Business Segment Information

12 Months Ended

Jun. 30, 2023

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 41 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa.

The Aerospace Systems Segment produces actuation, fuel, oil, pneumatic, hydraulic, electric power, sensing, fire suppression, thermal management, and braking systems and components, which are utilized on virtually every domestic commercial and military aircraft. 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.

	2023		2022		2021
Net Sales:
Diversified Industrial:
North America	$	8,916,194	$	7,703,150	$	6,676,449
International	5,789,499		5,638,896		5,283,710
Aerospace Systems	4,359,501		2,519,562		2,387,481
	$	19,065,194	$	15,861,608	$	14,347,640
Segment Operating Income:
Diversified Industrial:
North America	$	1,853,079	$	1,515,259	$	1,247,419
International	1,218,331		1,178,044		988,054
Aerospace Systems	562,444		501,431		402,895
Total segment operating income	3,633,854		3,194,734		2,638,368
Corporate administration	229,677		219,699		178,427
Income before interest expense and other expense	3,404,177		2,975,035		2,459,941
Interest expense	573,894		255,252		250,036
Other expense (income)	150,619		1,105,557		(37,052)
Income before income taxes	$	2,679,664	$	1,614,226	$	2,246,957
Assets:
Diversified Industrial	$	15,572,849	$	15,838,512	$	16,518,688
Aerospace Systems(a)	13,661,086		3,020,606		3,077,395
Corporate	730,537		7,084,825		745,117
	$	29,964,472	$	25,943,943	$	20,341,200
Property Additions:
Diversified Industrial	$	292,456	$	197,675	$	186,233
Aerospace Systems	81,456		27,452		20,705
Corporate	6,835		4,917		3,019
	$	380,747	$	230,044	$	209,957

	2023		2022		2021
Depreciation:
Diversified Industrial	$	204,632	$	219,206	$	229,891
Aerospace Systems	104,286		29,576		32,151
Corporate	8,498		8,532		7,901
	$	317,416	$	257,314	$	269,943
Amortization:
Diversified Industrial	$	267,779	$	263,430	$	274,368
Aerospace Systems	232,934		51,020		51,079
	$	500,713	$	314,450	$	325,447
By Geographic Area(b)
Net Sales:
North America	$	12,689,719	$	10,216,292	$	9,046,162
International	6,375,475		5,645,316		5,301,478
	$	19,065,194	$	15,861,608	$	14,347,640
Long-Lived Assets:
North America	$	1,828,457	$	1,398,966	$	1,448,109
International	1,036,573		723,792		818,367
	$	2,865,030	$	2,122,758	$	2,266,476

(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 (2023 - $216 million; 2022 - $211 million; 2021 - $219 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.