Inventories (Tables)

12 Months Ended

Jun. 30, 2021

The inventories caption in the Consolidated Balance Sheet is comprised of the following components:


June 30,	2021		2020*
Finished products	$	733,744	$	703,630
Work in process	1,089,976		988,564
Raw materials	266,922		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.

Financial statements line item adjusted due to change in accounting method

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:


	2021						2020						2019
Dollars in thousands, except per share amounts	As Computed Under LIFO		As Reported Under FIFO		Effect of Change		As Reported		Adjusted		Effect of Change		As Reported		Adjusted		Effect 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 taxes	2,232,142		2,246,957		14,815		1,512,627		1,506,854		(5,773)		1,933,425		1,949,475		16,050
Income tax expense	499,269		500,096		827		305,924		304,522		(1,402)		420,494		424,392		3,898
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 shareholders	1,732,112		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 shareholders	1,732,112		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 shareholders	2,724,260		2,738,248		13,988		706,514		702,143		(4,371)		1,218,136		1,230,288		12,152


	2021						2020						2019
Dollars in thousands, except per share amounts	As Computed Under LIFO		As Reported Under FIFO		Effect of Change		As Reported		Adjusted		Effect of Change		As Reported		Adjusted	Effect 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 liability	516,831		553,981		37,150		382,528		418,851		36,323
Retained earnings	14,788,268		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		36,435	3,898
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, 2020						December 31, 2020						March 31, 2021
Dollars in thousands, except per share amounts	As Reported		Adjusted		Effect of Change		As Reported		Adjusted		Effect of Change		As Reported		Adjusted		Effect 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 taxes	415,295		413,174		(2,121)		576,512		577,892		1,380		597,352		599,340		1,988
Income tax expense	93,578		93,063		(515)		129,015		129,350		335		125,619		126,101		482
Net income	321,717		320,111		(1,606)		447,497		448,542		1,045		471,733		473,239		1,506
Net income attributable to common shareholders	321,409		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, 2019						December 31, 2019						March 31, 2020
Dollars in thousands, except per share amounts	As Reported		Adjusted		Effect of Change		As Reported		Adjusted		Effect of Change		As Reported		Adjusted		Effect 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 taxes	433,156		431,905		(1,251)		254,746		251,380		(3,366)		454,157		461,213		7,056
Income tax expense	94,115		93,811		(304)		50,148		49,331		(817)		86,788		88,501		1,713
Net income	339,041		338,094		(947)		204,598		202,049		(2,549)		367,369		372,712		5,343
Net income attributable to common shareholders	338,898		337,951		(947)		204,474		201,925		(2,549)		367,253		372,596		5,343

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