Parker-Hannifin CorpPH

Parker-Hannifin Corp Debt Disclosure

10-KFiled Aug 22, 20252 min read
Debt
June 30,20252024
Domestic:
3.30% Fixed-rate medium term notes, due 2025
$— $500 
4.20% Fixed-rate medium term notes, due 2035
500 500 
6.25% Fixed-rate medium term notes, due 2038
325 325 
4.45% Fixed-rate medium term notes, due 2045
500 500 
3.25% Senior Notes, due 2027
700 700 
4.25% Senior Notes, due 2028
1,200 1,200 
3.25% Senior Notes, due 2029
1,000 1,000 
4.50% Senior Notes, due 2030
1,000 1,000 
4.10% Senior Notes, due 2047
600 600 
4.00% Senior Notes, due 2049
800 800 
Term Loan Facility, due 2026
— 490 
Foreign:
1.125% Euro Senior Notes, due 2025
— 750 
2.90% Euro Senior Notes, due 2030
821 — 
Other long-term debt (includes finance leases)109 105 
Deferred debt issuance costs(54)(58)
Total7,501 8,412 
Less: Long-term debt payable within one year
7 1,255 
Long-term debt$7,494 $7,157 
During 2025, the company issued €700 million aggregate principal amount of 2.90 percent Senior Notes due March 1, 2030. Interest will be paid annually on March 1st of each year, commencing March 1, 2026. We used the net proceeds from the issuance, together with cash on hand, to repay the €700 million aggregate principal amount of 1.125 percent Senior Notes upon maturity in March 2025.
Our debt portfolio previously included a Term Loan Facility. During 2025, we repaid the remaining principal balance of $490 million of the Term Loan Facility. Additionally, we repaid the $500 million aggregate principal amount of fixed rate medium-term notes bearing interest of 3.30 percent upon maturity in November 2024.
In 2024, we repaid in full $575 million and $1.4 billion aggregate principal amount of Senior Notes, with interest rates of 2.70 percent and 3.65 percent, respectively, which matured in 2024.
Principal amounts of long-term debt payable in the five years ending June 30, 2026 through 2030 are $7 million, $706 million, $1.2 billion, $1.0 billion and $1.8 billion, respectively. The principal amounts of long-term debt payable exclude the amortization of debt issuance costs.

Historical Timeline

Fiscal YearFiled
2025Aug 22, 2025Showing above
2024Aug 22, 2024
2023Aug 24, 2023
2017Aug 25, 2017

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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