8-KOther EventsExhibits & Filings

Parker-Hannifin Corp 8-K Report, Corporate Update (Feb 15, 2013)

Filed February 15, 2013For Securities:PH

Summary

This 8-K filing from Parker-Hannifin Corporation (PH) on February 15, 2013, primarily announces a change in accounting presentation related to Comprehensive Income. Effective July 1, 2012, the company adopted new Financial Accounting Standards Board (FASB) guidance requiring a separate presentation of Comprehensive Income. This means investors will now see net income and other comprehensive income (OCI) reported on a distinct Statement of Comprehensive Income, rather than integrated within the traditional income statement. While this change alters the reporting format, it is important for investors to note that it does not change the underlying components of OCI nor the timing of reclassifications to net income. The primary impact is on how financial statements are displayed. The filing also includes an exhibit providing the unaudited Consolidated Statement of Comprehensive Income for the fiscal years ended June 30, 2012, 2011, and 2010, allowing for a comparative review of this information under the new presentation.

Key Highlights

  • 1Parker-Hannifin adopted new accounting standards for the presentation of Comprehensive Income, effective July 1, 2012.
  • 2The company will now present net income and other comprehensive income (OCI) in a separate Statement of Comprehensive Income.
  • 3This change in presentation does not alter the items included in OCI or the rules for reclassifying OCI to net income.
  • 4The filing includes unaudited Consolidated Statements of Comprehensive Income for fiscal years 2010, 2011, and 2012.
  • 5The primary impact for investors is a change in financial statement format, not a change in the financial performance or underlying transactions.
  • 6The provided exhibit allows for historical review of comprehensive income under the new presentation format.

Frequently Asked Questions

The main change is Parker-Hannifin's adoption of new accounting rules requiring a separate presentation of Comprehensive Income (OCI) in their financial statements, effective from July 1, 2012.

No, this is purely a change in how financial information is presented. It does not alter the actual items recognized as other comprehensive income or the timing of how they are recognized in net income. The company's financial performance remains the same; only the reporting format has been updated.

Comprehensive Income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. It typically includes net income plus other comprehensive income items (like unrealized gains/losses on certain investments, foreign currency translation adjustments, etc.). The new accounting guidance aims to provide clearer visibility into these non-owner related changes in equity.

The filing includes Exhibit 99.1, which provides the unaudited Consolidated Statement of Comprehensive Income for the fiscal years ended June 30, 2012, 2011, and 2010.