •    General industrial	•    Information technology •    Life sciences •    Military •    Semiconductor •    Telecommunications •    Transportation

Aerospace Segment. Sales of Aerospace Segment products are made primarily in the commercial and military aerospace markets to both original equipment manufacturers and to end users for spares, maintenance, repair and overhaul. The major markets for products of the Aerospace Segment are listed below:

•    Commercial transports   •    Engines   •    General and business aviation   •    Helicopters   •    Launch vehicles   •    Military aircraft •    Missiles   •    Power generation   •    Regional transports   •    Unmanned aerial vehicles   •    Aftermarket services

Climate & Industrial Controls Segment. Sales of Climate & Industrial Controls Segment products are made primarily to original equipment manufacturers and their replacement markets. The major markets for products of the Climate & Industrial Controls Segment are listed below:

•    Agriculture   •    Air conditioning   •    Appliances   •    Food and beverage   •    Industrial and commercial refrigeration   •    Industrial machinery •    Oil and gas   •    Life sciences   •    Precision cooling   •    Process   •    Supermarkets   •    Transportation

- 3 -

Principal Products and Methods of Distribution

Although the Company offers hundreds of thousands of individual products, no single product contributed more than 1% to the Company’s total net sales for the fiscal year ended June 30, 2011. Listed below are some of the Company’s principal products.

Industrial Segment. The products produced by the Company’s Industrial Segment consist of a broad range of technologies and systems, which are described below by Group:

Automation Group: pneumatic and electromechanical components and systems, including:

Pneumatic products:	•    Air preparation units •    Pneumatic accessories •    Pneumatic actuators and grippers •    Pneumatic valves and controls •    Structural extrusions •    Vacuum generators, cups and sensors
Electromechanical products:	•    AC/DC drives and systems •    Electric actuators, gantry robots and slides •    Human-machine interfaces •    Manifolds •    Rotary actuators •    Stepper motors, servo motors, drives and controls

Filtration Group: filters, systems and instruments to monitor and remove contaminants from fuel, air, oil, water and other liquids and gases, including:

•    Analytical gas generators   •    Compressed air and gas filters and dryers   •    Condition monitoring devices   •    Engine air, fuel and oil filtration and systems   •    Hydraulic, lubrication and coolant filters •    Nitrogen, hydrogen and zero air generators   •    Process, chemical, water and microfiltration filters   •    Water desalinization and purification

- 4 -

Fluid Connectors Group: connectors which control, transmit and contain fluid, including:

•    Connectors for low pressure fluid conveyance   •    Deep sea umbilicals   •    Diagnostic equipment   •    Hose couplings   •    Industrial hose   •    Mooring systems and power cables •    PTFE hose and tubing   •    Quick couplings   •    Check valves   •    Rubber and thermoplastic hose   •    High pressure tube fittings and adapters   •    Low pressure tubing and fittings   •    Piping systems

Hydraulics Group: hydraulic components and systems for builders and users of industrial and mobile machinery and equipment, including:

•    Accumulators   •    Cartridge valves   •    Human machine interfaces   •    Hydraulic transmissions   •    Hydraulic cylinders   •    Hydraulic motors and pumps   •    Hydraulic systems •    Hydraulic valves and controls   •    Hydrostatic steering units   •    Integrated hydraulic circuits   •    Power take-off equipment   •    Power units   •    Rotary actuators   •    Sensors

Instrumentation Group: high quality critical flow components for process instrumentation, healthcare and ultra-high-purity applications, including:

•    Analytical sample conditioning products and systems   •    Chemical injection fittings and valves   •    Fluoropolymer chemical delivery fittings, valves and pumps   •    High-purity gas delivery fittings, valves, regulators and digital flow controllers •    Process control fittings, valves, regulators and manifold valves   •    Process control double block and bleeds   •    Permanent no-weld tube fittings   •    Precision industrial regulators and flow controllers   •    Industrial mass flow meters/controllers

Seal Group: static and dynamic sealing devices, including:

•    Dynamic seals   •    Elastomeric o-rings   •    Electromagnetic interference shielding   •    Extruded and precision-cut fabricated elastomeric seals   •    High-temperature metal seals •    Homogeneous and inserted elastomeric shapes   •    Medical devices   •    Medical seals and instruments   •    Metal and plastic retained composite seals   •    Thermal management products

- 5 -

Industrial Segment products include standard products, as well as custom products which are engineered and produced to original equipment manufacturers’ specifications for application to particular end products. Both standard and custom products are also used in the replacement of original products. Industrial Segment products are marketed primarily through field sales employees and approximately 11,400 independent distributor locations throughout the world.

Aerospace Segment. The principal products of the Company’s Aerospace Segment include flight control, hydraulic, fuel, fluid conveyance, and engine systems and components used on commercial and military airframe and engine programs.

The Aerospace Segment offers primary and secondary flight control systems and components, including: hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro-mechanical components used for precise control of aircraft rudders, elevators, ailerons and other aerodynamic control surfaces.

The Aerospace Segment also offers complete hydraulic systems and components, including:

•    Engine-driven pumps   •    Motor pumps   •    Power transfer units   •    Hydraulic power packs   •    Reservoirs   •    Filtration manifolds   •    Selector valves   •    Electrohydraulic servo valves •    Thrust-reverser systems   •    Utility actuators   •    Accumulators   •    Electronic controllers and software   •    Integration packages   •    Automatic bleed valves

The Aerospace Segment also designs and manufactures aircraft wheels, brakes and associated hydraulics components for general aviation, rotorcraft and military markets.

The Aerospace Segment also offers complete fuel systems and components, including:

•    Fuel tank inerting systems   •    Refuel, transfer, and pressurization controls   •    In-flight refueling systems   •    Fuel pumps and valves   •    Fuel measurement and management systems   •    Fuel and pneumatic filtration   •    Fluid conveyance equipment •    Center of gravity controls   •    Engine fuel injection atomization nozzles, manifolds and augmentor controls   •    Electronic monitoring computers and controllers   •    Lightning-safe flame arresters, fuel caps, and adapters   •    Water and waste subsystems

- 6 -

The Aerospace Segment also offers fluid conveyance systems and components, including:

• Rubber, metal, and PTFE hose assemblies

• Rigid tube assemblies

• Couplings, quick disconnects, fittings, joints, and unions

• Valves and regulators

The Aerospace Segment also produces various engine systems and components, including:

•    Pneumatic subsystems   •    Low-pressure pneumatic controls   •    Engine starter systems   •    Fuel valves and manifolds   •    Oil and lubrication pumps and equipment   •    Heat management   •    Engine bleed control and anti-ice systems •    Electronic control and monitoring computers   •    Motor-driven and hydraulic pumps   •    Fuel and pneumatic filtration   •    Fluid conveyance systems and engine build units   •    Thrust reverser actuation

The Aerospace Segment also offers electronics thermal management heat rejection systems and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics.

Aerospace Segment products are marketed by the Company’s regional sales organizations and are sold directly to original equipment manufacturers and end users throughout the world.

Climate & Industrial Controls Segment. The principal products of the Company’s Climate & Industrial Controls Segment consist of systems and components for use primarily in the mobile and stationary refrigeration and air conditioning industry, and systems and components for use in fluid control applications in a wide variety of industries, including processing, fuel dispensing, beverage dispensing and mobile emissions. These products include:

•    Accumulators   •    CO₂ controls   •    Electronic controllers   •    Filter driers   •    Hand shut-off valves   •    Heat exchangers •    Hose and fittings   •    Pressure regulating valves   •    Refrigerant distributors   •    Safety relief valves   •    Solenoid valves   •    Thermostatic expansion valves

Climate & Industrial Controls Segment products are marketed primarily through field sales employees and independent distributors and wholesalers throughout the world.

Competition

The Company’s business operates in highly competitive markets and industries. The Company offers its products over numerous, varied markets through its 142 divisions operating in 47 countries and

- 7 -

consequently has hundreds of competitors when viewed across its various markets and product offerings. The Company’s competitors include U.S. and non-U.S. companies. These competitors and the degree of competition vary widely by product lines, end markets, geographic scope and/or geographic locations. Although each of the Company’s segments has numerous competitors, given the Company’s market and product breadth, no single competitor competes with the Company with respect to all products manufactured and sold by the Company.

In the Industrial Segment, the Company competes on the basis of product quality and innovation, customer service, manufacturing and distribution capability, and price competitiveness. The Company believes that it is one of the market leaders in most of the major markets for its most significant Industrial Segment products. While the Company’s primary global competitors include SMC Corporation, Freudenberg-NOK, Festo AG, Bosch Rexroth AG, Swagelok Company, Pall Corporation, Donaldson Company, Inc. and Eaton Corporation, none of these companies compete with every Group and every product line that make up the Company’s Industrial Segment.

In the Aerospace Segment, the Company has developed alliances with key customers based on the Company’s advanced technological and engineering capabilities, superior performance in quality, delivery, and service, and price competitiveness, which has enabled the Company to obtain significant original equipment business on new aircraft programs for its systems and components and to thereby obtain the follow-on repair and replacement business for these programs. Although the Company believes that it is one of the market leaders in most of the major markets for its most significant Aerospace Segment products, the Company’s primary global competitors for the most significant Aerospace Segment products include Honeywell Inc., Goodrich Corporation, Hamilton Sundstrand (a subsidiary of United Technologies Corp.), GE Aviation (formerly Smiths Aerospace), Eaton Corporation, Moog Inc., Woodward Governor Company and Zodiac Aerospace SA.

In the Climate & Industrial Controls Segment, the Company competes on the basis of product quality and innovation, customer service, manufacturing and distribution capability, and price competitiveness. Although the Company believes that it is one of the market leaders in most of the major markets for its most significant Climate & Industrial Controls Segment products, the Company’s primary global competitors for the most significant Climate & Industrial Controls Segment products include Danfoss A/S, Emerson Climate Technologies, Emerson/ASCO, Hutchinson SA, TI Automotive Ltd. and Visteon Corporation.

The Company believes that its platform utilizing nine core technologies which include aerospace, electromechanical, filtration, fluid handling, hydraulics, pneumatics, process control, refrigeration, and sealing and shielding is a positive factor in its ability to compete effectively with both large and small competitors. For each of its segments, the Company believes that the following factors also contribute to its ability to compete effectively:

• decentralized operating structure that allows each division to focus on its customers and respond quickly at the local level;

• systems solution capabilities that use the Company’s core technologies from a variety of its segments;

• global presence; and

• a strong global distribution network.

- 8 -

Research and Product Development

The Company continually researches the feasibility of new products and services through its development laboratories and testing facilities in many of its worldwide manufacturing locations. Its research and product development staff includes chemists, physicists, and mechanical, chemical and electrical engineers.

Total research and development costs relating to the development of new products and services and the improvement of existing products and services amounted to $359.5 million in fiscal year 2011, $316.2 million in fiscal year 2010, and $338.9 million in fiscal year 2009. These amounts include costs incurred by the Company related to independent research and development initiatives as well as costs incurred in connection with research and development contracts. Costs incurred in connection with research and development contracts and included in the total research and development costs reported above for each of the respective fiscal years 2011, 2010 and 2009 were $61.3 million, $40.3 million, and $50.7 million, respectively.

Patents, Trademarks, Licenses

The Company owns a number of patents, trademarks and licenses related to its products and has exclusive and non-exclusive rights to use a number of patents owned by others. In addition, patent applications on certain products are now pending, although there can be no assurance that patents will be issued. The Company is not dependent to any material extent on any single patent or group of patents.

Backlog and Seasonal Nature of Business

The Company’s backlog by business segment for the past two fiscal years, as set forth on pages 13-5 to 13-7 of Exhibit 13 to this Annual Report on Form 10-K, is incorporated into this section by reference. The Company’s backlog was $3.8 billion at June 30, 2011 and was $3.1 billion at June 30, 2010. Approximately 86% of the Company’s backlog at June 30, 2011 is scheduled for delivery in the succeeding twelve months. The Company’s business is generally not seasonal in nature.

Environmental Regulation

Certain of the Company’s operations necessitate the use and handling of hazardous materials and, as a result, the Company is subject to United States federal, state, and local laws and regulations as well as non-U.S. laws and regulations designed to protect the environment and regulate the discharge of materials into the environment. These laws impose penalties, fines and other sanctions for non-compliance and liability for response costs, property damage and personal injury resulting from past and current spills, disposals or other releases of, or exposures to, hazardous materials. Among other environmental laws, the Company is subject to the United States federal “Superfund” law, under which the Company has been designated as a “potentially responsible party” and may be liable for cleanup costs associated with various waste sites, some of which are on the United States Environmental Protection Agency’s Superfund priority list.

- 9 -

As of June 30, 2011, the Company is involved in environmental remediation at various United States and non-U.S. manufacturing facilities presently or formerly operated by the Company and has been named as a “potentially responsible party,” along with other companies, at off-site waste disposal facilities and regional sites.

The Company believes that its policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and the consequent financial liability to the Company. Compliance with environmental laws and regulations requires continuing management of efforts and expenditures by the Company. Compliance with environmental laws and regulations has not had in the past, and, the Company believes, will not have in the future, a material adverse effect on the capital expenditures, earnings, or competitive position of the Company.

As of June 30, 2011, the Company had a reserve of $15.3 million for environmental matters which are probable and reasonably estimable. This reserve is recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties.

The Company’s estimated total liability for the above mentioned sites ranges from a minimum of $15.3 million to a maximum of $72.1 million. The largest range of the estimated total liability for any one site is approximately $6.1 million. The actual costs to be incurred by the Company will be dependent on final determination of contamination and required remedial action, negotiations with governmental authorities with respect to cleanup levels, changes in regulatory requirements, innovations in investigatory and remedial technologies, effectiveness of remedial technologies employed, the ability of the other responsible parties to pay, and any insurance or other third-party recoveries.

Energy Matters and Sources and Availability of Raw Materials

The Company’s primary energy source for each of its business segments is electric power. While the Company cannot predict future costs of such electric power, the primary source for production of the required electric power will be coal from substantial, proven coal reserves available to electric utilities. The Company is subject to governmental regulations in regard to energy supplies in the United States and elsewhere. To date, the Company has not experienced any significant disruptions of its operations due to energy curtailments.

Steel, brass, copper, aluminum, nickel, rubber and thermoplastic materials and chemicals are the principal raw materials used by the Company. These materials are available from numerous sources in quantities sufficient to meet the requirements of the Company.

Employees

The Company employed approximately 58,400 persons as of June 30, 2011, of whom approximately 30,940 were employed by foreign subsidiaries.

- 10 -

Business Segment Information

The Company’s net sales, segment operating income and assets by business segment and net sales and long-lived assets by geographic area for the past three fiscal years, as set forth on pages 13-16 to 13-17 of Exhibit 13 to this Annual Report on Form 10-K, are incorporated into this section by reference.

Acquisitions

During fiscal year 2011, the Company completed three acquisitions as set forth on pages 13-23 to 13-24 of Exhibit 13 to this Annual Report on Form 10-K, which is incorporated into this section by reference.

ITEM 1A. Risk Factors.

The following “risk factors” identify what the Company believes to be all of the risks that could materially adversely affect the Company’s financial and/or operational performance. These risk factors should be considered and evaluated together with information incorporated by reference or otherwise included elsewhere in this Annual Report on Form 10-K. Additional risks not currently known to the Company or that the Company currently believes are immaterial also may impair the Company’s business, financial condition, results of operations and cash flows.

The Company may be subject to risks arising from uncertainty in worldwide economic conditions.

Uncertainty regarding global economic conditions and the rate of economic recovery may have an adverse effect on the business, results of operations and financial condition of the Company and its distributors, customers and suppliers, and on the general economic activity in many of the industries and markets in which the Company and its distributors, customers and suppliers operate. Among the economic factors which may have such an effect are manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability. These factors may, among other things, negatively impact the level of purchases, capital expenditures and creditworthiness of the Company and its distributors, customers and suppliers, and, therefore, the Company’s revenues, operating profits, margins and order rates.

The Company has remained focused on maintaining its financial strength by adjusting its cost structure to reflect changing demand levels, maintaining a strong balance sheet and managing its cash. The Company cannot predict changes in worldwide economic conditions, as such conditions are highly volatile and beyond the Company’s control. If these conditions deteriorate, however, the Company’s business, results of operations and financial condition could be materially adversely affected.

The Company may be subject to risks relating to its information technology systems.

The Company relies extensively on information technology systems to manage and operate its business. If these systems are damaged or cease to function properly and the Company suffers any resulting interruption in its ability to manage and operate its business, the Company’s results of operations and financial condition could be materially adversely affected.

- 11 -

The Company may be subject to product liability risks.

The Company’s businesses expose it to potential product liability risks that are inherent in the design, manufacture and sale of its products and the products of third-party vendors that the Company uses or resells. Significant product liability claims could have a material adverse effect on the Company’s financial condition, liquidity and results of operations. Although the Company currently maintains what it believes to be suitable and adequate product liability insurance, there can be no assurance that the Company will be able to maintain its insurance on acceptable terms or that its insurance will provide adequate protection against all potential liabilities.

The Company may be subject to risks arising from legal and regulatory proceedings.

From time to time, the Company is subject to litigation and other legal and regulatory proceedings relating to its business. Due to the inherent uncertainties of such proceedings, the Company cannot accurately predict their ultimate outcome, including the outcome of any related appeals. An unfavorable outcome could materially adversely impact the Company’s business, financial condition or results of operations.

The Company may be subject to risks relating to organizational changes.

The Company regularly executes organizational changes such as acquisitions, divestitures and realignments to support its growth and cost management strategies. The Company also commits significant resources to identify, develop and retain key employees to ensure uninterrupted leadership and direction. If the Company is unable to successfully manage these and other organizational changes, its results of operations and financial condition could be materially adversely affected.

The Company may be subject to risks relating to changes in the demand for and supply of its products.

Demand for and supply of the Company’s products may be adversely affected by numerous factors, some of which the Company cannot predict or control. Such factors include:

• changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments, disputes regarding contract terms or significant changes in financial condition, and changes in contract cost and revenue estimates for new development programs;

• changes in product mix;

• changes in the market acceptance of the Company’s products;

• increased competition in the markets the Company serves;

• declines in the general level of industrial production; or

• declines in the availability, or increases in the prices, of raw materials.

If any of these factors occur, the demand for and supply of the Company’s products could suffer, which could materially adversely affect the Company’s results of operations.

- 12 -

The Company may be subject to risks arising from price and supply fluctuations in raw materials used in the Company’s production processes and by its suppliers of component parts.

The Company’s supply of raw materials for its businesses could be interrupted for a variety of reasons, including availability and pricing. Prices for raw materials necessary for production have fluctuated significantly in the past and significant increases could adversely affect the Company’s results of operations and profit margins. Although the Company generally attempts to manage these fluctuations by, among other things, passing along increased raw material prices to its customers in the form of price increases, there may be a time delay between the increased raw material prices and the Company’s ability to increase the price of its products, or the Company may be unable to increase the prices of its products due to pricing pressure, contract terms or other factors.

The Company’s suppliers of component parts may significantly and quickly increase their prices in response to increases in costs of raw materials that they use to manufacture the component parts. As a result, the Company may not be able to increase its prices commensurately with its increased costs. Consequently, the Company’s results of operations or financial condition could be materially adversely affected.

The Company may be subject to risks relating to acquisitions.

The Company expects to continue its strategy of identifying and acquiring businesses with complementary products and services that it believes will enhance its operations and profitability. However, there can be no assurance that the Company will be able to continue to find suitable businesses to purchase or that it will be able to acquire such businesses on acceptable terms. In addition, there is no assurance that the Company will be able to avoid acquiring or assuming unexpected liabilities, that the Company will be able to integrate successfully any businesses that it purchases into its existing business or that any acquired businesses will be profitable. The successful integration of new businesses depends on the Company’s ability to manage these new businesses and cut excess costs. If the Company is unable to avoid these risks, its results of operations and financial condition could be materially adversely affected.

The Company may be subject to risks arising from changes in the competitive environment in which it operates.

The Company’s operations are subject to competition from a wide variety of global, regional and local competitors, which could adversely affect the Company’s results of operations by creating downward pricing pressure and/or a decline in the Company’s margins or market shares. To compete successfully, the Company’s Industrial Segment and Climate & Industrial Controls Segment must excel in terms of product quality and innovation, customer service, manufacturing and distribution capability and price competitiveness and its Aerospace Segment must excel on the basis of technological and engineering capability, quality, delivery and service, and price competitiveness.

- 13 -

The Company may be subject to risks relating to its non-U.S. operations.

The Company’s net sales derived from customers outside the United States were approximately 46% in fiscal 2011, 45% in fiscal 2010 and 44% in fiscal 2009. In addition, many of the Company’s manufacturing operations and suppliers are located outside the United States. The Company expects net sales from non-U.S. markets to continue to represent a significant portion of its total net sales. The Company’s non-U.S. operations are subject to risks in addition to those facing its domestic operations, including:

• fluctuations in currency exchange rates;

• limitations on ownership and on repatriation of earnings;

• transportation delays and interruptions;

• political, social and economic instability and disruptions;

• government embargoes or trade restrictions;

• the imposition of duties and tariffs and other trade barriers;

• import and export controls;

• labor unrest and current and changing regulatory environments;

• the potential for nationalization of enterprises;

• difficulties in staffing and managing multi-national operations;

• limitations on the Company’s ability to enforce legal rights and remedies;

• potentially adverse tax consequences; and

• difficulties in implementing restructuring actions on a timely basis.

If the Company is unable to successfully manage the risks associated with expanding its global business or adequately manage operational fluctuations internationally, the risks could have a material adverse effect on the Company’s business, results of operations or financial condition.

The Company may be subject to risks relating to changes in its tax rates or exposure to additional income tax liabilities.

The Company is subject to income taxes in the United States and various non-U.S. jurisdictions. Domestic and international tax liabilities are subject to the allocation of income among various tax jurisdictions. The Company’s effective tax rate could be affected by changes in the mix among earnings in countries with differing statutory tax rates, changes in the valuation allowance of deferred tax assets or changes in tax laws. The amount of income taxes paid is subject to ongoing audits by United States federal, state and local tax authorities and by non-U.S. tax authorities. If these audits result in assessments different from amounts reserved, future financial results may include unfavorable adjustments to the Company’s tax liabilities, which could have a material adverse effect on the Company’s results of operations.

The Obama administration has proposed legislation that would change how U.S. multinational corporations are taxed on their non-U.S. income. If such legislation is enacted, the Company’s effective tax rate and, in turn, the Company’s profitability, could be materially impacted.

- 14 -

The Company may be subject to risks relating to the development of new products and technologies.

The markets the Company operates in are characterized by rapidly changing technologies and frequent introductions of new products and services. The Company’s ability to develop new products based on technological innovation can affect its competitive position and often requires the investment of significant resources. Difficulties or delays in research, development or production of new products and services or failure to gain market acceptance of new products and technologies may significantly reduce future revenues and materially adversely affect the Company’s competitive position.

The Company may be subject to risks relating to the preservation of its intellectual property.

Protecting the Company’s intellectual property is critical to its innovation efforts. The Company owns a number of patents, trademarks and licenses related to its products and has exclusive and non-exclusive rights under patents owned by others. The Company’s intellectual property may be challenged or infringed upon by third parties or the Company may be unable to maintain, renew or enter into new license agreements with third-party owners of intellectual property on reasonable terms. In addition, the global nature of the Company’s business could present increased risks that the Company’s intellectual property will be subject to infringement or other unauthorized use outside of the United States. In such cases, the Company’s ability to protect its intellectual property rights by legal recourse or otherwise may be limited, particularly in countries where laws or enforcement practices are undeveloped or do not recognize or protect intellectual property rights to the same extent as the United States. Unauthorized use of the Company’s intellectual property rights or inability to preserve existing intellectual property rights could adversely impact the Company’s competitive position and results of operations.

The Company may be subject to risks arising from the impact of environmental regulations.

The Company’s operations necessitate the use and handling of hazardous materials and, as a result, it is subject to various United States federal, state and local laws and regulations, as well as non-U.S. laws, designed to protect the environment and to regulate the discharge of materials into the environment. These laws impose penalties, fines and other sanctions for non-compliance and liability for response costs, property damages and personal injury resulting from past and current spills, disposals or other releases of, or the exposure to, hazardous materials. Among other laws, the Company is subject to the United States federal “Superfund” law, under which it has been designated as a “potentially responsible party” and may be liable for clean-up costs associated with various waste sites, some of which are on the United States Environmental Protection Agency’s Superfund priority list. The Company could incur substantial costs as a result of non-compliance with or liability for cleanup or other costs or damages under environmental laws, including the Superfund law.

In addition, increased worldwide focus on climate change issues has led to recent legislative and regulatory efforts to limit greenhouse gas emissions, including regulation of such emissions through a “cap-and-trade” system in the United States. Changes in or to regulation of greenhouse gas emissions and other climate change concerns could subject the Company to additional costs and restrictions, including increased energy and raw material costs. While such regulation appears likely in the United States, until definitive regulations are adopted, the Company is not able to predict how such regulations would affect the Company’s business, operations or financial results.

- 15 -

The Company may be subject to more stringent environmental laws in the future. If more stringent environmental laws are enacted in the future, these laws could have a material adverse effect on the Company’s business, results of operations and financial condition.

The Company may be subject to risks relating to increasing costs of certain employee and retiree benefits.

The amount of expenses recorded for the Company’s defined benefit pension plans is dependent on changes in market interest rates and the value of plan assets, which are dependent on actual plan asset returns. Significant changes in market interest rates and decreases in the fair value of plan assets and investment losses on plan assets would increase expenses and may adversely impact the Company’s future results of operations.

The Company may be subject to risks arising from regulations applicable to companies doing business with the United States government.

In addition to the risks identified herein, doing business with the United States government subjects the Company to unusual risks, including dependence on the level of government spending and compliance with and changes in governmental procurement regulations. Agreements relating to the sale of products to government entities may be subject to termination, reduction or modification, either at the convenience of the government or for the Company’s failure to perform under the applicable contract. The Company is subject to government investigations of business practices and compliance with government procurement regulations. If the Company were charged with wrongdoing as a result of any such investigation, it could be suspended from bidding on or receiving awards of new government contracts, which could have a material adverse effect on the Company’s results of operations.

ITEM 1B. Unresolved Staff Comments. None.

ITEM 1C. Executive Officers of the Registrant.

The Company’s Executive Officers are as follows:

Name	Position	Officer Since(1)		Age as of 8/15/2011
Donald E. Washkewicz	Chairman of the Board, Chief Executive Officer and President		1997		61
Jon P. Marten	Executive Vice President – Finance & Administration and Chief Financial Officer		2008		55
Lee C. Banks	Executive Vice President and Operating Officer		2001		48
Robert P. Barker	Executive Vice President, Operating Officer and President – Aerospace Group		2003		61
Daniel S. Serbin	Executive Vice President – Human Resources		2005		57

- 16 -

Name	Position	Officer Since(1)		Age as of 8/15/2011
Thomas L. Williams	Executive Vice President and Operating Officer		2005		52
Robert W. Bond	Vice President and President – Fluid Connectors Group		2000		53
Yoon “Michael” Chung	Vice President and President – Asia Pacific Group		2008		48
Jeffery A. Cullman	Vice President and President – Hydraulics Group		2006		56
John G. Dedinsky, Jr.	Vice President – Global Supply Chain and Procurement		2006		54
William G. Eline	Vice President – Chief Information Officer		2002		55
John R. Greco	Vice President and President – Instrumentation Group		2006		57
Thomas F. Healy	Vice President and President – Climate & Industrial Controls Group		2006		51
William R. Hoelting	Vice President – Tax		2007		54
Pamela J. Huggins	Vice President and Treasurer		2003		57
Kurt A. Keller	Vice President and President – Seal Group		2009		53
A. Ricardo Machado	Vice President and President – Latin America Group		2006		63
M. Craig Maxwell	Vice President – Technology and Innovation		2003		53
Thomas A. Piraino, Jr.	Vice President, General Counsel and Secretary		1998		62
Peter Popoff	Vice President and President – Filtration Group		2008		59
Charly Saulnier	Vice President and President – Europe, Middle East and Africa Group		2008		63
Roger S. Sherrard	Vice President and President – Automation Group		2003		45
Catherine A. Suever	Vice President and Controller		2010		52

(1) Officers of the Company are elected by the Board of Directors to serve for a term of one-year or until their respective successors are elected, except in the case of death, resignation or removal. Messrs. Bond, Dedinsky, Eline, Machado, Maxwell, Piraino, and Sherrard and Ms. Huggins have served in the executive capacities indicated above opposite their respective names during each of the past five years.

- 17 -

Mr. Washkewicz has served as a Director of the Company since 2000. Mr. Washkewicz has been Chairman of the Board of Directors since October 2004, Chief Executive Officer since July 2001, and President since January 2007.

Mr. Marten has been Executive Vice President – Finance & Administration and Chief Financial Officer since November 2010. He was Vice President and Controller from August 2008 to December 2010; Assistant Controller from July 2007 to August 2008 and Vice President and Controller of the Aerospace Group from October 2004 to July 2007.

Mr. Banks has been an Executive Vice President since August 2008 and has been an Operating Officer since November 2006. He was a Senior Vice President from November 2006 to August 2008, Vice President from October 2001 to November 2006, and President of the Hydraulics Group from October 2003 to November 2006. He is also a Director of Nordson Corporation.

Mr. Barker has been an Executive Vice President since August 2008 and has been an Operating Officer since November 2006 and President of the Aerospace Group since March 2003. He was a Senior Vice President from November 2006 to August 2008 and Vice President from April 2003 to November 2006.

Mr. Serbin has been Executive Vice President – Human Resources since January 2011. He was Vice President – Human Resources from May 2005 to January 2011.

Mr. Williams has been an Executive Vice President since August 2008 and has been an Operating Officer since November 2006. He was a Senior Vice President from November 2006 to August 2008 and Vice President and President of the Instrumentation Group from March 2005 to November 2006. He is also a Director of Chart Industries, Inc.

Mr. Chung has been a Vice President and President of the Asia Pacific Group since March 2008. He was Vice President – Operations of the Hydraulic Group in Asia from January 2005 to March 2008.

Mr. Cullman has been a Vice President and President of the Hydraulics Group since November 2006. He was Vice President – Operations of the Hydraulics Group from July 2002 to November 2006.

Mr. Greco has been a Vice President and President of the Instrumentation Group since October 2006. He was Vice President and General Manager of the Global Parflex Division from August 2005 to October 2006.

Mr. Healy has been a Vice President since April 2006 and has been President of the Climate & Industrial Controls Group since July 2006.

Mr. Hoelting has been Vice President – Tax since February 2007. He was Vice President – Taxation from January 1998 to February 2007.

Mr. Keller has been Vice President and President of the Seal Group since August 2009. He was Vice President of Operations of the Seal Group from July 2005 to August 2009.

- 18 -

Mr. Popoff has been a Vice President and President of the Filtration Group since February 2008. He was Vice President – Operations of the Filtration Group from April 2006 to February 2008.

Mr. Saulnier has been Vice President and President of the Europe, Middle East and Africa Group since September 2008. He was President of Sales Companies – Europe, Middle East and Africa from January 2008 to September 2008 and Vice President – Operations of Sales Companies South from July 2001 to January 2008.

Ms. Suever has been Vice President and Controller since December 2010. She was Vice President and Controller of the Climate & Industrial Controls Group from November 2008 to December 2010; Assistant Treasurer from July 2007 to November 2008; and Director of Finance and Investor Relations Support from May 2006 to July 2007.

ITEM 2. Properties. The Company’s corporate headquarters is located in Cleveland, Ohio, and at June 30, 2011, the Company had 311 manufacturing plants and 287 distribution centers and sales and administrative offices throughout the world, none of which were individually material to its operations. The facilities are situated in 39 states within the United States and in 46 other countries. The Company owns the majority of its manufacturing plants and distribution centers, and its leased properties primarily consist of sales and administrative offices. The number of facilities used by each of the Company’s operating segments is summarized by type and geographic location in the tables below:

	Type of Facility
	Manufacturing Plants		Distribution Centers		Sales and Administrative Offices
Industrial		259		96		139
Aerospace		24		2		12
Climate & Industrial Controls		28		4		34
Total		311		102		185

	Geographic Location
	North America		Europe		Asia-Pacific		Latin America
Industrial		215		161		91		27
Aerospace		29		4		4		1
Climate & Industrial Controls		54		7		4		1
Total		298		172		99		29

Several facilities are shared among each of the Company’s operating segments. To avoid double counting, each shared facility is counted once, primarily in the Industrial Segment.

- 19 -

The Company believes that its properties have been adequately maintained, are in good condition generally and are suitable and adequate for its business as presently conducted. The extent to which the Company uses its properties varies by property and from time to time. The Company believes that its restructuring efforts have brought capacity levels closer to present and anticipated needs. Most of the Company’s manufacturing facilities remain capable of handling additional volume increases.

ITEM 3. Legal Proceedings. Parker ITR S.r.l. (Parker ITR), a subsidiary acquired on January 31, 2002, has been the subject of a number of lawsuits and regulatory investigations. The lawsuits and investigations relate to allegations that for a period of up to 21 years, the Parker ITR business unit that manufactures and sells marine hose, typically used in oil transfer, conspired with competitors in unreasonable restraint of trade to artificially raise, fix, maintain or stabilize prices, rig bids and allocate markets and customers for marine oil and gas hose in the United States and in other jurisdictions. Parker ITR and the Company have cooperated with all of the regulatory authorities investigating the activities of the Parker ITR business unit that manufactures and sells marine hose and continue to cooperate with the investigations that remain ongoing. Several of the investigations and all but one of the lawsuits have concluded. The following investigations and lawsuit remain pending.

Brazilian competition authorities commenced their investigations on November 14, 2007. Parker ITR filed a procedural defense in January 2008. The Brazilian authorities appear to be investigating the period from 1999 through May 2007. In June 2011, the Brazilian competition authorities issued a report and Parker ITR filed a response to that report. The potential outcome of the investigation in Brazil is uncertain and will depend on the resolution of numerous issues not known at this stage of the investigation.

On May 15, 2007, the European Commission issued its initial Request for Information to the Company and Parker ITR. On January 28, 2009, the European Commission announced the results of its investigation of the alleged cartel activities. As part of its decision, the European Commission found that Parker ITR infringed Article 81 of the European Commission treaty from April 1986 to May 2, 2007 and fined Parker ITR 25.61 million euros. The European Commission also determined that the Company was jointly and severally responsible for 8.32 million euros of the total fine which related to the period from January 2002, when the Company acquired Parker ITR, to May 2, 2007, when the cartel activities ceased. Parker ITR and the Company filed an appeal to the Court of First Instance of the European Communities on April 10, 2009.

A lawsuit was filed against the Company and Parker ITR on May 25, 2010 under the False Claims Act in the Central District of California: The United States of America ex rel. Douglas Farrow v. Trelleborg, AB et al. The United States declined to intervene against the Company or Parker ITR in the case. Plaintiff generally seeks treble damages, penalties for each false claim and attorneys’ fees. The court dismissed the complaint with prejudice as to the Company, but it remains pending against Parker ITR.

ITEM 4. (Removed and Reserved).

- 20 -

PART II

ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

(a) Market for the Registrant’s Common Equity. The Company’s common stock is listed for trading on the New York Stock Exchange. Information regarding stock price and dividend information with respect to the Company’s common stock, as set forth on page 13-43 of Exhibit 13 to this Annual Report on Form 10-K, is incorporated into this section by reference. As of July 29, 2011, the number of shareholders of record of the Company was 4,333.

(b) Use of Proceeds. Not Applicable.

(c) Purchases of Equity Securities by the Issuer and Affiliated Purchasers.

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
April 1, 2011 through April 30, 2011		66,300	$	95.04		66,300		8,446,519
May 1, 2011 through May 31, 2011		1,552,672	$	86.52		1,552,672		6,893,847
June 1, 2011 through June 30, 2011		5,680,451	$	87.33		5,680,451		1,213,396
Total:		7,299,423	$	87.23		7,299,423		1,213,396

(1) On August 16, 1990, the Company publicly announced that its Board of Directors authorized the repurchase by the Company of up to 3.0 million shares of its common stock. From time to time, the Board of Directors has adjusted the number of shares authorized for repurchase under this program. On January 28, 2009, the Finance Committee of the Board of Directors of the Company approved an increase in the number of shares authorized for repurchase under this program so that, beginning on such date, the aggregate number of shares authorized for repurchase was equal to 10.0 million. Subject to this overall limitation, each fiscal year the Company is authorized to repurchase an amount of common shares equal to the greater of 7.5 million shares or five percent of the shares outstanding as of the end of the prior fiscal year. There is no expiration date for this program.

ITEM 6. Selected Financial Data. The information set forth on page 13-46 of Exhibit 13 to this Annual Report on Form 10-K is incorporated into this section by reference.

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The information set forth on pages 13-2 to 13-14 of Exhibit 13 to this Annual Report on Form 10-K is incorporated into this section by reference.

- 21 -

ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk. The information set forth on page 13-11 of Exhibit 13 to this Annual Report on Form 10-K is incorporated into this section by reference.

ITEM 8. Financial Statements and Supplementary Data. The information set forth on pages 13-15 to 13-43 of Exhibit 13 to this Annual Report on Form 10-K is incorporated into this section by reference.

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.

ITEM 9A. Controls and Procedures. The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the Company’s disclosure controls and procedures as of June 30, 2011. Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that, as of the end of fiscal year 2011, the Company’s disclosure controls and procedures were effective.

Management’s Report on Internal Control over Financial Reporting set forth on page 13-44 of Exhibit 13 to this Annual Report on Form 10-K is incorporated into this section by reference. The Report of Independent Registered Public Accounting Firm set forth on page 13-45 of Exhibit 13 to this Annual Report on Form 10-K is incorporated into this section by reference.

There was no change in the Company’s internal control over financial reporting during the quarter ended June 30, 2011 that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. Other Information. None.

PART III

ITEM 10. Directors, Executive Officers and Corporate Governance. Information required with respect to the Directors of the Company is set forth under the caption “Item I – Election of Directors” in the definitive Proxy Statement for the Company’s 2011 Annual Meeting of Shareholders to be held October 26, 2011 (the “2011 Proxy Statement”) and is incorporated herein by reference. Information with respect to the executive officers of the Company is included in Part I, Item 1C hereof under the caption “Executive Officers of the Registrant”.

The information set forth under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” in the 2011 Proxy Statement is incorporated herein by reference.

The Company has adopted a Code of Conduct that applies to its Chief Executive Officer, Chief Financial Officer and Controller. The Code of Conduct is posted on the Company’s investor relations internet website at www.phstock.com under the Corporate Governance page. Any amendment to, or waiver from, a provision of the Company’s Code of Conduct that applies to its Chief Executive Officer, Chief Financial Officer or Controller will also be posted at www.phstock.com under the Corporate Governance page.

- 22 -

The information set forth under the captions “The Audit Committee” and “Report of the Audit Committee” in the 2011 Proxy Statement is incorporated herein by reference.

ITEM 11. Executive Compensation. The information set forth under the captions “Compensation Discussion and Analysis,” “Compensation Committee Report,” and “Compensation Tables” in the 2011 Proxy Statement is incorporated herein by reference.

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information set forth under the caption “Principal Shareholders” in the 2011 Proxy Statement is incorporated herein by reference.

Equity Compensation Plan Information. The following table sets forth certain information regarding the Company’s equity compensation plans as of June 30, 2011, unless otherwise indicated.

	Column (a)			Column (b)		Column (c)
Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights			Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders		15,075,452	(1)	$	52.71		8,880,837	(2)
Equity compensation plans not approved by security holders(3)		26,253		$	41.57		0
Total		15,101,705		$	52.79		8,880,837

(1) Includes 243,266 shares, which consists of the actual payouts of restricted stock under the FY2009-10-11 LTIP Awards (which payout was made after June 30, 2011) and the maximum future payouts of common stock that may be issued under the FY2010-11-12, CY2010-11-12 and CY2011-12-13 LTIP Awards. For the FY2010-11-12 and CY2010-11-12 LTIP Awards, payouts will be determined by comparing our results during the three-year performance period to the performance of a group of our peers during their three most recent fiscal years for the following weighted performance measures: (a) revenue growth (20% weight); (b) growth in fully-diluted earnings per share from continuing operations (40% weight); and (c) average return on invested capital from continuing operations (40% weight). For the CY2011-12-13 LTIP Awards, payouts will be determined based on the Company achieving an average return on average equity of 4% or an average free cash flow margin of 4%. If these performance measures are achieved, the participants will be eligible to receive the maximum payout of 200%. The Human Resources and Compensation Committee will then compare the Company’s performance to that of a group of our peers and, if appropriate, apply its discretion to reduce the final payouts based on any performance measures that the Committee determines to be appropriate. Also includes 62,166 phantom shares held in an account pursuant to the Stock Option Deferral Plan (which plan has not been approved by shareholders). The phantom shares resulted from exercises of stock options granted under the 1990

- 23 -

Employees Stock Option Plan, which was approved by the shareholders. No further deferral elections may be made under the Stock Option Deferral Plan.

(2) The maximum number of shares of our common stock that may be issued under the 2009 Omnibus Stock Incentive Plan is 5.5 million. The maximum number of securities that may be issued under the 2003 Stock Incentive Plan is equal to the sum of (i) 13.5 million; plus (ii) the amount of any shares that are not delivered to an employee by reason of (A) the expiration, termination, cancellation or forfeiture of an award under the 1993 Stock Incentive Program; and (B) the tendering or withholding of shares to satisfy all or a portion of the exercise price or tax withholding obligations relating to shares issued or distributed under an award under the 1993 Stock Incentive Program. The maximum number of shares that may be issued under the 2003 Stock Incentive Plan as restricted stock is limited to 7.5 million shares. The maximum number of shares that may be issued under the 2004 Non-Employee Directors’ Stock Incentive Plan is 375,000. The maximum number of shares that may be issued under the Non-Employee Directors’ Stock Plan, as amended and restated, is 345,000, all of which are granted as common stock, subject to such conditions or restrictions as the Human Resources and Compensation Committee may determine.

(3) The 1996 Non-Employee Directors Stock Option Plan provides for the issuance of up to 562,500 shares of our common stock pursuant to stock options granted to our Directors who are not current or retired employees. Each option was granted at an exercise price equal to 100% of the fair market value of our common stock on the date the options were granted. Grants have a ten-year term and vest 50% following one year of continued service and the remaining 50% following the second year of continued service from the date granted. No further options will be granted under the 1996 Non-Employee Directors Stock Option Plan

ITEM 13. Certain Relationships and Related Transactions, and Director Independence. The information set forth under the captions “Certain Relationships and Related Transactions”, “Review and Approval of Transactions with Related Persons”, and “Director Independence” in the 2011 Proxy Statement is incorporated herein by reference.

ITEM 14. Principal Accountant Fees and Services. The information set forth under the captions “Audit Fees,” “Audit-Related Fees,” “Tax Fees,” “All Other Fees” and “Audit Committee Pre-Approval Policies and Procedures” in the 2011 Proxy Statement is incorporated herein by reference.

PART IV

ITEM 15. Exhibits and Financial Statement Schedules.

a. The following are filed as part of this report:

1. Financial Statements and Schedule

The financial statements and schedule listed in the accompanying Index to Consolidated Financial Statements and Schedule are filed or incorporated by reference as part of this Annual Report on Form 10-K.

2. Exhibits

The exhibits listed in the accompanying Exhibit Index and required by Item 601 of Regulation S-K (numbered in accordance with Item 601 of Regulation S-K) are filed, furnished or incorporated by reference as part of this Annual Report on Form 10-K.

- 24 -

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PARKER-HANNIFIN CORPORATION
By:	/s/ Jon P. Marten
	Jon P. Marten
	Executive Vice President - Finance &
	Administration and Chief Financial Officer

August 26, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Signature and Title

DONALD E. WASHKEWICZ, Chairman of the Board of Directors and Principal Executive Officer; CATHERINE A. SUEVER, Principal Accounting Officer; ROBERT G. BOHN, Director; LINDA S. HARTY, Director; WILLIAM E. KASSLING, Director; ROBERT J. KOHLHEPP, Director; KLAUS-PETER MÜLLER, Director; CANDY M. OBOURN, Director; JOSEPH M. SCAMINACE, Director; WOLFGANG R. SCHMITT, Director; ÅKE SVENSSON, Director; MARKOS I. TAMBAKERAS, Director; and JAMES L. WAINSCOTT, Director.

Date: August 26, 2011

/s/ Jon P. Marten

Jon P. Marten, Executive Vice President –

Finance & Administration and Chief Financial

Officer (Principal Financial Officer and

Attorney-in-Fact)

- 25 -

PARKER-HANNIFIN CORPORATION

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE

	Reference
	Form 10-K Annual Report (Page)	Excerpt from Exhibit  13 (Page)
Data incorporated by reference from Exhibit 13:
Management’s Report on Internal Control over Financial Reporting	—	13 - 44
Report of Independent Registered Public Accounting Firm	—	13 - 45
Consolidated Statement of Income for the years ended June 30, 2011, 2010 and 2009	—	13 - 15
Consolidated Balance Sheet at June 30, 2011 and 2010	—	13 - 18
Consolidated Statement of Cash Flows for the years ended June 30, 2011, 2010 and 2009	—	13 - 19
Consolidated Statement of Equity for the years ended June 30, 2011, 2010 and 2009	—	13 - 20
Notes to Consolidated Financial Statements	—	13 - 21 to 13 - 43
Schedule:
II - Valuation and Qualifying Accounts	F-2	—

Individual financial statements and related applicable schedules for the Registrant (separately) have been omitted because the Registrant is primarily an operating company and its subsidiaries are considered to be wholly-owned.

F-1

PARKER-HANNIFIN CORPORATION

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED JUNE 30, 2009, 2010 and 2011

(Dollars in Thousands)

Column A	Column B		Column C		Column D			Column E
Description	Balance at Beginning Of Period		Additions Charged to Costs and Expenses		Other (Deductions)/ Additions (A)			Balance At End Of Period
Allowance for doubtful accounts:
Year ended June 30, 2009	$	16,843	$	9,157	$	(6,185	)	$	19,815
Year ended June 30, 2010	$	19,815	$	1,871	$	(6,985	)	$	14,701
Year ended June 30, 2011	$	14,701	$	7,520	$	(11,749	)	$	10,472
Deferred tax asset valuation allowance:
Year ended June 30, 2009	$	78,631	$	34,122	$	130		$	112,883
Year ended June 30, 2010	$	112,883	$	22,970	$	(43,054	)	$	92,799
Year ended June 30, 2011	$	92,799	$	102,472	$	(2,367	)	$	192,904

(A) For allowance for doubtful accounts, net balance of deductions due to uncollectible accounts charged off and additions due to acquisitions or recoveries. For deferred tax asset valuation allowance, primarily represents adjustments due to acquisitions and net operating losses.

F-2

Exhibit Index

Exhibit No.	Description of Exhibit
	Articles of Incorporation and By-Laws:
(3)(a)	Amended Articles of Incorporation incorporated by reference to Exhibit 3 to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 1997 (Commission File No. 1-4982).
(3)(b)	Code of Regulations, as amended, incorporated by reference to Exhibit 3(ii) to the Registrant’s Report on Form 10-Q for the quarterly period ended December 31, 2007 (Commission File No. 1-4982).
	Instruments Defining Rights of Security Holders:
(4)(a)	Shareholder Protection Rights Agreement, dated as of February 8, 2007, between the Registrant and Wells Fargo Bank, N.A. (as successor to National City Bank), as Rights Agent, incorporated by reference to Exhibit 1 to the Registrant’s Form 8-A filed on February 8, 2007 (Commission File No. 1-4982).
	First Amendment to Shareholder Protection Rights Agreement, dated as of July 6, 2009, between the Registrant and Wells Fargo Bank, N.A. (as successor to National City Bank), as Rights Agent, incorporated by reference to Exhibit 4(a) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2009 (Commission File No. 1-4982).
	The Registrant is a party to other instruments, copies of which will be furnished to the Commission upon request, defining the rights of holders of its long-term debt identified in Note 9 of the Notes to Consolidated Financial Statements on pages 13-29 to 13-30 of Exhibit 13 hereto, which Note is incorporated herein by reference.
	Material Contracts:
(10)(a)	Form of Parker-Hannifin Corporation Amended and Restated Change in Control Severance Agreement entered into by the Registrant and executive officers incorporated by reference to Exhibit 10(a) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(b)	Parker-Hannifin Corporation Amended and Restated Change in Control Severance Plan incorporated by reference to Exhibit 10(b) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(c)	Form of Indemnification Agreement entered into by the Registrant and its directors and executive officers incorporated by reference to Exhibit 10(c) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2003 (Commission File No. 1-4982).

(10)(d)	Description of the Parker-Hannifin Corporation Officer Life Insurance Plan incorporated by reference to Exhibit 10(h) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2005 (Commission File No. 1-4982).
(10)(e)	Parker-Hannifin Corporation Amended and Restated Supplemental Executive Retirement Benefits Program incorporated by reference to Exhibit 10(a) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2009 (Commission File No. 1-4982).
(10)(f)	Amendment to Parker-Hannifin Corporation Amended and Restated Supplemental Executive Retirement Benefits Program, effective April 15, 2010, incorporated by reference to Exhibit 10.1 to the Registrant’s Report on Form 8-K filed with the Commission on April 21, 2010 (Commission File No. 1-4982).
(10)(g)	Amendment to Parker-Hannifin Corporation Amended and Restated Supplemental Executive Retirement Benefits Program, effective January 27, 2011, incorporated by reference to Exhibit 10(a) to the Registrant’s Report on Form 10-Q for the quarterly period ended March 31, 2011 (Commission File No. 1-4982).
(10)(h)	Form of Notice of Change to Long Term Disability Benefit and Tax Election Form for certain executive officers incorporated by reference to Exhibit 10(j) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2007 (Commission File No. 1-4982).
(10)(i)	Parker-Hannifin Corporation Amended and Restated 1993 Stock Incentive Program incorporated by reference to Exhibit 10(i) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2009 (Commission File No. 1-4982).
(10)(j)	Parker-Hannifin Corporation Amended and Restated 2003 Stock Incentive Plan incorporated by reference to Exhibit 10(b) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2010 (Commission File No. 1-4982).
(10)(k)	Parker-Hannifin Corporation Amended and Restated 2009 Omnibus Stock Incentive Plan incorporated by reference to Exhibit 10(c) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2010 (Commission File No. 1-4982).
(10)(l)	Parker-Hannifin Corporation Amended and Restated 2005 Performance Bonus Plan incorporated by reference to Exhibit 10(a) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2010(Commission File No. 1-4982).
(10)(m)	Parker-Hannifin Corporation 2010 Performance Bonus Plan incorporated by reference to Exhibit A to the Registrant’s Definitive Proxy Statement filed with the Commission on September 27, 2010 (Commission File No. 1-4982).
(10)(n)	Form of 2007 Notice of Grant of Stock Options with Tandem Stock Appreciation Rights for executive officers incorporated by reference to Exhibit 10.3 to the Registrant’s Report on Form 8-K filed with the Commission on August 22, 2006 (Commission File No. 1-4982).

(10)(o)	Form of 2008 Notice of Grant of Stock Options with Tandem Stock Appreciation Rights for executive officers incorporated by reference to Exhibit 10.1 to the Registrant’s Report on Form 8-K/A filed with the Commission on September 5, 2007 (Commission File No. 1-4982).
(10)(p)	Form of 2009 Notice of Stock Options Award with Tandem Stock Appreciation Rights for executive officers incorporated by reference to Exhibit 10(d) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(q)	Form of 2010 Notice of Stock Options with Tandem Stock Appreciation Rights for executive officers incorporated by reference to Exhibit 10(d) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2009 (Commission File No. 1-4982).
(10)(r)	Form of Parker-Hannifin Corporation Stock Appreciation Rights Award Agreement for executive officers incorporated by reference to Exhibit 10.2 to the Registrant’s Report on Form 8-K filed with the Commission on August 17, 2010 (Commission File No. 1-4982).
(10)(s)	Parker-Hannifin Corporation Stock Appreciation Rights Terms and Conditions for executive officers incorporated by reference to Exhibit 10.1 to the Registrant’s Report on Form 8-K filed with the Commission on August 17, 2010 (Commission File No. 1-4982).
(10)(t)	Form of Notice of FY10 Target Incentive Bonus Award incorporated by reference to Exhibit 10(a) to the Registrant’s Report on Form 10-Q for the quarterly period ended December 31, 2009 (Commission File No. 1-4982).
(10)(u)	Form of Notice of FY10 Target Incentive Bonus Award Under the Parker-Hannifin Corporation Performance Bonus Plan incorporated by reference to Exhibit 10(b) to the Registrant’s Report on Form 10-Q for the quarterly period ended December 31, 2009 (Commission File No. 1-4982).
(10)(v)	Parker-Hannifin Corporation Target Incentive Plan incorporated by reference to Exhibit 10(d) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2010 (Commission File No. 1-4982).
(10)(w)	Parker-Hannifin Corporation Target Incentive Plan Subject to Performance Bonus Plan incorporated by reference to Exhibit 10(e) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2010 (Commission File No. 1-4982).
(10)(x)	Form of 2008-09-10 Long Term Incentive Award Letter Under the Parker-Hannifin Corporation Performance Bonus Plan incorporated by reference to Exhibit 10.4 to the Registrant’s Report on Form 8-K/A filed with the Commission on September 5, 2007 (Commission File No. 1-4982).
(10)(y)	Form of Notice of 2009-10-11 Long Term Incentive Award Under the Parker-Hannifin Corporation Performance Bonus Plan incorporated by reference to Exhibit 10(f) to the

	Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(z)	Form of Notice of FY2010-11-12 Long Term Incentive Performance Award Under the Parker-Hannifin Corporation Performance Bonus Plan incorporated by reference to Exhibit 10(c) to the Registrant’s Report on Form 10-Q for the quarterly period ended December 31, 2009 (Commission File No. 1-4982).
(10)(aa)	Form of Notice of CY2010-11-12 Long Term Incentive Performance Award Under the Parker-Hannifin Corporation Performance Bonus Plan incorporated by reference to Exhibit 10(w) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2010 (Commission File No. 1-4982).
(10)(bb)	Parker-Hannifin Corporation Long-Term Incentive Performance Plan Under the Performance Bonus Plan incorporated by reference to Exhibit 10.1 to the Registrant’s Report on Form 8-K filed with the Commission on February 1, 2011 (Commission File No. 1-4982).
(10)(cc)	Form of Parker-Hannifin Corporation Long-Term Incentive Performance Award Under the Performance Bonus Plan incorporated by reference to Exhibit 10.2 to the Registrant’s Report on Form 8-K filed with the Commission on February 1, 2011 (Commission File No. 1-4982).
(10)(dd)	Terms and Conditions of Restricted Stock Issued as a Payout Under the LTI Plan incorporated by reference to Exhibit 10(i) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2010 (Commission File No. 1-4982).
(10)(ee)	Form of Notice of RONA Bonus Award Under the Parker-Hannifin Corporation Performance Bonus Plan incorporated by reference to Exhibit 10(h) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2009 (Commission File No. 1-4982).
(10)(ff)	Parker-Hannifin Corporation RONA Plan Subject to Performance Bonus Plan incorporated by reference to Exhibit 10(f) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2010 (Commission File No. 1-4982).
(10)(gg)	Parker-Hannifin Corporation Summary of RONA Bonus Awards in Lieu of Certain Executive Perquisites incorporated by reference to Exhibit 10(h) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(hh)	Parker-Hannifin Corporation Amended and Restated Savings Restoration Plan incorporated by reference to Exhibit 10(i) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(ii)	Parker-Hannifin Corporation Amended and Restated Pension Restoration Plan incorporated by reference to Exhibit 10(j) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).

(10)(jj)	Amendment to Parker-Hannifin Corporation Amended and Restated Pension Restoration Plan, effective January 1, 2010, incorporated by reference to Exhibit 10(bb) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2010 (Commission File No. 1-4982).
(10)(kk)	Amendment to Parker-Hannifin Corporation Amended and Restated Pension Restoration Plan, effective January 27, 2011, incorporated by reference to Exhibit 10(b) to the Registrant’s Report on Form 10-Q for the quarterly period ended March 31, 2011 (Commission File No. 1-4982).
(10)(ll)	Parker-Hannifin Corporation Amended and Restated Executive Deferral Plan incorporated by reference to Exhibit 10(k) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(mm)	Parker-Hannifin Corporation Volume Incentive Plan incorporated by reference to Exhibit 10.1 to the Registrant’s Report on Form 8-K filed with the Commission on August 18, 2009 (Commission File No. 1-4982).
(10)(nn)	Parker-Hannifin Corporation Claw-back Policy incorporated by reference to Exhibit 10.2 to the Registrant’s Report on Form 8-K filed with the Commission on August 18, 2009 (Commission File No. 1-4982).
(10)(oo)	Amended and Restated Parker-Hannifin Corporation Non-Employee Directors’ Stock Plan incorporated by reference to Exhibit 10(x) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2004 (Commission File No. 1-4982).
(10)(pp)	Parker-Hannifin Corporation Non-Employee Directors Stock Option Plan incorporated by reference to Exhibit 10(w) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2001 (Commission File No. 1-4982).
(10)(qq)	Parker-Hannifin Corporation Amended and Restated 2004 Non-Employee Directors’ Stock Incentive Plan incorporated by reference to Exhibit 10(aa) to the Registrant’s Report on Form 10-K for the fiscal year ended June 30, 2009 (Commission File No. 1-4982).
(10)(rr)	Form of 2008 Notice of Issuance of Restricted Stock for Non-Employee Directors incorporated by reference to Exhibit 10(c) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2007 (Commission File No. 1-4982).
(10)(ss)	Form of 2009 Notice of Issuance of Restricted Stock for Non-Employee Directors incorporated by reference to Exhibit 10(l) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(tt)	Form of 2010 Notice of Issuance of Restricted Stock for Non-Employee Directors incorporated by reference to Exhibit 10(i) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2009 (Commission File No. 1-4982).

(10)(uu)	Parker-Hannifin Corporation Non-Employee Directors’ Restricted Stock Award Agreement incorporated by reference to Exhibit 10(a) to the Registrant’s Report on Form 10-Q for the quarterly period ended December 31, 2010 (Commission File No. 1-4982).
(10)(vv)	Parker-Hannifin Corporation Non-Employee Directors’ Restricted Stock Terms and Conditions incorporated by reference to Exhibit 10(b) to the Registrant’s Report on Form 10-Q for the quarterly period ended December 31, 2010 (Commission File No. 1-4982).
(10)(ww)	Amended and Restated Deferred Compensation Plan for Directors of Parker-Hannifin Corporation incorporated by reference to Exhibit 10(m) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(xx)	Summary of the Compensation of the Non-Employee Members of the Board of Directors, effective October 1, 2008, incorporated by reference to Exhibit 10(n) to the Registrant’s Report on Form 10-Q for the quarterly period ended September 30, 2008 (Commission File No. 1-4982).
(10)(yy)	Summary of the Compensation of the Non-Employee Members of the Board of Directors, effective October 1, 2010, incorporated by reference to Exhibit 10(c) to the Registrant’s Report on Form 10-Q for the quarterly period ended December 31, 2010 (Commission File No. 1-4982).
(11)	Computation of Common Shares Outstanding and Earnings Per Share is incorporated by reference to Note 5 of the Notes to Consolidated Financial Statements on page 13-27 of Exhibit 13 hereto.*
(12)	Computation of Ratio of Earnings to Fixed Charges as of June 30, 2011.*
(13)	Excerpts from Annual Report to Shareholders for the fiscal year ended June 30, 2011 which are incorporated herein by reference thereto.*
(21)	List of subsidiaries of the Registrant.*
(23)	Consent of Independent Registered Public Accounting Firm.*
(24)	Power of Attorney.*
(31)(i)(a)	Certification of the Principal Executive Officer Pursuant to 17 CFR 240.13a-14(a), as Adopted Pursuant to §302 of the Sarbanes-Oxley Act of 2002.*
(31)(i)(b)	Certification of the Principal Financial Officer Pursuant to 17 CFR 240.13a-14(a), as Adopted Pursuant to §302 of the Sarbanes-Oxley Act of 2002.*
(32)	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to §906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document.*

101.SCH	XBRL Taxonomy Extension Schema Document.*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.*

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statement of Income for the years ended June 30, 2011, 2010 and 2009, (ii) Consolidated Balance Sheet at June 30, 2011 and 2010, (iii) Consolidated Statement of Cash Flows for the years ended June 30, 2011, 2010 and 2009, (iv) Consolidated Statement of Equity for the years ended June 30, 2011, 2010 and 2009, and (v) Notes to Consolidated Financial Statements for the year ended June 30, 2011.

In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Annual Report on Form 10-K shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Shareholders may request a copy of any of the exhibits to this Annual Report on Form 10-K by writing to the Secretary, Parker-Hannifin Corporation, 6035 Parkland Boulevard, Cleveland, Ohio 44124-4141.

EX-12

Exhibit (12) to Report

on Form 10-K for Fiscal

Year Ended June 30, 2011

By Parker-Hannifin Corporation

Computation of Ratio of Earnings to Fixed Charges

(In thousands, except ratios)

	Fiscal Year Ended June 30,
	2011		2010		2009			2008		2007
EARNINGS
Income from continuing operations before income taxes and noncontrolling interests	$	1,413,721	$	754,817	$	683,083		$	1,334,571	$	1,166,463
Adjustments:
Interest on indebtedness, exclusive of interest capitalized and interest on ESOP loan guarantee		97,009		101,173		109,911			96,572		80,053
Amortization of deferred loan costs		2,695		2,426		2,143			1,793		1,511
Portion of rents representative of interest factor		39,499		41,194		41,839			35,378		29,000
Loss (income) of equity investees		2,592		6,757		(1,529	)		2,596		1,059
Amortization of previously capitalized interest		226		259		262			278		282
Income as adjusted	$	1,555,742	$	906,626	$	835,709		$	1,471,188	$	1,278,368
FIXED CHARGES
Interest on indebtedness, exclusive of interest capitalized and interest on ESOP loan guarantee	$	97,009	$	101,173	$	109,911		$	96,572	$	80,053
Capitalized interest											436
Amortization of deferred loan costs		2,695		2,426		2,143			1,793		1,511
Portion of rents representative of interest factor		39,499		41,194		41,839			35,378		29,000
Fixed charges	$	139,203	$	144,793	$	153,893		$	133,743	$	111,000
RATIO OF EARNINGS TO FIXED CHARGES		11.18x		6.26x		5.43x			11.00x		11.52x

EX-13

Exhibit (13) to Report

On Form 10-K for Fiscal

Year Ended June 30, 2011

By Parker-Hannifin Corporation

Forward-Looking Statements

Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. All statements regarding future performance, earnings projections, events or developments are forward-looking statements. It is possible that the future performance and earnings projections of the Company, including its individual segments, may differ materially from current expectations, depending on economic conditions within its mobile, industrial and aerospace markets, and the Company’s ability to maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, actions taken to combat the effects of the current economic environment, and growth, innovation and global diversification initiatives. A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance.

Among other factors which may affect future performance are:

• changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments, disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs, and changes in product mix,

• uncertainties surrounding timing, successful completion or integration of acquisitions,

• ability to realize anticipated costs savings from business realignment activities,

• threats associated with and efforts to combat terrorism,

• uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals,

• competitive market conditions and resulting effects on sales and pricing,

• increases in raw material costs that cannot be recovered in product pricing,

• the Company’s ability to manage costs related to insurance and employee retirement and health care benefits, and

• global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability.

The Company makes these statements as of the date of the filing of its Annual Report on Form 10-K for the year ended June 30, 2011, and undertakes no obligation to update them unless otherwise required by law.

13 - 1

MANAGEMENT’S DISCUSSION AND ANALYSIS

Overview

The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets.

The Company’s order rates provide a near-term perspective of the Company’s outlook particularly when viewed in the context of prior and future order rates. The Company publishes its order rates on a quarterly basis. The lead time between the time an order is received and revenue is realized generally ranges from one day to 12 weeks for mobile and industrial orders and from one day to 18 months for aerospace orders. The Company believes the leading economic indicators of these markets that have a correlation to the Company’s future order rates are as follows:

• Purchasing Managers Index (PMI) on manufacturing activity specific to regions around the world with respect to most mobile and industrial markets;

• Global aircraft miles flown and global revenue passenger miles for commercial aerospace markets and U.S. Department of Defense spending for military aerospace markets; and

• Housing starts with respect to the North American residential air conditioning market and certain mobile construction markets.

A PMI above 50 indicates that the manufacturing activity specific to a region around the world in the mobile and industrial markets is expanding. A PMI below 50 indicates the opposite. The PMI at the end of fiscal 2011 for the United States, the Eurozone countries and China was 55.3, 52.0 and 50.1, respectively. The PMI for the United States, the Eurozone countries and China all sequentially increased during fiscal 2011 but by the end of fiscal 2011 their levels have fallen either equivalent to or below their June 2010 levels.

Global aircraft miles flown increased six percent from the comparable 2010 level and global average revenue passenger miles increased five percent from the comparable 2010 level. The Company anticipates that U.S. Department of Defense spending with regards to appropriations, and operations and maintenance for the U.S. Government’s fiscal year 2011 will be about one percent lower than the comparable fiscal 2010 level and fiscal year 2012 spending is projected to be about three percent higher than the fiscal 2011 spending.

Housing starts in June 2011 were approximately 17 percent higher than housing starts in June 2010 and were approximately 15 percent higher than housing starts in March 2011.

The Company has remained focused on maintaining its financial strength by adjusting its cost structure to reflect changing demand levels, maintaining a strong balance sheet and managing its cash. The Company continues to generate substantial cash flows from operations, has controlled capital spending and has proactively managed working capital. The Company has been able to borrow needed funds at favorable interest rates and has a debt to debt-shareholders’ equity ratio of 24.7 percent at June 30, 2011 compared to 28.9 percent at June 30, 2010.

The Company believes many opportunities for growth are available. The Company intends to focus primarily on business opportunities in the areas of energy, water, agriculture, environment, defense, life sciences, infrastructure and transportation.

13 - 2

The Company believes it can meet its strategic objectives by:

• Serving the customer and empowering its employees;

• Successfully executing its Win Strategy initiatives relating to premier customer service, financial performance and profitable growth;

• Engineering innovative systems and products to provide superior customer value through improved service, efficiency and productivity;

• Delivering products, systems and services that have demonstrable savings to customers and are priced by the value they deliver;

• Acquiring strategic businesses; and

• Organizing the Company around targeted regions, technologies and markets.

The Company completed three acquisitions during fiscal 2011. Acquisitions will continue to be considered from time to time to the extent there is a strong strategic fit, while at the same time, maintaining the Company’s strong financial position. The Company will also continue to assess the strategic fit of its existing businesses and initiate efforts to divest businesses that are not considered to be a good long-term fit for the Company. Future business divestitures could have a negative effect on the Company’s results of operations.

The discussion below is structured to separately discuss each of the financial statements presented on pages 13-15 to 13-19. All year references are to fiscal years.

Discussion of Consolidated Statement of Income

The Consolidated Statement of Income summarizes the Company’s operating performance over the last three fiscal years.

(millions)	2011			2010			2009
Net sales	$	12,346		$	9,993		$	10,309
Gross profit margin		24.0	%		21.5	%		20.6	%
Selling, general and administrative expenses	$	1,468		$	1,277		$	1,290
Selling, general and administrative expenses, as a percent of sales		11.9	%		12.8	%		12.5	%
Interest expense	$	100		$	104		$	112
Other (income) expense, net		(15	)					42
(Gain) loss on disposal of assets		(8	)		10
Effective tax rate		25.2	%		26.3	%		25.3	%
Net income attributable to common shareholders	$	1,049		$	554		$	509

Net sales in 2011 were 23.5 percent higher than 2010. The increase in sales in 2011 primarily reflects higher volume in all segments with the largest increase occurring in the Industrial Segment. Acquisitions made in the last 12 months contributed approximately $54 million in sales in 2011. The effect of currency rate changes increased net sales in 2011 by approximately $205 million.

13 - 3

During 2011, worldwide economic conditions improved and the Company experienced an increase in demand for its products in the Industrial and Climate & Industrial Controls Segments. Business conditions in the Aerospace Segment also improved as commercial airlines increased their capacity and revenue passenger miles increased.

Net sales in 2010 were 3.1 percent lower than 2009. The decline in sales in 2010 primarily reflects lower volume in all segments except for the Climate & Industrial Controls Segment. Acquisitions did not make a material contribution to the sales level in 2010. The effect of currency rate changes increased net sales in 2010 by approximately $126 million.

Gross profit margin increased in 2011 primarily due to a combination of higher sales volume, resulting in manufacturing efficiencies, as well as lower business realignment expenses recorded in the current year as compared to the prior year. Gross profit margin was higher in 2010 primarily due to cost reduction initiatives and the benefits of past business realignment activities. Included in gross profit in 2011, 2010 and 2009 were business realignment charges of $15.3 million, $43.0 million and $41.0 million, respectively.

Selling, general and administrative expenses increased 14.9 percent in 2011 and decreased 1.0 percent in 2010. The increase in 2011 was primarily due to the higher sales volume as well as higher incentive compensation as compared to 2010. The decrease in 2010 was primarily due to the lower sales volume, savings resulting from business realignment activities and lower professional fees, partially offset by higher expenses related to employee benefits plans and contributions to the Company’s charitable foundation.

Interest expense in 2011 decreased primarily due to lower average debt outstanding as well as the debt portfolio in the current year having a lower average interest rate than the debt portfolio in the prior year. Interest expense in 2010 decreased primarily due to lower average debt outstanding as well as lower interest rates on commercial paper borrowings.

Other (income) expense, net in 2011 included $10.9 million of income related to insurance recoveries. Other (income) expense, net in 2009 included $37.4 million of expense related to litigation settlements and $13.8 million of expense related to investment writedowns.

(Gain) loss on disposal of assets in 2011 includes income of $3.8 million related to insurance recoveries for expenses incurred related to a previously divested business, $3.8 million of expense related to asset writedowns and $7.5 million of gains from asset sales. (Gain) loss on disposal of assets in 2010 included a loss of $4.8 million resulting from the divestiture of a business. (Gain) loss on disposal of assets in 2009 included income of $11.6 million from insurance recoveries for expenses incurred related to a previously divested business, $7.2 million of expense related to asset writedowns and $3.7 million of losses from asset sales.

Effective tax rate in 2011 was lower primarily due to favorable foreign tax rate differences as well as higher research and development tax credits. Effective tax rate in 2010 was slightly higher primarily due to higher taxable income in certain foreign jurisdictions and lower research and development tax credits.

13 - 4

Discussion of Business Segment Information

The Business Segment information presents sales, operating income and assets on a basis that is consistent with the manner in which the Company’s various businesses are managed for internal review and decision-making. See Note 1 to the Consolidated Financial Statements for a description of the Company’s reportable business segments.

Industrial Segment (millions)

	2011			2010			2009
Sales
North America	$	4,517		$	3,624		$	3,735
International		4,917			3,811			3,896
Operating income
North America		746			487			395
International		754			394			351
Operating income as a percent of sales
North America		16.5	%		13.4	%		10.6	%
International		15.3	%		10.3	%		9.0	%
Backlog	$	1,907		$	1,505		$	1,200
Assets		8,414			7,310			7,540
Return on average assets		19.1	%		11.9	%		9.5	%

Sales in 2011 for the Industrial North American operations increased 24.6 percent compared to a decrease of 3.0 percent from 2009 to 2010. The increase in sales in 2011 reflects higher demand from distributors and higher end-user demand in a number of markets, particularly in the construction equipment, heavy-duty truck, mining, farm and agriculture equipment, and machine tools markets. The decrease in sales in 2010 was primarily due to lower demand experienced during the first half of 2010 from distributors as well as lower end-user demand in several markets, particularly the construction equipment, oil and gas, farm and agriculture equipment, and machine tools markets. An increase in volume in the semiconductor and automotive markets helped to mitigate the overall sales decline in 2010.

Sales in the Industrial International operations increased 29.0 percent in 2011 following a decrease of 2.2 percent from 2009 to 2010. The sales increase in 2011 is primarily attributable to higher volume across most markets in all regions with the largest increase in volume experienced in Europe and Asia Pacific. The sales decrease in 2010 was primarily due to lower sales volume across most markets in Europe, partially offset by an increase in volume experienced in the Asia Pacific region and in Latin America.

Margins in the Industrial North American and Industrial International businesses were higher for the current year primarily due to the higher sales volume resulting in manufacturing efficiencies, and a lower fixed cost structure resulting from past business realignment actions, including the incurrence of severance costs related to plant closures and general reductions in the work force. The higher Industrial North American and Industrial International operating margins in 2010 were primarily due to the benefits from cost control measures and past business realignment activities.

Included in Industrial North American operating income in 2011, 2010 and 2009 are business realignment charges of $4.2 million, $11.6 million and $10.4 million, respectively. Included in Industrial International operating income in 2011, 2010 and 2009 are business realignment expenses of $11.3 million, $32.4 million and $23.3 million, respectively. The business realignment expenses consist primarily of severance costs resulting from plant closures as well as general reductions in the work force. The Company does not anticipate that cost savings realized from the work force reductions taken in the Industrial Segment during 2011 will have a material impact on future operating margins. The Company expects to continue to take actions necessary to structure appropriately the operations of the Industrial Segment. Such actions may include the necessity to record business realignment charges in 2012.

13 - 5

The Company anticipates Industrial North American sales for 2012 will increase between 4.2 percent and 8.2 percent from the 2011 level and Industrial International sales for 2012 will increase between 8.6 percent and 12.6 percent from the 2011 level. Industrial North American operating margins in 2012 are expected to range from 16.5 percent to 17.1 percent and Industrial International margins are expected to range from 15.2 percent to 15.8 percent.

The increase in total Industrial Segment backlog in 2011 is primarily due to higher order rates in most markets in both the Industrial North American and Industrial International businesses with almost three-fourths of the increase occurring in the Industrial International businesses. The increase in total Industrial Segment backlog in 2010 was primarily due to higher order rates experienced across virtually all Industrial North American and Industrial International businesses, particularly in the Asia Pacific region.

The increase in assets in 2011 was primarily due to the effect of currency fluctuations as well as increases in accounts receivable, net, inventory and cash and cash equivalents, partially offset by a decrease in plant and equipment, net and intangible assets, net. The decrease in assets in 2010 was primarily due to the effect of currency fluctuations as well as decreases in plant and equipment, net, intangible assets, net and inventory, partially offset by an increase in accounts receivable, net, and cash and cash equivalents.

Aerospace Segment (millions)

	2011			2010			2009
Sales	$	1,922		$	1,744		$	1,883
Operating income		247			208			262
Operating income as a percent of sales		12.9	%		11.9	%		13.9	%
Backlog	$	1,702		$	1,474		$	1,559
Assets		995			911			915
Return on average assets		25.9	%		22.8	%		28.5	%

Sales in 2011 increased 10.2 percent compared to a decrease of 7.4 percent from 2009 to 2010. The increase in net sales in 2011 is primarily due to higher volume in both the commercial original equipment manufacturer (OEM) and aftermarket businesses partially offset by lower volume in the military OEM business. The decrease in sales in 2010 was primarily due to significantly lower commercial OEM volume and lower commercial aftermarket volume, partially offset by higher military OEM and aftermarket volume.

The higher margins in 2011 were primarily due to the higher sales volume particularly in the higher margin commercial aftermarket business, partially offset by higher engineering development costs. In 2011, margins were favorably impacted by the effect of retroactive billings and contract reserve adjustments resulting from the finalization of contract price negotiations related to certain programs. The lower margins in 2010 were primarily due to the lower commercial OEM and aftermarket volume and higher engineering development costs, partially offset by the higher military aftermarket volume and lower operating costs.

The increase in backlog in 2011 is primarily due to higher order rates in both the commercial OEM and aftermarket businesses as well as the military OEM business. The decrease in backlog in 2010 was primarily due to shipments exceeding new order rates primarily in the military OEM business.

For 2012, sales are expected to increase between 3.0 percent and 6.0 percent from the 2011 level and operating margins are expected to range from 13.0 percent to 13.3 percent. A higher concentration of commercial OEM volume in future product mix and higher than expected new product development costs could result in lower margins.

The increase in assets in 2011 was primarily due to an increase in accounts receivable, net and inventory. The slight decrease in assets in 2010 was primarily due to a decrease in inventory, partially offset by an increase in intangible assets, net and assets from an acquisition.

13 - 6

Climate & Industrial Controls Segment (millions)

	2011			2010			2009
Sales	$	990		$	814		$	795
Operating income (loss)		76			53			(4	)
Operating income (loss) as a percent of sales		7.7	%		6.6	%		(0.5	)%
Backlog	$	171		$	162		$	127
Assets		725			693			691
Return on average assets		10.7	%		7.7	%		(0.5	)%

Sales in 2011 increased 21.7 percent compared to a 2.4 percent increase in sales from 2009 to 2010. The increase in sales in 2011 is primarily due to higher end-user demand in the heavy-duty truck, automotive and commercial refrigeration markets. The increase in sales in 2010 was primarily due to increased volume in the automotive market and higher demand for air conditioning and refrigeration products. Margins in 2011 were higher primarily due to the higher sales volume, favorable product mix and benefits from past business realignment actions, including plant closures, but were adversely affected by higher material costs as well as operating inefficiencies, which primarily include overtime and premium freight. The higher margins in 2010 were primarily due to the benefits of cost control measures and past business realignment actions. Margins in 2010 also benefited from the higher sales volume.

Included in operating income are business realignment charges in 2010 and 2009 of $3.9 million and $9.7 million, respectively. The business realignment charges primarily related to severance costs resulting from plant closures. The Company expects to continue to take actions necessary to structure appropriately the operations of the Climate & Industrial Controls Segment. Such actions may include the necessity to record business realignment charges in 2012.

The Company anticipates sales in 2012 will increase between 3.6 percent and 7.6 percent from the 2011 level and operating margins are expected to range from 8.8 percent to 9.3 percent.

The increase in assets in 2011 was primarily due to the effect of currency fluctuations. The slight increase in assets in 2010 was primarily due to an increase in accounts receivable, net being mostly offset by decreases in intangible assets, net, plant and equipment, net and inventory.

Corporate assets decreased 24.5 percent in 2011 compared to an increase of 40.5 percent from 2009 to 2010. The decrease in 2011 was primarily due to a decrease in cash and cash equivalents and deferred taxes. The increase in 2010 was primarily due to an increase in cash and cash equivalents.

13 - 7

Discussion of Consolidated Balance Sheet

The Consolidated Balance Sheet shows the Company’s financial position at year-end, compared with the previous year-end. This discussion provides information to assist in assessing factors such as the Company’s liquidity and financial resources.

(millions)	2011		2010
Accounts receivable, net	$	1,978	$	1,600
Inventories		1,412		1,172
Plant and equipment, net		1,797		1,698
Goodwill		3,009		2,786
Intangible assets, net		1,178		1,150
Notes payable		75		363
Accounts payable, trade		1,174		889
Accrued payrolls and other compensation		467		371
Other liabilities		293		196
Shareholders’ equity		5,384		4,368
Working capital	$	1,914	$	1,384
Current ratio		1.80		1.63

Accounts receivable, net are primarily receivables due from customers for sales of product ($1,770 million at June 30, 2011 and $1,443 million at June 30, 2010). Accounts receivable increased in conjunction with higher sales in the fourth quarter of 2011 compared to the fourth quarter of 2010. Days sales outstanding relating to trade receivables for the Company was 48 days in 2011 and 2010. The Company believes that its receivables are collectible and appropriate allowances for doubtful accounts have been recorded.

Inventories increased primarily in response to positive order trends and higher raw material costs. Days’ supply of inventory on hand was 55 days in 2011 compared to 58 days in 2010.

Plant and equipment, net increased primarily due to a higher level of capital expenditures in 2011 as compared to 2010.

Goodwill increased primarily as a result of foreign currency translation adjustments. The change in this amount is explained further in Note 7 to the Consolidated Financial Statements.

Intangible assets, net consist primarily of patents, trademarks and customer lists. The change in this amount is explained further in Note 7 to the Consolidated Financial Statements.

Notes payable decreased primarily due to the $257 million payment of the 3.5 percent Euro bonds which matured in November 2010.

Accounts payable, trade increased primarily due to increased production levels and the timing of purchases and payments. Days payable outstanding increased to 41 days in 2011 from 35 days in 2010.

Accrued payrolls and other compensation increased primarily due to higher incentive compensation accruals.

Other liabilities increased primarily due to cross-currency swap contracts the Company entered into during 2011 relating to the issuance of medium-term notes, in anticipation of the repayment of its Euro bonds which matured in November 2010.

Shareholders’ equity included an increase of $503.8 million related to foreign currency translation adjustments which primarily affected Accounts receivable, net, Inventories, Plant and equipment, net, Goodwill, Intangible assets, net, Accounts payable, trade, Accrued payrolls and other compensation, Long-term debt and Other liabilities.

13 - 8

Discussion of Consolidated Statement of Cash Flows

The Consolidated Statement of Cash Flows reflects cash inflows and outflows from the Company’s operating, investing and financing activities.

A summary of cash flows follows:

(millions)	2011			2010			2009
Cash provided by (used in):
Operating activities	$	1,167		$	1,219		$	1,129
Investing activities		(245	)		(146	)		(961	)
Financing activities		(916	)		(650	)		(274	)
Effect of exchange rates		76			(35	)		(32	)
Net increase (decrease) in cash and cash equivalents	$	82		$	388		$	(138	)

Cash Flows From Operating Activities decreased from 2010 primarily due to voluntary contributions to the Company’s domestic qualified defined benefit plans of $400 million in 2011 compared to $100 million in 2010. An increase in Net income in 2011 was offset by a higher amount of cash used for working capital needs, particularly Inventory. The Company continues to focus on managing its inventory and other working capital requirements.

Cash Flows Used In Investing Activities increased from 2010 as economic uncertainties in the prior year resulted in the Company reducing its acquisition activity and closely managing capital expenditures. The Company completed three acquisitions in 2011. Refer to Note 2 of the Consolidated Financial Statements for a summary of net assets of acquired companies. Capital expenditures, as a percent of sales, increased to 1.7 percent in 2011 as compared to 1.3 percent in the prior year.

Cash Flows From Financing Activities in 2011 included the issuance of $300 million aggregate principal amount of medium-term notes and a payment of approximately $257 million related to the Euro bonds which matured in November 2010. The Company’s share repurchase activity in 2011 was significantly higher than the share repurchase activity in 2010.

Dividends have been paid for 244 consecutive quarters, including a yearly increase in dividends for the last 55 fiscal years. The current annual dividend rate is $1.48.

The Company’s goal is to maintain no less than an “A” rating on senior debt to ensure availability and reasonable cost of external funds. As one means of achieving this objective, the Company has established a financial goal of maintaining a ratio of debt to debt-shareholders’ equity of no more than 37 percent.

Debt to Debt-Shareholders’ Equity Ratio (dollars in millions)	2011			2010
Debt	$	1,766		$	1,777
Debt & Shareholders’ Equity		7,150			6,145
Ratio		24.7	%		28.9	%

As of June 30, 2011, the Company has a line of credit totaling $1,500 million through a multi-currency revolving credit agreement with a group of banks, all of which was available at June 30, 2011. The credit agreement expires in March 2016; however, the Company has the right to request a one-year extension of the expiration date on an annual basis, which request may result in changes to the current terms and conditions of the credit agreement. A portion of the credit agreement supports the Company’s commercial paper note program, which is rated A-1 by Standard & Poor’s, P-1 by Moody’s and F-1 by Fitch Ratings. These ratings are considered investment grade. The revolving credit agreement requires the payment of an annual facility fee, the amount of which would increase in the event the Company’s credit ratings are lowered. Although a lowering of the Company’s credit ratings would likely increase the cost of future debt, it would not limit the Company’s ability to use the credit agreement nor would it accelerate the repayment of any outstanding borrowings.

13 - 9

The Company is currently authorized to sell up to $1,350 million of short-term commercial paper notes. No commercial paper notes were outstanding as of June 30, 2011 and the largest amount of commercial paper outstanding during the last quarter of fiscal 2011 was $185 million.

The Company’s credit agreements and indentures governing certain debt agreements contain various covenants, the violation of which would limit or preclude the use of the credit agreements for future borrowings, or might accelerate the maturity of the related outstanding borrowings covered by the indentures. At the Company’s present rating level, the most restrictive financial covenant provides that the ratio of secured debt to net tangible assets be less than 10 percent. However, the Company currently does not have secured debt in its debt portfolio. The Company is in compliance with all covenants and expects to remain in compliance during the term of the credit agreements and indentures.

The Company’s principal sources of liquidity are its cash flows provided from operating activities and borrowings either from or directly supported by its line of credit. The Company’s ability to borrow has not been affected by a lack of general credit availability and the Company does not foresee any impediments to borrow funds at favorable interest rates in the near future. The Company expects that its ability to generate cash from its operations and ability to borrow directly from its line of credit or sources directly supported by its line of credit should be sufficient to support working capital needs, planned growth, benefit plan funding, dividend payments and share repurchases in the near term.

Contractual Obligations - The total amount of gross unrecognized tax benefits, including interest, for uncertain tax positions was $92.5 million at June 30, 2011. Payment of these obligations would result from settlements with worldwide taxing authorities. Due to the difficulty in determining the timing of the settlements, these obligations are not included in the following summary of the Company’s fixed contractual obligations. References to Notes are to the Notes to the Consolidated Financial Statements.

(In thousands)	Payments due by period
Contractual obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Long-term debt (Note 9)	$	1,766,357	$	75,271	$	225,673	$	290,354	$	1,175,059
Interest on long-term debt		485,266		62,756		110,449		96,129		215,932
Operating leases (Note 9)		295,369		83,688		94,493		44,200		72,988
Retirement benefits (Note 10)		123,412		72,686		11,780		11,847		27,099
Total	$	2,670,404	$	294,401	$	442,395	$	442,530	$	1,491,078

13 - 10

Quantitative and Qualitative Disclosures About Market Risk

The Company manages foreign currency transaction and translation risk by utilizing derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign denominated debt designated as net investment hedges. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not hold or issue derivative financial instruments for trading purposes.

Derivative financial instruments are recognized on the balance sheet as either assets or liabilities and are measured at fair value. Further information on the fair value of these contracts is provided in Notes 15 and 16 to the Consolidated Financial Statements. Gains or losses on derivatives that are not hedges are adjusted to fair value through the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through accumulated other comprehensive income (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings. The translation of the foreign denominated debt that has been designated as a net investment hedge is recorded in accumulated other comprehensive income (loss) and remains there until the underlying net investment is sold or substantially liquidated.

The Company’s debt portfolio contains variable rate debt, inherently exposing the Company to interest rate risk. The Company’s objective is to maintain a 60/40 mix between fixed rate and variable rate debt thereby limiting its exposure to changes in near-term interest rates. A 100 basis point increase in near-term interest rates would increase annual interest expense on variable rate debt by approximately $1.6 million.

Off-Balance Sheet Arrangements

The Company does not have off-balance sheet arrangements.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The policies discussed below are considered by management to be more critical than other policies because their application places the most significant demands on management’s judgment.

Revenue Recognition – Substantially all of the Industrial Segment and Climate & Industrial Controls Segment revenues are recognized when the risks and rewards of ownership and title to the product have transferred to the customer. This generally takes place at the time the product is shipped. The Aerospace Segment uses the percentage of completion method and the extent of progress toward completion is primarily measured using the units-of-delivery method. The percentage of completion method requires the use of estimates of costs to complete long-term contracts and for some contracts includes estimating costs related to aftermarket orders. The estimation of these costs requires substantial judgment on the part of management due to the duration of the contracts as well as the technical nature of the products involved. Adjustments to cost estimates are made on a consistent basis and a contract reserve is established when the costs to complete a contract exceed the contract revenues.

13 - 11

Impairment of Goodwill and Long-lived Assets – Goodwill is tested for impairment, at the reporting unit level, on an annual basis and between annual tests whenever events or circumstances indicate that the carrying value of a reporting unit may exceed its fair value. For the Company, a reporting unit is one level below the operating segment level. Determining whether an impairment has occurred requires the valuation of the respective reporting unit, which the Company has consistently estimated using primarily a discounted cash flow model. The Company believes that the use of a discounted cash flow model results in the most accurate calculation of a reporting unit’s fair value since the market value for a reporting unit is not readily available. The discounted cash flow analysis requires several assumptions including future sales growth and operating margin levels as well as assumptions regarding future industry specific market conditions. Each reporting unit regularly prepares discrete operating forecasts and uses these forecasts as the basis for the assumptions used in the discounted cash flow analyses. The Company has consistently used a discount rate commensurate with its cost of capital, adjusted for inherent business risks, and has consistently used a terminal growth factor of 2.5 percent. The Company also reconciles the estimated aggregate fair value of its reporting units as derived from the discounted cash flow analyses to the Company’s overall market capitalization.

The results of the Company’s fiscal 2011 annual goodwill impairment test performed as of December 31, 2010 indicated that no goodwill impairment existed. However, the following reporting units had an estimated fair value that the Company determined, from a quantitative and qualitative perspective, was not significantly in excess of its carrying value (dollars in millions):

Reporting Unit	Goodwill Balance		Fair Value In Excess of Carrying Value
Medical Systems	$	103.7		109	%
Worldwide Energy Products		196.0		114	%

Both of these reporting units are part of the Industrial Segment. For each of these reporting units, the sales growth assumption had the most significant influence on the estimation of fair value.

The sales growth assumption for Medical Systems was primarily based on market data specific to the products this reporting unit currently manufactures as well as securing business with new customers. The key uncertainty in the sales growth assumption used in the estimation of fair value of this reporting unit is the ability to secure business with new customers.

The sales growth assumption for Worldwide Energy Products was based on future business already secured or highly likely to be secured with existing customers based on current quoting activity and forecasted market demand for the oil and gas industry as well as the expanded applicability of the Company’s product based on market trends. The key uncertainty in the sales growth assumption used in the estimation of fair value of this reporting unit is the growth of the oil and gas market and the level of investments customers will make to improve the productivity and efficiency of their capital equipment.

13 - 12

The Company continually monitors its reporting units for impairment indicators and updates assumptions used in the most recent calculation of the fair value of a reporting unit as appropriate. The Company is unaware of any current market trends that are contrary to the assumptions made in the estimation of the fair value of any of its reporting units. If the recovery of the current economic environment is not consistent with the Company’s current expectations, it is possible that the estimated fair value of certain reporting units could fall below their carrying value resulting in the necessity to conduct additional goodwill impairment tests.

Long-lived assets held for use, which primarily includes finite lived intangible assets and property, plant and equipment, 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 are less than their carrying value. The long-term nature of these assets requires the estimation of their cash inflows and outflows several years into the future and only takes into consideration technological advances known at the time of the impairment test. During 2011, there were no events or circumstances that indicated that the carrying value of the Company’s long-lived assets held for use were not recoverable.

Inventories – Inventories are valued at the lower of cost or market. Cost is determined on the last-in, first-out basis for a majority of domestic inventories and on the first-in, first-out basis for the balance of the Company’s inventories. Inventories have been reduced by an allowance for obsolete inventories. The estimated allowance is based on management’s review of inventories on hand compared to estimated future usage and sales. Changes in the allowance have not had a material effect on the Company’s results of operations, financial position or cash flows.

Pensions and Postretirement Benefits Other Than Pensions – The annual net periodic expense and benefit obligations related to the Company’s defined benefit plans are determined on an actuarial basis. This determination requires critical assumptions regarding the discount rate, long-term rate of return on plan assets, increases in compensation levels, amortization periods for actuarial gains and losses and health care cost trends.

Assumptions are determined based on Company data and appropriate market indicators, and are evaluated each year as of the plans’ measurement date. Changes in the assumptions to reflect actual experience as well as the amortization of actuarial gains and losses could result in a material change in the annual net periodic expense and benefit obligations reported in the financial statements. For the Company’s domestic defined benefit plans, a 25 basis point change in the assumed long-term rate of return on plan assets is estimated to have a $5.0 million effect on pension expense and a 25 basis point decrease in the discount rate is estimated to increase pension expense by $10.0 million. As of June 30, 2011, $934 million of past years’ net actuarial losses related to the Company’s domestic qualified defined benefit plans are subject to amortization in the future. These losses will generally be amortized over approximately 10 years and will negatively affect earnings in the future. Actuarial gains experienced in future years will help reduce the effect of the actuarial loss amortization.

Further information on pensions and postretirement benefits other than pensions is provided in Note 10 to the Consolidated Financial Statements.

13 - 13

Stock-Based Compensation – The computation of the expense associated with stock-based compensation requires the use of a valuation model. The Company currently uses a Black-Scholes option pricing model to calculate the fair value of its stock options and stock appreciation rights. The Black-Scholes model requires assumptions regarding the volatility of the Company’s stock, the expected life of the stock award and the Company’s dividend ratio. The Company primarily uses historical data to determine the assumptions to be used in the Black-Scholes model and has no reason to believe that future data is likely to differ materially from historical data. However, changes in the assumptions to reflect future stock price volatility, future dividend payments and future stock award exercise experience could result in a change in the assumptions used to value awards in the future and may result in a material change to the fair value calculation of stock-based awards. Further information on stock-based compensation is provided in Note 12 to the Consolidated Financial Statements.

Income Taxes – Significant judgment is required in determining the Company’s income tax expense and in evaluating tax positions. Deferred income tax assets and liabilities have been recorded for the differences between the financial accounting and income tax basis of assets and liabilities. Factors considered by the Company in determining the probability of realizing deferred income tax assets include forecasted operating earnings, available tax planning strategies and the time period over which the temporary differences will reverse. The Company reviews its tax positions on a regular basis and adjusts the balances as new information becomes available. Further information on income taxes is provided in Note 4 to the Consolidated Financial Statements.

Other Loss Reserves – The Company has a number of loss exposures incurred in the ordinary course of business such as environmental claims, product liability, litigation and accounts receivable reserves. Establishing loss reserves for these matters requires management’s estimate and judgment with regards to risk exposure and ultimate liability or realization. These loss reserves are reviewed periodically and adjustments are made to reflect the most recent facts and circumstances.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (FASB) issued new accounting guidance to improve consistency with fair value measurement and disclosure requirements. This guidance is effective for interim and annual periods beginning after December 15, 2011. The Company has not yet determined the effect, if any, that this new guidance will have on its fair value disclosures.

In June 2011, the FASB issued new accounting guidance requiring an entity to present net income and other comprehensive income (OCI) in either a single continuous statement or in separate consecutive statements. The guidance does not change the items reported in OCI or when an item of OCI must be reclassified to net income. The guidance, which must be presented retroactively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.

13 - 14

Consolidated Statement of Income

	For the years ended June 30,
(Dollars in thousands, except per share amounts)	2011			2010		2009
Net Sales	$	12,345,870		$	9,993,166	$	10,309,015
Cost of sales		9,387,457			7,847,067		8,181,348
Gross profit		2,958,413			2,146,099		2,127,667
Selling, general and administrative expenses		1,467,773			1,277,080		1,290,379
Interest expense		99,704			103,599		112,071
Other (income) expense, net		(15,075	)		311		42,470
(Gain) loss on disposal of assets		(7,710	)		10,292		(336	)
Income before income taxes		1,413,721			754,817		683,083
Income taxes (Note 4)		356,571			198,452		172,939
Net Income		1,057,150			556,365		510,144
Less: Noncontrolling interest in subsidiaries’ earnings		8,020			2,300		1,629
Net Income Attributable to Common Shareholders	$	1,049,130		$	554,065	$	508,515
Earnings per Share Attributable to Common Shareholders (Note 5)
Basic earnings per share	$	6.51		$	3.44	$	3.15
Diluted earnings per share	$	6.37		$	3.40	$	3.13

The accompanying notes are an integral part of the financial statements.

13 - 15

Business Segment Information

By Industry

(Dollars in thousands)	2011		2010		2009
Net Sales:
Industrial:
North America	$	4,516,510	$	3,623,460	$	3,734,613
International		4,917,007		3,811,464		3,895,874
Aerospace		1,921,984		1,744,283		1,883,273
Climate & Industrial Controls		990,369		813,959		795,255
	$	12,345,870	$	9,993,166	$	10,309,015
Segment Operating Income:
Industrial:
North America	$	745,544	$	487,137	$	394,923
International		754,222		394,089		350,662
Aerospace		247,126		208,002		261,953
Climate & Industrial Controls		76,134		53,452		(3,737	)
Total segment operating income		1,823,026		1,142,680		1,003,801
Corporate administration		163,868		153,965		152,118
Income before interest expense and other		1,659,158		988,715		851,683
Interest expense		99,704		103,599		112,071
Other expense		145,733		130,299		56,529
Income before income taxes	$	1,413,721	$	754,817	$	683,083
Assets:
Industrial	$	8,413,552	$	7,309,735	$	7,539,504
Aerospace		995,026		910,740		915,155
Climate & Industrial Controls		724,966		692,532		691,423
Corporate (a)		753,261		997,375		709,820
	$	10,886,805	$	9,910,382	$	9,855,902
Property Additions (b):
Industrial	$	147,929	$	95,838	$	346,691
Aerospace		18,012		21,619		21,877
Climate & Industrial Controls		8,234		6,040		6,645
Corporate		38,495		6,133		2,798
	$	212,670	$	129,630	$	378,011
Depreciation:
Industrial	$	186,057	$	200,617	$	205,584
Aerospace		20,035		20,501		20,477
Climate & Industrial Controls		12,895		14,117		16,640
Corporate		10,251		10,060		9,898
	$	229,238	$	245,295	$	252,599

13 - 16

(Dollars in thousands)	2011		2010		2009
By Geographic Area (c)
Net Sales:
North America	$	7,151,390	$	5,913,770	$	6,090,176
International		5,194,480		4,079,396		4,218,839
	$	12,345,870	$	9,993,166	$	10,309,015
Long-Lived Assets:
North America	$	864,287	$	856,782	$	927,318
International		932,892		841,099		953,236
	$	1,797,179	$	1,697,881	$	1,880,554

The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote except that the business segment results are prepared on a basis that is consistent with the manner in which the Company’s management disaggregates financial information for internal review and decision-making.

(a) Corporate assets are principally cash and cash equivalents, domestic deferred income taxes, investments, benefit plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment.

(b) Includes the value of net plant and equipment at the date of acquisition of acquired companies (2011 - $5,376; 2010 - $408; 2009 - $107,278)

(c) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location.

13 - 17

Consolidated Balance Sheet

	June 30,
(Dollars in thousands)	2011			2010
Assets
Current Assets
Cash and cash equivalents	$	657,466		$	575,526
Accounts receivable, net (Note 1)		1,977,856			1,599,941
Inventories (Notes 1 and 6):
Finished products		584,683			465,477
Work in process		670,588			564,204
Raw materials		156,882			141,974
		1,412,153			1,171,655
Prepaid expenses		111,934			111,545
Deferred income taxes (Notes 1 and 4)		145,847			130,129
Total Current Assets		4,305,256			3,588,796
Plant and equipment (Note 1):
Land and land improvements		308,052			284,971
Buildings and building equipment		1,460,333			1,326,793
Machinery and equipment		3,112,810			2,897,049
Construction in progress		63,540			45,184
		4,944,735			4,553,997
Less accumulated depreciation		3,147,556			2,856,116
		1,797,179			1,697,881
Goodwill (Notes 1 and 7)		3,009,116			2,786,334
Intangible assets, net (Notes 1 and 7)		1,177,722			1,150,051
Investments and other assets (Note 1)		597,532			687,320
Total Assets	$	10,886,805		$	9,910,382
Liabilities and Equity
Current Liabilities
Notes payable and long-term debt payable within one year (Notes 8 and 9)	$	75,271		$	363,272
Accounts payable, trade		1,173,851			888,743
Accrued payrolls and other compensation		467,043			371,393
Accrued domestic and foreign taxes		232,774			176,349
Other accrued liabilities		442,104			405,134
Total Current Liabilities		2,391,043			2,204,891
Long-term debt (Note 9)		1,691,086			1,413,634
Pensions and other postretirement benefits (Note 10)		862,938			1,500,928
Deferred income taxes (Notes 1 and 4)		160,035			135,321
Other liabilities		293,367			196,208
Total Liabilities		5,398,469			5,450,982
Equity (Note 11)
Shareholders’ Equity
Serial preferred stock, $.50 par value, authorized 3,000,000 shares; none issued
Common stock, $.50 par value, authorized 600,000,000 shares; issued 181,046,128 shares in 2011 and 2010		90,523			90,523
Additional capital		668,332			637,442
Retained earnings		6,891,407			6,086,545
Accumulated other comprehensive (loss)		(450,990	)		(1,208,561	)
Treasury shares at cost: 25,955,619 in 2011 and 19,790,110 in 2010		(1,815,418	)		(1,237,984	)
Total Shareholders’ Equity		5,383,854			4,367,965
Noncontrolling interests		104,482			91,435
Total Equity		5,488,336			4,459,400
Total Liabilities and Equity	$	10,886,805		$	9,910,382

The accompanying notes are an integral part of the financial statements.

13 - 18

Consolidated Statement of Cash Flows

	For the years ended June 30,
(Dollars in thousands)	2011			2010			2009
Cash Flows From Operating Activities
Net income	$	1,057,150		$	556,365		$	510,144
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		229,238			245,295			252,599
Amortization		110,562			117,214			105,138
Stock incentive plan compensation		73,238			59,318			47,215
Deferred income taxes		20,715			(17,353	)		(13,048	)
Foreign currency transaction loss (gain)		10,470			(1,249	)		1,786
(Gain) loss on sale of plant and equipment		(7,710	)		10,292			(336	)
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable		(259,752	)		(220,349	)		598,065
Inventories		(139,062	)		53,862			218,595
Prepaid expenses		6,477			29,581			(61,646	)
Other assets		(39,118	)		42,031			63,998
Accounts payable, trade		228,164			259,436			(304,863	)
Accrued payrolls and other compensation		75,405			26,014			(67,654	)
Accrued domestic and foreign taxes		53,424			63,119			(40,598	)
Other accrued liabilities		(27,726	)		36,137			(159,642	)
Pensions and other postretirement benefits		(281,285	)		(9,879	)		28,522
Other liabilities		56,743			(31,012	)		(49,083	)
Net cash provided by operating activities		1,166,933			1,218,822			1,129,192
Cash Flows From Investing Activities
Acquisitions (less cash acquired of $385 in 2011 and $24,203 in 2009)		(60,227	)		(5,451	)		(722,635	)
Capital expenditures		(207,294	)		(129,222	)		(270,733	)
Proceeds from sale of plant and equipment		32,289			11,929			28,986
Other		(9,706	)		(23,429	)		3,551
Net cash (used in) investing activities		(244,938	)		(146,173	)		(960,831	)
Cash Flows From Financing Activities
Proceeds from exercise of stock options		25,862			10,307			3,557
(Payments for) common shares		(693,096	)		(24,999	)		(447,800	)
Tax benefit from stock incentive plan compensation		42,823			13,698			3,692
(Payments of) proceeds from notes payable, net		(18,908	)		(421,974	)		346,081
Proceeds from long-term borrowings		291,683			3,293			2,368
(Payments of) long-term borrowings		(358,058	)		(67,582	)		(20,671	)
Dividends paid, net of tax benefit of ESOP shares		(206,084	)		(162,739	)		(161,575	)
Net cash (used in) financing activities		(915,778	)		(649,996	)		(274,348	)
Effect of exchange rate changes on cash		75,723			(34,738	)		(32,450	)
Net increase (decrease) in cash and cash equivalents		81,940			387,915			(138,437	)
Cash and cash equivalents at beginning of year		575,526			187,611			326,048
Cash and cash equivalents at end of year	$	657,466		$	575,526		$	187,611
Supplemental Data:
Cash paid during the year for:
Interest	$	99,227		$	104,812		$	111,648
Income taxes		203,539			127,320			211,281

The accompanying notes are an integral part of the financial statements.

13 - 19

Consolidated Statement of Equity

(Dollars in thousands)	Common Stock		Additional Capital		Retained Earnings			Guarantee of ESOP Debt			Accumulated Other Comprehensive (Loss)			Treasury Shares			Noncontrolling Interests			Total
Balance June 30, 2008	$	90,523	$	530,914	$	5,387,836		$	(4,951	)	$	110,224		$	(862,993	)	$	78,589		$	5,330,142
Net income						508,515												1,629			510,144
Other comprehensive (loss) income:
Foreign currency translation, net of tax of $10,131												(498,553	)					4,008			(494,545	)
Retirement benefits plan activity, net of tax of $253,261												(454,457	)								(454,457	)
Net unrealized loss, net of tax of $173												(233	)								(233	)
Total comprehensive (loss) income																		5,637			(439,091	)
Dividends paid						(161,575	)											(4,936	)		(166,511	)
Stock incentive plan activity				49,379		(6,348	)								18,147						61,178
Shares purchased at cost															(447,800	)		(824	)		(448,624	)
Retirement benefits plan activity				7,908		(6,390	)		4,951						3,102						9,571
Acquisition activity																		3,775			3,775
Balance June 30, 2009	$	90,523	$	588,201	$	5,722,038		$	—		$	(843,019	)	$	(1,289,544	)	$	82,241		$	4,350,440
Net income						554,065												2,300			556,365
Other comprehensive (loss) income:
Foreign currency translation, net of tax of $(8,274)												(186,925	)					7,093			(179,832	)
Retirement benefits plan activity, net of tax of $106,065												(183,364	)								(183,364	)
Net realized loss, net of tax of $(2,937)												4,747									4,747
Total comprehensive (loss) income																		9,393			197,916
Dividends paid						(162,540	)											(199	)		(162,739	)
Stock incentive plan activity				49,241		(23,131	)								44,564						70,674
Shares purchased at cost															(24,999	)					(24,999	)
Retirement benefits plan activity						(3,887	)								31,995						28,108
Balance June 30, 2010	$	90,523	$	637,442	$	6,086,545		$	—		$	(1,208,561	)	$	(1,237,984	)	$	91,435		$	4,459,400
Net income						1,049,130												8,020			1,057,150
Other comprehensive income:
Foreign currency translation, net of tax of $12,675												503,756						8,325			512,081
Retirement benefits plan activity, net of tax of $(144,108)												253,603									253,603
Realized loss, net of tax of $(119)												212									212
Total comprehensive income																		16,345			1,823,046
Dividends paid						(202,786	)											(3,298	)		(206,084	)
Stock incentive plan activity				30,890		(41,482	)								115,662						105,070
Shares purchased at cost															(693,096	)					(693,096	)
Balance June 30, 2011	$	90,523	$	668,332	$	6,891,407		$	—		$	(450,990	)	$	(1,815,418	)	$	104,482		$	5,488,336

The accompanying notes are an integral part of the financial statements.

13 - 20

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share amounts)

1. Significant Accounting Policies

The significant accounting policies followed in the preparation of the accompanying consolidated financial statements are summarized below.

Nature of Operations - The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. The Company evaluates performance based on segment operating income before Corporate and administrative expenses, Interest expense and Income taxes.

The Company operates in three business segments: Industrial, Aerospace and Climate & Industrial Controls. The Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Industrial International operations provide Parker products and services to 44 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa.

The Aerospace Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and also performs a vital role in naval vessels and land-based weapons systems. This Segment serves original equipment and maintenance, repair and overhaul customers worldwide. Aerospace Segment products are marketed by field sales employees and are sold directly to manufacturers and end users.

The Climate & Industrial Controls Segment manufactures motion-control systems and components for use primarily in the refrigeration and air conditioning and transportation industries. The products in the Climate & Industrial Controls Segment are marketed primarily through field sales employees and independent distributors.

See the table of Business Segment Information “By Industry” and “By Geographic Area” on pages 13-16 and 13-17 for further disclosure of business segment information.

There are no individual customers to whom sales are three percent or more of the Company’s consolidated sales. Due to the diverse group of customers throughout the world the Company does not consider itself exposed to any concentration of credit risks.

The Company manufactures and markets its products throughout the world. Although certain risks and uncertainties exist, the diversity and breadth of the Company’s products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect the Company’s operating results.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Basis of Consolidation - The consolidated financial statements include the accounts of all majority-owned domestic and foreign subsidiaries. All intercompany transactions and profits have been eliminated in the consolidated financial statements. The Company does not have off-balance sheet arrangements. Within the Business Segment Information, intersegment and interarea sales have been eliminated.

13 - 21

Revenue Recognition - Revenue is recognized when the risks and rewards of ownership and title to the product have transferred to the customer. The Company’s revenue recognition policies are in compliance with the SEC’s Staff Accounting Bulletin (SAB) No. 104. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of sales.

Long-term Contracts - The Company enters into long-term contracts primarily for the production of aerospace products. For financial statement purposes, revenues are primarily recognized using the percentage-of-completion method. The extent of progress toward completion is primarily measured using the units-of-delivery method. Unbilled costs on these contracts are included in inventory. Progress payments are netted against the inventory balances. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

Cash - Cash equivalents consist of short-term highly liquid investments, with a three-month or less maturity, carried at cost plus accrued interest, which are readily convertible into cash.

Accounts Receivable - The Accounts receivable, net caption in the Consolidated Balance Sheet is comprised of the following components:

June 30,	2011			2010
Accounts receivable, trade	$	1,780,137		$	1,457,355
Allowance for doubtful accounts		(10,472	)		(14,701	)
Non-trade accounts receivable		75,550			58,091
Notes receivable		132,641			99,196
Total	$	1,977,856		$	1,599,941

Accounts receivable are initially recorded at their net collectible amount and where applicable, are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible.

Inventories - Inventories are stated at the lower of cost or market. The majority of domestic inventories are valued by the last-in, first-out method and the balance of the Company’s inventories are valued by the first-in, first-out method.

Plant, Equipment and Depreciation - Plant and equipment are recorded at cost and are depreciated principally using the straight-line method for financial reporting purposes. Depreciation rates are based on estimated useful lives of the assets, generally 40 years for buildings, 15 years for land improvements and building equipment, seven to 10 years for machinery and equipment, and three to eight years for vehicles and office equipment. Improvements, which extend the useful life of property, are capitalized, and maintenance and repairs are expensed. The Company reviews plant and equipment for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included in current income.

Investments and Other Assets - Investments in joint-venture companies in which ownership is 50 percent or less and in which the Company does not have operating control are stated at cost plus the Company’s equity in undistributed earnings. These investments and the related earnings are not material to the consolidated financial statements.

Goodwill - The Company conducts a formal impairment test of goodwill on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

Intangible Assets - Intangible assets primarily include patents, trademarks and customer lists and are recorded at cost and amortized on a straight-line method. Patents are amortized over the shorter of their remaining useful or legal life. Trademarks are amortized over the estimated time period over which an economic benefit is expected to be received. Customer lists are amortized over a period based on anticipated customer attrition rates. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable.

13 - 22

Income Taxes - Income taxes are provided based upon income for financial reporting purposes. Deferred income taxes arise from temporary differences in the recognition of income and expense for tax purposes. Tax credits and similar tax incentives are applied to reduce the provision for income taxes in the year in which the credits arise. The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, are recognized in income tax expense.

Product Warranty - In the ordinary course of business the Company warrants its products against defect in design, materials and workmanship over various time periods. The warranty accrual at June 30, 2011 and 2010 is immaterial to the financial position of the Company and the change in the accrual during 2011, 2010 and 2009 was immaterial to the Company’s results of operations and cash flows.

Foreign Currency Translation - Assets and liabilities of most foreign subsidiaries are translated at current exchange rates, and income and expenses are translated using weighted-average exchange rates. The effects of these translation adjustments, as well as gains and losses from certain intercompany transactions, are reported in the Accumulated other comprehensive (loss) component of Shareholders’ equity. Such adjustments will affect Net income only upon sale or liquidation of the underlying foreign investments, which is not contemplated at this time. Exchange gains and losses from transactions in a currency other than the local currency of the entity involved, and translation adjustments in countries with highly inflationary economies, are included in Net income.

Subsequent Events - The Company has evaluated subsequent events that have occurred through the date of filing of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2011. No subsequent events occurred that required either adjustment to or disclosure in these financial statements.

Recent Accounting Pronouncements - In May 2011, the Financial Accounting Standards Board (FASB) issued new accounting guidance to improve consistency with fair value measurement and disclosure requirements. This guidance is effective for interim and annual periods beginning after December 15, 2011. The Company has not yet determined the effect, if any, that this new guidance will have on its fair value disclosures.

In June 2011, the FASB issued new accounting guidance requiring an entity to present net income and other comprehensive income (OCI) in either a single continuous statement or in separate consecutive statements. The guidance does not change the items reported in OCI or when an item of OCI must be reclassified to net income. The guidance, which must be presented retroactively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.

2. Acquisitions

During 2011, the Company completed three acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were $65 million. Total purchase price for all businesses acquired in 2011 was approximately $61 million in cash.

During 2010, the Company completed one acquisition whose aggregate sales for its most recent fiscal year prior to acquisition were $11 million. Total purchase price for this business was approximately $5 million in cash.

In October 2008, the Company acquired Legris SA, a manufacturer of fluid circuit components and systems for pneumatic, hydraulic, and chemical processing applications. In October 2008, the Company acquired Origa Group, a manufacturer of rodless pneumatic actuators, electric actuators, filter regulator lubricators and pneumatic cylinders and valves. Aggregate annual sales for these businesses and seven other businesses acquired during 2009, for their most recent fiscal year prior to acquisition, were approximately $532 million. Total purchase price for all businesses acquired during 2009 was approximately $747 million in cash and $4 million in assumed debt.

13 - 23

The results of operations for all acquisitions are included as of the respective dates of acquisition. The initial purchase price allocation and subsequent purchase price adjustments for acquisitions in 2011, 2010 and 2009 are presented below. Some of the 2011 purchase price allocations are preliminary and may require subsequent adjustment primarily to the values currently assigned to Plant and equipment and Intangible assets.

	2011		2010			2009
Assets acquired:
Accounts receivable	$	9,332	$	908		$	116,931
Inventories		7,908		447			87,230
Prepaid expenses		69		(575	)		3,957
Deferred income taxes		468					7,899
Plant and equipment		5,376		408			107,278
Intangible and other assets		35,094		4,198			431,964
Goodwill		8,715		2,891			319,193
		66,962		8,277			1,074,452
Liabilities assumed:
Notes payable							2,622
Accounts payable, trade		2,440		531			49,421
Accrued payrolls and other compensation		765		219			33,714
Accrued domestic and foreign taxes		215		(91	)		22,111
Other accrued liabilities		1,500		2,587			97,093
Long-term debt							1,640
Pensions and other postretirement benefits							5,418
Deferred income taxes		1,815		(420	)		136,864
Other liabilities							2,934
		6,735		2,826			351,817
Net assets acquired	$	60,227	$	5,451		$	722,635

3. Charges Related to Business Realignment

In 2011, the Company recorded a $16.5 million charge for the costs to structure its businesses in light of current and anticipated customer demand. The charges primarily consist of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. The Company believes the realignment actions taken will positively impact future results of operations, but will have no material effect on liquidity and sources and uses of capital. The Industrial Segment recognized $15.5 million of the total charge and included severance costs related to approximately 465 employees. The Aerospace Segment recognized $1.0 million of the total charge and included severance costs related to approximately 50 employees. The business realignment costs are presented in the Consolidated Statement of Income for 2011 in the following captions: $15.3 million in Cost of sales and $1.2 million in Selling, general and administrative expenses. As of June 30, 2011, approximately $9.5 million in severance payments have been made with the remaining payments expected to be made by March 31, 2012.

In 2010, the Company recorded a $48.5 million charge for the costs to structure its businesses in light of current and anticipated customer demand. The charges primarily consisted of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. The Company believes the realignment actions taken will positively impact future results of operations, but will have no material effect on liquidity and sources and uses of capital. The Industrial Segment recognized $44.0 million of the total charge and included severance costs related to approximately 1,455 employees. The Climate & Industrial Controls Segment recognized $3.9 million of the total charge and included severance costs related to approximately 255 employees. The Aerospace Segment recognized $0.6 million of the total charge and included severance costs related to approximately 50 employees. The business realignment costs are presented in the Consolidated Statement of Income for 2010 in the following captions: $43.0 million in Cost of sales and $5.5 million in Selling, general and administrative expenses. All required severance payments have been made.

13 - 24

In 2009, the Company recorded a $52.1 million charge for the costs to structure its businesses in light of current and anticipated customer demand. The charges primarily consisted of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. The Company believes the realignment actions taken will positively impact future results of operations, but will have no material effect on liquidity and sources and uses of capital. The Industrial Segment recognized $33.7 million of the total charge and included severance costs related to approximately 3,345 employees. The Climate & Industrial Controls Segment recognized $9.7 million of the total charge and included severance costs related to approximately 745 employees. The Aerospace Segment recognized $2.0 million of the total charge and included severance costs related to approximately 205 employees. Approximately $6.7 million of the charge was recorded below segment operating income. All required severance payments have been made. The business realignment costs are presented in the Consolidated Statement of Income for 2009 in the following captions: $41.0 million in Cost of sales, $6.2 million in Selling, general and administrative expenses and $4.9 million in (Gain) loss on disposal of assets.

4. Income Taxes

Income before income taxes was derived from the following sources:

	2011		2010		2009
United States	$	681,910	$	354,675	$	390,507
Foreign		731,811		400,142		292,576
	$	1,413,721	$	754,817	$	683,083

Income taxes include the following:

	2011			2010			2009
Federal
Current	$	121,292		$	84,878		$	46,524
Deferred		34,136			6,104			37,670
Foreign
Current		193,064			105,927			120,963
Deferred		(24,229	)		(22,788	)		(50,560	)
State and local
Current		21,500			25,000			18,500
Deferred		10,808			(669	)		(158	)
	$	356,571		$	198,452		$	172,939

A reconciliation of the Company’s effective income tax rate to the statutory Federal rate follows:

	2011			2010			2009
Statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
State and local income taxes		1.8			2.1			1.7
Litigation settlements								1.8
Foreign tax rate difference		(8.7	)		(7.4	)		(8.7	)
Cash surrender of life insurance		(0.9	)		(1.0	)		2.3
Research tax credit		(1.1	)		(0.7	)		(2.5	)
Worthless stock benefit								(3.2	)
Other		(0.9	)		(1.7	)		(1.1	)
Effective income tax rate		25.2	%		26.3	%		25.3	%

13 - 25

Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities. The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows:

	2011			2010
Postretirement benefits	$	374,005		$	565,258
Other liabilities and reserves		161,954			118,882
Long-term contracts		7,355			4,323
Stock-based incentive compensation		63,590			60,882
Loss carryforwards		186,613			106,106
Unrealized currency exchange gains and losses		43,484			15,312
Inventory		24,623			21,123
Depreciation and amortization		(479,103	)		(455,684	)
Valuation allowance		(192,904	)		(92,799	)
Net deferred tax asset	$	189,617		$	343,403
Change in net deferred tax asset:
Provision for deferred tax	$	(20,715	)	$	17,353
Items of other comprehensive (loss) income		(131,552	)		94,854
Acquisitions and other		(1,519	)		(4,050	)
Total change in net deferred tax	$	(153,786	)	$	108,157

At June 30, 2011, the Company had recorded deferred tax assets of $186,613 resulting from $663,735 in loss carryforwards. A valuation allowance of $156,721 related to the loss carryforwards has been established due to the uncertainty of realizing certain deferred tax assets. An additional valuation allowance of $36,183 relates to a foreign capital loss carryforward and certain deferred tax assets associated with other liabilities and reserves. The foreign capital loss carryforward and some of the loss carryforwards can be carried forward indefinitely; others can be carried forward from one to 19 years.

Provision has not been made for additional U.S. or foreign taxes on undistributed earnings of certain international operations as those earnings will continue to be reinvested. It is not practicable to estimate the additional taxes, including applicable foreign withholding taxes, that might be payable on the eventual remittance of such earnings.

Accumulated undistributed earnings of foreign operations reinvested in their operations amounted to $983,950, $1,102,978 and $1,298,102, at June 30, 2011, 2010 and 2009, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2011			2010			2009
Balance July 1	$	82,089		$	132,954		$	105,070
Additions for tax positions related to current year		8,398			10,815			31,414
Additions for tax positions of prior years		10,015			23,408			15,899
Additions for acquisitions					294			760
Reductions for tax positions of prior years		(15,060	)		(64,821	)		(10,566	)
Reductions for settlements		(7,133	)		(21,770	)		(3,768	)
Reductions for expiration of statute of limitations					(37	)
Effect of foreign currency translation		2,847			1,246			(5,855	)
Balance June 30	$	81,156		$	82,089		$	132,954

13 - 26

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $78,754, $81,927 and $114,210 as of June 30, 2011, 2010 and 2009, respectively. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, was $11,331, $8,200 and $9,179 as of June 30, 2011, 2010 and 2009, respectively.

The Company and its subsidiaries file income tax returns in the United States and in various foreign jurisdictions. In the normal course of business, the Company’s tax returns are subject to examination by taxing authorities throughout the world. The Company is no longer subject to examinations of its federal income tax returns by the United States Internal Revenue Service for fiscal years through 2007. All significant state, local and foreign tax returns have been examined for fiscal years through 2001. The Company does not anticipate that, within the next twelve months, the total amount of unrecognized tax benefits will significantly change due to the settlement of examinations and the expiration of statutes of limitation.

5. Earnings Per Share

Basic earnings per share are computed using the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted-average number of common shares and common share equivalents outstanding during the year. Common share equivalents represent the dilutive effect of outstanding stock-based awards. The computation of net income per share was as follows:

	2011		2010		2009
Numerator:
Net income attributable to common shareholders	$	1,049,130	$	554,065	$	508,515
Denominator:
Basic – weighted-average common shares		161,125,869		160,909,655		161,564,111
Increase in weighted-average common shares from dilutive effect of stock-based awards		3,672,352		1,992,062		1,155,037
Diluted – weighted-average common shares, assuming exercise of stock-based awards		164,798,221		162,901,717		162,719,148
Basic earnings per share	$	6.51	$	3.44	$	3.15
Diluted earnings per share	$	6.37	$	3.40	$	3.13

For 2011, 2010 and 2009, 1.6 million, 9.0 million, and 6.4 million common shares, respectively, subject to stock-based awards were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

6. Inventories

Inventories valued on the last-in, first-out (LIFO) cost method were approximately 28 percent of total inventories in 2011 and 2010. The current cost of these inventories exceeds their valuation determined on the LIFO basis by $205,739 in 2011 and $193,519 in 2010. Progress payments of $33,489 in 2011 and $33,676 in 2010 are netted against inventories.

13 - 27

7. Goodwill and Intangible Assets

The Company’s annual impairment tests performed in 2011, 2010, and 2009 resulted in no impairment loss being recognized.

The changes in the carrying amount of goodwill for the years ended June 30, 2010 and June 30, 2011 are as follows:

	Industrial Segment			Aerospace Segment			Climate & Industrial Controls Segment			Total
Balance June 30, 2009	$	2,496,449		$	98,709		$	307,919		$	2,903,077
Acquisitions					193						193
Foreign currency translation		(115,175	)		(46	)		(1,081	)		(116,302	)
Goodwill adjustments		(634	)								(634	)
Balance June 30, 2010	$	2,380,640		$	98,856		$	306,838		$	2,786,334
Acquisitions		7,424						1,291			8,715
Foreign currency translation		208,261			58			6,059			214,378
Goodwill adjustments		(336	)					25			(311	)
Balance June 30, 2011	$	2,595,989		$	98,914		$	314,213		$	3,009,116

Goodwill adjustments represent final adjustments to the purchase price allocation for acquisitions during the measurement period subsequent to the applicable acquisition dates. The Company’s previously reported results of operations and financial position would not be materially different had the goodwill adjustments recorded during 2011 and 2010 been reflected in the same reporting period that the initial purchase price allocations for those acquisitions were made.

Intangible assets are amortized on a straight-line method over their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset:

	2011				2010
June 30,	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Patents	$	124,015	$	61,061	$	114,935	$	48,682
Trademarks		319,158		116,995		289,017		83,936
Customer lists and other		1,251,271		338,666		1,125,782		247,065
Total	$	1,694,444	$	516,722	$	1,529,734	$	379,683

During 2011, the Company acquired intangible assets with an initial purchase price allocation and weighted-average life as follows:

	Purchase Price Allocation		Weighted- Average Life
Trademarks	$	1,443		7 years
Customer lists and other		33,642		13 years
Total	$	35,085		13 years

Total intangible amortization expense in 2011, 2010 and 2009 was $107,701, $114,749 and $102,750, respectively. The estimated amortization expense for the five years ending June 30, 2012 through 2016 is $100,342, $93,048, $89,354, $86,521 and $84,717, respectively.

13 - 28

8. Financing Arrangements

The Company has a line of credit totaling $1,500,000 through a multi-currency revolving credit agreement with a group of banks, all of which was available at June 30, 2011. The credit agreement expires in March 2016; however, the Company has the right to request a one-year extension of the expiration date on an annual basis, which request may result in changes to the current terms and conditions of the credit agreement. A portion of the credit agreement supports the Company’s commercial paper note program. The interest on borrowings is based upon the terms of each specific borrowing and is subject to market conditions. The revolving credit agreement requires the payment of an annual facility fee, the amount of which would increase in the event the Company’s credit ratings are lowered.

The Company is currently authorized to sell up to $1,350,000 of short-term commercial paper notes. No commercial paper notes were outstanding at June 30, 2011 or at June 30, 2010.

The Company’s foreign locations in the ordinary course of business enter into financial guarantees through financial institutions which enable customers to be reimbursed in the event of nonperformance by the Company.

The Company’s credit agreements and indentures governing certain debt agreements contain various covenants, the violation of which would limit or preclude the use of the agreement for future borrowings, or might accelerate the maturity of the related outstanding borrowings covered by the indentures. At the Company’s present rating level, the most restrictive covenant provides that the ratio of secured debt to net tangible assets be less than 10 percent. As of June 30, 2011, the Company does not have any secured debt outstanding. The Company is in compliance with all covenants.

Notes payable consists of short-term lines of credit and borrowings from foreign banks. At June 30, 2011, the Company had $97,548 in lines of credit from various foreign banks, all of which was available at June 30, 2011. Most of these agreements are renewed annually. There was no balance of Notes payable at June 30, 2011 and there was a balance of $17,759 at June 30, 2010. The weighted-average interest rate on Notes payable during 2011 and 2010 was 0.6 percent and 0.5 percent, respectively.

9. Debt

June 30,	2011		2010
Domestic:
Debentures 7.30%, due 2011	$		$	100,000
Fixed rate medium-term notes 3.50% to 6.55%, due 2018-2038		1,175,000		875,000
Fixed rate senior notes 4.88%, due 2013		225,000		225,000
Foreign:
Bank loans, including revolving credit 1% to 7.2%, due 2012-2017		1,380		1,807
Euro bonds 3.5%, due 2011				244,580
4.125%, due 2016		290,040		244,580
Japanese Yen credit facility Libor plus 20 bps, due 2012		74,472		67,878
Other long-term debt, including capitalized leases		465		302
Total long-term debt		1,766,357		1,759,147
Less long-term debt payable within one year		75,271		345,513
Long-term debt, net	$	1,691,086	$	1,413,634

13 - 29

Principal amounts of Long-term debt payable in the five years ending June 30, 2012 through 2016 are $75,271, $225,437, $236, $154 and $290,200, respectively. In 2011, the Company issued $300,000 aggregate principal amount of medium-term notes. The notes are due in a balloon payment in September 2022 and carry an interest rate of 3.5 percent. Interest payments are due semiannually. Debt issuance costs were $5,460 and will be amortized over the term of the notes. The Company used the net proceeds from the note issuance to repay outstanding commercial paper borrowings.

Lease Commitments - Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire at various dates, are as follows: 2012-$83,688; 2013-$59,003; 2014-$35,490; 2015-$23,511; 2016-$20,689 and after 2016-$72,988.

Rental expense in 2011, 2010 and 2009 was $118,496, $123,582 and $125,516, respectively.

10. Retirement Benefits

Pensions - The Company has noncontributory defined benefit pension plans covering eligible employees, including certain employees in foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat-dollar amounts and years of service. The Company also has arrangements for certain key employees which provide for supplemental retirement benefits. In general, the Company’s policy is to fund these plans based on legal requirements, tax considerations, local practices and investment opportunities. The Company also sponsors defined contribution plans and participates in government-sponsored programs in certain foreign countries.

A summary of the Company’s defined benefit pension plans follows:

	2011			2010			2009
Benefit cost
Service cost	$	87,676		$	70,977		$	71,187
Interest cost		176,081			178,562			172,321
Expected return on plan assets		(200,303	)		(177,559	)		(186,417	)
Amortization of prior service cost		12,636			13,974			11,787
Amortization of unrecognized actuarial loss		109,436			65,823			31,507
Amortization of initial net (asset)		(63	)		(55	)		(53	)
Net periodic benefit cost	$	185,463		$	151,722		$	100,332

	2011			2010
Change in benefit obligation
Benefit obligation at beginning of year	$	3,430,835		$	2,952,297
Service cost		87,676			70,977
Interest cost		176,081			178,562
Actuarial (gain) loss		(101,806	)		440,941
Benefits paid		(146,779	)		(150,176	)
Plan amendments		9,735			11,902
Foreign currency translation and other		113,818			(73,668	)
Benefit obligation at end of year	$	3,569,560		$	3,430,835
Change in plan assets
Fair value of plan assets at beginning of year	$	2,020,186		$	1,807,479
Actual gain on plan assets		384,848			261,820
Employer contributions		461,243			153,291
Benefits paid		(146,779	)		(150,176	)
Foreign currency translation and other		78,919			(52,228	)
Fair value of plan assets at end of year	$	2,798,417		$	2,020,186
Funded status	$	(771,143	)	$	(1,410,649	)

13 - 30

	2011			2010
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	$	(14,815	)	$	(12,866	)
Pensions and other postretirement benefits		(756,328	)		(1,397,783	)
Net amount recognized	$	(771,143	)	$	(1,410,649	)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	$	1,133,411		$	1,496,209
Prior service cost		69,337			70,810
Transition obligation		161			105
Net amount recognized	$	1,202,909		$	1,567,124

The presentation of the amounts recognized on the Consolidated Balance Sheet and in Accumulated Other Comprehensive (Loss) is on a debit (credit) basis and excludes the effect of income taxes.

The estimated amount of net actuarial loss, prior service cost and transition asset that will be amortized from accumulated other comprehensive (loss) into net periodic benefit pension cost in 2012 is $102,182, $13,877 and $66, respectively.

The accumulated benefit obligation for all defined benefit plans was $3,219,403 and $3,096,603 at June 30, 2011 and 2010, respectively. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $3,119,540, $2,798,701 and $2,353,730, respectively, at June 30, 2011, and $3,401,504, $3,072,016 and $1,991,174, respectively, at June 30, 2010. The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were $3,557,563 and $2,783,349, respectively, at June 30, 2011, and $3,420,234 and $2,007,629, respectively, at June 30, 2010.

The Company expects to make cash contributions of approximately $67 million to its defined benefit pension plans in 2012, the majority of which relate to non-U.S. defined benefit plans. Estimated future benefit payments in the five years ending June 30, 2012 through 2016 are $153,694, $199,048, $164,605, $176,455 and $190,524, respectively and $1,177,675 in the aggregate for the five years ending June 30, 2017 through June 30, 2021.

The assumptions used to measure net periodic benefit cost for the Company’s significant defined benefit plans are:

	2011			2010			2009
U.S. defined benefit plans
Discount rate		5.3	%		6.25	%		6.8	%
Average increase in compensation		5.21	%		4.34	%		4.7	%
Expected return on plan assets		8.5	%		8.5	%		8.5	%
Non-U.S. defined benefit plans
Discount rate		1.75 to 6.0	%		2.0 to 6.78	%		2.25 to 6.9	%
Average increase in compensation		2.0 to 4.5	%		2.0 to 4.7	%		1.0 to 4.25	%
Expected return on plan assets		1.0 to 8.0	%		1.0 to 8.0	%		1.0 to 8.0	%

The assumptions used to measure the benefit obligation for the Company’s significant defined benefit plans are:

	2011			2010
U.S. defined benefit plans
Discount rate		5.45	%		5.3	%
Average increase in compensation		5.21	%		5.21	%
Non-U.S. defined benefit plans
Discount rate		2.0 to 5.87	%		1.75 to 6.0	%
Average increase in compensation		2.0 to 5.0	%		2.0 to 4.5	%

13 - 31

The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same estimated time period that benefit payments will be required to be made. The expected return on plan assets assumption is based on the weighted-average expected return of the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance.

The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows:

	2011			2010
Equity securities		59	%		56	%
Debt securities		33	%		37	%
Other		8	%		7	%
		100	%		100	%

The weighted-average target asset allocation as of June 30, 2011 is 55 percent equity securities, 39 percent debt securities and 6 percent other. The investment strategy for the Company’s worldwide defined benefit pension plan assets focuses on achieving prudent actuarial funding ratios while maintaining acceptable levels of risk in order to provide adequate liquidity to meet immediate and future benefit requirements. This strategy requires an investment portfolio that is broadly diversified across various asset classes and external investment managers. Assets held in the U.S. defined benefit plans account for approximately 75 percent of the Company’s total defined benefit plan assets. The Company’s overall investment strategy with respect to the Company’s U.S. defined benefit plans is to opportunistically migrate from its current mix between growth seeking assets (primarily consisting of global public equities in developed and emerging countries and hedge fund of fund strategies) and income generating assets (primarily consisting of high quality bonds, both domestic and global, emerging market bonds, high yield bonds and Treasury Inflation Protected Securities) to an allocation more heavily weighted toward income generating assets. Over time, long duration fixed income assets will be added to the portfolio. These securities will be highly correlated with the Company’s pension liabilities and will serve to hedge a portion of the Company’s interest rate risk.

The fair values of pension plan assets at June 30, 2011 and at June 30, 2010, by asset class, are as follows:

	Total			Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	112,080		$	58,511	$	53,569		$
Equity securities		665,107			665,107
Fixed income securities
Corporate bonds		120,136					120,136
Government issued securities		137,618			79,536		58,082
Mutual funds
Equity funds		220,312			219,816		496
Fixed income funds		138,314			135,620		2,694
Common/Collective trusts
Equity funds		766,847					766,847
Fixed income funds		513,365					513,365
Limited Partnerships		128,470					128,470
Miscellaneous		(3,832	)		88		(3,920	)
Total at June 30, 2011	$	2,798,417		$	1,158,678	$	1,639,739		$

13 - 32

	Total		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	74,302	$	74,302	$		$
Equity securities		605,067		605,067
Fixed income securities
Corporate bonds		116,571				116,571
Government issued securities		130,070				130,070
Mutual funds
Equity funds		10,370				10,370
Fixed income funds		131,777				131,777
Common/Collective trusts
Equity funds		613,246				613,246
Fixed income funds		245,229				245,229
Limited Partnerships		68,648				68,648
Miscellaneous		24,906				24,906
Total at June 30, 2010	$	2,020,186	$	679,369	$	1,340,817	$

Cash and cash equivalents, which include repurchase agreements and other short-term investments, are valued at cost, which approximates fair value.

Equity securities consist of common stock of both U.S. and foreign corporations and are valued at the closing price reported on the active market on which the individual securities are traded. Equity securities include Company stock with a fair value of $119,856 as of June 30, 2011 and $74,000 as of June 30, 2010.

Fixed income securities are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded.

Mutual funds are valued using both the closing market price reported on the active market on which the fund is traded and market observable inputs for similar assets that are traded on an active market and primarily consist of equity and fixed income funds. The equity funds primarily provide exposure to U.S. and international equities and fixed income securities, real estate and commodities. The fixed income funds primarily provide exposure to high-yield securities and emerging market fixed income instruments.

Common/Collective trusts primarily consist of equity and fixed income funds and are valued using a net asset value per share. Common/Collective trust investments can be redeemed daily and without restriction. Redemption of the entire investment balance generally requires a 30-day notice period. The equity funds provide exposure to large, mid and small cap U.S. equities, international large and small cap equities and emerging market equities. The fixed income fund provides exposure to U.S., international and emerging market debt securities.

Limited Partnerships primarily consist of small cap equity and hedge funds and are valued using a net asset value per share. Limited Partnership investments can be redeemed daily and without restriction. Redemption of the entire investment balance generally requires a 30-day notice period. Small cap equity funds provide exposure to domestic small cap equities and hedge funds provide exposure to a variety of hedging strategies including long/short equity, relative value, event driven and global macro.

Miscellaneous primarily includes net payables for securities purchased but not settled in the asset portfolio of the Company’s U.S. defined benefit pension plans and insurance contracts held in the asset portfolio of the Company’s non-U.S. defined benefit pension plans. Insurance contracts are valued at the present value of future cash flows promised under the terms of the insurance contracts.

13 - 33

The primary investment objective of equity securities and equity funds, within both the mutual fund and common/collective trust asset class, is to obtain capital appreciation in an amount that at least equals various market-based benchmarks. The primary investment objective of fixed income securities and fixed income funds, within both the mutual fund and common/collective trust asset class, is to provide for a constant stream of income while preserving capital. The primary investment objective of limited partnerships is to achieve capital appreciation through an investment program focused on specialized investment strategies. The primary investment objective of insurance contracts, included in the miscellaneous asset class, is to provide a stable rate of return over a specified period of time.

Employee Savings Plan - The Company sponsors an employee stock ownership plan (ESOP) as part of its existing savings and investment 401(k) plan. The ESOP is available to eligible domestic employees. Parker Hannifin common stock is used to match contributions made by employees to the ESOP up to a maximum of 4.0 percent of an employee’s annual compensation.

	2011		2010		2009
Shares held by ESOP		10,308,032		10,950,349		11,189,598
Company contributions to ESOP	$	52,627	$	48,336	$	51,593

Company contributions to the ESOP are generally made in the form of cash and are recorded as compensation expense. In 2010 and 2009, in lieu of cash, the Company issued 510,984 and 49,422 of its common shares, respectively, out of treasury for the matching contribution.

The Company has a retirement income account (RIA) within the employee savings plan. The Company makes a contribution to the participant’s RIA account each year, the amount of which is based on the participant’s age and years of service. Participants do not contribute to the RIA. The Company recognized $16,844, $12,598 and $14,489 in expense related to the RIA in 2011, 2010 and 2009, respectively.

In addition to shares within the ESOP, as of June 30, 2011, employees have elected to invest in 3,297,412 shares of common stock within the Company Stock Fund of the Parker Retirement Savings Plan.

Other Postretirement Benefits - The Company provides postretirement medical and life insurance benefits to certain retirees and eligible dependents. Most plans are contributory, with retiree contributions adjusted annually. The plans are unfunded and pay stated percentages of covered medically necessary expenses incurred by retirees, after subtracting payments by Medicare or other providers and after stated deductibles have been met. For most plans, the Company has established cost maximums to more effectively control future medical costs. The Company has reserved the right to change these benefit plans.

Certain employees are covered under benefit provisions that include prescription drug coverage for Medicare eligible retirees. The impact of the subsidy received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 on the Company’s other postretirement benefits was immaterial.

A summary of the Company’s other postretirement benefit plans follows:

	2011		2010			2009
Benefit cost
Service cost	$	675	$	545		$	1,034
Interest cost		3,579		3,920			5,193
Net amortization and deferral		524		(461	)		(753	)
Net periodic benefit cost	$	4,778	$	4,004		$	5,474
			2011			2010
Change in benefit obligation
Benefit obligation at beginning of year			$	69,868		$	64,434
Service cost				675			545
Interest cost				3,579			3,920
Actuarial loss				5,002			8,689
Benefits paid				(5,985	)		(7,720	)
Benefit obligation at end of year			$	73,139		$	69,868
Funded status			$	(73,139	)	$	(69,868	)

13 - 34

	2011			2010
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	$	(5,670	)	$	(5,176	)
Pensions and other postretirement benefits		(67,469	)		(64,692	)
Net amount recognized	$	(73,139	)	$	(69,868	)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	$	10,324		$	5,870
Prior service (credit)		(1,068	)		(1,113	)
Net amount recognized	$	9,256		$	4,757

The presentation of the amounts recognized on the Consolidated Balance Sheet and in Accumulated Other Comprehensive (Loss) is on a debit (credit) basis and is before the effect of income taxes. The amount of prior service (credit) and net actuarial loss that will be amortized from accumulated other comprehensive (loss) into net periodic postretirement cost in 2012 is $45 and $624, respectively.

Historically, the Company has provided self-insured retiree medical plan benefits for non-union employees upon their retirement. The retiree was responsible for paying the premiums for the medical coverage but the Company paid the costs of administering the plans (i.e., claims processing costs). Absorbing the administration costs was considered a benefit under the postretirement benefit accounting rules as the employees who elected to enroll in the retiree medical plans paid a lower premium since the Company was paying the costs to administer the plan. In 2009, the Company discontinued its self-insured retiree medical plans for non-union employees and therefore eliminated the cost associated with administering the plans. The Company recognized $22.4 million in income in 2009 as a result of eliminating the liability related to this benefit.

The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are:

	2011			2010			2009
Discount rate		5.01	%		6.1	%		6.71	%
Current medical cost trend rate		8.0	%		8.5	%		9.25	%
Ultimate medical cost trend rate		5.0	%		5.0	%		5.0	%
Medical cost trend rate decreases to ultimate in year		2018			2018			2014

The discount rate assumption used to measure the benefit obligation was 5.0 percent in 2011 and 5.01 percent in 2010.

Estimated future benefit payments for other postretirement benefits in the five years ending June 30, 2012 through 2016 are $5,686, $5,840, $5,940, $6,027 and $5,820, respectively, and $27,099 in the aggregate for the five years ending June 30, 2017 through June 30, 2021.

A one percentage point change in assumed health care cost trend rates would have the following effects:

	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	218	$	(188	)
Effect on postretirement benefit obligation		3,381		(2,932	)

13 - 35

Other - The Company has established nonqualified deferred compensation programs, which permit officers, directors and certain management employees annually to elect to defer a portion of their compensation, on a pre-tax basis, until their retirement. The retirement benefit to be provided is based on the amount of compensation deferred, Company match, and earnings on the deferrals. During 2011, 2010 and 2009, the Company recorded expense (income) relating to deferred compensation of $28,720, $21,553 and $(27,167), respectively.

The Company has invested in corporate-owned life insurance policies to assist in meeting the obligation under these programs. The policies are held in a rabbi trust and are recorded as assets of the Company.

11. Equity

Retirement benefit plan activity for Retained earnings in 2009 includes $3,391 related to the adoption of new accounting rules for split dollar insurance arrangements and $2,106 related to the adoption of the measurement date provision of pension accounting rules.

The balance of Accumulated other comprehensive (loss) in Shareholders’ equity is comprised of the following:

	2011			2010
Foreign currency translation	$	316,010		$	(187,746	)
Retirement benefit plans		(766,159	)		(1,019,762	)
Other		(841	)		(1,053	)

The balance of Accumulated other comprehensive (loss) income in Noncontrolling interests relates to foreign currency translation and amounted to $26,844 and $18,519, at June 30, 2011 and June 30, 2010, respectively.

Share Repurchases - The Company has a program to repurchase its common shares. Under the program, the Company is authorized to repurchase an amount of common shares each fiscal year equal to the greater of 7.5 million shares or five percent of the shares outstanding as of the end of the prior fiscal year. Repurchases are funded primarily from operating cash flows and commercial paper borrowings, and the shares are initially held as treasury stock. The number of common shares repurchased at the average purchase price follows:

	2011		2010		2009
Shares repurchased		8,008,926		441,118		7,557,284
Average price per share	$	86.54	$	56.67	$	59.25

12. Stock Incentive Plans

The Company’s 2003 Stock Incentive Plan and 2009 Omnibus Stock Incentive Plan provide for the granting of share-based incentive awards in the form of nonqualified stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and restricted stock to officers and key employees of the Company. The aggregate number of shares authorized for issuance under the 2003 Stock Incentive Plan and 2009 Omnibus Stock Incentive Plan is 13,500,000 and 5,500,000, respectively. The Company satisfies share-based incentive award obligations by issuing shares of common stock out of treasury, which have been repurchased pursuant to the Company’s share repurchase program described in Note 11, or through the issuance of previously unissued common stock.

Stock Options/SARs - Stock options allow the participant to purchase shares of common stock at a price not less than 100 percent of the fair market value of the stock on the date of grant. Upon exercise, SARs entitle the participant to receive shares of common stock equal to the increase in value of the award between the grant date and the exercise date. Stock options and SARs are exercisable from one to three years after the date of grant and expire no more than 10 years after grant.

13 - 36

The fair value of each stock option and SAR award granted in 2011, 2010 and 2009 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:

	2011			2010			2009
Risk-free interest rate		1.5	%		2.9	%		3.2	%
Expected life of award		5.2 yrs			5.3 yrs			4.9 yrs
Expected dividend yield of stock		1.5	%		1.4	%		1.3	%
Expected volatility of stock		35.9	%		34.5	%		26.6	%
Weighted-average fair value	$	18.70		$	15.77		$	16.56

The risk-free interest rate was based on U.S. Treasury yields with a term similar to the expected life of the award. The expected life of the award was derived by referring to actual exercise and post-vesting employment termination experience. The expected dividend yield was based on the Company’s historical dividend rate and stock price over a period similar to the expected life of the award. The expected volatility of stock was derived by referring to changes in the Company’s historical common stock prices over a timeframe similar to the expected life of the award.

Stock option and SAR activity during 2011 is as follows (aggregate intrinsic value in millions):

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding June 30, 2010		16,152,493		$	49.55
Granted		1,399,068			63.49
Exercised		(4,245,373	)		44.97
Canceled		(77,070	)		58.92
Outstanding June 30, 2011		13,229,118		$	52.44		5.5 years	$	493.6
Exercisable June 30, 2011		9,109,413		$	50.30		4.5 years	$	359.2

A summary of the status and changes of shares subject to stock option and SAR awards and the related average price per share follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Nonvested June 30, 2010		5,586,873		$	16.10
Granted		1,399,068			18.70
Vested		(2,798,791	)		16.31
Canceled		(67,445	)		16.36
Nonvested June 30, 2011		4,119,705		$	16.84

At June 30, 2011, $18,909 of expense with respect to nonvested stock option and SAR awards has yet to be recognized and will be amortized into expense over a weighted-average period of approximately 15 months. The total fair value of shares vested during 2011, 2010 and 2009 was $45,635, $40,494 and $40,082, respectively.

Information related to stock options and SAR awards exercised during 2011, 2010 and 2009 is as follows:

	2011		2010		2009
Net cash proceeds	$	25,862	$	10,307	$	3,557
Intrinsic value		163,752		45,424		4,787
Income tax benefit		42,546		14,031		1,517

13 - 37

During 2011, 2010 and 2009, the Company recognized stock-based compensation expense of $36,617, $44,415 and $41,488, respectively, relating to stock option and SAR awards. The Company derives a tax deduction measured by the excess of the market value over the grant price at the date stock-based awards are exercised. The related tax benefit is credited to Additional capital as the Company is currently in a windfall tax benefit position.

Shares surrendered upon exercise of stock options and SARs: 2011 – 2,447,908; 2010 – 606,554; 2009 – 90,129.

RSUs - RSUs constitute an agreement to deliver shares of common stock to the participant at the end of a vesting period. Generally, the RSUs vest and the underlying stock is issued ratably over a three year graded vesting period. Unvested RSUs may not be transferred and do not have dividend or voting rights. For each unvested RSU, recipients are entitled to receive a dividend equivalent, payable in cash or common shares, equal to the cash dividend per share paid to common shareholders.

The Company began granting RSUs in 2011 and the fair value of each RSU award was based on the fair market value of the Company’s common stock on the date of grant. A summary of the status and changes of shares subject to RSU awards and the related average price per share follows:

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010		0		$	0
Granted		425,359			62.55
Vested		(320	)		62.35
Canceled		(9,864	)		62.35
Nonvested June 30, 2011		415,175		$	62.55

During 2011, the Company recognized stock-based compensation expense of $12,243 relating to the RSU awards. At June 30, 2011, $12,817 of expense with respect to nonvested RSU awards has yet to be recognized and will be amortized into expense over a weighted-average period of approximately 24 months.

Restricted Stock - The Company’s Long Term Incentive Plans (LTIP) provide for the issuance of restricted and unrestricted stock to certain officers and key employees based on the attainment of certain goals relating to the Company’s revenue growth, earnings per share growth and return on invested capital during the three-year performance period. Restricted stock was earned and awarded, and an estimated value was accrued, based upon attainment of criteria specified in the LTIP over the cumulative years of each three-year plan. Plan participants are entitled to cash dividends and to vote their respective shares, but transferability of the restricted stock is restricted for one to three years following issuance. For payouts in 2010 and 2009, in lieu of restricted stock, the participant could elect to receive the LTIP payout as a deferred cash contribution. Retired participants received the 2010 and 2009 LTIP payouts in cash.

Restricted Stock for LTIP	2011		2010		2009
LTIP 3-year plan		2008-09-10		2007-08-09		2006-07-08
Number of shares issued		157,491		68,172		172,130
Average share value on date of issuance	$	62.35	$	48.58	$	65.34
Total value	$	9,820	$	3,312	$	11,247

Under the Company’s 2009-10-11 LTIP, a payout of restricted stock will be issued in August 2011. Awards granted since the 2009-10-11 LTIP provide for the issuance of unrestricted stock based upon attainment of criteria specified in the LTIP over the cumulative years of each three-year plan.

13 - 38

The fair value of each LTIP award granted in 2011, 2010 and 2009 was based on the fair market value of the Company’s common stock on the date of grant. A summary of the status and changes of shares relating to the LTIP and the related average price per share follows:

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010		1,350,028		$	57.74
Granted		281,191			86.34
Vested		(382,333	)		61.06
Canceled		(118,429	)		63.06
Nonvested June 30, 2011		1,130,457		$	64.50

During 2011, 2010 and 2009, the Company recorded stock-based compensation expense (income) of $24,378, $15,018 and $(5,562), respectively, relating to the LTIP.

Shares surrendered in connection with the LTIP: 2011– 126,462; 2010– 83,991; 2009 – 60,247.

In 2011, 2010 and 2009, 17,820, 20,000 and 12,150 restricted shares, respectively, were issued to certain non-employee members of the Board of Directors. Transferability of these shares is restricted for one to three years following issuance. In addition, non-employee members of the Board of Directors have been given the opportunity to receive all or a portion of their fees in restricted shares. These shares vest ratably, on an annual basis, over the term of office of the director. In 2011, 2010 and 2009, 2,400, 4,578 and 3,868 restricted shares, respectively, were issued in lieu of directors’ fees.

During 2011, 2010 and 2009, the Company recognized a tax benefit (cost) of $277, $(333), and $2,175, respectively, relating to the restricted stock awards.

At June 30, 2011, the Company had approximately 23 million common shares reserved for issuance in connection with its stock incentive plans.

13. Shareholders’ Protection Rights Agreement

On January 25, 2007, the Board of Directors of the Company declared a dividend of one Shareholders’ Right for each common share outstanding on February 17, 2007 in relation to the Company’s Shareholders Protection Rights Agreement. As of June 30, 2011, 155,090,509 common shares were reserved for issuance under this Agreement. Under certain conditions involving acquisition of, or an offer for, 15 percent or more of the Company’s common shares, all holders of Shareholders’ Rights would be entitled to purchase one common share at an exercise price currently set at $160. In addition, in certain circumstances, all holders of Shareholders’ Rights (other than the acquiring entity) would be entitled to purchase a number of common shares equal to twice the exercise price, or at the option of the Board, to exchange each Shareholders’ Right for one common share. The Shareholders’ Rights remain in existence until February 17, 2017, unless extended by the Board of Directors or earlier redeemed (at one cent per Shareholders’ Right), exercised or exchanged under the terms of the agreement. In the event of an unfriendly business combination attempt, the Shareholders’ Rights will cause substantial dilution to the person attempting the business combination. The Shareholders’ Rights should not interfere with any merger or other business combination that is in the best interest of the Company and its shareholders since the Shareholders’ Rights may be redeemed.

14. Research and Development

Research and development costs amounted to $359,456 in 2011, $316,181 in 2010 and $338,908 in 2009. These amounts include both costs incurred by the Company related to independent research and development initiatives as well as costs incurred in connection with research and development contracts. Costs incurred in connection with research and development contracts amounted to $61,327 in 2011, $40,277 in 2010 and $50,739 in 2009. These costs are included in the total research and development cost for each of the respective years.

13 - 39

15. Financial Instruments

The Company’s financial instruments consist primarily of Cash and cash equivalents, long-term investments, and Accounts receivable, net 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, net, Accounts payable, trade and Notes payable approximate fair value. The carrying value of Long-term debt (excluding leases) was $1,765,892 and $1,758,845 at June 30, 2011 and June 30, 2010, respectively, and was estimated to have a fair value of $1,902,221 and $1,925,397 at June 30, 2011 and June 30, 2010, respectively. The fair value of Long-term debt was estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements.

The Company manages foreign currency transaction and translation risk by utilizing derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign denominated debt designated as net investment hedges. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not hold or issue derivative financial instruments for trading purposes.

The Company’s Euro bonds and Japanese Yen credit facility have been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Euro bonds and Japanese Yen credit facility into U.S. dollars is recorded in accumulated other comprehensive income (loss) and remains there until the underlying net investment is sold or substantially liquidated.

Derivative financial instruments are recognized on the balance sheet as either assets or liabilities and are measured at fair value. Gains or losses on derivatives that are not hedges are adjusted to fair value through the Cost of sales caption in the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through Accumulated other comprehensive income (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings.

During 2011, the Company entered into 10-year cross-currency swap contracts with an aggregate notional amount of approximately €235 million and designated the cross-currency swap contracts as a hedge of the Company’s net investment in certain foreign subsidiaries whose functional currency is the euro. Also during 2011, the Company entered into forward exchange contracts with an aggregate notional amount of €200 million. The forward exchange contracts were entered into to hedge against foreign currency movements prior to the repayment of the Company’s Euro bonds which matured in November 2010. The forward exchange contracts were settled in November 2010.

The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows:

	Balance Sheet Caption		2011		2010
Net investment hedges
Cross-currency swap contracts		Other liabilities	$	36,582	$
Cash flow hedges
Costless collar contracts		Accounts receivable		638		1,624
Costless collar contracts		Other accrued liabilities		2,979		2,334

The cross-currency swap contracts have been designated as hedging instruments. The costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions.

13 - 40

Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income are as follows:

	2011			2010			2009
Forward exchange contracts	$	19,048		$			$
Costless collar contracts		(6,624	)		(4,897	)		(5,286	)

Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet are as follows:

	2011			2010
Cross-currency swap contracts	$	(22,600	)	$
Foreign denominated debt		(50,581	)		40,955

There was no ineffectiveness of the cross-currency swap contracts or foreign denominated debt, nor were any portion of these financial instruments excluded from the effectiveness testing, during 2011, 2010 and 2009.

16. Fair Value Measurements

On July 1, 2009, the Company adopted new accounting guidance relating to fair value measurements of nonfinancial assets and nonfinancial liabilities, which includes goodwill and long-lived assets. These items are recognized at fair value when an impairment exists. No material fair value adjustments were made to the Company’s nonfinancial assets and nonfinancial liabilities during 2011 and 2010.

A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2011 and June 30, 2010 is as follows:

	Total Value At June 30, 2011		Quoted Prices In Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Derivatives	$	638	$	$	638	$
Liabilities:
Derivatives		39,561			39,561
	Total Value At June 30, 2010		Quoted Prices In Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities	$	3,542	$	$		$	3,542
Derivatives		1,624			1,624
Liabilities:
Derivatives		2,334			2,334

13 - 41

Available for sale securities consisted of an investment in stock in an electronic and electrical equipment company. The fair value of available for sale securities was estimated using a market and income approach with equal weighting given to each approach. The market approach estimates a fair value by applying price-to-earnings multiples for similar companies that are publicly traded while the income approach estimates a fair value using a discounted cash flow analysis. During 2011, there were no purchases, sales, issuances or settlements of available for sale securities. During the third quarter of fiscal 2011, it was determined that the investment in the electronic and electrical equipment company had permanently declined to a fair value of zero and as a result an expense of $3,542 was recognized in Net income. Derivatives primarily consist of costless collar contracts, the fair value of which is calculated through a model that utilizes market observable inputs including both spot and forward prices for the same underlying currencies.

17. Contingencies

The Company is involved in various litigation matters arising in the normal course of business, including proceedings based on product liability claims, workers’ compensation claims and alleged violations of various environmental laws. The Company is self-insured in the United States for health care, workers’ compensation, general liability and product liability up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending proceedings cannot be predicted with certainty, management believes that any liabilities that may result from these proceedings will not have a material adverse effect on the Company’s liquidity, financial condition or results of operations.

Parker ITR S.r.l. (Parker ITR), a subsidiary acquired on January 31, 2002, has been the subject of a number of lawsuits and regulatory investigations, the majority of which have either been settled or are pending an appeal filed by the Company. With respect to the lawsuits, the Company recognized $2,322 in expense in 2009. With respect to the regulatory investigations, the Company recognized $35,084 in expense in 2009 and $654 in expense in 2010. In 2011, the Company recognized income of $10,869 related to the insurance recovery of a portion of the expense incurred with respect to the regulatory investigations.

Environmental - The Company is currently responsible for environmental remediation at various manufacturing facilities presently or formerly operated by the Company and has been named as a “potentially responsible party,” along with other companies, at off-site waste disposal facilities and regional sites.

As of June 30, 2011, the Company had a reserve of $15,257 for environmental matters, which are probable and reasonably estimable. This reserve is recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties.

The Company’s estimated total liability for environmental matters ranges from a minimum of $15.3 million to a maximum of $72.1 million. The largest range for any one site is approximately $6.1 million. The actual costs to be incurred by the Company will be dependent on final determination of contamination and required remedial action, negotiations with governmental authorities with respect to cleanup levels, changes in regulatory requirements, innovations in investigatory and remedial technologies, effectiveness of remedial technologies employed, the ability of other responsible parties to pay, and any insurance or other third-party recoveries.

13 - 42

18. Quarterly Information (Unaudited)

2011	1st		2nd		3rd		4th		Total
Net sales	$	2,829,273	$	2,866,664	$	3,240,103	$	3,409,830	$	12,345,870
Gross profit		691,399		670,936		777,020		819,058		2,958,413
Net income attributable to common shareholders		247,171		230,180		279,589		292,190		1,049,130
Diluted earnings per share		1.51		1.39		1.68		1.79		6.37
2010	1st		2nd		3rd		4th		Total
Net sales	$	2,237,165	$	2,354,708	$	2,614,823	$	2,786,470	$	9,993,166
Gross profit		436,220		485,227		552,372		672,280		2,146,099
Net income attributable to common shareholders		73,493		104,546		153,863		222,163		554,065
Diluted earnings per share		.45		.64		.94		1.35		3.40

Earnings per share amounts are computed independently for each of the quarters presented, therefore, the sum of the quarterly earnings per share amounts may not equal the total computed for the year.

19. Stock Prices and Dividends (Unaudited)

(In dollars)		1st		2nd		3rd		4th		Full Year
2011	High	$	72.12	$	87.36	$	95.00	$	99.40	$	99.40
	Low		54.26		67.52		82.80		83.65		54.26
	Dividends		.27		.29		.32		.37		1.25
2010	High	$	55.89	$	59.36	$	66.71	$	72.50	$	72.50
	Low		39.53		49.36		53.50		55.18		39.53
	Dividends		.25		.25		.25		.26		1.01
2009	High	$	72.69	$	52.52	$	46.45	$	48.45	$	72.69
	Low		48.67		31.29		27.69		33.13		27.69
	Dividends		.25		.25		.25		.25		1.00

Common Stock Listing: New York Stock Exchange, Stock Symbol PH

13 - 43

Management’s Report On Internal Control Over Financial Reporting

Our management, including the principal executive officer and the principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)). We assessed the effectiveness of our internal control over financial reporting as of June 30, 2011. In making this assessment, we used the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission in “Internal Control-Integrated Framework.” We concluded that based on our assessment, the Company’s internal control over financial reporting was effective as of June 30, 2011.

Deloitte & Touche LLP, the independent registered accounting firm that audited the Company’s consolidated financial statements, has issued an attestation report on the Company’s internal control over financial reporting as of June 30, 2011, which is included herein.

/s/ Donald E. Washkewicz	/s/ Jon P. Marten
Chairman, Chief Executive Officer and President	Executive Vice President – Finance and Administration and Chief Financial Officer

13 - 44

To the Board of Directors and Shareholders of

Parker Hannifin Corporation

We have audited the accompanying consolidated balance sheets of Parker Hannifin Corporation and subsidiaries (the “Company”) as of June 30, 2011 and June 30, 2010, and the related consolidated statements of income, equity, and cash flows for each of the three years in the period ended June 30, 2011. Our audits also included the financial statement schedule listed in the Index at Item 15(a)(1). We also have audited the Company’s internal control over financial reporting as of June 30, 2011, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these financial statements and financial statement schedule and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Parker Hannifin Corporation and subsidiaries as of June 30, 2011 and June 30, 2010, and the results of their operations and their cash flows for each of the three years in the period ended June 30, 2011, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2011, based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

/s/ DELOITTE & TOUCHE LLP

Cleveland, Ohio

August 26, 2011

13 - 45

Five-Year Financial Summary

(Amounts in thousands, except per share information)	2011			2010			2009			2008			2007
Net sales	$	12,345,870		$	9,993,166		$	10,309,015		$	12,145,605		$	10,718,059
Cost of sales		9,387,457			7,847,067			8,181,348			9,339,072			8,272,949
Selling, general and administrative expenses		1,467,773			1,277,080			1,290,379			1,364,082			1,226,861
Interest expense		99,704			103,599			112,071			98,996			83,414
Income taxes		356,751			198,452			172,939			377,058			329,236
Net Income attributable to common shareholders		1,049,130			554,065			508,515			949,466			830,046
Basic earnings per share		6.51			3.44			3.15			5.64			4.75
Diluted earnings per share	$	6.37		$	3.40		$	3.13		$	5.53		$	4.68
Average number of shares outstanding - Basic		161,126			160,910			161,564			168,285			174,643
Average number of shares outstanding - Diluted		164,798			162,902			162,719			171,644			177,495
Cash dividends per share	$	1.250		$	1.010		$	1.000		$	.840		$	.692
Net income attributable to common shareholders as a percent of net sales		8.5	%		5.5	%		4.9	%		7.8	%		7.7	%
Return on average assets		10.1	%		5.6	%		5.0	%		10.1	%		10.0	%
Return on average shareholders’ equity		21.5	%		12.8	%		10.7	%		19.1	%		18.5	%
Book value per share	$	34.71		$	27.09		$	26.59		$	31.35		$	27.14
Working capital	$	1,914,213		$	1,383,905		$	1,118,027		$	1,912,369		$	1,460,930
Ratio of current assets to current liabilities		1.8			1.6			1.6			1.9			1.8
Plant and equipment, net	$	1,797,179		$	1,697,881		$	1,880,554		$	1,926,522		$	1,736,372
Total assets		10,886,805			9,910,382			9,855,902			10,386,854			8,441,413
Long-term debt		1,691,086			1,413,634			1,839,705			1,952,452			1,089,916
Shareholders’ equity	$	5,383,854		$	4,367,965		$	4,268,199		$	5,251,553		$	4,712,680
Debt to debt-shareholders’ equity percent		24.7	%		28.9	%		35.2	%		28.3	%		21.4	%
Depreciation	$	229,238		$	245,295		$	252,599		$	257,570		$	245,058
Capital expenditures	$	207,294		$	129,222		$	270,733		$	280,327		$	237,827
Number of employees		58,409			54,794			51,639			61,722			57,338
Number of shares outstanding at year-end		155,091			161,256			160,489			167,512			173,618

13 - 46

EX-21

Exhibit (21)* to Report

on Form 10-K for

Fiscal Year Ended June 30, 2011

by Parker-Hannifin Corporation

Listed below, are the subsidiaries of the Company and their jurisdictions of organization. Except where otherwise noted, all of such subsidiaries are either directly or indirectly wholly-owned by the Company.

Name of Subsidiary	State/Country of Incorporation
UNITED STATES
Alkid Corp.	California
Winco Enterprises Inc.	California
Parker-Hannifin International Corp.	Delaware
Parker Hannifin Luxembourg Acquisitions LLC	Delaware
Parker Intangibles LLC	Delaware
Parker Italy (PH Espana Holding) LLC	Delaware
Parker Hannifin Holding EMEA LLC	Delaware
Parker Hannifin Outbound LLC	Delaware
Parker Hannifin Spain LLC	Delaware
Parker Italy Holding LLC	Delaware
PG Square LLC	Ohio
Parker Royalty Partnership	Ohio
Parker Hannifin Luxembourg Acquisitions Limited Co.	Texas
Parker-Hannifin Luxembourg Finance Limited Company	Texas
Parker Hannifin Luxembourg 1 Limited Company	Texas
INTERNATIONAL
Parker Hannifin Argentina S.A.I.C.	Argentina
Parker Hannifin Australia Holding, Pty Limited	Australia
Parker Hannifin Australia Assets Pty Limited	Australia
Parker Hannifin (Australia) Pty Limited	Australia
Parker Hannifin Ges.m.b.H.	Austria
Parker Hannifin Manufacturing Austria GmbH	Austria
Parker Hannifin Manufacturing Holding Austria GmbH	Austria
Parker Hannifin Manufacturing Belgium BVBA	Belgium
Parker Hannifin Manufacturing Holding Belgium BVBA	Belgium
Parker Hannifin BeLux SPRL	Belgium
Parker Hannifin (Bermuda) Ltd.	Bermuda
Legris do Brasil Ltda.	Brazil
Parker Adesivos e Selantes Quimicos Industria e Comericio Ltda	Brazil
Parker Hannifin Industria e Comercio Ltda	Brazil
Parker Canada Holding Co	Canada
Parker Canada Investment Co.	Canada
Parker Canada Limited Partner Co	Canada
Parker Canada Management Inc.	Canada

Name of Subsidiary	State/Country of Incorporation
Parker Hannifin Canada	Canada
Parker Ontario Limited Partnership	Canada
9183-7252 Quebec Inc.	Canada
Parker Ontario Holdings Inc.	Canada
BAMT Ltd.	Channel Islands Jersey
ONSGAR Ltd.	Channel Islands Jersey
Parker Hannifin Chile Limitada	Chile
Ingeniera y Servicios Metalcrom Limitada	Chile
Parker Hannifin Motion & Control (Shanghai) Co. Ltd.	China
Shanghai Denison Hydraulics Components Limited (1)	China
Parker Hannifin Fluid Connectors (Qingdao) Co., Ltd.	China
Parker Shenyang Rubber Products Co., Ltd. (2)	China
Parker Hannifin Hydraulics (Tianjin) Co., Ltd.	China
Parker Hannifin Fluid Power Systems & Components Co., Ltd.	China
Parker Hannifin Refrigeration and Air Conditioning (Wuxi) Co., Ltd.	China
Parker Hannifin Electronic Material (Shenzhen) Co., Ltd.	China
Parker Hannifin Management (Shanghai) Co., Ltd. (China RHQ)	China
Rayco (Wuxi) Technologies Co., Ltd.	China
Parker Hannifin Fluid Connectors Co., Ltd	China
Taiyo Parker Fluidpower (Shanghai) Co., Ltd.	China
Parker Hannifin Motion & Control (Wuxi) Company Ltd.	China
Parker Hannifin Manufacturing Holding Czech Republic Sro	Czech Republic
Parker Hannifin Czech Republic sro	Czech Republic
Parker Hannifin Manufacturing Czech Republic (Sadska) s.r.o.	Czech Republic
Parker Hannifin Manufacturing Czech Republic (Chomutov) s.r.o.	Czech Republic
Parker Hannifin Manufacturing Holding Denmark ApS	Denmark
Parker Hannifin Manufacturing Denmark ApS	Denmark
Parker Hannifin Danmark A/S	Denmark
Parker Hannifin Manufacturing Finland OY	Finland
Parker Hannifin OY	Finland
Parker Hannifin France Holding SAS	France
Parker Hannifin France Manufacturing Finance SAS	France
Parker Hannifin France SAS	France
Parker Hannifin Gebaeudeverwaltung eins GmbH & Co. KG	Germany
Parker Hannifin Real Estate Holding GmbH	Germany
Parker Hannifin Gebaeudeverwaltung zwei Gmbh & Co. KG	Germany
Parker Hannifin GmbH	Germany
Parker Hannifin Holding GmbH	Germany
Parker Hannifin Manufacturing Germany GmbH & Co. KG	Germany
Parker Hannifin Verw. GmbH	Germany
Parker Hannifin (Gibraltar) Holding Ltd. (Gib1)	Gibraltar
Parker Hannifin (Gibraltar) Properties Ltd. (Gib7)	Gibraltar
Parker Hannifin Hong Kong, Ltd.	Hong Kong
Parker International Capital Mng Hungary Ltd.	Hungary

Name of Subsidiary	State/Country of Incorporation
Legris Hungary Ltd.	Hungary
Parker Hannifin India Private Ltd.	India
Annapurna Kenmore Tube Products Pvt. Ltd. (2)	India
Legris India Holding Private Ltd.	India
Legris India Private Ltd. (3)	India
Parker Sales (Ireland) Limited	Ireland
Acadia International Insurance Ltd	Ireland
Parker Marine Hose Products Srl	Italy
Parker Italy Holding S.r.l.	Italy
Parker ITR SRL	Italy
Parker Hannifin Srl	Italy
Parker Hannifin Manufacturing Holding Italy Srl	Italy
Parker Hannifin Japan Ltd.	Japan
Taiyo System (Tianjin) Co., Ltd.	Japan
Taiyo Ltd. (4)	Japan
Kuroda Pneumatics Ltd.	Japan
Taiyo Tech	Japan
Taiyo Techno	Japan
Parker Korea Ltd.	Korea
Parker Hannifin Climate & Industrial Controls Ltd.	Korea
Parker Hannifin Connectors Ltd.	Korea
Parker Mobile Control Division Asia Co., Ltd.	Korea
Parker Hannifin Europe S.a r.l.	Luxembourg
Parker Hannifin (Luxembourg) Sarl	Luxembourg
Parker Hannifin Luxembourg Finance S.a r.l.	Luxembourg
Parker Hannifin Outbound S.a r.l.	Luxembourg
Parker Hannifin Holding EMEA S.à.r.l.	Luxembourg
Parker Hannifin S.a.r.l.	Luxembourg
Parker Hannifin Luxembourg Acquisitions S.a r.l.	Luxembourg
Parker Hannifin Lux Finco S.à.r.l.	Luxembourg
Parker Hannifin Partnership S.C.S	Luxembourg
Parker Hannifin Bermuda Luxembourg S.C.S.	Luxembourg
Parker Hannifin Global Capital Management S.a.r.l.	Luxembourg
PH Luxembourg Investments 1 S.a.r.l.	Luxembourg
Parker Hannifin Industrial (M) Sdn Bhd	Malaysia
Parker Hannifin Malaysia Sdn. Bhd	Malaysia
Parker Hannifin Singapore Private (Malaysia Branch)	Malaysia
EmiTherm Sdn. Bhd.	Malaysia
Parker-Origa Sdn. Bhd	Malaysia
Parker Baja Servicios	Mexico
Parker Brownsville Servicios	Mexico
Parker Hannifin de Mexico, S.A. de C.V.	Mexico
Parker Hannifin Hldg S. de R.L. de C.V.	Mexico
Parker Industrial S. de R.L. de C.V.	Mexico

Name of Subsidiary	State/Country of Incorporation
Parker Servicio’s de Mexico, S.A. de C.V.	Mexico
Parker Sistemas de Automatization S de R.L.	Mexico
Arosellos, S.A. de C.V.	Mexico
Parker Seal de Mexico S.A.	Mexico
Parker Hannifin Netherlands Holdings B.V.	Netherlands
Parker Hannifin VAS Netherlands B.V.	Netherlands
Parker Filtration B.V.	Netherlands
Parker Hannifin B.V.	Netherlands
Parker Hose BV	Netherlands
Parker Pneumatic BV	Netherlands
Parker Polyflex BV	Netherlands
Parker Hannifin Finance BV	Netherlands
Parker Filtration & Separation BV	Netherlands
Parker Hannifin Netherlands Holdings 2 B.V.	Netherlands
Parker Hannifin (N.Z.) Limited	New Zealand
Parker Hannifin A/S	Norway
Parker Hannifin VAS Norway AS	Norway
Parker Hannifin Holdings AS	Norway
Parker Maritime AS	Norway
Parker Scanrope AS	Norway
Scanrppe Eindom Nord AS	Norway
Parker Hannifin Manufacturing Holding Poland Sp. Z.o.o.	Poland
Parker Hannifin Sales Poland Sp. Z.o.o.	Poland
Parker Hannifin Sp. z.o.o.	Poland
Parker Hannifin Portugal LDA	Portugal
Parker Hannifin LLC	Russia
Legris Industries OOO	Russia
Parker Hannifin Singapore Pte. Ltd.	Singapore
Rayco Technologies Pte. Ltd.	Singapore
Rayco International Pte. Ltd.	Singapore
Parker Hannifin (Africa) Pty. Ltd.	South Africa
Tecknit Europe Espana, S.L.	Spain
Parker Hannifin Catera Industrial S.L.	Spain
Parker Hannifin (Espana) SL	Spain
Parker Hannifin Industries & Assets Holding SL	Spain
Parker Hannifin Manufacturing Holding Spain SL	Spain
Parker Hannifin Manufacturing Spain SL	Spain
Parker Hannifin AB	Sweden
Parker Hannifin Sweden Sales AB	Sweden
Tema Ingenjorsfirma AB	Sweden
Parker Hannifin Cartera Industrial, S.L. Torrejon de Ardoz (Espagne) succursale de Carouge	Switzerland
Parker Lucifer SA	Switzerland
Tema Marketing AG	Switzerland

Name of Subsidiary	State/Country of Incorporation
Parker Hannifin Europe Sarl, Luxembourg, Switzerland Branch, Etoy	Switzerland
Parker Hannifin Europe Sarl	Switzerland
Parker-Origa Holding Sarl	Switzerland
Parker Hannifin Taiwan Ltd.	Taiwan
Parker Hannifin (Thailand) Co. Ltd.	Thailand
KV Automation Thailand (5)	Thailand
Parker Hareket ve Kontrol Sistemeri Tic. Ltd Sirket	Turkey
Parker Lklim Kontrol Sistemleri Sanayi ve Tic AS	Turkey
Alenco (Holdings) Ltd.	UK
domnick hunter Group Ltd.	UK
domnick hunter Investments Limited	UK
Parker Hannifin UK Sales Limited	UK
Parker Hannifin GB Ltd.	UK
Parker Hannifin Ltd.	UK
Parker Hannifin (UK) Limited	UK
Parker Hannifin 2007 LLP	UK
ScanRope Ltd.	UK
Vansco Electronics (UK) Limited	UK
Parker-Origa Ltd.	UK
Legris Limited	UK
Parker Middle East FZE	United Arab Emirates
Parker Hannifin de Venezuela, S.A.	Venezuela
Parker Hannifin Vietnam Company Limited	Vietnam

(1) The Company Owns 85% of such subsidiary’s equity capital.

(2) The Company Owns 51% of such subsidiary’s equity capital.

(3) The Company Owns 74% of such subsidiary’s equity capital.

(4) The Company Owns 60% of such subsidiary’s equity capital.

(5) The Company Owns 77% of such subsidiary’s equity capital.

All of the foregoing subsidiaries are included in the Company’s consolidated financial statements. In addition to the foregoing, the Company owns 47 inactive or name holding companies.

EX-23

Exhibit (23) to Report

On Form 10-K for Fiscal

Year Ended June 30, 2011

By Parker-Hannifin Corporation

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-169069), and Form S-8 (Nos. 033-53193, 333-95477, 333-34542, 333-103181, 333-103633, 333-107691, 333-117761, 333-126957, 333-130123, and 333-164335) of our report dated August 26, 2011, relating to the financial statements and the financial statement schedule of Parker Hannifin Corporation and subsidiaries (the “Company”), and the effectiveness of the Company’s internal control over financial reporting, appearing in this Annual Report on Form 10-K of the Company for the year ended June 30, 2011.

/s/ DELOITTE & TOUCHE LLP

Cleveland, OH

August 26, 2011

EX-24

Exhibit 24

Securities and Exchange Commission

Washington, D.C. 20549

Re:      Parker-Hannifin Corporation

Commission File No. 1-4982

Annual Report on Form 10-K

Authorized Representatives

Gentlemen:

Parker-Hannifin Corporation (the “Company”) is the issuer of Securities registered under Section 12(b) of the Securities Exchange Act of 1934 (the “Act”). Each of the persons signing his or her name below confirms, as of the date appearing opposite his or her signature, that each of the following “Authorized Representatives” is authorized on his or her behalf to sign and to submit to the Securities and Exchange Commission Annual Reports on Form 10-K and amendments thereto as required by the Act:

Authorized Representatives

Donald E. Washkewicz

Jon P. Marten

Thomas A. Piraino, Jr.

Each person so signing also confirms the authority of each of the Authorized Representatives named above to do and perform, on his or her behalf, any and all acts and things requisite or necessary to assure compliance by the signing person with the Form 10-K filing requirements. The authority confirmed herein shall remain in effect as to each person signing his or her name below until such time as the Commission shall receive from such person a written communication terminating or modifying the authority.

	Date		Date
/s/ D. E. Washkewicz	8/18/11	/s/ K. P. Müller	8/18/11
Donald E. Washkewicz, Chairman of the		Klaus-Peter Müller, Director
Board, Chief Executive Officer and
President (Principal Executive Officer)
		/s/ Candy M. Obourn	8/18/11
		Candy M. Obourn, Director
/s/ Jon P. Marten	8/18/11
Jon P. Marten, Executive Vice
President – Finance & Administration		/s/ Joseph M. Scaminace	8/18/11
and Chief Financial Officer		Joseph M. Scaminace, Director
(Principal Financial Officer)
/s/ Catherine A. Suever	8/18/11	/s/ Wolfgang R. Schmitt	8/18/11
Catherine A. Suever, Vice President and		Wolfgang R. Schmitt, Director
Controller (Principal Accounting Officer)
/s/ Robert G. Bohn	8/18/11	/s/ Åke Svensson	8/18/11
Robert G. Bohn, Director		Åke Svensson, Director
/s/ L. S. Harty	8/18/11	/s/ Markos I. Tambakeras	8/18/11
Linda S. Harty, Director		Markos I. Tambakeras, Director
/s/ W. E. Kassling	8/18/11	/s/ James L. Wainscott	8/18/11
William E. Kassling, Director		James L. Wainscott, Director
/s/ R. J. Kohlhepp	8/18/11
Robert J. Kohlhepp, Director

EX-31.(I).(A)

Exhibit 31(i)(a)

CERTIFICATIONS

I, Donald E. Washkewicz, certify that:

1. I have reviewed this annual report on Form 10-K of Parker-Hannifin Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 26, 2011

/s/ Donald E. Washkewicz

Donald E. Washkewicz

Chief Executive Officer

EX-31.(I).(B)

Exhibit 31(i)(b)

CERTIFICATIONS

I, Jon P. Marten, certify that:

1. I have reviewed this annual report on Form 10-K of Parker-Hannifin Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 26, 2011

/s/ Jon P. Marten

Jon P. Marten

Executive Vice President – Finance &

Administration and Chief Financial Officer

EX-32

Exhibit 32

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

§ 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Annual Report on Form 10-K of Parker-Hannifin Corporation (the “Company”) for the fiscal year ended June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, that, to such officer’s knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

Dated: August 26, 2011

/s/ Donald E. Washkewicz

Name: Donald E. Washkewicz

Title: Chief Executive Officer

/s/ Jon P. Marten

Name: Jon P. Marten

Title: Executive Vice President-Finance &

Administration and Chief Financial Officer

XML



Number of Common Shares Repurchased at the Average Purchase Price (Detail) (USD $)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Accelerated Share Repurchases [Line Items]
Shares repurchased	8,008,926	441,118	7,557,284
Average price per share	$ 86.54	$ 56.67	$ 59.25

XML



Acquisitions - Additional Information (Detail) (USD $) In Millions	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Business Acquisition [Line Items]
Aggregate annual sales for businesses acquired, for their most recent fiscal year prior to acquisition	$ 65	$ 11	$ 532
Total purchase price for all businesses acquired in cash	61	5	747
Assumed debt for all businesses acquired			$ 4

XML



CONSOLIDATED BALANCE SHEET (USD $) In Thousands	Jun. 30, 2011		Jun. 30, 2010
Current Assets
Cash and cash equivalents	$ 657,466		$ 575,526
Accounts receivable, net (Note 1)	1,977,856		1,599,941
Inventories (Notes 1 and 6):
Finished products	584,683		465,477
Work in process	670,588		564,204
Raw materials	156,882		141,974
Inventory, Net, Total	1,412,153		1,171,655
Prepaid expenses	111,934		111,545
Deferred income taxes (Notes 1 and 4)	145,847		130,129
Total Current Assets	4,305,256		3,588,796
Plant and equipment (Note 1):
Land and land improvements	308,052		284,971
Buildings and building equipment	1,460,333		1,326,793
Machinery and equipment	3,112,810		2,897,049
Construction in progress	63,540		45,184
Property, Plant and Equipment, Gross, Total	4,944,735		4,553,997
Less accumulated depreciation	3,147,556		2,856,116
Property, Plant and Equipment, Net, Total	1,797,179		1,697,881
Goodwill (Notes 1 and 7)	3,009,116		2,786,334
Intangible assets, net (Notes 1 and 7)	1,177,722		1,150,051
Investments and other assets (Note 1)	597,532		687,320
Total Assets	10,886,805	[1]	9,910,382	[1]
Current Liabilities
Notes payable and long-term debt payable within one year (Notes 8 and 9)	75,271		363,272
Accounts payable, trade	1,173,851		888,743
Accrued payrolls and other compensation	467,043		371,393
Accrued domestic and foreign taxes	232,774		176,349
Other accrued liabilities	442,104		405,134
Total Current Liabilities	2,391,043		2,204,891
Long-term debt (Note 9)	1,691,086		1,413,634
Pensions and other postretirement benefits (Note 10)	862,938		1,500,928
Deferred income taxes (Notes 1 and 4)	160,035		135,321
Other liabilities	293,367		196,208
Total Liabilities	5,398,469		5,450,982
Shareholders' Equity
Serial preferred stock, $.50 par value, authorized 3,000,000 shares; none issued
Common stock, $.50 par value, authorized 600,000,000 shares; issued 181,046,128 shares in 2011 and 2010	90,523		90,523
Additional capital	668,332		637,442
Retained earnings	6,891,407		6,086,545
Accumulated other comprehensive (loss)	(450,990)		(1,208,561)
Treasury shares at cost: 25,955,619 in 2011 and 19,790,110 in 2010	(1,815,418)		(1,237,984)
Total Shareholders' Equity	5,383,854		4,367,965
Noncontrolling interests	104,482		91,435
Total Equity	5,488,336		4,459,400
Total Liabilities and Equity	$ 10,886,805		$ 9,910,382

[1] Corporate assets are principally cash and cash equivalents, domestic deferred income taxes, investments, benefit plan assets, headquarters facilities and the major portion of the Company's domestic data processing equipment.

XML



CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)	Jun. 30, 2011	Jun. 30, 2010
Serial preferred stock, par value	$ 0.50	$ 0.50
Serial preferred stock, authorized	3,000,000	3,000,000
Serial preferred stock, issued	0	0
Common stock, par value	$ 0.50	$ 0.50
Common stock, authorized	600,000,000	600,000,000
Common stock, issued	181,046,128	181,046,128
Treasury shares, shares	25,955,619	19,790,110

XML



Retirement Benefits - Additional Information (Detail) (USD $)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Projected benefit obligation for pension plans with projected benefit obligations in excess of plan assets	$ 3,557,563,000	$ 3,420,234,000
Fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets	2,783,349,000	2,007,629,000
Weighted-average target asset allocation, Equity securities	59.00%	56.00%
Weighted-average target asset allocation, Debt securities	33.00%	37.00%
Weighted-average target asset allocation, Other	8.00%	7.00%
Recorded expense (income) relating to deferred compensation	28,720,000	21,553,000	(27,167,000)
Pension Plans, Defined Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive -loss) income into net periodic benefit pension cost	102,182,000
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost	13,877,000
Estimated amount of transition asset that will be amortized from accumulated other comprehensive -loss) income into net periodic benefit pension cost	66,000
Accumulated benefit obligation for all defined benefit plans	3,219,403,000	3,096,603,000
Projected benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets	3,119,540,000	3,401,504,000
Accumulated benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets	2,798,701,000	3,072,016,000
Fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets	2,353,730,000	1,991,174,000
Plans' assets included Company stock with market values	119,856,000	74,000,000
Expected cash contributions to defined benefit pension plans in 2012	67,000,000
Estimated future benefit payments in the year ending June 30, 2012	153,694,000
Estimated future benefit payments in the year ending June 30, 2013	199,048,000
Estimated future benefit payments in the year ending June 30, 2014	164,605,000
Estimated future benefit payments in the year ending June 30, 2015	176,455,000
Estimated future benefit payments in the year ending June 30, 2016	190,524,000
Estimated future benefit payments in the aggregate for the five years ending June 30, 2017 through June 30, 2021	1,177,675,000
Weighted-average target asset allocation, Equity securities	55.00%
Weighted-average target asset allocation, Debt securities	39.00%
Weighted-average target asset allocation, Other	6.00%
Common shares issued out of treasury in lieu of cash for the matching contribution		510,984	49,422
Recognized expense related to the retirement income account	16,844,000	12,598,000	14,489,000
Maximum percentage of employer 401K matching contribution	4.00%
Number of shares employees have elected to invest within the Company Stock Fund of the Parker Retirement Savings Plan	3,297,412
Domestic Defined Benefit Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percentage of assets held in the U.S. defined benefit plans to total defined benefit plan assets	75.00%
Other Postretirement Benefit Plans, Defined Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive -loss) income into net periodic benefit pension cost	624,000
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit pension cost	45,000
Estimated future benefit payments in the year ending June 30, 2012	5,686,000
Estimated future benefit payments in the year ending June 30, 2013	5,840,000
Estimated future benefit payments in the year ending June 30, 2014	5,940,000
Estimated future benefit payments in the year ending June 30, 2015	6,027,000
Estimated future benefit payments in the year ending June 30, 2016	5,820,000
Estimated future benefit payments in the aggregate for the five years ending June 30, 2017 through June 30, 2021	27,099,000
Recognized income as a result of eliminating the liability related to benefit under FASB Statement No. 106		$ 22,400,000
Discount rate assumption used to measure the benefit obligation	5.00%	5.01%
Common/Collective trusts
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Investments valued using a net asset value per share, redemption frequency	daily
Investments valued using a net asset value per share, redemption notice period	30-day
Limited Partnership
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Investments valued using a net asset value per share, redemption frequency	daily
Investments valued using a net asset value per share, redemption notice period	30-day

XML



Income Before Income Taxes Derived from Sources (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items]
United States	$ 681,910	$ 354,675	$ 390,507
Foreign	731,811	400,142	292,576
Income before income taxes	$ 1,413,721	$ 754,817	$ 683,083

XML



Fair Value of Stock Option and SAR Award Weighted-Average Assumptions (Detail) (USD $)	12 Months Ended
	Jun. 30, 2011 Year	Jun. 30, 2010 Year	Jun. 30, 2009 Year
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Risk-free interest rate	1.50%	2.90%	3.20%
Expected life of award	5.2	5.3	4.9
Expected dividend yield of stock	1.50%	1.40%	1.30%
Expected volatility of stock	35.90%	34.50%	26.60%
Weighted-average fair value	$ 18.70	$ 15.77	$ 16.56

XML



Restricted Shares for Long Term Incentive Plans (Detail) (Long Term Incentive Plans, USD $) In Thousands, except Share data	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Long Term Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
LTIP 3-year plan	2008-09-10	2007-08-09	2006-07-08
Number of shares issued	157,491	68,172	172,130
Average share value on date of issuance	$ 62.35	$ 48.58	$ 65.34
Total value	$ 9,820	$ 3,312	$ 11,247

XML



Shareholders' Protection Rights Agreement

12 Months Ended

Jun. 30, 2011

Shareholders' Protection Rights Agreement

13. Shareholders’ Protection Rights Agreement

On January 25, 2007, the Board of Directors of the Company declared a dividend of one Shareholders’ Right for each common share outstanding on February 17, 2007 in relation to the Company’s Shareholders Protection Rights Agreement. As of June 30, 2011, 155,090,509 common shares were reserved for issuance under this Agreement. Under certain conditions involving acquisition of, or an offer for, 15 percent or more of the Company’s common shares, all holders of Shareholders’ Rights would be entitled to purchase one common share at an exercise price currently set at $160. In addition, in certain circumstances, all holders of Shareholders’ Rights (other than the acquiring entity) would be entitled to purchase a number of common shares equal to twice the exercise price, or at the option of the Board, to exchange each Shareholders’ Right for one common share. The Shareholders’ Rights remain in existence until February 17, 2017, unless extended by the Board of Directors or earlier redeemed (at one cent per Shareholders’ Right), exercised or exchanged under the terms of the agreement. In the event of an unfriendly business combination attempt, the Shareholders’ Rights will cause substantial dilution to the person attempting the business combination. The Shareholders’ Rights should not interfere with any merger or other business combination that is in the best interest of the Company and its shareholders since the Shareholders’ Rights may be redeemed.

XML



Equity - Additional Information (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2009	Jun. 30, 2010
Equity, Class of Treasury Stock [Line Items]
Retirement benefit plan activity related to the adoption of the measurement date provision of pension accounting rules		$ 2,106
Balance of Accumulated other comprehensive (loss) income in Noncontrolling interests relates to foreign currency translation	26,844		18,519
Authorization to repurchase common shares	Under the program, the Company is authorized to repurchase an amount of common shares each fiscal year equal to the greater of 7.5 million shares or five percent of the shares outstanding as of the end of the prior fiscal year.
EITF 06-4
Equity, Class of Treasury Stock [Line Items]
Retirement benefit plan activity related to the adoption of new accounting rules for split dollar insurance arrangements		$ 3,391

XML



Document and Entity Information (USD $)	12 Months Ended
	Jun. 30, 2011	Jul. 31, 2011	Dec. 31, 2010
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Trading Symbol	PH
Entity Registrant Name	PARKER HANNIFIN CORP
Entity Central Index Key	0000076334
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		155,061,050
Entity Public Float			$ 13,856,268,971

XML



Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Jun. 30, 2011 Year
Industrial
Significant Accounting Policies [Line Items]
Number of countries that the Industrial International operations provide Parker products and services to	44
Building
Significant Accounting Policies [Line Items]
Estimated useful lives (in years)	40
Land Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives (in years)	15
Building Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives (in years)	15
Machinery and Equipment
Significant Accounting Policies [Line Items]
Estimated useful lives, lower limit (in years)	7
Estimated useful lives, upper limit (in years)	10
Vehicles and Office Equipment
Significant Accounting Policies [Line Items]
Estimated useful lives, lower limit (in years)	3
Estimated useful lives, upper limit (in years)	8

XML



Fair Value Measurements

12 Months Ended

Jun. 30, 2011

Fair Value Measurements

16. Fair Value Measurements

On July 1, 2009, the Company adopted new accounting guidance relating to fair value measurements of nonfinancial assets and nonfinancial liabilities, which includes goodwill and long-lived assets. These items are recognized at fair value when an impairment exists. No material fair value adjustments were made to the Company’s nonfinancial assets and nonfinancial liabilities during 2011 and 2010.

A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2011 and June 30, 2010 is as follows:

	Total Value At June 30, 2011		Quoted Prices In Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Derivatives	$	638	$	$	638	$
Liabilities:
Derivatives		39,561			39,561
	Total Value At June 30, 2010		Quoted Prices In Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities	$	3,542	$	$		$	3,542
Derivatives		1,624			1,624
Liabilities:
Derivatives		2,334			2,334

Available for sale securities consisted of an investment in stock in an electronic and electrical equipment company. The fair value of available for sale securities was estimated using a market and income approach with equal weighting given to each approach. The market approach estimates a fair value by applying price-to-earnings multiples for similar companies that are publicly traded while the income approach estimates a fair value using a discounted cash flow analysis. During 2011, there were no purchases, sales, issuances or settlements of available for sale securities. During the third quarter of fiscal 2011, it was determined that the investment in the electronic and electrical equipment company had permanently declined to a fair value of zero and as a result an expense of $3,542 was recognized in Net income. Derivatives primarily consist of costless collar contracts, the fair value of which is calculated through a model that utilizes market observable inputs including both spot and forward prices for the same underlying currencies.

XML



Business Segment Information (Parenthetical) (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Segment Reporting Information [Line Items]
Net plant and equipment at the date of acquisition of acquired companies	$ 5,376	$ 408	$ 107,278

XML



Summary of Other Postretirement Benefit Plans (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Amounts recognized on the Consolidated Balance Sheet
Pensions and other postretirement benefits	$ (862,938)	$ (1,500,928)
Other Postretirement Benefit Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	69,868	64,434
Service cost	675	545	1,034
Interest cost	3,579	3,920	5,193
Actuarial (gain) loss	5,002	8,689
Amortization of unrecognized actuarial loss	524	(461)	(753)
Benefits paid	(5,985)	(7,720)
Net periodic benefit cost	4,778	4,004	5,474
Benefit obligation at end of year	73,139	69,868	64,434
Funded status	(73,139)	(69,868)
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	(5,670)	(5,176)
Pensions and other postretirement benefits	(67,469)	(64,692)
Net amount recognized	(73,139)	(69,868)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	10,324	5,870
Prior service (credit)	(1,068)	(1,113)
Net amount recognized	$ 9,256	$ 4,757

XML



Acquisitions

12 Months Ended

Jun. 30, 2011

Acquisitions

2. Acquisitions

During 2011, the Company completed three acquisitions whose aggregate sales for their most recent fiscal year prior to acquisition were $65 million. Total purchase price for all businesses acquired in 2011 was approximately $61 million in cash.

During 2010, the Company completed one acquisition whose aggregate sales for its most recent fiscal year prior to acquisition were $11 million. Total purchase price for this business was approximately $5 million in cash.

In October 2008, the Company acquired Legris SA, a manufacturer of fluid circuit components and systems for pneumatic, hydraulic, and chemical processing applications. In October 2008, the Company acquired Origa Group, a manufacturer of rodless pneumatic actuators, electric actuators, filter regulator lubricators and pneumatic cylinders and valves. Aggregate annual sales for these businesses and seven other businesses acquired during 2009, for their most recent fiscal year prior to acquisition, were approximately $532 million. Total purchase price for all businesses acquired during 2009 was approximately $747 million in cash and $4 million in assumed debt.

The results of operations for all acquisitions are included as of the respective dates of acquisition. The initial purchase price allocation and subsequent purchase price adjustments for acquisitions in 2011, 2010 and 2009 are presented below. Some of the 2011 purchase price allocations are preliminary and may require subsequent adjustment primarily to the values currently assigned to Plant and equipment and Intangible assets.

	2011		2010			2009
Assets acquired:
Accounts receivable	$	9,332	$	908		$	116,931
Inventories		7,908		447			87,230
Prepaid expenses		69		(575	)		3,957
Deferred income taxes		468					7,899
Plant and equipment		5,376		408			107,278
Intangible and other assets		35,094		4,198			431,964
Goodwill		8,715		2,891			319,193
		66,962		8,277			1,074,452
Liabilities assumed:
Notes payable							2,622
Accounts payable, trade		2,440		531			49,421
Accrued payrolls and other compensation		765		219			33,714
Accrued domestic and foreign taxes		215		(91	)		22,111
Other accrued liabilities		1,500		2,587			97,093
Long-term debt							1,640
Pensions and other postretirement benefits							5,418
Deferred income taxes		1,815		(420	)		136,864
Other liabilities							2,934
		6,735		2,826			351,817
Net assets acquired	$	60,227	$	5,451		$	722,635

XML



Contingencies

12 Months Ended

Jun. 30, 2011

Contingencies

17. Contingencies

The Company is involved in various litigation matters arising in the normal course of business, including proceedings based on product liability claims, workers’ compensation claims and alleged violations of various environmental laws. The Company is self-insured in the United States for health care, workers’ compensation, general liability and product liability up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending proceedings cannot be predicted with certainty, management believes that any liabilities that may result from these proceedings will not have a material adverse effect on the Company’s liquidity, financial condition or results of operations.

Parker ITR S.r.l. (Parker ITR), a subsidiary acquired on January 31, 2002, has been the subject of a number of lawsuits and regulatory investigations, the majority of which have either been settled or are pending an appeal filed by the Company. With respect to the lawsuits, the Company recognized $2,322 in expense in 2009. With respect to the regulatory investigations, the Company recognized $35,084 in expense in 2009 and $654 in expense in 2010. In 2011, the Company recognized income of $10,869 related to the insurance recovery of a portion of the expense incurred with respect to the regulatory investigations.

Environmental - The Company is currently responsible for environmental remediation at various manufacturing facilities presently or formerly operated by the Company and has been named as a “potentially responsible party,” along with other companies, at off-site waste disposal facilities and regional sites.

As of June 30, 2011, the Company had a reserve of $15,257 for environmental matters, which are probable and reasonably estimable. This reserve is recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties.

The Company’s estimated total liability for environmental matters ranges from a minimum of $15.3 million to a maximum of $72.1 million. The largest range for any one site is approximately $6.1 million. The actual costs to be incurred by the Company will be dependent on final determination of contamination and required remedial action, negotiations with governmental authorities with respect to cleanup levels, changes in regulatory requirements, innovations in investigatory and remedial technologies, effectiveness of remedial technologies employed, the ability of other responsible parties to pay, and any insurance or other third-party recoveries.

XML



Quarterly Information (Unaudited) (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Quarterly Financial Information

2011	1st		2nd		3rd		4th		Total
Net sales	$	2,829,273	$	2,866,664	$	3,240,103	$	3,409,830	$	12,345,870
Gross profit		691,399		670,936		777,020		819,058		2,958,413
Net income attributable to common shareholders		247,171		230,180		279,589		292,190		1,049,130
Diluted earnings per share		1.51		1.39		1.68		1.79		6.37
2010	1st		2nd		3rd		4th		Total
Net sales	$	2,237,165	$	2,354,708	$	2,614,823	$	2,786,470	$	9,993,166
Gross profit		436,220		485,227		552,372		672,280		2,146,099
Net income attributable to common shareholders		73,493		104,546		153,863		222,163		554,065
Diluted earnings per share		.45		.64		.94		1.35		3.40

XML



Retirement Benefits (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Allocation of Plan Assets

The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows:

	2011			2010
Equity securities		59	%		56	%
Debt securities		33	%		37	%
Other		8	%		7	%
		100	%		100	%

Schedule of Changes in Fair Value of Plan Assets

The fair values of pension plan assets at June 30, 2011 and at June 30, 2010, by asset class, are as follows:

	Total			Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	112,080		$	58,511	$	53,569		$
Equity securities		665,107			665,107
Fixed income securities
Corporate bonds		120,136					120,136
Government issued securities		137,618			79,536		58,082
Mutual funds
Equity funds		220,312			219,816		496
Fixed income funds		138,314			135,620		2,694
Common/Collective trusts
Equity funds		766,847					766,847
Fixed income funds		513,365					513,365
Limited Partnerships		128,470					128,470
Miscellaneous		(3,832	)		88		(3,920	)
Total at June 30, 2011	$	2,798,417		$	1,158,678	$	1,639,739		$

	Total		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	74,302	$	74,302	$		$
Equity securities		605,067		605,067
Fixed income securities
Corporate bonds		116,571				116,571
Government issued securities		130,070				130,070
Mutual funds
Equity funds		10,370				10,370
Fixed income funds		131,777				131,777
Common/Collective trusts
Equity funds		613,246				613,246
Fixed income funds		245,229				245,229
Limited Partnerships		68,648				68,648
Miscellaneous		24,906				24,906
Total at June 30, 2010	$	2,020,186	$	679,369	$	1,340,817	$

Schedule of Employee Stock Ownership Plan (ESOP) Disclosures

	2011		2010		2009
Shares held by ESOP		10,308,032		10,950,349		11,189,598
Company contributions to ESOP	$	52,627	$	48,336	$	51,593

Schedule of Health Care Cost Trend Rates

The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are:

	2011			2010			2009
Discount rate		5.01	%		6.1	%		6.71	%
Current medical cost trend rate		8.0	%		8.5	%		9.25	%
Ultimate medical cost trend rate		5.0	%		5.0	%		5.0	%
Medical cost trend rate decreases to ultimate in year		2018			2018			2014

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in assumed health care cost trend rates would have the following effects:

	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	218	$	(188	)
Effect on postretirement benefit obligation		3,381		(2,932	)

Pension Plans, Defined Benefit

Schedule of Defined Benefit Plans Disclosures

A summary of the Company’s defined benefit pension plans follows:

	2011			2010			2009
Benefit cost
Service cost	$	87,676		$	70,977		$	71,187
Interest cost		176,081			178,562			172,321
Expected return on plan assets		(200,303	)		(177,559	)		(186,417	)
Amortization of prior service cost		12,636			13,974			11,787
Amortization of unrecognized actuarial loss		109,436			65,823			31,507
Amortization of initial net (asset)		(63	)		(55	)		(53	)
Net periodic benefit cost	$	185,463		$	151,722		$	100,332

	2011			2010
Change in benefit obligation
Benefit obligation at beginning of year	$	3,430,835		$	2,952,297
Service cost		87,676			70,977
Interest cost		176,081			178,562
Actuarial (gain) loss		(101,806	)		440,941
Benefits paid		(146,779	)		(150,176	)
Plan amendments		9,735			11,902
Foreign currency translation and other		113,818			(73,668	)
Benefit obligation at end of year	$	3,569,560		$	3,430,835
Change in plan assets
Fair value of plan assets at beginning of year	$	2,020,186		$	1,807,479
Actual gain on plan assets		384,848			261,820
Employer contributions		461,243			153,291
Benefits paid		(146,779	)		(150,176	)
Foreign currency translation and other		78,919			(52,228	)
Fair value of plan assets at end of year	$	2,798,417		$	2,020,186
Funded status	$	(771,143	)	$	(1,410,649	)

	2011			2010
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	$	(14,815	)	$	(12,866	)
Pensions and other postretirement benefits		(756,328	)		(1,397,783	)
Net amount recognized	$	(771,143	)	$	(1,410,649	)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	$	1,133,411		$	1,496,209
Prior service cost		69,337			70,810
Transition obligation		161			105
Net amount recognized	$	1,202,909		$	1,567,124

Benefit Obligations

Schedule of Assumptions Used

The assumptions used to measure net periodic benefit cost for the Company’s significant defined benefit plans are:

	2011			2010			2009
U.S. defined benefit plans
Discount rate		5.3	%		6.25	%		6.8	%
Average increase in compensation		5.21	%		4.34	%		4.7	%
Expected return on plan assets		8.5	%		8.5	%		8.5	%
Non-U.S. defined benefit plans
Discount rate		1.75 to 6.0	%		2.0 to 6.78	%		2.25 to 6.9	%
Average increase in compensation		2.0 to 4.5	%		2.0 to 4.7	%		1.0 to 4.25	%
Expected return on plan assets		1.0 to 8.0	%		1.0 to 8.0	%		1.0 to 8.0	%

Benefit Costs

Schedule of Assumptions Used

The assumptions used to measure the benefit obligation for the Company’s significant defined benefit plans are:

	2011			2010
U.S. defined benefit plans
Discount rate		5.45	%		5.3	%
Average increase in compensation		5.21	%		5.21	%
Non-U.S. defined benefit plans
Discount rate		2.0 to 5.87	%		1.75 to 6.0	%
Average increase in compensation		2.0 to 5.0	%		2.0 to 4.5	%

Other Postretirement Benefit Plans, Defined Benefit

Schedule of Defined Benefit Plans Disclosures

A summary of the Company’s other postretirement benefit plans follows:

	2011			2010			2009
Benefit cost
Service cost	$	675		$	545		$	1,034
Interest cost		3,579			3,920			5,193
Net amortization and deferral		524			(461	)		(753	)
Net periodic benefit cost	$	4,778		$	4,004		$	5,474
				2011			2010
Change in benefit obligation
Benefit obligation at beginning of year				$	69,868		$	64,434
Service cost					675			545
Interest cost					3,579			3,920
Actuarial loss					5,002			8,689
Benefits paid					(5,985	)		(7,720	)
Benefit obligation at end of year				$	73,139		$	69,868
Funded status				$	(73,139	)	$	(69,868	)
	2011			2010
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	$	(5,670	)	$	(5,176	)
Pensions and other postretirement benefits		(67,469	)		(64,692	)
Net amount recognized	$	(73,139	)	$	(69,868	)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	$	10,324		$	5,870
Prior service (credit)		(1,068	)		(1,113	)
Net amount recognized	$	9,256		$	4,757

XML



Summary of the Location and Fair Value of Derivative Financial Instruments Reported in the Consolidated Balance Sheet (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Cross-Currency Swap Contracts | Other Liabilities
Derivatives, Fair Value [Line Items]
Net investment hedges	$ 36,582
Costless Collar Contracts | Accounts Receivable
Derivatives, Fair Value [Line Items]
Cash flows hedges	638	1,624
Costless Collar Contracts | Other Accrued Liabilities
Derivatives, Fair Value [Line Items]
Cash flows hedges	$ 2,979	$ 2,334

XML



Financial Instruments

12 Months Ended

Jun. 30, 2011

Financial Instruments

15. Financial Instruments

The Company’s financial instruments consist primarily of Cash and cash equivalents, long-term investments, and Accounts receivable, net 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, net, Accounts payable, trade and Notes payable approximate fair value. The carrying value of Long-term debt (excluding leases) was $1,765,892 and $1,758,845 at June 30, 2011 and June 30, 2010, respectively, and was estimated to have a fair value of $1,902,221 and $1,925,397 at June 30, 2011 and June 30, 2010, respectively. The fair value of Long-term debt was estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements.

The Company manages foreign currency transaction and translation risk by utilizing derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign denominated debt designated as net investment hedges. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not hold or issue derivative financial instruments for trading purposes.

The Company’s Euro bonds and Japanese Yen credit facility have been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Euro bonds and Japanese Yen credit facility into U.S. dollars is recorded in accumulated other comprehensive income (loss) and remains there until the underlying net investment is sold or substantially liquidated.

Derivative financial instruments are recognized on the balance sheet as either assets or liabilities and are measured at fair value. Gains or losses on derivatives that are not hedges are adjusted to fair value through the Cost of sales caption in the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through Accumulated other comprehensive income (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings.

During 2011, the Company entered into 10-year cross-currency swap contracts with an aggregate notional amount of approximately €235 million and designated the cross-currency swap contracts as a hedge of the Company’s net investment in certain foreign subsidiaries whose functional currency is the euro. Also during 2011, the Company entered into forward exchange contracts with an aggregate notional amount of €200 million. The forward exchange contracts were entered into to hedge against foreign currency movements prior to the repayment of the Company’s Euro bonds which matured in November 2010. The forward exchange contracts were settled in November 2010.

The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows:

	Balance Sheet Caption		2011		2010
Net investment hedges
Cross-currency swap contracts		Other liabilities	$	36,582	$
Cash flow hedges
Costless collar contracts		Accounts receivable		638		1,624
Costless collar contracts		Other accrued liabilities		2,979		2,334

The cross-currency swap contracts have been designated as hedging instruments. The costless collar contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions.

Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income are as follows:

	2011			2010			2009
Forward exchange contracts	$	19,048		$			$
Costless collar contracts		(6,624	)		(4,897	)		(5,286	)

Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet are as follows:

	2011			2010
Cross-currency swap contracts	$	(22,600	)	$
Foreign denominated debt		(50,581	)		40,955

There was no ineffectiveness of the cross-currency swap contracts or foreign denominated debt, nor were any portion of these financial instruments excluded from the effectiveness testing, during 2011, 2010 and 2009.

XML



Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2011

Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

The Company’s annual impairment tests performed in 2011, 2010, and 2009 resulted in no impairment loss being recognized.

The changes in the carrying amount of goodwill for the years ended June 30, 2010 and June 30, 2011 are as follows:

	Industrial Segment			Aerospace Segment			Climate & Industrial Controls Segment			Total
Balance June 30, 2009	$	2,496,449		$	98,709		$	307,919		$	2,903,077
Acquisitions					193						193
Foreign currency translation		(115,175	)		(46	)		(1,081	)		(116,302	)
Goodwill adjustments		(634	)								(634	)
Balance June 30, 2010	$	2,380,640		$	98,856		$	306,838		$	2,786,334
Acquisitions		7,424						1,291			8,715
Foreign currency translation		208,261			58			6,059			214,378
Goodwill adjustments		(336	)					25			(311	)
Balance June 30, 2011	$	2,595,989		$	98,914		$	314,213		$	3,009,116

Goodwill adjustments represent final adjustments to the purchase price allocation for acquisitions during the measurement period subsequent to the applicable acquisition dates. The Company’s previously reported results of operations and financial position would not be materially different had the goodwill adjustments recorded during 2011 and 2010 been reflected in the same reporting period that the initial purchase price allocations for those acquisitions were made.

Intangible assets are amortized on a straight-line method over their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset:

	2011				2010
June 30,	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Patents	$	124,015	$	61,061	$	114,935	$	48,682
Trademarks		319,158		116,995		289,017		83,936
Customer lists and other		1,251,271		338,666		1,125,782		247,065
Total	$	1,694,444	$	516,722	$	1,529,734	$	379,683

During 2011, the Company acquired intangible assets with an initial purchase price allocation and weighted-average life as follows:

	Purchase Price Allocation		Weighted- Average Life
Trademarks	$	1,443		7 years
Customer lists and other		33,642		13 years
Total	$	35,085		13 years

Total intangible amortization expense in 2011, 2010 and 2009 was $107,701, $114,749 and $102,750, respectively. The estimated amortization expense for the five years ending June 30, 2012 through 2016 is $100,342, $93,048, $89,354, $86,521 and $84,717, respectively.

XML



Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Foreign currency translation, tax	$ 12,675	$ (8,274)	$ 10,131
Retirement benefits plan activity, tax	(144,108)	106,065	253,261
Realized loss, tax	119
Net realized loss, tax		$ (2,937)	$ 173

XML



Earnings Per Share (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The computation of net income per share was as follows:

	2011		2010		2009
Numerator:
Net income attributable to common shareholders	$	1,049,130	$	554,065	$	508,515
Denominator:
Basic – weighted-average common shares		161,125,869		160,909,655		161,564,111
Increase in weighted-average common shares from dilutive effect of stock-based awards		3,672,352		1,992,062		1,155,037
Diluted – weighted-average common shares, assuming exercise of stock-based awards		164,798,221		162,901,717		162,719,148
Basic earnings per share	$	6.51	$	3.44	$	3.15
Diluted earnings per share	$	6.37	$	3.40	$	3.13

XML



Income Taxes

12 Months Ended

Jun. 30, 2011

Income Taxes

4. Income Taxes

Income before income taxes was derived from the following sources:

	2011		2010		2009
United States	$	681,910	$	354,675	$	390,507
Foreign		731,811		400,142		292,576
	$	1,413,721	$	754,817	$	683,083

Income taxes include the following:

	2011			2010			2009
Federal
Current	$	121,292		$	84,878		$	46,524
Deferred		34,136			6,104			37,670
Foreign
Current		193,064			105,927			120,963
Deferred		(24,229	)		(22,788	)		(50,560	)
State and local
Current		21,500			25,000			18,500
Deferred		10,808			(669	)		(158	)
	$	356,571		$	198,452		$	172,939

A reconciliation of the Company’s effective income tax rate to the statutory Federal rate follows:

	2011			2010			2009
Statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
State and local income taxes		1.8			2.1			1.7
Litigation settlements								1.8
Foreign tax rate difference		(8.7	)		(7.4	)		(8.7	)
Cash surrender of life insurance		(0.9	)		(1.0	)		2.3
Research tax credit		(1.1	)		(0.7	)		(2.5	)
Worthless stock benefit								(3.2	)
Other		(0.9	)		(1.7	)		(1.1	)
Effective income tax rate		25.2	%		26.3	%		25.3	%

Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities. The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows:

	2011			2010
Postretirement benefits	$	374,005		$	565,258
Other liabilities and reserves		161,954			118,882
Long-term contracts		7,355			4,323
Stock-based incentive compensation		63,590			60,882
Loss carryforwards		186,613			106,106
Unrealized currency exchange gains and losses		43,484			15,312
Inventory		24,623			21,123
Depreciation and amortization		(479,103	)		(455,684	)
Valuation allowance		(192,904	)		(92,799	)
Net deferred tax asset	$	189,617		$	343,403
Change in net deferred tax asset:
Provision for deferred tax	$	(20,715	)	$	17,353
Items of other comprehensive (loss) income		(131,552	)		94,854
Acquisitions and other		(1,519	)		(4,050	)
Total change in net deferred tax	$	(153,786	)	$	108,157

At June 30, 2011, the Company had recorded deferred tax assets of $186,613 resulting from $663,735 in loss carryforwards. A valuation allowance of $156,721 related to the loss carryforwards has been established due to the uncertainty of realizing certain deferred tax assets. An additional valuation allowance of $36,183 relates to a foreign capital loss carryforward and certain deferred tax assets associated with other liabilities and reserves. The foreign capital loss carryforward and some of the loss carryforwards can be carried forward indefinitely; others can be carried forward from one to 19 years.

Provision has not been made for additional U.S. or foreign taxes on undistributed earnings of certain international operations as those earnings will continue to be reinvested. It is not practicable to estimate the additional taxes, including applicable foreign withholding taxes, that might be payable on the eventual remittance of such earnings.

Accumulated undistributed earnings of foreign operations reinvested in their operations amounted to $983,950, $1,102,978 and $1,298,102, at June 30, 2011, 2010 and 2009, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2011			2010			2009
Balance July 1	$	82,089		$	132,954		$	105,070
Additions for tax positions related to current year		8,398			10,815			31,414
Additions for tax positions of prior years		10,015			23,408			15,899
Additions for acquisitions					294			760
Reductions for tax positions of prior years		(15,060	)		(64,821	)		(10,566	)
Reductions for settlements		(7,133	)		(21,770	)		(3,768	)
Reductions for expiration of statute of limitations					(37	)
Effect of foreign currency translation		2,847			1,246			(5,855	)
Balance June 30	$	81,156		$	82,089		$	132,954

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $78,754, $81,927 and $114,210 as of June 30, 2011, 2010 and 2009, respectively. The accrued interest related to the gross unrecognized tax benefits, excluded from the amounts above, was $11,331, $8,200 and $9,179 as of June 30, 2011, 2010 and 2009, respectively.

The Company and its subsidiaries file income tax returns in the United States and in various foreign jurisdictions. In the normal course of business, the Company’s tax returns are subject to examination by taxing authorities throughout the world. The Company is no longer subject to examinations of its federal income tax returns by the United States Internal Revenue Service for fiscal years through 2007. All significant state, local and foreign tax returns have been examined for fiscal years through 2001. The Company does not anticipate that, within the next twelve months, the total amount of unrecognized tax benefits will significantly change due to the settlement of examinations and the expiration of statutes of limitation.

XML



Debt

12 Months Ended

Jun. 30, 2011

Debt

9. Debt

June 30,	2011		2010
Domestic:
Debentures 7.30%, due 2011	$		$	100,000
Fixed rate medium-term notes 3.50% to 6.55%, due 2018-2038		1,175,000		875,000
Fixed rate senior notes 4.88%, due 2013		225,000		225,000
Foreign:
Bank loans, including revolving credit 1% to 7.2%, due 2012-2017		1,380		1,807
Euro bonds 3.5%, due 2011				244,580
4.125%, due 2016		290,040		244,580
Japanese Yen credit facility Libor plus 20 bps, due 2012		74,472		67,878
Other long-term debt, including capitalized leases		465		302
Total long-term debt		1,766,357		1,759,147
Less long-term debt payable within one year		75,271		345,513
Long-term debt, net	$	1,691,086	$	1,413,634

Principal amounts of Long-term debt payable in the five years ending June 30, 2012 through 2016 are $75,271, $225,437, $236, $154 and $290,200, respectively. In 2011, the Company issued $300,000 aggregate principal amount of medium-term notes. The notes are due in a balloon payment in September 2022 and carry an interest rate of 3.5 percent. Interest payments are due semiannually. Debt issuance costs were $5,460 and will be amortized over the term of the notes. The Company used the net proceeds from the note issuance to repay outstanding commercial paper borrowings.

Lease Commitments - Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire at various dates, are as follows: 2012-$83,688; 2013-$59,003; 2014-$35,490; 2015-$23,511; 2016-$20,689 and after 2016-$72,988.

Rental expense in 2011, 2010 and 2009 was $118,496, $123,582 and $125,516, respectively.

XML



Assumptions Used to Measure Benefit Obligations (Detail)	Jun. 30, 2011	Jun. 30, 2010
Minimum | Non-U.S. defined benefit plans
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items]
Discount rate	2.00%	1.75%
Average increase in compensation	2.00%	2.00%
Maximum | Non-U.S. defined benefit plans
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items]
Discount rate	5.87%	6.00%
Average increase in compensation	5.00%	4.50%
U.S. defined benefit plans
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items]
Discount rate	5.45%	5.30%
Average increase in compensation	5.21%	5.21%

XML



Earnings Per Share

12 Months Ended

Jun. 30, 2011

Earnings Per Share

5. Earnings Per Share

Basic earnings per share are computed using the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted-average number of common shares and common share equivalents outstanding during the year. Common share equivalents represent the dilutive effect of outstanding stock-based awards. The computation of net income per share was as follows:

	2011		2010		2009
Numerator:
Net income attributable to common shareholders	$	1,049,130	$	554,065	$	508,515
Denominator:
Basic – weighted-average common shares		161,125,869		160,909,655		161,564,111
Increase in weighted-average common shares from dilutive effect of stock-based awards		3,672,352		1,992,062		1,155,037
Diluted – weighted-average common shares, assuming exercise of stock-based awards		164,798,221		162,901,717		162,719,148
Basic earnings per share	$	6.51	$	3.44	$	3.15
Diluted earnings per share	$	6.37	$	3.40	$	3.13

For 2011, 2010 and 2009, 1.6 million, 9.0 million, and 6.4 million common shares, respectively, subject to stock-based awards were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

XML



Fair Value of Financial Assets and Liabilities that were Measured at Fair Value on a Recurring Basis (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Assets:
Available for sale securities		$ 3,542
Derivatives	638	1,624
Liabilities:
Derivatives	39,561	2,334
Significant Other Observable Inputs (Level 2)
Assets:
Derivatives	638	1,624
Liabilities:
Derivatives	39,561	2,334
Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities		$ 3,542

XML



Stock Prices and Dividends (Detail) (USD $)	3 Months Ended												12 Months Ended
	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2008	Sep. 30, 2008	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Earnings Per Share Disclosure [Line Items]
High	$ 99.40	$ 95.00	$ 87.36	$ 72.12	$ 72.50	$ 66.71	$ 59.36	$ 55.89	$ 48.45	$ 46.45	$ 52.52	$ 72.69	$ 99.40	$ 72.50	$ 72.69
Low	$ 83.65	$ 82.80	$ 67.52	$ 54.26	$ 55.18	$ 53.50	$ 49.36	$ 39.53	$ 33.13	$ 27.69	$ 31.29	$ 48.67	$ 54.26	$ 39.53	$ 27.69
Dividends	$ 0.37	$ 0.32	$ 0.29	$ 0.27	$ 0.26	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 1.25	$ 1.01	$ 1.00

XML



Summary of the Status and Changes of Shares Subject to RSU Awards and the Related Average Price Per Share (Detail) (Restricted Stock Units (RSUs), USD $)	12 Months Ended
	Jun. 30, 2011
Restricted Stock Units (RSUs)
Number of Shares
Nonvested June 30, 2010	0
Granted	425,359
Vested	(320)
Canceled	(9,864)
Nonvested June 30, 2011	415,175
Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010	$ 0
Granted	$ 62.55
Vested	$ 62.35
Canceled	$ 62.35
Nonvested June 30, 2011	$ 62.55

XML



Stock Option and SAR Activity (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Jun. 30, 2011 Year
Number of Shares
Outstanding June 30, 2010	16,152,493
Granted	1,399,068
Exercised	(4,245,373)
Canceled	(77,070)
Outstanding June 30, 2011	13,229,118
Exercisable June 30, 2011	9,109,413
Weighted-Average Exercise Price
Outstanding June 30, 2010	$ 49.55
Granted	$ 63.49
Exercised	$ 44.97
Canceled	$ 58.92
Outstanding June 30, 2011	$ 52.44
Exercisable June 30, 2011	$ 50.30
Weighted-Average Remaining Contractual Term
Outstanding June 30, 2011	5.5
Exercisable June 30, 2011	4.5
Aggregate Intrinsic Value
Outstanding June 30, 2011	$ 493.6
Exercisable June 30, 2011	$ 359.2

XML



Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts Receivable - The Accounts receivable, net caption in the Consolidated Balance Sheet is comprised of the following components:

June 30,	2011			2010
Accounts receivable, trade	$	1,780,137		$	1,457,355
Allowance for doubtful accounts		(10,472	)		(14,701	)
Non-trade accounts receivable		75,550			58,091
Notes receivable		132,641			99,196
Total	$	1,977,856		$	1,599,941

XML



Charges Related to Business Realignment

12 Months Ended

Jun. 30, 2011

Charges Related to Business Realignment

3. Charges Related to Business Realignment

In 2011, the Company recorded a $16.5 million charge for the costs to structure its businesses in light of current and anticipated customer demand. The charges primarily consist of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. The Company believes the realignment actions taken will positively impact future results of operations, but will have no material effect on liquidity and sources and uses of capital. The Industrial Segment recognized $15.5 million of the total charge and included severance costs related to approximately 465 employees. The Aerospace Segment recognized $1.0 million of the total charge and included severance costs related to approximately 50 employees. The business realignment costs are presented in the Consolidated Statement of Income for 2011 in the following captions: $15.3 million in Cost of sales and $1.2 million in Selling, general and administrative expenses. As of June 30, 2011, approximately $9.5 million in severance payments have been made with the remaining payments expected to be made by March 31, 2012.

In 2010, the Company recorded a $48.5 million charge for the costs to structure its businesses in light of current and anticipated customer demand. The charges primarily consisted of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. The Company believes the realignment actions taken will positively impact future results of operations, but will have no material effect on liquidity and sources and uses of capital. The Industrial Segment recognized $44.0 million of the total charge and included severance costs related to approximately 1,455 employees. The Climate & Industrial Controls Segment recognized $3.9 million of the total charge and included severance costs related to approximately 255 employees. The Aerospace Segment recognized $0.6 million of the total charge and included severance costs related to approximately 50 employees. The business realignment costs are presented in the Consolidated Statement of Income for 2010 in the following captions: $43.0 million in Cost of sales and $5.5 million in Selling, general and administrative expenses. All required severance payments have been made.

In 2009, the Company recorded a $52.1 million charge for the costs to structure its businesses in light of current and anticipated customer demand. The charges primarily consisted of severance costs related to plant closures as well as general work force reductions implemented by various operating units throughout the world. The Company believes the realignment actions taken will positively impact future results of operations, but will have no material effect on liquidity and sources and uses of capital. The Industrial Segment recognized $33.7 million of the total charge and included severance costs related to approximately 3,345 employees. The Climate & Industrial Controls Segment recognized $9.7 million of the total charge and included severance costs related to approximately 745 employees. The Aerospace Segment recognized $2.0 million of the total charge and included severance costs related to approximately 205 employees. Approximately $6.7 million of the charge was recorded below segment operating income. All required severance payments have been made. The business realignment costs are presented in the Consolidated Statement of Income for 2009 in the following captions: $41.0 million in Cost of sales, $6.2 million in Selling, general and administrative expenses and $4.9 million in (Gain) loss on disposal of assets.

XML



Business Realignment Charges - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment	$ 16.5	$ 48.5	$ 52.1
Severance payments	9.5
Industrial
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment	15.5	44.0	33.7
Number of employees used for severance costs	465	1,455	3,345
Aerospace
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment	1.0	0.6	2.0
Number of employees used for severance costs	50	50	205
Climate and Industrial Controls
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment		3.9	9.7
Number of employees used for severance costs		255	745
Cost of Sales
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment	15.3	43.0	41.0
Selling, General and Administrative Expense
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment	1.2	5.5	6.2
Gain (Loss) on Disposition of Assets
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment			4.9
Segment Operating Income Loss
Restructuring Cost and Reserve [Line Items]
Charges related to business realignment			$ 6.7

XML



CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2009
Acquisitions, cash acquired	$ 385	$ 24,203

XML



Stock Incentive Plans - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Jun. 30, 2011 Month	Jun. 30, 2010	Jun. 30, 2009
Stock Incentive Plan 2003
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares authorized for issuance under stock incentive plan	13,500,000
Omnibus Stock Incentive Plan 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares authorized for issuance under stock incentive plan	5,500,000
Minimum | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock under stock options	100.00%
Stock options and SARs exercisable period after the date of grant	1
Maximum | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options and SARs exercisable period after the date of grant	3
Stock options and SARs expiration period	10
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 36,617	$ 44,415	$ 41,488
Expense for nonvested stock-based awards has yet to be recognized	18,909
Expense for nonvested stock-based awards has yet to be recognized, amortized over a weighted-average period (in months)	15
Total fair value of shares vested	45,635	40,494	40,082
Shares surrendered upon exercise of stock	2,447,908	606,554	90,129
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	12,243
Expense for nonvested stock-based awards has yet to be recognized	12,817
Expense for nonvested stock-based awards has yet to be recognized, amortized over a weighted-average period (in months)	24
Vesting period of RSU	3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restriction period of transferability of the restricted stock, minimum	1
Restriction period of transferability of the restricted stock, maximum	3
Restricted stock awards, recognized tax benefit (cost)	277	(333)	2,175
Long Term Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares surrendered upon exercise of stock	126,462	83,991	60,247
Stock-based compensation expense (income)	$ 24,378	$ 15,018	$ (5,562)
Restricted stock issued to certain non-employee members of the Board of Directors	157,491	68,172	172,130
Deferred Compensation, Share-based Payments
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for issuance in connection with its stock incentive plans	23,000,000
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock issued to certain non-employee members of the Board of Directors	17,820	20,000	12,150
Shares issued in lieu of directors' fees	2,400	4,578	3,868

XML



SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Jun. 30, 2011

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED JUNE 30, 2009, 2010 and 2011

(Dollars in Thousands)

Column A	Column B		Column C		Column D			Column E
Description	Balance at Beginning Of Period		Additions Charged to Costs and Expenses		Other (Deductions)/ Additions (A)			Balance At End Of Period
Allowance for doubtful accounts:
Year ended June 30, 2009	$	16,843	$	9,157	$	(6,185	)	$	19,815
Year ended June 30, 2010	$	19,815	$	1,871	$	(6,985	)	$	14,701
Year ended June 30, 2011	$	14,701	$	7,520	$	(11,749	)	$	10,472
Deferred tax asset valuation allowance:
Year ended June 30, 2009	$	78,631	$	34,122	$	130		$	112,883
Year ended June 30, 2010	$	112,883	$	22,970	$	(43,054	)	$	92,799
Year ended June 30, 2011	$	92,799	$	102,472	$	(2,367	)	$	192,904

(A) For allowance for doubtful accounts, net balance of deductions due to uncollectible accounts charged off and additions due to acquisitions or recoveries. For deferred tax asset valuation allowance, primarily represents adjustments due to acquisitions and net operating losses.

XML



Stock Incentive Plans (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each stock option and SAR award granted in 2011, 2010 and 2009 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:

	2011			2010			2009
Risk-free interest rate		1.5	%		2.9	%		3.2	%
Expected life of award		5.2 yrs			5.3 yrs			4.9 yrs
Expected dividend yield of stock		1.5	%		1.4	%		1.3	%
Expected volatility of stock		35.9	%		34.5	%		26.6	%
Weighted-average fair value	$	18.70		$	15.77		$	16.56

Schedule of Share-based Compensation, Stock Options, Activity

Stock option and SAR activity during 2011 is as follows (aggregate intrinsic value in millions):

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding June 30, 2010		16,152,493		$	49.55
Granted		1,399,068			63.49
Exercised		(4,245,373	)		44.97
Canceled		(77,070	)		58.92
Outstanding June 30, 2011		13,229,118		$	52.44		5.5 years	$	493.6
Exercisable June 30, 2011		9,109,413		$	50.30		4.5 years	$	359.2

Schedule of Nonvested Share Activity

A summary of the status and changes of shares subject to stock option and SAR awards and the related average price per share follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Nonvested June 30, 2010		5,586,873		$	16.10
Granted		1,399,068			18.70
Vested		(2,798,791	)		16.31
Canceled		(67,445	)		16.36
Nonvested June 30, 2011		4,119,705		$	16.84

Stock-Based Awards Exercised Disclosure

Information related to stock options and SAR awards exercised during 2011, 2010 and 2009 is as follows:

	2011		2010		2009
Net cash proceeds	$	25,862	$	10,307	$	3,557
Intrinsic value		163,752		45,424		4,787
Income tax benefit		42,546		14,031		1,517

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

A summary of the status and changes of shares subject to RSU awards and the related average price per share follows:

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010		0		$	0
Granted		425,359			62.55
Vested		(320	)		62.35
Canceled		(9,864	)		62.35
Nonvested June 30, 2011		415,175		$	62.55

Long Term Incentive Plans

Schedule of Nonvested Share Activity

A summary of the status and changes of shares relating to the LTIP and the related average price per share follows:

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010		1,350,028		$	57.74
Granted		281,191			86.34
Vested		(382,333	)		61.06
Canceled		(118,429	)		63.06
Nonvested June 30, 2011		1,130,457		$	64.50

Schedule of Nonvested Restricted Stock Units Activity

Restricted Stock for LTIP	2011		2010		2009
LTIP 3-year plan		2008-09-10		2007-08-09		2006-07-08
Number of shares issued		157,491		68,172		172,130
Average share value on date of issuance	$	62.35	$	48.58	$	65.34
Total value	$	9,820	$	3,312	$	11,247

XML



Business Segment Information (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Segment Reporting Information, by Segment

By Industry

(Dollars in thousands)	2011		2010		2009
Net Sales:
Industrial:
North America	$	4,516,510	$	3,623,460	$	3,734,613
International		4,917,007		3,811,464		3,895,874
Aerospace		1,921,984		1,744,283		1,883,273
Climate & Industrial Controls		990,369		813,959		795,255
	$	12,345,870	$	9,993,166	$	10,309,015
Segment Operating Income:
Industrial:
North America	$	745,544	$	487,137	$	394,923
International		754,222		394,089		350,662
Aerospace		247,126		208,002		261,953
Climate & Industrial Controls		76,134		53,452		(3,737	)
Total segment operating income		1,823,026		1,142,680		1,003,801
Corporate administration		163,868		153,965		152,118
Income before interest expense and other		1,659,158		988,715		851,683
Interest expense		99,704		103,599		112,071
Other expense		145,733		130,299		56,529
Income before income taxes	$	1,413,721	$	754,817	$	683,083
Assets:
Industrial	$	8,413,552	$	7,309,735	$	7,539,504
Aerospace		995,026		910,740		915,155
Climate & Industrial Controls		724,966		692,532		691,423
Corporate (a)		753,261		997,375		709,820
	$	10,886,805	$	9,910,382	$	9,855,902
Property Additions (b):
Industrial	$	147,929	$	95,838	$	346,691
Aerospace		18,012		21,619		21,877
Climate & Industrial Controls		8,234		6,040		6,645
Corporate		38,495		6,133		2,798
	$	212,670	$	129,630	$	378,011
Depreciation:
Industrial	$	186,057	$	200,617	$	205,584
Aerospace		20,035		20,501		20,477
Climate & Industrial Controls		12,895		14,117		16,640
Corporate		10,251		10,060		9,898
	$	229,238	$	245,295	$	252,599

(Dollars in thousands)	2011		2010		2009
By Geographic Area (c)
Net Sales:
North America	$	7,151,390	$	5,913,770	$	6,090,176
International		5,194,480		4,079,396		4,218,839
	$	12,345,870	$	9,993,166	$	10,309,015
Long-Lived Assets:
North America	$	864,287	$	856,782	$	927,318
International		932,892		841,099		953,236
	$	1,797,179	$	1,697,881	$	1,880,554

The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote except that the business segment results are prepared on a basis that is consistent with the manner in which the Company’s management disaggregates financial information for internal review and decision-making.

(a) Corporate assets are principally cash and cash equivalents, domestic deferred income taxes, investments, benefit plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment.

(b) Includes the value of net plant and equipment at the date of acquisition of acquired companies (2011 - $5,376; 2010 - $408; 2009 - $107,278)

(c) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location.

XML



Financial Instruments - Additional Information (Detail)	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)	Jun. 30, 2011 Cross-Currency Swap Contracts EUR (€)	Jun. 30, 2011 Foreign Exchange Contract EUR (€)
Derivative [Line Items]
Carrying value of long-term debt, excluding leases	$ 1,765,892,000	$ 1,758,845,000
Fair value of long-term debt, excluding leases	1,902,221,000	1,925,397,000
Cross-currency swap contract maturity			10 years
Aggregate notional amount of cross-currency swap contracts			235,000,000
Aggregate notional amount of forward exchange contracts				€ 200,000,000

XML



Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Beginning Balance	$ 82,089	$ 132,954	$ 105,070
Additions for tax positions related to current year	8,398	10,815	31,414
Additions for tax positions of prior years	10,015	23,408	15,899
Additions for acquisitions		294	760
Reductions for tax positions of prior years	(15,060)	(64,821)	(10,566)
Reductions for settlements	(7,133)	(21,770)	(3,768)
Reductions for expiration of statute of limitations		(37)
Effect of foreign currency translation	2,847	1,246	(5,855)
Ending Balance	$ 81,156	$ 82,089	$ 132,954

XML



Earnings Per Share - Additional Information (Detail)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Earnings Per Share Disclosure [Line Items]
Number of common shares subject to stock-based awards that were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive	1.6	9.0	6.4

XML



Initial Purchase Price Allocation and Subsequent Purchase Price Adjustments for Acquisitions (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Assets acquired:
Accounts receivable	$ 9,332	$ 908	$ 116,931
Inventories	7,908	447	87,230
Prepaid expenses	69	(575)	3,957
Deferred income taxes	468		7,899
Plant and equipment	5,376	408	107,278
Intangible and other assets	35,094	4,198	431,964
Goodwill	8,715	2,891	319,193
Business Acquisition, Purchase Price Allocation, Assets Acquired, Total	66,962	8,277	1,074,452
Liabilities assumed:
Notes payable			2,622
Accounts payable, trade	2,440	531	49,421
Accrued payrolls and other compensation	765	219	33,714
Accrued domestic and foreign taxes	215	(91)	22,111
Other accrued liabilities	1,500	2,587	97,093
Long-term debt			1,640
Pensions and other postretirement benefits			5,418
Deferred income taxes	1,815	(420)	136,864
Other liabilities			2,934
Business Acquisition, Purchase Price Allocation, Liabilities Assumed, Total	6,735	2,826	351,817
Net assets acquired	$ 60,227	$ 5,451	$ 722,635

XML



Acquired Intangible Assets with an Initial Purchase Price Allocation and Weighted-Average Life (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jun. 30, 2011 Year
Acquired Finite-Lived Intangible Assets [Line Items]
Purchase Price Allocation	$ 35,085
Weighted- Average Life	13
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Purchase Price Allocation	1,443
Weighted- Average Life	7
Customer lists and other
Acquired Finite-Lived Intangible Assets [Line Items]
Purchase Price Allocation	$ 33,642
Weighted- Average Life	13

XML



Business Segment Information

12 Months Ended

Jun. 30, 2011

Business Segment Information

Business Segment Information

By Industry

(Dollars in thousands)	2011		2010		2009
Net Sales:
Industrial:
North America	$	4,516,510	$	3,623,460	$	3,734,613
International		4,917,007		3,811,464		3,895,874
Aerospace		1,921,984		1,744,283		1,883,273
Climate & Industrial Controls		990,369		813,959		795,255
	$	12,345,870	$	9,993,166	$	10,309,015
Segment Operating Income:
Industrial:
North America	$	745,544	$	487,137	$	394,923
International		754,222		394,089		350,662
Aerospace		247,126		208,002		261,953
Climate & Industrial Controls		76,134		53,452		(3,737	)
Total segment operating income		1,823,026		1,142,680		1,003,801
Corporate administration		163,868		153,965		152,118
Income before interest expense and other		1,659,158		988,715		851,683
Interest expense		99,704		103,599		112,071
Other expense		145,733		130,299		56,529
Income before income taxes	$	1,413,721	$	754,817	$	683,083
Assets:
Industrial	$	8,413,552	$	7,309,735	$	7,539,504
Aerospace		995,026		910,740		915,155
Climate & Industrial Controls		724,966		692,532		691,423
Corporate (a)		753,261		997,375		709,820
	$	10,886,805	$	9,910,382	$	9,855,902
Property Additions (b):
Industrial	$	147,929	$	95,838	$	346,691
Aerospace		18,012		21,619		21,877
Climate & Industrial Controls		8,234		6,040		6,645
Corporate		38,495		6,133		2,798
	$	212,670	$	129,630	$	378,011
Depreciation:
Industrial	$	186,057	$	200,617	$	205,584
Aerospace		20,035		20,501		20,477
Climate & Industrial Controls		12,895		14,117		16,640
Corporate		10,251		10,060		9,898
	$	229,238	$	245,295	$	252,599

(Dollars in thousands)	2011		2010		2009
By Geographic Area (c)
Net Sales:
North America	$	7,151,390	$	5,913,770	$	6,090,176
International		5,194,480		4,079,396		4,218,839
	$	12,345,870	$	9,993,166	$	10,309,015
Long-Lived Assets:
North America	$	864,287	$	856,782	$	927,318
International		932,892		841,099		953,236
	$	1,797,179	$	1,697,881	$	1,880,554

The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote except that the business segment results are prepared on a basis that is consistent with the manner in which the Company’s management disaggregates financial information for internal review and decision-making.

(a) Corporate assets are principally cash and cash equivalents, domestic deferred income taxes, investments, benefit plan assets, headquarters facilities and the major portion of the Company’s domestic data processing equipment.

(b) Includes the value of net plant and equipment at the date of acquisition of acquired companies (2011 - $5,376; 2010 - $408; 2009 - $107,278)

(c) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location.

XML



Employee Stock Ownership Plan (ESOP) (Detail) (USD $) In Thousands, except Share data	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shares held by ESOP	10,308,032	10,950,349	11,189,598
Company contributions to ESOP	$ 52,627	$ 48,336	$ 51,593

XML



Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2011

Fair Value, by Balance Sheet Grouping

A summary of financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2011 and June 30, 2010 is as follows:

	Total Value At June 30, 2011		Quoted Prices In Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Derivatives	$	638	$	$	638	$
Liabilities:
Derivatives		39,561			39,561
	Total Value At June 30, 2010		Quoted Prices In Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities	$	3,542	$	$		$	3,542
Derivatives		1,624			1,624
Liabilities:
Derivatives		2,334			2,334

XML



Quarterly Information (Unaudited)

12 Months Ended

Jun. 30, 2011

Quarterly Information (Unaudited)

18. Quarterly Information (Unaudited)

2011	1st		2nd		3rd		4th		Total
Net sales	$	2,829,273	$	2,866,664	$	3,240,103	$	3,409,830	$	12,345,870
Gross profit		691,399		670,936		777,020		819,058		2,958,413
Net income attributable to common shareholders		247,171		230,180		279,589		292,190		1,049,130
Diluted earnings per share		1.51		1.39		1.68		1.79		6.37
2010	1st		2nd		3rd		4th		Total
Net sales	$	2,237,165	$	2,354,708	$	2,614,823	$	2,786,470	$	9,993,166
Gross profit		436,220		485,227		552,372		672,280		2,146,099
Net income attributable to common shareholders		73,493		104,546		153,863		222,163		554,065
Diluted earnings per share		.45		.64		.94		1.35		3.40

Earnings per share amounts are computed independently for each of the quarters presented, therefore, the sum of the quarterly earnings per share amounts may not equal the total computed for the year.

XML



Financing Arrangements - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2011	Jun. 30, 2010
Debt Instrument [Line Items]
Commercial paper notes outstanding	$ 0	$ 0
Domestic Line of Credit
Debt Instrument [Line Items]
Line of credit	1,500,000
Foreign Line of Credit
Debt Instrument [Line Items]
Line of credit	97,548
Notes payable	0	17,759
Weighted-average interest rate of notes payable	0.60%	0.50%
Commercial Paper
Debt Instrument [Line Items]
Amount of short-term commercial paper notes authorized to sell	$ 1,350,000

XML



Information Related to Stock Options and SAR Awards Exercised (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net cash proceeds	$ 25,862	$ 10,307	$ 3,557
Intrinsic value	163,752	45,424	4,787
Income tax benefit	$ 42,546	$ 14,031	$ 1,517

XML



Contingencies - Additional Information (Detail) (USD $)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Loss Contingencies [Line Items]
Reserve for environmental matters	$ 15,257,000
Lawsuits
Loss Contingencies [Line Items]
Contingencies, expense recognized			2,322,000
Regulatory Investigations
Loss Contingencies [Line Items]
Contingencies, expense recognized		654,000	35,084,000
Contingencies, insurance recovery portion of expense recognized with respect to regulatory investigations	10,869,000
Environmental Issue
Loss Contingencies [Line Items]
Estimated total liability for environmental sites range, minimum	15,300,000
Estimated total liability for environmental sites range, maximum	72,100,000
Estimated total liability for environmental sites range, largest	$ 6,100,000

XML



Assumptions Used to Measure Net Periodic Benefit Cost for Postretirement Benefit Obligations (Detail) (Other Postretirement Benefit Plans, Defined Benefit)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Other Postretirement Benefit Plans, Defined Benefit
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items]
Discount rate	5.01%	6.10%	6.71%
Current medical cost trend rate	8.00%	8.50%	9.25%
Ultimate medical cost trend rate	5.00%	5.00%	5.00%
Medical cost trend rate decreases to ultimate in year	2018	2018	2014

XML



Changes in the Carrying Amount of Goodwill (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Goodwill [Line Items]
Beginning Balance	$ 2,786,334	$ 2,903,077
Acquisitions	8,715	193
Foreign currency translation	214,378	(116,302)
Goodwill adjustments	(311)	(634)
Ending Balance	3,009,116	2,786,334
Industrial
Goodwill [Line Items]
Beginning Balance	2,380,640	2,496,449
Acquisitions	7,424
Foreign currency translation	208,261	(115,175)
Goodwill adjustments	(336)	(634)
Ending Balance	2,595,989	2,380,640
Aerospace
Goodwill [Line Items]
Beginning Balance	98,856	98,709
Acquisitions		193
Foreign currency translation	58	(46)
Ending Balance	98,914	98,856
Climate and Industrial Controls
Goodwill [Line Items]
Beginning Balance	306,838	307,919
Acquisitions	1,291
Foreign currency translation	6,059	(1,081)
Goodwill adjustments	25
Ending Balance	$ 314,213	$ 306,838

XML



Acquisitions (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Purchase Price Allocation

	2011		2010			2009
Assets acquired:
Accounts receivable	$	9,332	$	908		$	116,931
Inventories		7,908		447			87,230
Prepaid expenses		69		(575	)		3,957
Deferred income taxes		468					7,899
Plant and equipment		5,376		408			107,278
Intangible and other assets		35,094		4,198			431,964
Goodwill		8,715		2,891			319,193
		66,962		8,277			1,074,452
Liabilities assumed:
Notes payable							2,622
Accounts payable, trade		2,440		531			49,421
Accrued payrolls and other compensation		765		219			33,714
Accrued domestic and foreign taxes		215		(91	)		22,111
Other accrued liabilities		1,500		2,587			97,093
Long-term debt							1,640
Pensions and other postretirement benefits							5,418
Deferred income taxes		1,815		(420	)		136,864
Other liabilities							2,934
		6,735		2,826			351,817
Net assets acquired	$	60,227	$	5,451		$	722,635

XML



Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet are as follows:

	Balance Sheet Caption		2011		2010
Net investment hedges
Cross-currency swap contracts		Other liabilities	$	36,582	$
Cash flow hedges
Costless collar contracts		Accounts receivable		638		1,624
Costless collar contracts		Other accrued liabilities		2,979		2,334

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income are as follows:

	2011			2010			2009
Forward exchange contracts	$	19,048		$			$
Costless collar contracts		(6,624	)		(4,897	)		(5,286	)

Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet are as follows:

	2011			2010
Cross-currency swap contracts	$	(22,600	)	$
Foreign denominated debt		(50,581	)		40,955

XML



Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2011

Nature of Operations

Nature of Operations - The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. The Company evaluates performance based on segment operating income before Corporate and administrative expenses, Interest expense and Income taxes.

The Company operates in three business segments: Industrial, Aerospace and Climate & Industrial Controls. The Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Industrial International operations provide Parker products and services to 44 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa.

The Aerospace Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and also performs a vital role in naval vessels and land-based weapons systems. This Segment serves original equipment and maintenance, repair and overhaul customers worldwide. Aerospace Segment products are marketed by field sales employees and are sold directly to manufacturers and end users.

The Climate & Industrial Controls Segment manufactures motion-control systems and components for use primarily in the refrigeration and air conditioning and transportation industries. The products in the Climate & Industrial Controls Segment are marketed primarily through field sales employees and independent distributors.

See the table of Business Segment Information “By Industry” and “By Geographic Area” on pages 13-16 and 13-17 for further disclosure of business segment information.

There are no individual customers to whom sales are three percent or more of the Company’s consolidated sales. Due to the diverse group of customers throughout the world the Company does not consider itself exposed to any concentration of credit risks.

The Company manufactures and markets its products throughout the world. Although certain risks and uncertainties exist, the diversity and breadth of the Company’s products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect the Company’s operating results.

Use of Estimates

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Basis of Consolidation

Basis of Consolidation - The consolidated financial statements include the accounts of all majority-owned domestic and foreign subsidiaries. All intercompany transactions and profits have been eliminated in the consolidated financial statements. The Company does not have off-balance sheet arrangements. Within the Business Segment Information, intersegment and interarea sales have been eliminated.

Revenue Recognition

Revenue Recognition - Revenue is recognized when the risks and rewards of ownership and title to the product have transferred to the customer. The Company’s revenue recognition policies are in compliance with the SEC’s Staff Accounting Bulletin (SAB) No. 104. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of sales.

Long-term Contracts

Long-term Contracts - The Company enters into long-term contracts primarily for the production of aerospace products. For financial statement purposes, revenues are primarily recognized using the percentage-of-completion method. The extent of progress toward completion is primarily measured using the units-of-delivery method. Unbilled costs on these contracts are included in inventory. Progress payments are netted against the inventory balances. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

Cash

Cash - Cash equivalents consist of short-term highly liquid investments, with a three-month or less maturity, carried at cost plus accrued interest, which are readily convertible into cash.

Accounts Receivable

Accounts Receivable - The Accounts receivable, net caption in the Consolidated Balance Sheet is comprised of the following components:

June 30,	2011			2010
Accounts receivable, trade	$	1,780,137		$	1,457,355
Allowance for doubtful accounts		(10,472	)		(14,701	)
Non-trade accounts receivable		75,550			58,091
Notes receivable		132,641			99,196
Total	$	1,977,856		$	1,599,941

Accounts receivable are initially recorded at their net collectible amount and where applicable, are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible.

Inventories

Inventories - Inventories are stated at the lower of cost or market. The majority of domestic inventories are valued by the last-in, first-out method and the balance of the Company’s inventories are valued by the first-in, first-out method.

Plant, Equipment and Depreciation

Plant, Equipment and Depreciation - Plant and equipment are recorded at cost and are depreciated principally using the straight-line method for financial reporting purposes. Depreciation rates are based on estimated useful lives of the assets, generally 40 years for buildings, 15 years for land improvements and building equipment, seven to 10 years for machinery and equipment, and three to eight years for vehicles and office equipment. Improvements, which extend the useful life of property, are capitalized, and maintenance and repairs are expensed. The Company reviews plant and equipment for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included in current income.

Investments and Other Assets

Investments and Other Assets - Investments in joint-venture companies in which ownership is 50 percent or less and in which the Company does not have operating control are stated at cost plus the Company’s equity in undistributed earnings. These investments and the related earnings are not material to the consolidated financial statements.

Goodwill

Goodwill - The Company conducts a formal impairment test of goodwill on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

Intangible Assets

Intangible Assets - Intangible assets primarily include patents, trademarks and customer lists and are recorded at cost and amortized on a straight-line method. Patents are amortized over the shorter of their remaining useful or legal life. Trademarks are amortized over the estimated time period over which an economic benefit is expected to be received. Customer lists are amortized over a period based on anticipated customer attrition rates. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable.

Income Taxes

Income Taxes - Income taxes are provided based upon income for financial reporting purposes. Deferred income taxes arise from temporary differences in the recognition of income and expense for tax purposes. Tax credits and similar tax incentives are applied to reduce the provision for income taxes in the year in which the credits arise. The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, are recognized in income tax expense.

Product Warranty

Product Warranty - In the ordinary course of business the Company warrants its products against defect in design, materials and workmanship over various time periods. The warranty accrual at June 30, 2011 and 2010 is immaterial to the financial position of the Company and the change in the accrual during 2011, 2010 and 2009 was immaterial to the Company’s results of operations and cash flows.

Foreign Currency Translation

Foreign Currency Translation - Assets and liabilities of most foreign subsidiaries are translated at current exchange rates, and income and expenses are translated using weighted-average exchange rates. The effects of these translation adjustments, as well as gains and losses from certain intercompany transactions, are reported in the Accumulated other comprehensive (loss) component of Shareholders’ equity. Such adjustments will affect Net income only upon sale or liquidation of the underlying foreign investments, which is not contemplated at this time. Exchange gains and losses from transactions in a currency other than the local currency of the entity involved, and translation adjustments in countries with highly inflationary economies, are included in Net income.

Subsequent Events

Subsequent Events - The Company has evaluated subsequent events that have occurred through the date of filing of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2011. No subsequent events occurred that required either adjustment to or disclosure in these financial statements.

Recent Accounting Pronouncements

Recent Accounting Pronouncements - In May 2011, the Financial Accounting Standards Board (FASB) issued new accounting guidance to improve consistency with fair value measurement and disclosure requirements. This guidance is effective for interim and annual periods beginning after December 15, 2011. The Company has not yet determined the effect, if any, that this new guidance will have on its fair value disclosures.

In June 2011, the FASB issued new accounting guidance requiring an entity to present net income and other comprehensive income (OCI) in either a single continuous statement or in separate consecutive statements. The guidance does not change the items reported in OCI or when an item of OCI must be reclassified to net income. The guidance, which must be presented retroactively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.

XML



Financing Arrangements

12 Months Ended

Jun. 30, 2011

Financing Arrangements

8. Financing Arrangements

The Company has a line of credit totaling $1,500,000 through a multi-currency revolving credit agreement with a group of banks, all of which was available at June 30, 2011. The credit agreement expires in March 2016; however, the Company has the right to request a one-year extension of the expiration date on an annual basis, which request may result in changes to the current terms and conditions of the credit agreement. A portion of the credit agreement supports the Company’s commercial paper note program. The interest on borrowings is based upon the terms of each specific borrowing and is subject to market conditions. The revolving credit agreement requires the payment of an annual facility fee, the amount of which would increase in the event the Company’s credit ratings are lowered.

The Company is currently authorized to sell up to $1,350,000 of short-term commercial paper notes. No commercial paper notes were outstanding at June 30, 2011 or at June 30, 2010.

The Company’s foreign locations in the ordinary course of business enter into financial guarantees through financial institutions which enable customers to be reimbursed in the event of nonperformance by the Company.

The Company’s credit agreements and indentures governing certain debt agreements contain various covenants, the violation of which would limit or preclude the use of the agreement for future borrowings, or might accelerate the maturity of the related outstanding borrowings covered by the indentures. At the Company’s present rating level, the most restrictive covenant provides that the ratio of secured debt to net tangible assets be less than 10 percent. As of June 30, 2011, the Company does not have any secured debt outstanding. The Company is in compliance with all covenants.

Notes payable consists of short-term lines of credit and borrowings from foreign banks. At June 30, 2011, the Company had $97,548 in lines of credit from various foreign banks, all of which was available at June 30, 2011. Most of these agreements are renewed annually. There was no balance of Notes payable at June 30, 2011 and there was a balance of $17,759 at June 30, 2010. The weighted-average interest rate on Notes payable during 2011 and 2010 was 0.6 percent and 0.5 percent, respectively.

XML



Deferred Income Taxes (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Schedule of Deferred Income Tax Assets and Liabilities [Line Items]
Postretirement benefits	$ 374,005	$ 565,258
Other liabilities and reserves	161,954	118,882
Long-term contracts	7,355	4,323
Stock-based incentive compensation	63,590	60,882
Loss carryforwards	186,613	106,106
Unrealized currency exchange gains and losses	43,484	15,312
Inventory	24,623	21,123
Depreciation and amortization	(479,103)	(455,684)
Valuation allowance	(192,904)	(92,799)
Net deferred tax asset	189,617	343,403
Change in net deferred tax asset:
Provision for deferred tax	(20,715)	17,353	13,048
Items of other comprehensive (loss) income	(131,552)	94,854
Acquisitions and other	(1,519)	(4,050)
Total change in net deferred tax	$ (153,786)	$ 108,157

XML



Balance of Accumulated Other Comprehensive (Loss) in Shareholders' Equity (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation	$ 316,010	$ (187,746)
Retirement benefit plans	(766,159)	(1,019,762)
Other	$ (841)	$ (1,053)

XML



Weighted-Average Allocation of the Majority of the Assets Related to Defined Benefit Plans (Detail)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Equity securities	59.00%	56.00%
Debt securities	33.00%	37.00%
Other	8.00%	7.00%
Defined Benefit Plan, Assets Target Allocations, Total	100.00%	100.00%

XML



Summary of the Status and Changes of Shares Relating to LTIP and the Related Average Price Per Share (Detail) (Long Term Incentive Plans, USD $)	12 Months Ended
	Jun. 30, 2011
Long Term Incentive Plans
Number of Shares
Nonvested June 30, 2010	1,350,028
Granted	281,191
Vested	(382,333)
Canceled	(118,429)
Nonvested June 30, 2011	1,130,457
Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010	$ 57.74
Granted	$ 86.34
Vested	$ 61.06
Canceled	$ 63.06
Nonvested June 30, 2011	$ 64.50

XML



Inventories - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2011	Jun. 30, 2010
Inventory Disclosure [Line Items]
Percentage of LIFO (last in first out) inventory to total inventory	28.00%	28.00%
Current cost of inventories exceeds their valuation determined on the LIFO basis, amount	$ 205,739	$ 193,519
Progress payments netted against inventories	$ 33,489	$ 33,676

XML



Significant Accounting Policies

12 Months Ended

Jun. 30, 2011

Significant Accounting Policies

1. Significant Accounting Policies

The significant accounting policies followed in the preparation of the accompanying consolidated financial statements are summarized below.

Nature of Operations - The Company is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. The Company evaluates performance based on segment operating income before Corporate and administrative expenses, Interest expense and Income taxes.

The Company operates in three business segments: Industrial, Aerospace and Climate & Industrial Controls. The Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Industrial International operations provide Parker products and services to 44 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa.

The Aerospace Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on virtually every domestic commercial, military and general aviation aircraft and also performs a vital role in naval vessels and land-based weapons systems. This Segment serves original equipment and maintenance, repair and overhaul customers worldwide. Aerospace Segment products are marketed by field sales employees and are sold directly to manufacturers and end users.

The Climate & Industrial Controls Segment manufactures motion-control systems and components for use primarily in the refrigeration and air conditioning and transportation industries. The products in the Climate & Industrial Controls Segment are marketed primarily through field sales employees and independent distributors.

See the table of Business Segment Information “By Industry” and “By Geographic Area” on pages 13-16 and 13-17 for further disclosure of business segment information.

There are no individual customers to whom sales are three percent or more of the Company’s consolidated sales. Due to the diverse group of customers throughout the world the Company does not consider itself exposed to any concentration of credit risks.

The Company manufactures and markets its products throughout the world. Although certain risks and uncertainties exist, the diversity and breadth of the Company’s products and geographic operations mitigate the risk that adverse changes with respect to any particular product and geographic operation would materially affect the Company’s operating results.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Basis of Consolidation - The consolidated financial statements include the accounts of all majority-owned domestic and foreign subsidiaries. All intercompany transactions and profits have been eliminated in the consolidated financial statements. The Company does not have off-balance sheet arrangements. Within the Business Segment Information, intersegment and interarea sales have been eliminated.

Revenue Recognition - Revenue is recognized when the risks and rewards of ownership and title to the product have transferred to the customer. The Company’s revenue recognition policies are in compliance with the SEC’s Staff Accounting Bulletin (SAB) No. 104. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of sales.

Long-term Contracts - The Company enters into long-term contracts primarily for the production of aerospace products. For financial statement purposes, revenues are primarily recognized using the percentage-of-completion method. The extent of progress toward completion is primarily measured using the units-of-delivery method. Unbilled costs on these contracts are included in inventory. Progress payments are netted against the inventory balances. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

Cash - Cash equivalents consist of short-term highly liquid investments, with a three-month or less maturity, carried at cost plus accrued interest, which are readily convertible into cash.

Accounts Receivable - The Accounts receivable, net caption in the Consolidated Balance Sheet is comprised of the following components:

June 30,	2011			2010
Accounts receivable, trade	$	1,780,137		$	1,457,355
Allowance for doubtful accounts		(10,472	)		(14,701	)
Non-trade accounts receivable		75,550			58,091
Notes receivable		132,641			99,196
Total	$	1,977,856		$	1,599,941

Accounts receivable are initially recorded at their net collectible amount and where applicable, are generally recorded at the time the revenue from the sales transaction is recorded. Receivables are written off to bad debt primarily when, in the judgment of the Company, the receivable is deemed to be uncollectible.

Inventories - Inventories are stated at the lower of cost or market. The majority of domestic inventories are valued by the last-in, first-out method and the balance of the Company’s inventories are valued by the first-in, first-out method.

Plant, Equipment and Depreciation - Plant and equipment are recorded at cost and are depreciated principally using the straight-line method for financial reporting purposes. Depreciation rates are based on estimated useful lives of the assets, generally 40 years for buildings, 15 years for land improvements and building equipment, seven to 10 years for machinery and equipment, and three to eight years for vehicles and office equipment. Improvements, which extend the useful life of property, are capitalized, and maintenance and repairs are expensed. The Company reviews plant and equipment for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included in current income.

Investments and Other Assets - Investments in joint-venture companies in which ownership is 50 percent or less and in which the Company does not have operating control are stated at cost plus the Company’s equity in undistributed earnings. These investments and the related earnings are not material to the consolidated financial statements.

Goodwill - The Company conducts a formal impairment test of goodwill on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

Intangible Assets - Intangible assets primarily include patents, trademarks and customer lists and are recorded at cost and amortized on a straight-line method. Patents are amortized over the shorter of their remaining useful or legal life. Trademarks are amortized over the estimated time period over which an economic benefit is expected to be received. Customer lists are amortized over a period based on anticipated customer attrition rates. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable.

Income Taxes - Income taxes are provided based upon income for financial reporting purposes. Deferred income taxes arise from temporary differences in the recognition of income and expense for tax purposes. Tax credits and similar tax incentives are applied to reduce the provision for income taxes in the year in which the credits arise. The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, are recognized in income tax expense.

Product Warranty - In the ordinary course of business the Company warrants its products against defect in design, materials and workmanship over various time periods. The warranty accrual at June 30, 2011 and 2010 is immaterial to the financial position of the Company and the change in the accrual during 2011, 2010 and 2009 was immaterial to the Company’s results of operations and cash flows.

Foreign Currency Translation - Assets and liabilities of most foreign subsidiaries are translated at current exchange rates, and income and expenses are translated using weighted-average exchange rates. The effects of these translation adjustments, as well as gains and losses from certain intercompany transactions, are reported in the Accumulated other comprehensive (loss) component of Shareholders’ equity. Such adjustments will affect Net income only upon sale or liquidation of the underlying foreign investments, which is not contemplated at this time. Exchange gains and losses from transactions in a currency other than the local currency of the entity involved, and translation adjustments in countries with highly inflationary economies, are included in Net income.

Subsequent Events - The Company has evaluated subsequent events that have occurred through the date of filing of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2011. No subsequent events occurred that required either adjustment to or disclsure in these financial statements.

Recent Accounting Pronouncements - In May 2011, the Financial Accounting Standards Board (FASB) issued new accounting guidance to improve consistency with fair value measurement and disclosure requirements. This guidance is effective for interim and annual periods beginning after December 15, 2011. The Company has not yet determined the effect, if any, that this new guidance will have on its fair value disclosures.

In June 2011, the FASB issued new accounting guidance requiring an entity to present net income and other comprehensive income (OCI) in either a single continuous statement or in separate consecutive statements. The guidance does not change the items reported in OCI or when an item of OCI must be reclassified to net income. The guidance, which must be presented retroactively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.

XML



Summary of the Status and Changes of Shares Subject to Stock Option and SAR Awards and the Related Average Price Per Share (Detail) (USD $)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Number of Shares
Nonvested June 30, 2010	5,586,873
Granted	1,399,068
Vested	(2,798,791)
Canceled	(67,445)
Nonvested June 30, 2011	4,119,705	5,586,873
Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010	$ 16.10
Granted	$ 18.70	$ 15.77	$ 16.56
Vested	$ 16.31
Canceled	$ 16.36
Nonvested June 30, 2011	$ 16.84	$ 16.10

XML



Equity

12 Months Ended

Jun. 30, 2011

Equity

11. Equity

Retirement benefit plan activity for Retained earnings in 2009 includes $3,391 related to the adoption of new accounting rules for split dollar insurance arrangements and $2,106 related to the adoption of the measurement date provision of pension accounting rules.

The balance of Accumulated other comprehensive (loss) in Shareholders’ equity is comprised of the following:

	2011			2010
Foreign currency translation	$	316,010		$	(187,746	)
Retirement benefit plans		(766,159	)		(1,019,762	)
Other		(841	)		(1,053	)

The balance of Accumulated other comprehensive (loss) income in Noncontrolling interests relates to foreign currency translation and amounted to $26,844 and $18,519, at June 30, 2011 and June 30, 2010, respectively.

Share Repurchases - The Company has a program to repurchase its common shares. Under the program, the Company is authorized to repurchase an amount of common shares each fiscal year equal to the greater of 7.5 million shares or five percent of the shares outstanding as of the end of the prior fiscal year. Repurchases are funded primarily from operating cash flows and commercial paper borrowings, and the shares are initially held as treasury stock. The number of common shares repurchased at the average purchase price follows:

	2011		2010		2009
Shares repurchased		8,008,926		441,118		7,557,284
Average price per share	$	86.54	$	56.67	$	59.25

XML



Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible amortization expense	$ 107,701	$ 114,749	$ 102,750
Estimated amortization expense, year ending June 30, 2012	100,342
Estimated amortization expense, year ending June 30, 2013	93,048
Estimated amortization expense, year ending June 30, 2014	89,354
Estimated amortization expense, year ending June 30, 2015	86,521
Estimated amortization expense, year ending June 30, 2016	$ 84,717

XML



Gross Carrying Value and Accumulated Amortization for Each Major Category of Intangible Assets (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,694,444	$ 1,529,734
Accumulated Amortization	516,722	379,683
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	124,015	114,935
Accumulated Amortization	61,061	48,682
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	319,158	289,017
Accumulated Amortization	116,995	83,936
Customer lists and other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,251,271	1,125,782
Accumulated Amortization	$ 338,666	$ 247,065

XML



Equity (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Accumulated Other Comprehensive Income (Loss)

The balance of Accumulated other comprehensive (loss) in Shareholders’ equity is comprised of the following:

	2011			2010
Foreign currency translation	$	316,010		$	(187,746	)
Retirement benefit plans		(766,159	)		(1,019,762	)
Other		(841	)		(1,053	)

Schedule of Treasury Stock by Class

The number of common shares repurchased at the average purchase price follows:

	2011		2010		2009
Shares repurchased		8,008,926		441,118		7,557,284
Average price per share	$	86.54	$	56.67	$	59.25

XML



Summary of Defined Benefit Pension Plans (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	$ 2,798,417	$ 2,020,186
Amounts recognized on the Consolidated Balance Sheet
Pensions and other postretirement benefits	(862,938)	(1,500,928)
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	3,430,835	2,952,297
Service cost	87,676	70,977	71,187
Interest cost	176,081	178,562	172,321
Actuarial (gain) loss	(101,806)	440,941
Benefits paid	(146,779)	(150,176)
Plan amendments	9,735	11,902
Foreign currency translation and other	113,818	(73,668)
Benefit obligation at end of year	3,569,560	3,430,835	2,952,297
Fair value of plan assets at beginning of year	2,020,186	1,807,479
Actual gain on plan assets	384,848	261,820
Employer contributions	461,243	153,291
Benefits paid	(146,779)	(150,176)
Foreign currency translation and other	78,919	(52,228)
Fair value of plan assets at end of year	2,798,417	2,020,186	1,807,479
Funded status	(771,143)	(1,410,649)
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	(14,815)	(12,866)
Pensions and other postretirement benefits	(756,328)	(1,397,783)
Net amount recognized	(771,143)	(1,410,649)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	1,133,411	1,496,209
Prior service cost	69,337	70,810
Transition obligation	161	105
Net amount recognized	$ 1,202,909	$ 1,567,124

XML



Stock Prices and Dividends (Unaudited)

12 Months Ended

Jun. 30, 2011

Stock Prices and Dividends (Unaudited)

19. Stock Prices and Dividends (Unaudited)

(In dollars)		1st		2nd		3rd		4th		Full Year
2011	High	$	72.12	$	87.36	$	95.00	$	99.40	$	99.40
	Low		54.26		67.52		82.80		83.65		54.26
	Dividends		.27		.29		.32		.37		1.25
2010	High	$	55.89	$	59.36	$	66.71	$	72.50	$	72.50
	Low		39.53		49.36		53.50		55.18		39.53
	Dividends		.25		.25		.25		.26		1.01
2009	High	$	72.69	$	52.52	$	46.45	$	48.45	$	72.69
	Low		48.67		31.29		27.69		33.13		27.69
	Dividends		.25		.25		.25		.25		1.00

Common Stock Listing: New York Stock Exchange, Stock Symbol PH

XML



CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Cash Flows From Operating Activities
Net income	$ 1,057,150	$ 556,365	$ 510,144
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	229,238	245,295	252,599
Amortization	110,562	117,214	105,138
Stock incentive plan compensation	73,238	59,318	47,215
Deferred income taxes	20,715	(17,353)	(13,048)
Foreign currency transaction loss (gain)	10,470	(1,249)	1,786
(Gain) loss on sale of plant and equipment	(7,710)	10,292	(336)
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(259,752)	(220,349)	598,065
Inventories	(139,062)	53,862	218,595
Prepaid expenses	6,477	29,581	(61,646)
Other assets	(39,118)	42,031	63,998
Accounts payable, trade	228,164	259,436	(304,863)
Accrued payrolls and other compensation	75,405	26,014	(67,654)
Accrued domestic and foreign taxes	53,424	63,119	(40,598)
Other accrued liabilities	(27,726)	36,137	(159,642)
Pensions and other postretirement benefits	(281,285)	(9,879)	28,522
Other liabilities	56,743	(31,012)	(49,083)
Net cash provided by operating activities	1,166,933	1,218,822	1,129,192
Cash Flows From Investing Activities
Acquisitions (less cash acquired of $385 in 2011 and $24,203 in 2009)	(60,227)	(5,451)	(722,635)
Capital expenditures	(207,294)	(129,222)	(270,733)
Proceeds from sale of plant and equipment	32,289	11,929	28,986
Other	(9,706)	(23,429)	3,551
Net cash (used in) investing activities	(244,938)	(146,173)	(960,831)
Cash Flows From Financing Activities
Proceeds from exercise of stock options	25,862	10,307	3,557
(Payments for) common shares	(693,096)	(24,999)	(447,800)
Tax benefit from stock incentive plan compensation	42,823	13,698	3,692
(Payments of) proceeds from notes payable, net	(18,908)	(421,974)	346,081
Proceeds from long-term borrowings	291,683	3,293	2,368
(Payments of) long-term borrowings	(358,058)	(67,582)	(20,671)
Dividends paid, net of tax benefit of ESOP shares	(206,084)	(162,739)	(161,575)
Net cash (used in) financing activities	(915,778)	(649,996)	(274,348)
Effect of exchange rate changes on cash	75,723	(34,738)	(32,450)
Net increase (decrease) in cash and cash equivalents	81,940	387,915	(138,437)
Cash and cash equivalents at beginning of year	575,526	187,611	326,048
Cash and cash equivalents at end of year	657,466	575,526	187,611
Cash paid during the year for:
Interest	99,227	104,812	111,648
Income taxes	$ 203,539	$ 127,320	$ 211,281

XML



Stock Incentive Plans

12 Months Ended

Jun. 30, 2011

Stock Incentive Plans

12. Stock Incentive Plans

The Company’s 2003 Stock Incentive Plan and 2009 Omnibus Stock Incentive Plan provide for the granting of share-based incentive awards in the form of nonqualified stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and restricted stock to officers and key employees of the Company. The aggregate number of shares authorized for issuance under the 2003 Stock Incentive Plan and 2009 Omnibus Stock Incentive Plan is 13,500,000 and 5,500,000, respectively. The Company satisfies share-based incentive award obligations by issuing shares of common stock out of treasury, which have been repurchased pursuant to the Company’s share repurchase program described in Note 11, or through the issuance of previously unissued common stock.

Stock Options/SARs - Stock options allow the participant to purchase shares of common stock at a price not less than 100 percent of the fair market value of the stock on the date of grant. Upon exercise, SARs entitle the participant to receive shares of common stock equal to the increase in value of the award between the grant date and the exercise date. Stock options and SARs are exercisable from one to three years after the date of grant and expire no more than 10 years after grant.

The fair value of each stock option and SAR award granted in 2011, 2010 and 2009 was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:

	2011			2010			2009
Risk-free interest rate		1.5	%		2.9	%		3.2	%
Expected life of award		5.2 yrs			5.3 yrs			4.9 yrs
Expected dividend yield of stock		1.5	%		1.4	%		1.3	%
Expected volatility of stock		35.9	%		34.5	%		26.6	%
Weighted-average fair value	$	18.70		$	15.77		$	16.56

The risk-free interest rate was based on U.S. Treasury yields with a term similar to the expected life of the award. The expected life of the award was derived by referring to actual exercise and post-vesting employment termination experience. The expected dividend yield was based on the Company’s historical dividend rate and stock price over a period similar to the expected life of the award. The expected volatility of stock was derived by referring to changes in the Company’s historical common stock prices over a timeframe similar to the expected life of the award.

Stock option and SAR activity during 2011 is as follows (aggregate intrinsic value in millions):

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding June 30, 2010		16,152,493		$	49.55
Granted		1,399,068			63.49
Exercised		(4,245,373	)		44.97
Canceled		(77,070	)		58.92
Outstanding June 30, 2011		13,229,118		$	52.44		5.5 years	$	493.6
Exercisable June 30, 2011		9,109,413		$	50.30		4.5 years	$	359.2

A summary of the status and changes of shares subject to stock option and SAR awards and the related average price per share follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Nonvested June 30, 2010		5,586,873		$	16.10
Granted		1,399,068			18.70
Vested		(2,798,791	)		16.31
Canceled		(67,445	)		16.36
Nonvested June 30, 2011		4,119,705		$	16.84

At June 30, 2011, $18,909 of expense with respect to nonvested stock option and SAR awards has yet to be recognized and will be amortized into expense over a weighted-average period of approximately 15 months. The total fair value of shares vested during 2011, 2010 and 2009 was $45,635, $40,494 and $40,082, respectively.

Information related to stock options and SAR awards exercised during 2011, 2010 and 2009 is as follows:

	2011		2010		2009
Net cash proceeds	$	25,862	$	10,307	$	3,557
Intrinsic value		163,752		45,424		4,787
Income tax benefit		42,546		14,031		1,517

During 2011, 2010 and 2009, the Company recognized stock-based compensation expense of $36,617, $44,415 and $41,488, respectively, relating to stock option and SAR awards. The Company derives a tax deduction measured by the excess of the market value over the grant price at the date stock-based awards are exercised. The related tax benefit is credited to Additional capital as the Company is currently in a windfall tax benefit position.

Shares surrendered upon exercise of stock options and SARs: 2011 – 2,447,908; 2010 – 606,554; 2009 – 90,129.

RSUs - RSUs constitute an agreement to deliver shares of common stock to the participant at the end of a vesting period. Generally, the RSUs vest and the underlying stock is issued ratably over a three year graded vesting period. Unvested RSUs may not be transferred and do not have dividend or voting rights. For each unvested RSU, recipients are entitled to receive a dividend equivalent, payable in cash or common shares, equal to the cash dividend per share paid to common shareholders.

The Company began granting RSUs in 2011 and the fair value of each RSU award was based on the fair market value of the Company’s common stock on the date of grant. A summary of the status and changes of shares subject to RSU awards and the related average price per share follows:

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010		0		$	0
Granted		425,359			62.55
Vested		(320	)		62.35
Canceled		(9,864	)		62.35
Nonvested June 30, 2011		415,175		$	62.55

During 2011, the Company recognized stock-based compensation expense of $12,243 relating to the RSU awards. At June 30, 2011, $12,817 of expense with respect to nonvested RSU awards has yet to be recognized and will be amortized into expense over a weighted-average period of approximately 24 months.

Restricted Stock - The Company’s Long Term Incentive Plans (LTIP) provide for the issuance of restricted and unrestricted stock to certain officers and key employees based on the attainment of certain goals relating to the Company’s revenue growth, earnings per share growth and return on invested capital during the three-year performance period. Restricted stock was earned and awarded, and an estimated value was accrued, based upon attainment of criteria specified in the LTIP over the cumulative years of each three-year plan. Plan participants are entitled to cash dividends and to vote their respective shares, but transferability of the restricted stock is restricted for one to three years following issuance. For payouts in 2010 and 2009, in lieu of restricted stock, the participant could elect to receive the LTIP payout as a deferred cash contribution. Retired participants received the 2010 and 2009 LTIP payouts in cash.

Restricted Stock for LTIP	2011		2010		2009
LTIP 3-year plan		2008-09-10		2007-08-09		2006-07-08
Number of shares issued		157,491		68,172		172,130
Average share value on date of issuance	$	62.35	$	48.58	$	65.34
Total value	$	9,820	$	3,312	$	11,247

Under the Company’s 2009-10-11 LTIP, a payout of restricted stock will be issued in August 2011. Awards granted since the 2009-10-11 LTIP provide for the issuance of unrestricted stock based upon attainment of criteria specified in the LTIP over the cumulative years of each three-year plan.

The fair value of each LTIP award granted in 2011, 2010 and 2009 was based on the fair market value of the Company’s common stock on the date of grant. A summary of the status and changes of shares relating to the LTIP and the related average price per share follows:

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested June 30, 2010		1,350,028		$	57.74
Granted		281,191			86.34
Vested		(382,333	)		61.06
Canceled		(118,429	)		63.06
Nonvested June 30, 2011		1,130,457		$	64.50

During 2011, 2010 and 2009, the Company recorded stock-based compensation expense (income) of $24,378, $15,018 and $(5,562), respectively, relating to the LTIP.

Shares surrendered in connection with the LTIP: 2011– 126,462; 2010– 83,991; 2009 – 60,247.

In 2011, 2010 and 2009, 17,820, 20,000 and 12,150 restricted shares, respectively, were issued to certain non-employee members of the Board of Directors. Transferability of these shares is restricted for one to three years following issuance. In addition, non-employee members of the Board of Directors have been given the opportunity to receive all or a portion of their fees in restricted shares. These shares vest ratably, on an annual basis, over the term of office of the director. In 2011, 2010 and 2009, 2,400, 4,578 and 3,868 restricted shares, respectively, were issued in lieu of directors’ fees.

During 2011, 2010 and 2009, the Company recognized a tax benefit (cost) of $277, $(333), and $2,175, respectively, relating to the restricted stock awards.

At June 30, 2011, the Company had approximately 23 million common shares reserved for issuance in connection with its stock incentive plans.

XML



Stock Prices and Dividends (Unaudited) (Tables)

12 Months Ended

Jun. 30, 2011

Stock Prices and Dividends Table Disclosure

(In dollars)		1st		2nd		3rd		4th		Full Year
2011	High	$	72.12	$	87.36	$	95.00	$	99.40	$	99.40
	Low		54.26		67.52		82.80		83.65		54.26
	Dividends		.27		.29		.32		.37		1.25
2010	High	$	55.89	$	59.36	$	66.71	$	72.50	$	72.50
	Low		39.53		49.36		53.50		55.18		39.53
	Dividends		.25		.25		.25		.26		1.01
2009	High	$	72.69	$	52.52	$	46.45	$	48.45	$	72.69
	Low		48.67		31.29		27.69		33.13		27.69
	Dividends		.25		.25		.25		.25		1.00

XML



Research and Development - Additional Information (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Schedule Of Research And Development [Line Items]
Research and development costs	$ 359,456	$ 316,181	$ 338,908
Costs incurred in connection with research and development contracts	$ 61,327	$ 40,277	$ 50,739

XML



Research and Development

12 Months Ended

Jun. 30, 2011

Research and Development

14. Research and Development

Research and development costs amounted to $359,456 in 2011, $316,181 in 2010 and $338,908 in 2009. These amounts include both costs incurred by the Company related to independent research and development initiatives as well as costs incurred in connection with research and development contracts. Costs incurred in connection with research and development contracts amounted to $61,327 in 2011, $40,277 in 2010 and $50,739 in 2009. These costs are included in the total research and development cost for each of the respective years.

XML



Assumptions Used to Measure Net Periodic Benefit Cost (Detail)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Minimum | Non-U.S. defined benefit plans
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items]
Discount rate	1.75%	2.00%	2.25%
Average increase in compensation	2.00%	2.00%	1.00%
Expected return on plan assets	1.00%	1.00%	1.00%
Maximum | Non-U.S. defined benefit plans
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items]
Discount rate	6.00%	6.78%	6.90%
Average increase in compensation	4.50%	4.70%	4.25%
Expected return on plan assets	8.00%	8.00%	8.00%
U.S. defined benefit plans
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items]
Discount rate	5.30%	6.25%	6.80%
Average increase in compensation	5.21%	4.34%	4.70%
Expected return on plan assets	8.50%	8.50%	8.50%

XML



Debt - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Debt Disclosure [Line Items]
Principal amounts of Long-term debt payable in the year ending June 30, 2012	$ 75,271
Principal amounts of Long-term debt payable in the year ending June 30, 2013	225,437
Principal amounts of Long-term debt payable in the year ending June 30, 2014	236
Principal amounts of Long-term debt payable in the year ending June 30, 2015	154
Principal amounts of Long-term debt payable in the year ending June 30, 2016	290,200
Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire in the year ending June 30, 2012	83,688
Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire in the year ending June 30, 2013	59,003
Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire in the year ending June 30, 2014	35,490
Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire in the year ending June 30, 2015	23,511
Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire in the year ending June 30, 2016	20,689
Future minimum rental commitments as of June 30, 2011, under non-cancelable operating leases, which expire in the year ending June 30, after 2016	72,988
Rental expense	118,496	123,582	125,516
Medium Term Notes 3.5 Percent Due September 2022
Debt Disclosure [Line Items]
Medium-term notes, issued amount	300,000
Medium-term notes, maturity date	September 2022
Medium-term notes, interest rate	3.50%
Medium-term notes, issuance cost	$ 5,460

XML



Consolidated Statement of Shareholders' Equity (USD $) In Thousands	Total	Common Stock	Additional Capital	Retained Earnings	Guarantee of ESOP Debt	Accumulated Other Comprehensive (Loss)	Treasury Shares	Noncontrolling Interests
Beginning Balance at Jun. 30, 2008	$ 5,330,142	$ 90,523	$ 530,914	$ 5,387,836	$ (4,951)	$ 110,224	$ (862,993)	$ 78,589
Net income	510,144			508,515				1,629
Other comprehensive (loss) income:
Foreign currency translation, net of tax of $(0,000) in 2011, $(8,274) in 2010 and $10,131 in 2009	(494,545)					(498,553)		4,008
Retirement benefits plan activity, net of tax of $(144,108)	(454,457)					(454,457)
Net unrealized loss, net of tax of $(0,000) in 2011, $(2,973) in 2010 and $173 in 2009	(233)					(233)
Total comprehensive (loss) income	(439,091)							5,637
Dividends paid	(166,511)			(161,575)				(4,936)
Stock incentive plan activity	61,178		49,379	(6,348)			18,147
Shares purchased at cost	(448,624)						(447,800)	(824)
Retirement benefits plan activity	9,571		7,908	(6,390)	4,951		3,102
Acquisition activity	3,775							3,775
Ending Balance at Jun. 30, 2009	4,350,440	90,523	588,201	5,722,038		(843,019)	(1,289,544)	82,241
Net income	556,365			554,065				2,300
Other comprehensive (loss) income:
Foreign currency translation, net of tax of $(0,000) in 2011, $(8,274) in 2010 and $10,131 in 2009	(179,832)					(186,925)		7,093
Retirement benefits plan activity, net of tax of $(144,108)	(183,364)					(183,364)
Net unrealized loss, net of tax of $(0,000) in 2011, $(2,973) in 2010 and $173 in 2009	4,747					4,747
Total comprehensive (loss) income	197,916							9,393
Dividends paid	(162,739)			(162,540)				(199)
Stock incentive plan activity	70,674		49,241	(23,131)			44,564
Shares purchased at cost	(24,999)						(24,999)
Retirement benefits plan activity	28,108			(3,887)			31,995
Ending Balance at Jun. 30, 2010	4,459,400	90,523	637,442	6,086,545		(1,208,561)	(1,237,984)	91,435
Net income	1,057,150			1,049,130				8,020
Other comprehensive (loss) income:
Foreign currency translation, net of tax of $(0,000) in 2011, $(8,274) in 2010 and $10,131 in 2009	512,081					503,756		8,325
Retirement benefits plan activity, net of tax of $(144,108)	253,603					253,603
Realized loss, net of tax of $(119)	212					212
Total comprehensive (loss) income	1,823,046							16,345
Dividends paid	(206,084)			(202,786)				(3,298)
Stock incentive plan activity	105,070		30,890	(41,482)			115,662
Shares purchased at cost	(693,096)						(693,096)
Ending Balance at Jun. 30, 2011	$ 5,488,336	$ 90,523	$ 668,332	$ 6,891,407		$ (450,990)	$ (1,815,418)	$ 104,482

XML



Inventories

12 Months Ended

Jun. 30, 2011

Inventories

6. Inventories

Inventories valued on the last-in, first-out (LIFO) cost method were approximately 28 percent of total inventories in 2011 and 2010. The current cost of these inventories exceeds their valuation determined on the LIFO basis by $205,739 in 2011 and $193,519 in 2010. Progress payments of $33,489 in 2011 and $33,676 in 2010 are netted against inventories.

XML



Reconciliation of Effective Income Tax Rate to the Statutory Federal Rate (Detail)	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Reconciliation of Statutory Federal Tax Rate [Line Items]
Statutory Federal income tax rate	35.00%	35.00%	35.00%
State and local income taxes	1.80%	2.10%	1.70%
Litigation settlements			1.80%
Foreign tax rate difference	(8.70%)	(7.40%)	(8.70%)
Cash surrender of life insurance	(0.90%)	(1.00%)	2.30%
Research tax credit	(1.10%)	(0.70%)	(2.50%)
Worthless stock benefit			(3.20%)
Other	(0.90%)	(1.70%)	(1.10%)
Effective income tax rate	25.20%	26.30%	25.30%

XML



Computation of Earnings Per Share (Detail) (USD $) In Thousands, except Share data	3 Months Ended								12 Months Ended
	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Numerator:
Net income attributable to common shareholders	$ 292,190	$ 279,589	$ 230,180	$ 247,171	$ 222,163	$ 153,863	$ 104,546	$ 73,493	$ 1,049,130	$ 554,065	$ 508,515
Denominator:
Basic - weighted-average common shares									161,125,869	160,909,655	161,564,111
Increase in weighted-average common shares from dilutive effect of stock-based awards									3,672,352	1,992,062	1,155,037
Diluted - weighted-average common shares, assuming exercise of stock-based awards									164,798,221	162,901,717	162,719,148
Basic earnings per share									$ 6.51	$ 3.44	$ 3.15
Diluted earnings per share	$ 1.79	$ 1.68	$ 1.39	$ 1.51	$ 1.35	$ 0.94	$ 0.64	$ 0.45	$ 6.37	$ 3.40	$ 3.13

XML



Net Periodic Pension Cost Recognized (Detail) (Pension Plans, Defined Benefit, USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 87,676	$ 70,977	$ 71,187
Interest cost	176,081	178,562	172,321
Expected return on plan assets	(200,303)	(177,559)	(186,417)
Amortization of prior service cost	12,636	13,974	11,787
Amortization of unrecognized actuarial loss	109,436	65,823	31,507
Amortization of initial net (asset)	(63)	(55)	(53)
Net periodic benefit cost	$ 185,463	$ 151,722	$ 100,332

XML



Income Taxes (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes was derived from the following sources:

	2011		2010		2009
United States	$	681,910	$	354,675	$	390,507
Foreign		731,811		400,142		292,576
	$	1,413,721	$	754,817	$	683,083

Schedule of Components of Income Tax Expense (Benefit)

Income taxes include the following:

	2011			2010			2009
Federal
Current	$	121,292		$	84,878		$	46,524
Deferred		34,136			6,104			37,670
Foreign
Current		193,064			105,927			120,963
Deferred		(24,229	)		(22,788	)		(50,560	)
State and local
Current		21,500			25,000			18,500
Deferred		10,808			(669	)		(158	)
	$	356,571		$	198,452		$	172,939

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s effective income tax rate to the statutory Federal rate follows:

	2011			2010			2009
Statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
State and local income taxes		1.8			2.1			1.7
Litigation settlements								1.8
Foreign tax rate difference		(8.7	)		(7.4	)		(8.7	)
Cash surrender of life insurance		(0.9	)		(1.0	)		2.3
Research tax credit		(1.1	)		(0.7	)		(2.5	)
Worthless stock benefit								(3.2	)
Other		(0.9	)		(1.7	)		(1.1	)
Effective income tax rate		25.2	%		26.3	%		25.3	%

Schedule of Deferred Tax Assets and Liabilities

The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows:

	2011			2010
Postretirement benefits	$	374,005		$	565,258
Other liabilities and reserves		161,954			118,882
Long-term contracts		7,355			4,323
Stock-based incentive compensation		63,590			60,882
Loss carryforwards		186,613			106,106
Unrealized currency exchange gains and losses		43,484			15,312
Inventory		24,623			21,123
Depreciation and amortization		(479,103	)		(455,684	)
Valuation allowance		(192,904	)		(92,799	)
Net deferred tax asset	$	189,617		$	343,403
Change in net deferred tax asset:
Provision for deferred tax	$	(20,715	)	$	17,353
Items of other comprehensive (loss) income		(131,552	)		94,854
Acquisitions and other		(1,519	)		(4,050	)
Total change in net deferred tax	$	(153,786	)	$	108,157

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2011			2010			2009
Balance July 1	$	82,089		$	132,954		$	105,070
Additions for tax positions related to current year		8,398			10,815			31,414
Additions for tax positions of prior years		10,015			23,408			15,899
Additions for acquisitions					294			760
Reductions for tax positions of prior years		(15,060	)		(64,821	)		(10,566	)
Reductions for settlements		(7,133	)		(21,770	)		(3,768	)
Reductions for expiration of statute of limitations					(37	)
Effect of foreign currency translation		2,847			1,246			(5,855	)
Balance June 30	$	81,156		$	82,089		$	132,954

XML



Retirement Benefits

12 Months Ended

Jun. 30, 2011

Retirement Benefits

10. Retirement Benefits

Pensions - The Company has noncontributory defined benefit pension plans covering eligible employees, including certain employees in foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat-dollar amounts and years of service. The Company also has arrangements for certain key employees which provide for supplemental retirement benefits. In general, the Company’s policy is to fund these plans based on legal requirements, tax considerations, local practices and investment opportunities. The Company also sponsors defined contribution plans and participates in government-sponsored programs in certain foreign countries.

A summary of the Company’s defined benefit pension plans follows:

	2011			2010			2009
Benefit cost
Service cost	$	87,676		$	70,977		$	71,187
Interest cost		176,081			178,562			172,321
Expected return on plan assets		(200,303	)		(177,559	)		(186,417	)
Amortization of prior service cost		12,636			13,974			11,787
Amortization of unrecognized actuarial loss		109,436			65,823			31,507
Amortization of initial net (asset)		(63	)		(55	)		(53	)
Net periodic benefit cost	$	185,463		$	151,722		$	100,332

	2011			2010
Change in benefit obligation
Benefit obligation at beginning of year	$	3,430,835		$	2,952,297
Service cost		87,676			70,977
Interest cost		176,081			178,562
Actuarial (gain) loss		(101,806	)		440,941
Benefits paid		(146,779	)		(150,176	)
Plan amendments		9,735			11,902
Foreign currency translation and other		113,818			(73,668	)
Benefit obligation at end of year	$	3,569,560		$	3,430,835
Change in plan assets
Fair value of plan assets at beginning of year	$	2,020,186		$	1,807,479
Actual gain on plan assets		384,848			261,820
Employer contributions		461,243			153,291
Benefits paid		(146,779	)		(150,176	)
Foreign currency translation and other		78,919			(52,228	)
Fair value of plan assets at end of year	$	2,798,417		$	2,020,186
Funded status	$	(771,143	)	$	(1,410,649	)

	2011			2010
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	$	(14,815	)	$	(12,866	)
Pensions and other postretirement benefits		(756,328	)		(1,397,783	)
Net amount recognized	$	(771,143	)	$	(1,410,649	)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	$	1,133,411		$	1,496,209
Prior service cost		69,337			70,810
Transition obligation		161			105
Net amount recognized	$	1,202,909		$	1,567,124

The presentation of the amounts recognized on the Consolidated Balance Sheet and in Accumulated Other Comprehensive (Loss) is on a debit (credit) basis and excludes the effect of income taxes.

The estimated amount of net actuarial loss, prior service cost and transition asset that will be amortized from accumulated other comprehensive (loss) into net periodic benefit pension cost in 2012 is $102,182, $13,877 and $66, respectively.

The accumulated benefit obligation for all defined benefit plans was $3,219,403 and $3,096,603 at June 30, 2011 and 2010, respectively. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $3,119,540, $2,798,701 and $2,353,730, respectively, at June 30, 2011, and $3,401,504, $3,072,016 and $1,991,174, respectively, at June 30, 2010. The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were $3,557,563 and $2,783,349, respectively, at June 30, 2011, and $3,420,234 and $2,007,629, respectively, at June 30, 2010.

The Company expects to make cash contributions of approximately $67 million to its defined benefit pension plans in 2012, the majority of which relate to non-U.S. defined benefit plans. Estimated future benefit payments in the five years ending June 30, 2012 through 2016 are $153,694, $199,048, $164,605, $176,455 and $190,524, respectively and $1,177,675 in the aggregate for the five years ending June 30, 2017 through June 30, 2021.

The assumptions used to measure net periodic benefit cost for the Company’s significant defined benefit plans are:

	2011			2010			2009
U.S. defined benefit plans
Discount rate		5.3	%		6.25	%		6.8	%
Average increase in compensation		5.21	%		4.34	%		4.7	%
Expected return on plan assets		8.5	%		8.5	%		8.5	%
Non-U.S. defined benefit plans
Discount rate		1.75 to 6.0	%		2.0 to 6.78	%		2.25 to 6.9	%
Average increase in compensation		2.0 to 4.5	%		2.0 to 4.7	%		1.0 to 4.25	%
Expected return on plan assets		1.0 to 8.0	%		1.0 to 8.0	%		1.0 to 8.0	%

The assumptions used to measure the benefit obligation for the Company’s significant defined benefit plans are:

	2011			2010
U.S. defined benefit plans
Discount rate		5.45	%		5.3	%
Average increase in compensation		5.21	%		5.21	%
Non-U.S. defined benefit plans
Discount rate		2.0 to 5.87	%		1.75 to 6.0	%
Average increase in compensation		2.0 to 5.0	%		2.0 to 4.5	%

The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same estimated time period that benefit payments will be required to be made. The expected return on plan assets assumption is based on the weighted-average expected return of the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance.

The weighted-average allocation of the majority of the assets related to defined benefit plans is as follows:

	2011			2010
Equity securities		59	%		56	%
Debt securities		33	%		37	%
Other		8	%		7	%
		100	%		100	%

The weighted-average target asset allocation as of June 30, 2011 is 55 percent equity securities, 39 percent debt securities and 6 percent other. The investment strategy for the Company’s worldwide defined benefit pension plan assets focuses on achieving prudent actuarial funding ratios while maintaining acceptable levels of risk in order to provide adequate liquidity to meet immediate and future benefit requirements. This strategy requires an investment portfolio that is broadly diversified across various asset classes and external investment managers. Assets held in the U.S. defined benefit plans account for approximately 75 percent of the Company’s total defined benefit plan assets. The Company’s overall investment strategy with respect to the Company’s U.S. defined benefit plans is to opportunistically migrate from its current mix between growth seeking assets (primarily consisting of global public equities in developed and emerging countries and hedge fund of fund strategies) and income generating assets (primarily consisting of high quality bonds, both domestic and global, emerging market bonds, high yield bonds and Treasury Inflation Protected Securities) to an allocation more heavily weighted toward income generating assets. Over time, long duration fixed income assets will be added to the portfolio. These securities will be highly correlated with the Company’s pension liabilities and will serve to hedge a portion of the Company’s interest rate risk.

The fair values of pension plan assets at June 30, 2011 and at June 30, 2010, by asset class, are as follows:

	Total			Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	112,080		$	58,511	$	53,569		$
Equity securities		665,107			665,107
Fixed income securities
Corporate bonds		120,136					120,136
Government issued securities		137,618			79,536		58,082
Mutual funds
Equity funds		220,312			219,816		496
Fixed income funds		138,314			135,620		2,694
Common/Collective trusts
Equity funds		766,847					766,847
Fixed income funds		513,365					513,365
Limited Partnerships		128,470					128,470
Miscellaneous		(3,832	)		88		(3,920	)
Total at June 30, 2011	$	2,798,417		$	1,158,678	$	1,639,739		$

	Total		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	74,302	$	74,302	$		$
Equity securities		605,067		605,067
Fixed income securities
Corporate bonds		116,571				116,571
Government issued securities		130,070				130,070
Mutual funds
Equity funds		10,370				10,370
Fixed income funds		131,777				131,777
Common/Collective trusts
Equity funds		613,246				613,246
Fixed income funds		245,229				245,229
Limited Partnerships		68,648				68,648
Miscellaneous		24,906				24,906
Total at June 30, 2010	$	2,020,186	$	679,369	$	1,340,817	$

Cash and cash equivalents, which include repurchase agreements and other short-term investments, are valued at cost, which approximates fair value.

Equity securities consist of common stock of both U.S. and foreign corporations and are valued at the closing price reported on the active market on which the individual securities are traded. Equity securities include Company stock with a fair value of $119,856 as of June 30, 2011 and $74,000 as of June 30, 2010.

Fixed income securities are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded.

Mutual funds are valued using both the closing market price reported on the active market on which the fund is traded and market observable inputs for similar assets that are traded on an active market and primarily consist of equity and fixed income funds. The equity funds primarily provide exposure to U.S. and international equities and fixed income securities, real estate and commodities. The fixed income funds primarily provide exposure to high-yield securities and emerging market fixed income instruments.

Common/Collective trusts primarily consist of equity and fixed income funds and are valued using a net asset value per share. Common/Collective trust investments can be redeemed daily and without restriction. Redemption of the entire investment balance generally requires a 30-day notice period. The equity funds provide exposure to large, mid and small cap U.S. equities, international large and small cap equities and emerging market equities. The fixed income fund provides exposure to U.S., international and emerging market debt securities.

Limited Partnerships primarily consist of small cap equity and hedge funds and are valued using a net asset value per share. Limited Partnership investments can be redeemed daily and without restriction. Redemption of the entire investment balance generally requires a 30-day notice period. Small cap equity funds provide exposure to domestic small cap equities and hedge funds provide exposure to a variety of hedging strategies including long/short equity, relative value, event driven and global macro.

Miscellaneous primarily includes net payables for securities purchased but not settled in the asset portfolio of the Company’s U.S. defined benefit pension plans and insurance contracts held in the asset portfolio of the Company’s non-U.S. defined benefit pension plans. Insurance contracts are valued at the present value of future cash flows promised under the terms of the insurance contracts.

The primary investment objective of equity securities and equity funds, within both the mutual fund and common/collective trust asset class, is to obtain capital appreciation in an amount that at least equals various market-based benchmarks. The primary investment objective of fixed income securities and fixed income funds, within both the mutual fund and common/collective trust asset class, is to provide for a constant stream of income while preserving capital. The primary investment objective of limited partnerships is to achieve capital appreciation through an investment program focused on specialized investment strategies. The primary investment objective of insurance contracts, included in the miscellaneous asset class, is to provide a stable rate of return over a specified period of time.

Employee Savings Plan - The Company sponsors an employee stock ownership plan (ESOP) as part of its existing savings and investment 401(k) plan. The ESOP is available to eligible domestic employees. Parker Hannifin common stock is used to match contributions made by employees to the ESOP up to a maximum of 4.0 percent of an employee’s annual compensation.

	2011		2010		2009
Shares held by ESOP		10,308,032		10,950,349		11,189,598
Company contributions to ESOP	$	52,627	$	48,336	$	51,593

Company contributions to the ESOP are generally made in the form of cash and are recorded as compensation expense. In 2010 and 2009, in lieu of cash, the Company issued 510,984 and 49,422 of its common shares, respectively, out of treasury for the matching contribution.

The Company has a retirement income account (RIA) within the employee savings plan. The Company makes a contribution to the participant’s RIA account each year, the amount of which is based on the participant’s age and years of service. Participants do not contribute to the RIA. The Company recognized $16,844, $12,598 and $14,489 in expense related to the RIA in 2011, 2010 and 2009, respectively.

In addition to shares within the ESOP, as of June 30, 2011, employees have elected to invest in 3,297,412 shares of common stock within the Company Stock Fund of the Parker Retirement Savings Plan.

Other Postretirement Benefits - The Company provides postretirement medical and life insurance benefits to certain retirees and eligible dependents. Most plans are contributory, with retiree contributions adjusted annually. The plans are unfunded and pay stated percentages of covered medically necessary expenses incurred by retirees, after subtracting payments by Medicare or other providers and after stated deductibles have been met. For most plans, the Company has established cost maximums to more effectively control future medical costs. The Company has reserved the right to change these benefit plans.

Certain employees are covered under benefit provisions that include prescription drug coverage for Medicare eligible retirees. The impact of the subsidy received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 on the Company’s other postretirement benefits was immaterial.

A summary of the Company’s other postretirement benefit plans follows:

	2011			2010			2009
Benefit cost
Service cost	$	675		$	545		$	1,034
Interest cost		3,579			3,920			5,193
Net amortization and deferral		524			(461	)		(753	)
Net periodic benefit cost	$	4,778		$	4,004		$	5,474
				2011			2010
Change in benefit obligation
Benefit obligation at beginning of year				$	69,868		$	64,434
Service cost					675			545
Interest cost					3,579			3,920
Actuarial loss					5,002			8,689
Benefits paid					(5,985	)		(7,720	)
Benefit obligation at end of year				$	73,139		$	69,868
Funded status				$	(73,139	)	$	(69,868	)
	2011			2010
Amounts recognized on the Consolidated Balance Sheet
Other accrued liabilities	$	(5,670	)	$	(5,176	)
Pensions and other postretirement benefits		(67,469	)		(64,692	)
Net amount recognized	$	(73,139	)	$	(69,868	)
Amounts recognized in Accumulated Other Comprehensive (Loss)
Net actuarial loss	$	10,324		$	5,870
Prior service (credit)		(1,068	)		(1,113	)
Net amount recognized	$	9,256		$	4,757

The presentation of the amounts recognized on the Consolidated Balance Sheet and in Accumulated Other Comprehensive (Loss) is on a debit (credit) basis and is before the effect of income taxes. The amount of prior service (credit) and net actuarial loss that will be amortized from accumulated other comprehensive (loss) into net periodic postretirement cost in 2012 is $45 and $624, respectively.

Historically, the Company has provided self-insured retiree medical plan benefits for non-union employees upon their retirement. The retiree was responsible for paying the premiums for the medical coverage but the Company paid the costs of administering the plans (i.e., claims processing costs). Absorbing the administration costs was considered a benefit under the postretirement benefit accounting rules as the employees who elected to enroll in the retiree medical plans paid a lower premium since the Company was paying the costs to administer the plan. In 2009, the Company discontinued its self-insured retiree medical plans for non-union employees and therefore eliminated the cost associated with administering the plans. The Company recognized $22.4 million in income in 2009 as a result of eliminating the liability related to this benefit.

The assumptions used to measure the net periodic benefit cost for postretirement benefit obligations are:

	2011			2010			2009
Discount rate		5.01	%		6.1	%		6.71	%
Current medical cost trend rate		8.0	%		8.5	%		9.25	%
Ultimate medical cost trend rate		5.0	%		5.0	%		5.0	%
Medical cost trend rate decreases to ultimate in year		2018			2018			2014

The discount rate assumption used to measure the benefit obligation was 5.0 percent in 2011 and 5.01 percent in 2010.

Estimated future benefit payments for other postretirement benefits in the five years ending June 30, 2012 through 2016 are $5,686, $5,840, $5,940, $6,027 and $5,820, respectively, and $27,099 in the aggregate for the five years ending June 30, 2017 through June 30, 2021.

A one percentage point change in assumed health care cost trend rates would have the following effects:

	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	218	$	(188	)
Effect on postretirement benefit obligation		3,381		(2,932	)

Other - The Company has established nonqualified deferred compensation programs, which permit officers, directors and certain management employees annually to elect to defer a portion of their compensation, on a pre-tax basis, until their retirement. The retirement benefit to be provided is based on the amount of compensation deferred, Company match, and earnings on the deferrals. During 2011, 2010 and 2009, the Company recorded expense (income) relating to deferred compensation of $28,720, $21,553 and $(27,167), respectively.

The Company has invested in corporate-owned life insurance policies to assist in meeting the obligation under these programs. The policies are held in a rabbi trust and are recorded as assets of the Company.

XML



CONSOLIDATED STATEMENT OF INCOME (USD $) In Thousands, except Per Share data	12 Months Ended
	Jun. 30, 2011		Jun. 30, 2010		Jun. 30, 2009
Net sales	$ 12,345,870	[1]	$ 9,993,166	[1]	$ 10,309,015	[1]
Cost of sales	9,387,457		7,847,067		8,181,348
Gross profit	2,958,413		2,146,099		2,127,667
Selling, general and administrative expenses	1,467,773		1,277,080		1,290,379
Interest expense	99,704		103,599		112,071
Other (income) expense, net	(15,075)		311		42,470
(Gain) loss on disposal of assets	(7,710)		10,292		(336)
Income before income taxes	1,413,721		754,817		683,083
Income taxes (Note 4)	356,571		198,452		172,939
Net Income	1,057,150		556,365		510,144
Less: Noncontrolling interest in subsidiaries' earnings	8,020		2,300		1,629
Net Income Attributable to Common Shareholders	$ 1,049,130		$ 554,065		$ 508,515
Earnings per Share Attributable to Common Shareholders (Note 5)
Basic earnings per share	$ 6.51		$ 3.44		$ 3.15
Diluted earnings per share	$ 6.37		$ 3.40		$ 3.13

[1] Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location.

XML



Goodwill and Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Goodwill

The changes in the carrying amount of goodwill for the years ended June 30, 2010 and June 30, 2011 are as follows:

	Industrial Segment			Aerospace Segment			Climate & Industrial Controls Segment			Total
Balance June 30, 2009	$	2,496,449		$	98,709		$	307,919		$	2,903,077
Acquisitions					193						193
Foreign currency translation		(115,175	)		(46	)		(1,081	)		(116,302	)
Goodwill adjustments		(634	)								(634	)
Balance June 30, 2010	$	2,380,640		$	98,856		$	306,838		$	2,786,334
Acquisitions		7,424						1,291			8,715
Foreign currency translation		208,261			58			6,059			214,378
Goodwill adjustments		(336	)					25			(311	)
Balance June 30, 2011	$	2,595,989		$	98,914		$	314,213		$	3,009,116

Schedule of Finite-Lived Intangible Assets by Major Class

The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset:

	2011				2010
June 30,	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Patents	$	124,015	$	61,061	$	114,935	$	48,682
Trademarks		319,158		116,995		289,017		83,936
Customer lists and other		1,251,271		338,666		1,125,782		247,065
Total	$	1,694,444	$	516,722	$	1,529,734	$	379,683

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

During 2011, the Company acquired intangible assets with an initial purchase price allocation and weighted-average life as follows:

	Purchase Price Allocation		Weighted- Average Life
Trademarks	$	1,443		7 years
Customer lists and other		33,642		13 years
Total	$	35,085		13 years

XML



Effect of a One Percentage Point Change in Assumed Health Care Cost Trend Rates (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011
Assumed Health Care Cost Trend Rates, Effect of One Percentage Point Change [Line Items]
Effect on total of service and interest cost components, 1% increase	$ 218
Effect on total of service and interest cost components, 1% decrease	(188)
Effect on postretirement benefit obligation, 1% increase	3,381
Effect on postretirement benefit obligation, 1% decrease	$ (2,932)

XML



Shareholders' Protection Rights Agreement - Additional Information (Detail) (Shareholders' Protection Rights Agreement)	Jun. 30, 2011
Shareholders' Protection Rights Agreement
Stockholders Equity Note [Line Items]
Common shares reserved for issuance under Shareholders' Protection Rights Agreement	155,090,509
Holders of Shareholders' Rights would be entitled to purchase one common share, exercise price	160

XML



Fair Values of Pension Plan Assets by Asset Class (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	$ 2,798,417	$ 2,020,186
Quoted Prices In Active Markets (Level 1)
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	1,158,678	679,369
Quoted Prices In Active Markets (Level 1) | Cash and cash equivalents
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	58,511	74,302
Quoted Prices In Active Markets (Level 1) | Equity securities
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	665,107	605,067
Quoted Prices In Active Markets (Level 1) | Fixed income securities | Government issued securities
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	79,536
Quoted Prices In Active Markets (Level 1) | Mutual funds | Equity funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	219,816
Quoted Prices In Active Markets (Level 1) | Mutual funds | Fixed income funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	135,620
Quoted Prices In Active Markets (Level 1) | Miscellaneous
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	88
Common/Collective trusts | Significant Other Observable Inputs (Level 2) | Equity funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	766,847	613,246
Common/Collective trusts | Significant Other Observable Inputs (Level 2) | Fixed income funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	513,365	245,229
Limited Partnership | Significant Other Observable Inputs (Level 2)
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	128,470	68,648
Significant Other Observable Inputs (Level 2)
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	1,639,739	1,340,817
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	53,569
Significant Other Observable Inputs (Level 2) | Fixed income securities | Corporate bonds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	120,136	116,571
Significant Other Observable Inputs (Level 2) | Fixed income securities | Government issued securities
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	58,082	130,070
Significant Other Observable Inputs (Level 2) | Mutual funds | Equity funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	496	10,370
Significant Other Observable Inputs (Level 2) | Mutual funds | Fixed income funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	2,694	131,777
Significant Other Observable Inputs (Level 2) | Miscellaneous
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	(3,920)	24,906
Cash and cash equivalents
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	112,080	74,302
Equity securities
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	665,107	605,067
Fixed income securities | Corporate bonds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	120,136	116,571
Fixed income securities | Government issued securities
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	137,618	130,070
Mutual funds | Equity funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	220,312	10,370
Mutual funds | Fixed income funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	138,314	131,777
Common/Collective trusts | Equity funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	766,847	613,246
Common/Collective trusts | Fixed income funds
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	513,365	245,229
Limited Partnership
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	128,470	68,648
Miscellaneous
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items]
Pension plan assets	$ (3,832)	$ 24,906

XML



Accounts Receivable, Net (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, trade	$ 1,780,137	$ 1,457,355
Allowance for doubtful accounts	(10,472)	(14,701)
Non-trade accounts receivable	75,550	58,091
Notes receivable	132,641	99,196
Total	$ 1,977,856	$ 1,599,941

XML



Income Taxes - Additional Information (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Income Taxes [Line Items]
Deferred tax assets resulting from loss carryforwards	$ 186,613	$ 106,106
Loss carryforwards	663,735
Valuation allowance related to the loss carryforwards	156,721
Valuation allowance relates to foreign capital loss carryforward and certain deferred tax assets associated with other liabilities and reserves	36,183
Foreign capital loss carryforward and some of the loss carryforwards, time period	The foreign capital loss carryforward and some of the loss carryforwards can be carried forward indefinitely; others can be carried forward from one to 19 years.
Accumulated undistributed earnings of foreign operations reinvested in operations	983,950	1,102,978	1,298,102
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate	78,754	81,927	114,210
Accrued interest related to the gross unrecognized tax benefits excluded from the unrecognized tax benefits	$ 11,331	$ 8,200	$ 9,179

XML



Debt (Detail) (USD $) In Thousands	Jun. 30, 2011	Jun. 30, 2010
Debt Disclosure [Line Items]
Long-term debt	$ 1,765,892	$ 1,758,845
Total long-term debt	1,766,357	1,759,147
Less long-term debt payable within one year	75,271	345,513
Long-term debt, net	1,691,086	1,413,634
Domestic | Debentures 7.30%, due 2011
Debt Disclosure [Line Items]
Long-term debt		100,000
Domestic | Fixed rate medium-term notes 3.50% to 6.55%, due 2018-2038
Debt Disclosure [Line Items]
Long-term debt	1,175,000	875,000
Domestic | Fixed rate senior notes 4.88%, due 2013
Debt Disclosure [Line Items]
Long-term debt	225,000	225,000
Foreign | Bank loans, including revolving credit 1% to 7.2%, due 2011-2017
Debt Disclosure [Line Items]
Long-term debt	1,380	1,807
Foreign | Euro Bonds 3.5%, due 2011
Debt Disclosure [Line Items]
Long-term debt		244,580
Foreign | Euro Bonds 4.125%, due 2016
Debt Disclosure [Line Items]
Long-term debt	290,040	244,580
Foreign | Japanese Yen credit facility Libor plus 20 bps, due 2012
Debt Disclosure [Line Items]
Long-term debt	74,472	67,878
Other long-term debt, including capitalized leases
Debt Disclosure [Line Items]
Long-term debt	$ 465	$ 302

XML



Fair Value Measurement - Additional Information (Detail) (USD $)	12 Months Ended
	Jun. 30, 2011
Fair Value, Measurement Inputs, Disclosure [Line Items]
Investment in the electronic and electrical equipment company, fair value	$ 0
Investment in the electronic and electrical equipment company, expense recognized in net income	$ 3,542,000

XML



Gains (Losses) on Derivative Financial Instruments (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Nondesignated | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income	$ 19,048
Nondesignated | Costless Collar Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income	(6,624)	(4,897)	(5,286)
Derivatives Designated as Hedging Instruments | Cross-Currency Swap Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet	(22,600)
Non Derivative Financial Instruments | Foreign Denominated Debt
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet	$ (50,581)	$ 40,955

XML



Quarterly Information (Detail) (USD $) In Thousands, except Per Share data	3 Months Ended								12 Months Ended
	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2011		Jun. 30, 2010		Jun. 30, 2009
Quarterly Financial Information [Line Items]
Net sales	$ 3,409,830	$ 3,240,103	$ 2,866,664	$ 2,829,273	$ 2,786,470	$ 2,614,823	$ 2,354,708	$ 2,237,165	$ 12,345,870	[1]	$ 9,993,166	[1]	$ 10,309,015	[1]
Gross profit	819,058	777,020	670,936	691,399	672,280	552,372	485,227	436,220	2,958,413		2,146,099		2,127,667
Net income attributable to common shareholders	$ 292,190	$ 279,589	$ 230,180	$ 247,171	$ 222,163	$ 153,863	$ 104,546	$ 73,493	$ 1,049,130		$ 554,065		$ 508,515
Diluted earnings per share	$ 1.79	$ 1.68	$ 1.39	$ 1.51	$ 1.35	$ 0.94	$ 0.64	$ 0.45	$ 6.37		$ 3.40		$ 3.13

[1] Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location.

XML



SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2010		Jun. 30, 2009		Jun. 30, 2008
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning Of Period	$ 14,701		$ 19,815		$ 16,843
Additions Charged to Costs and Expenses	7,520		1,871		9,157
Other (Deductions)/ Additions	(11,749)	[1]	(6,985)	[1]	(6,185)	[1]
Balance At End Of Period	10,472		14,701		19,815
Deferred tax asset valuation allowance
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning Of Period	92,799		112,883		78,631
Additions Charged to Costs and Expenses	102,472		22,970		34,122
Other (Deductions)/ Additions	(2,367)	[1]	(43,054)	[1]	130	[1]
Balance At End Of Period	$ 192,904		$ 92,799		$ 112,883

[1] For allowance for doubtful accounts, net balance of deductions due to uncollectible accounts charged off and additions due to acquisitions or recoveries. For deferred tax asset valuation allowance, primarily represents adjustments due to acquisitions and net operating losses.

XML



Business Segment Information (Detail) (USD $) In Thousands	3 Months Ended										12 Months Ended
	Jun. 30, 2011		Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010		Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2011		Jun. 30, 2010		Jun. 30, 2009
Segment Reporting Information [Line Items]
Net sales	$ 3,409,830		$ 3,240,103	$ 2,866,664	$ 2,829,273	$ 2,786,470		$ 2,614,823	$ 2,354,708	$ 2,237,165	$ 12,345,870	[1]	$ 9,993,166	[1]	$ 10,309,015	[1]
Segment Operating Income											1,823,026		1,142,680		1,003,801
Corporate administration											163,868		153,965		152,118
Income before interest expense and other											1,659,158		988,715		851,683
Interest expense											99,704		103,599		112,071
Other expense											145,733		130,299		56,529
Income before income taxes											1,413,721		754,817		683,083
Property Additions											212,670	[2]	129,630	[2]	378,011	[2]
Depreciation											229,238		245,295		252,599
Long-Lived Assets											1,797,179	[1]	1,697,881	[1]	1,880,554	[1]
Assets	10,886,805	[3]				9,910,382	[3]				10,886,805	[3]	9,910,382	[3]	9,855,902	[3]
Industrial
Segment Reporting Information [Line Items]
Property Additions											147,929		95,838		346,691
Depreciation											186,057		200,617		205,584
Assets	8,413,552					7,309,735					8,413,552		7,309,735		7,539,504
Industrial | North America
Segment Reporting Information [Line Items]
Net sales											4,516,510		3,623,460		3,734,613
Segment Operating Income											745,544		487,137		394,923
Industrial | International
Segment Reporting Information [Line Items]
Net sales											4,917,007		3,811,464		3,895,874
Segment Operating Income											754,222		394,089		350,662
Aerospace
Segment Reporting Information [Line Items]
Net sales											1,921,984		1,744,283		1,883,273
Segment Operating Income											247,126		208,002		261,953
Property Additions											18,012		21,619		21,877
Depreciation											20,035		20,501		20,477
Assets	995,026					910,740					995,026		910,740		915,155
Climate and Industrial Controls
Segment Reporting Information [Line Items]
Net sales											990,369		813,959		795,255
Segment Operating Income											76,134		53,452		(3,737)
Property Additions											8,234		6,040		6,645
Depreciation											12,895		14,117		16,640
Assets	724,966					692,532					724,966		692,532		691,423
Corporate
Segment Reporting Information [Line Items]
Property Additions											38,495		6,133		2,798
Depreciation											10,251		10,060		9,898
Assets	753,261					997,375					753,261		997,375		709,820
North America
Segment Reporting Information [Line Items]
Net Sales											7,151,390		5,913,770		6,090,176
Long-Lived Assets											864,287		856,782		927,318
International
Segment Reporting Information [Line Items]
Net Sales											5,194,480		4,079,396		4,218,839
Long-Lived Assets											$ 932,892		$ 841,099		$ 953,236

[1] Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of plant and equipment based on physical location.

[2] Includes the value of net plant and equipment at the date of acquisition of acquired companies (2011 - $5,376; 2010 - $408; 2009 - $107,278)

[3] Corporate assets are principally cash and cash equivalents, domestic deferred income taxes, investments, benefit plan assets, headquarters facilities and the major portion of the Company's domestic data processing equipment.

XML



Income Taxes (Detail) (USD $) In Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009
Income Taxes [Line Items]
Current	$ 121,292	$ 84,878	$ 46,524
Deferred	34,136	6,104	37,670
Current	193,064	105,927	120,963
Deferred	(24,229)	(22,788)	(50,560)
Current	21,500	25,000	18,500
Deferred	10,808	(669)	(158)
Income taxes (Note 4)	$ 356,571	$ 198,452	$ 172,939

XML



Debt (Tables)

12 Months Ended

Jun. 30, 2011

Schedule of Long-term Debt Instruments

June 30,	2011		2010
Domestic:
Debentures 7.30%, due 2011	$		$	100,000
Fixed rate medium-term notes 3.50% to 6.55%, due 2018-2038		1,175,000		875,000
Fixed rate senior notes 4.88%, due 2013		225,000		225,000
Foreign:
Bank loans, including revolving credit 1% to 7.2%, due 2012-2017		1,380		1,807
Euro bonds 3.5%, due 2011				244,580
4.125%, due 2016		290,040		244,580
Japanese Yen credit facility Libor plus 20 bps, due 2012		74,472		67,878
Other long-term debt, including capitalized leases		465		302
Total long-term debt		1,766,357		1,759,147
Less long-term debt payable within one year		75,271		345,513
Long-term debt, net	$	1,691,086	$	1,413,634