Business Segment Information

12 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company operates in two reportable business segments: Diversified Industrial and Aerospace Systems. Both segments utilize eight core technologies, including hydraulics, pneumatics, electromechanical, filtration, fluid and gas handling, process control, engineered materials and climate control, to drive superior customer problem solving and value creation.

The Diversified 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. Diversified Industrial Segment products are marketed primarily through field sales employees and independent distributors. The Diversified Industrial North American operations have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Diversified Industrial International operations provide Parker products and services to 42 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa.

The Aerospace Systems 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 Systems Segment products are marketed by field sales employees and are sold directly to manufacturers and end users.

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.

	2022		2021		2020
Net Sales:
Diversified Industrial:
North America	$	7,703,150	$	6,676,449	$	6,456,298
International	5,638,896		5,283,710		4,504,587
Aerospace Systems	2,519,562		2,387,481		2,734,635
	$	15,861,608	$	14,347,640	$	13,695,520

	2022		2021		2020
Segment Operating Income:
Diversified Industrial:
North America	$	1,515,259	$	1,247,419	$	985,944
International	1,178,044		988,054		674,763
Aerospace Systems	501,431		402,895		476,900
Total segment operating income	3,194,734		2,638,368		2,137,607
Corporate administration	219,699		178,427		170,903
Income before interest expense and other expense	2,975,035		2,459,941		1,966,704
Interest expense	255,252		250,036		308,161
Other expense (income)	1,105,557		(37,052)		151,689
Income before income taxes	$	1,614,226	$	2,246,957	$	1,506,854
Assets:
Diversified Industrial	$	15,838,512	$	16,518,688	$	15,973,576
Aerospace Systems(a)	3,020,606		3,077,395		3,251,522
Corporate	7,084,825		745,117		662,655
	$	25,943,943	$	20,341,200	$	19,887,753
Property Additions:
Diversified Industrial	$	197,675	$	186,233	$	183,981
Aerospace Systems	27,452		20,705		44,546
Corporate	4,917		3,019		4,064
	$	230,044	$	209,957	$	232,591
Depreciation:
Diversified Industrial	$	219,206	$	229,891	$	218,092
Aerospace Systems	29,576		32,151		27,749
Corporate	8,532		7,901		7,058
	$	257,314	$	269,943	$	252,899
Amortization:
Diversified Industrial	$	263,430	$	274,368	$	243,714
Aerospace Systems	51,020		51,079		40,918
	$	314,450	$	325,447	$	284,632
By Geographic Area(b)
Net Sales:
North America	$	10,216,292	$	9,046,162	$	9,166,773
International	5,645,316		5,301,478		4,528,747
	$	15,861,608	$	14,347,640	$	13,695,520
Long-Lived Assets:
North America	$	1,398,966	$	1,448,109	$	1,494,858
International	723,792		818,367		797,877
	$	2,122,758	$	2,266,476	$	2,292,735

(a) Includes an investment in a joint venture in which ownership is 50 percent or less and in which the Company does not have     operating control (2022 - $211 million; 2021 - $219 million; 2020 - $238 million) and assets held for sale (2022 - $66 million).

(b) 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 property, plant and equipment based on physical location.