Business Segment Information

12 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

By Industry

(Dollars in thousands)	2014			2013		2012
Net Sales:
Diversified Industrial:
North America	$	5,693,527		$	5,637,657	$	5,708,057
International	5,287,916			5,110,332		5,335,138
Aerospace Systems	2,234,528			2,267,715		2,102,747
	$	13,215,971		$	13,015,704	$	13,145,942
Segment Operating Income:
Diversified Industrial:
North America	$	946,493		$	908,719	$	960,252
International	572,476			602,480		752,155
Aerospace Systems	271,238			280,286		290,135
Total segment operating income	1,790,207			1,791,485		2,002,542
Corporate administration	181,926			185,767		193,367
Income before interest expense and other	1,608,281			1,605,718		1,809,175
Interest expense	82,566			91,552		92,790
Other (income) expense	(31,005		)	203,165		139,687
Income before income taxes	$	1,556,720		$	1,311,001	$	1,576,698
Assets:
Diversified Industrial	$	9,501,837		$	9,388,027	$	8,696,094
Aerospace Systems (a)	1,359,130			1,139,967		1,033,449
Corporate (b)	2,413,395			2,012,904		1,440,739
	$	13,274,362		$	12,540,898	$	11,170,282
Property Additions (c):
Diversified Industrial	$	189,832		$	312,392	$	219,872
Aerospace Systems	23,261			20,838		19,651
Corporate	3,247			7,105		8,223
	$	216,340		$	340,335	$	247,746
Depreciation:
Diversified Industrial	$	187,347		$	187,014	$	182,853
Aerospace Systems	19,193			19,498		19,395
Corporate	8,425			7,210		8,260
	$	214,965		$	213,722	$	210,508

(Dollars in thousands)	2014		2013		2012
By Geographic Area (d)
Net Sales:
North America	$	7,853,603	$	7,844,552	$	7,830,517
International	5,362,368		5,171,152		5,315,425
	$	13,215,971	$	13,015,704	$	13,145,942
Long-Lived Assets:
North America	$	861,300	$	871,958	$	867,159
International	962,994		936,282		852,809
	$	1,824,294	$	1,808,240	$	1,719,968

As of July 1, 2013, the Company consolidated its Climate & Industrial Controls businesses into existing operating groups within the Industrial Segment. As a result of this consolidation and the resulting change in management structure made in connection with the strategic divestiture of certain operations in the Climate & Industrials Control Segment, the Company now has two reporting segments: Diversified Industrial (formerly referred to as Industrial) and Aerospace Systems (formerly referred to as Aerospace). All prior period results have been revised to reflect the new reporting segment structure.

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) Includes investments in joint-venture companies in which ownership is 50 percent or less and in which the Company does not have operating control (2014 - $263,246).

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

(c) Includes the value of net plant and equipment at the date of acquisition of acquired companies (2013 - $74,439; 2012 - $28,929).

(d) 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.