Parker-Hannifin CorpPH

Parker-Hannifin Corp Goodwill & Intangibles Disclosure

10-KFiled Aug 22, 20252 min read
Goodwill and Intangible Assets
The changes in the carrying amount of goodwill are as follows:
Diversified Industrial SegmentAerospace Systems SegmentTotal
Balance June 30, 2023$7,683 $2,946 $10,629 
Acquisitions1 10 11 
Divestitures(25)— (25)
Foreign currency translation(52)(56)(108)
Balance June 30, 2024$7,607 $2,900 $10,507 
Divestitures(90)— (90)
Foreign currency translation211 66 277 
Balance June 30, 2025$7,728 $2,966 $10,694 
Acquisitions represent goodwill resulting from the purchase price allocation for the acquisition of Meggitt during the measurement period. Refer to Note 3 for further discussion.
Divestitures represent goodwill associated with the sale of businesses during 2025 and 2024.
Goodwill is tested for impairment at the reporting unit level annually and between annual tests whenever events or circumstances indicate that the carrying value of a reporting unit may exceed its fair value. Our annual impairment tests performed in 2025, 2024 and 2023 resulted in no impairment loss being recognized.
Intangible assets are amortized on a straight-line method over their legal or estimated useful lives. The gross carrying value and accumulated amortization for each major category of intangible asset at June 30 are as follows:
20252024
Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Patents and technology$2,134 $556 $2,117 $452 
Trade names1,037 499 1,042 441 
Customer relationships and other8,194 2,936 8,044 2,494 
Total$11,365 $3,991 $11,203 $3,387 
Total intangible asset amortization expense in 2025, 2024 and 2023 was $553 million, $578 million and $501 million, respectively. The estimated intangible asset amortization expense for the five years ending June 30, 2026 through 2030 is $550 million, $547 million, $539 million, $518 million and $489 million, respectively.
Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No material intangible asset impairments occurred in 2025, 2024 or 2023.
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Historical Timeline

Fiscal YearFiled
2025Aug 22, 2025Showing above
2024Aug 22, 2024
2023Aug 24, 2023
2022Aug 24, 2022
2021Aug 25, 2021
2020Aug 26, 2020
2019Aug 23, 2019
2018Aug 24, 2018
2017Aug 25, 2017
2016Aug 26, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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