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Inventories
 12 Months Ended
Jun. 30, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are stated at the lower of cost or net realizable value. During the fourth quarter of 2021, the Company voluntarily changed its method of accounting for certain domestic inventory previously valued by the LIFO method to the FIFO method. The cumulative effect of this change on periods presented prior to 2019 resulted in an increase in Retained earnings of $105,460 at July 1, 2018. The FIFO method of accounting for inventory is preferable because it conforms the Company's entire inventory to a single method of accounting, it aligns the inventory cost flow assumption with the physical flow of goods, and improves comparability within the industry.
The inventories caption in the Consolidated Balance Sheet is comprised of the following components:
June 30,20212020*
Finished products$733,744 $703,630 
Work in process1,089,976 988,564 
Raw materials266,922 272,001 
Total$2,090,642 $1,964,195 
*Year ended June 30, 2020 amounts have been revised to reflect the change in inventory accounting method, as described above and in Note 1 to the consolidated financial statements.
As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying financial statements were adjusted, as follows:
202120202019
Dollars in thousands, except per share amountsAs Computed Under LIFOAs Reported Under FIFOEffect of ChangeAs ReportedAdjustedEffect of ChangeAs ReportedAdjustedEffect of Change
Consolidated Statements of Income
Cost of sales$10,464,495 $10,449,680 $(14,815)$10,286,518 $10,292,291 $5,773 $10,703,484 $10,688,970 $(14,514)
Income before income taxes2,232,142 2,246,957 14,815 1,512,627 1,506,854 (5,773)1,933,425 1,949,475 16,050 
Income tax expense499,269 500,096 827 305,924 304,522 (1,402)420,494 424,392 3,898 
Net income1,732,873 1,746,861 13,988 1,206,703 1,202,332 (4,371)1,512,931 1,525,083 12,152 
Net income attributable to common shareholders1,732,112 1,746,100 13,988 1,206,341 1,201,970 (4,371)1,512,364 1,524,516 12,152 
Earnings per share attributable to common shareholders:
Basic$13.43 $13.54 $0.11 $9.39 $9.36 $(0.03)$11.63 $11.73 $0.10 
Diluted$13.24 $13.35 $0.11 $9.29 $9.26 $(0.03)$11.48 $11.57 $0.09 
Consolidated Statements of Comprehensive Income
Net income$1,732,873 $1,746,861 $13,988 $1,206,703 $1,202,332 $(4,371)$1,512,931 $1,525,083 $12,152 
Net income attributable to common shareholders1,732,112 1,746,100 13,988 1,206,341 1,201,970 (4,371)1,512,364 1,524,516 12,152 
Total comprehensive income attributable to common shareholders2,724,260 2,738,248 13,988 706,514 702,143 (4,371)1,218,136 1,230,288 12,152 
202120202019
Dollars in thousands, except per share amountsAs Computed Under LIFOAs Reported Under FIFOEffect of ChangeAs ReportedAdjustedEffect of ChangeAs ReportedAdjustedEffect of Change
Consolidated Balance Sheets
Inventories$1,926,263 $2,090,642 $164,379 $1,814,631 $1,964,195 $149,564 
Deferred income taxes - noncurrent liability516,831 553,981 37,150 382,528 418,851 36,323 
Retained earnings14,788,268 14,915,497 127,229 13,530,666 13,643,907 113,241 
Consolidated Statements of Cash Flows
Net income$1,732,873 $1,746,861 $13,988 $1,206,703 $1,202,332 $(4,371)$1,512,931 $1,525,083$12,152 
Deferred income taxes(52,327)(51,500)827 13,692 12,290 (1,402)32,537 36,4353,898 
Inventories(70,782)(85,597)(14,815)201,164 206,937 5,773 (51,817)(67,867)(16,050)
The effect of change in inventory in 2020 represents the excess of gross FIFO inventories over the cost of such inventories valued on a LIFO basis of $219,854 less the related excess and obsolete reserve of $70,290.
As a result of the retrospective application of this change in accounting principle, the following financial statement line items within the unaudited interim 2021 and 2020 quarterly condensed consolidated financial statements were adjusted, as follows:
Three Months Ended
(Unaudited)September 30, 2020December 31, 2020March 31, 2021
Dollars in thousands, except per share amountsAs ReportedAdjustedEffect of ChangeAs ReportedAdjustedEffect of ChangeAs ReportedAdjustedEffect of Change
Consolidated Statements of Income
Cost of sales$2,384,328 $2,386,449 $2,121 $2,519,545 $2,518,165 $(1,380)$2,714,773 $2,712,785 $(1,988)
Income before income taxes415,295 413,174 (2,121)576,512 577,892 1,380 597,352 599,340 1,988 
Income tax expense93,578 93,063 (515)129,015 129,350 335 125,619 126,101 482 
Net income321,717 320,111 (1,606)447,497 448,542 1,045 471,733 473,239 1,506 
Net income attributable to common shareholders321,409 319,803 (1,606)447,306 448,351 1,045 471,647 473,153 1,506 
Earnings per share attributable to common shareholders:
Basic$2.50 $2.48 $(0.02)$3.47 $3.48 $0.01 $3.65 $3.67 $0.02 
Diluted$2.47 $2.45 $(0.02)$3.41 $3.42 $0.01 $3.59 $3.60 $0.01 
Three Months Ended
(Unaudited)September 30, 2019December 31, 2019March 31, 2020
Dollars in thousands, except per share amountsAs ReportedAdjustedEffect of ChangeAs ReportedAdjustedEffect of ChangeAs ReportedAdjustedEffect of Change
Consolidated Statements of Income
Cost of sales$2,479,741 $2,480,992 $1,251 $2,682,765 $2,686,131$3,366 $2,766,693$2,759,637$(7,056)
Income before income taxes433,156 431,905(1,251)254,746 251,380(3,366)454,157461,2137,056 
Income tax expense94,115 93,811(304)50,148 49,331(817)86,78888,5011,713 
Net income339,041 338,094(947)204,598 202,049(2,549)367,369372,7125,343 
Net income attributable to common shareholders338,898 337,951(947)204,474 201,925(2,549)367,253372,5965,343 
Earnings per share attributable to common shareholders:
Basic$2.64 $2.63 $(0.01)$1.59 $1.57 $(0.02)$2.86 $2.90 $0.04 
Diluted$2.60 $2.60 $— $1.57 $1.55 $(0.02)$2.83 $2.87 $0.04