REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Participants and Administrator of
the Parker Retirement Savings Plan
Cleveland, Ohio
Opinion on the Financial Statements
We have audited the accompanying Statements of Net Assets Available for Benefits of the Parker Retirement Savings Plan (the “Plan”) as of December 31, 2020 and 2019 and the related Statements of Changes in Net Assets Available for Benefits for the years then ended, and the related notes (collectively refer to as the “financial statements”). In our opinion the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2020 and 2019, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
1
Supplemental Information
The supplemental information in the accompanying Schedule of Assets (Held at End of Year) as of December 31, 2020 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Plan’s auditor since 2019.
/s/ BOBER, MARKEY, FEDOROVICH & COMPANY
Cleveland, Ohio
June 25, 2021
2
Parker Retirement Savings Plan
Statements of Net Assets Available for Benefits
At December 31, 2020 and 2019
(Dollars in Thousands)
2020
2019
ASSETS
Plan investments at fair value (Note 4)
$
4,949,222
$
4,675,219
Plan investments at contract value (Note 5)
538,481
482,533
Notes receivable from participants
77,041
90,212
Employer contribution receivable
36,608
37,300
Participants' contribution receivable
1,673
316
Total assets
5,603,025
5,285,580
LIABILITIES
—
—
Net assets available for benefits
$
5,603,025
$
5,285,580
The accompanying notes are an integral part of these financial statements.
3
Parker Retirement Savings Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2020 and 2019
(Dollars in Thousands)
2020
2019
ADDITIONS
Participants’ contributions
$
160,262
$
177,242
Employer contributions
97,740
107,097
Net appreciation in fair value of Plan investments
825,432
1,036,863
Dividend and interest income on Plan investments
47,540
50,262
Interest income on notes receivable from participants
4,262
4,721
Total additions
1,135,236
1,376,185
DEDUCTIONS
Distributions to participants
815,237
502,747
Administrative fees
2,554
2,142
Total deductions
817,791
504,889
Net increase
317,445
871,296
Net assets available for benefits - beginning of year
5,285,580
4,414,284
Net assets available for benefits - end of year
$
5,603,025
$
5,285,580
The accompanying notes are an integral part of these financial statements.
4
Parker Retirement Savings Plan
Notes to Financial Statements
December 31, 2020 and 2019
(Dollars in thousands)
1. Description of the Plan
General
The following description of the Plan provides only general information. Participants should refer to the Plan document or Summary Plan Description for a more complete description of the Plan’s provisions.
The Plan is a defined contribution plan available to all U.S. domestic regular full-time and part-time non-union employees, and some union employees (if negotiated). Employees are eligible for participation in the Plan the first day of the month following their date of hire and are generally automatically enrolled in the Plan after completion of 30 days from the initial hire or rehire date. A separate Retirement Income Account (RIA) also exists within the Plan. Some of the Company’s employees participate in the RIA in lieu of participating in a defined benefit plan. Similar to a defined benefit plan, participants do not make contributions to the RIA. The Plan is subject to Sections 401(a) and 401(k) of the Internal Revenue Code and the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), a significant tax-and-spending package intended to provide economic stimulus to address the impact of the COVID-19 pandemic. The CARES Act includes a number of provisions affecting qualified retirement plans. The Plan adopted certain provisions of the CARES Act including permitting qualified employees affected by COVID-19 to withdraw up to $100,000 from their eligible retirement plans, including IRAs, between January 1, 2020 and December 31, 2020.
These coronavirus-related distributions were not subject to the additional ten percent tax that generally applies to distributions made before reaching 59 1/2 years old, however distributions were still subject to regular income tax. Participants may include those distributions as income on tax returns over a three-year period. Participants may repay the distributions to the Plan within three years. Also, the Plan relaxed its loan repayment terms allowing deferments until January 1, 2021.
Participant Contributions
Participants may elect to contribute, through payroll deductions, not less than one percent nor more than 75 percent of their total compensation for a plan year and may change such percentage upon request. Participant contributions are made on a before-tax and/or after-tax basis. Employee contributions and their associated Company matching contributions are primarily recorded in the period that payroll deferrals are deducted from participants. Contributions are subject to certain limitations.
Participants may suspend their employee contributions at any time and may designate one or more of several available funds within the Plan in which their contributions are to be invested. Investment fund elections may be changed at any time. Employees have the flexibility to invest their RIA contributions in any investment fund (except the Parker Stock Fund) offered by the Plan. The available investment funds are:
Mutual funds:
(a)Vanguard Institutional Index Plus Fund: A mutual fund invested in stocks which comprise the S&P 500 Index.
(b)Vanguard Extended Market Index Fund: A mutual fund invested primarily in the Standard & Poor’s Completion Index.
(c)Vanguard Total Bond Market Index Fund: A mutual fund invested in a sampling of assets in the Barclays Capital U.S. Aggregate Float Adjusted Index which maintains a dollar-weighted average maturity consistent with that of the index.
(d)Vanguard Total International Stock Index Fund: This mutual fund employs an indexing investment approach designed to track the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States.
(e)Dodge and Cox International Stock Fund: A mutual fund invested primarily in equity securities including common stocks, preferred stock, and convertible securities issued by well-established non-U.S. companies from at least three different foreign countries, including emerging markets.
5
Common/Collective funds:
(f)Callan Glidepath Funds: Twelve common/collective funds which provide a target retirement date investment option to help participants diversify their assets. These funds invest in a diversified mix of asset classes and investment styles that become increasingly conservative over time using both actively and passively managed investments. These Glidepath funds allocate their assets across a broad range of underlying strategies, including global equities, broadly diversified fixed income and private real estate.
(g)Callan Small Cap Equity Fund: A common/collective fund which utilizes underlying funds that primarily invest in the equity securities of small and mid-capitalization companies across diversified economic sectors. This fund holds stocks issued by small and mid-sized companies domiciled primarily within the United States.
(h)Callan Diversified Real Assets Fund: The fund invests in underlying funds that allocate to asset classes expected to perform well in periods of rising or high inflation, including: infrastructure equity, natural resources equity, public real estate equity, private commercial real estate, and certain bonds and fixed income securities (such as inflation-indexed bonds, U.S. Treasury and agency bonds, and floating rate debt). The underlying funds used in this investment fund manage diversified portfolios of equity, fixed income and private commercial real estate.
Equity securities funds:
(i)Parker Stock Fund: Invested primarily in common shares of the Company purchased on the open market. The Plan restricts participants from investing more than 50 percent of their account balance in the Parker Stock Fund.
(j)JPMorgan Analyst Large Cap Core Fund: A managed account with an objective of outperforming the S&P 500 Index by approximately two percent annualized over a market cycle; generally, a three to five-year time frame.
Other:
(k)PIMCO Total Return Portfolio: A managed account invested primarily in investment funds which have a fixed rate of return such as U.S. government and corporate debt securities, mortgage and other asset-backed securities, U.S. dollar and foreign currency-denominated securities of foreign issuers, and money market instruments.
(l)BrokerageLink Account: This account allows participants to invest in a vast array of investments, including mutual funds, closed-end funds and real estate investment trusts offered from Fidelity Investments (Fidelity) and other companies.
Fully benefit-responsive contract fund:
(m)Contract Income Fund: A fully benefit-responsive investment contract fund invested primarily in high-quality fixed income investments, such as contracts issued by insurance companies and banks which provide a return guaranteed by the issuer, and debt securities such as notes and bonds issued by Federal agencies or mortgage and other asset-backed securities. Each of these investments typically provide a stable rate of return for a specific period. See Note 5 for a further description of this fund.
Participant Accounts
The Plan utilizes the unit value method for allocating Plan earnings for all funds. Unit values are determined daily and exclude contributions receivable and benefits payable.
6
Parker-Hannifin Corporation Contributions
The Company generally contributes an amount equal to 100 percent of the first three percent and 50 percent of the fourth and fifth percent of the before-tax participant contribution. The Company may also match after-tax participant contributions but matches only 25 percent of the fourth and fifth percent of after-tax participant contributions. Company matching contributions are applied to the before-tax contributions prior to the after-tax contributions. Participants may direct their Company matching funds to any investment fund within the Plan. The Parker Stock Match Fund is the default option for Company matching funds if no other investment fund election is made by the participant. Similar to participant contributions, Company matching contributions may be changed at any time.
Additionally, the Company makes an annual contribution based on age and years of service to eligible participants' RIA accounts each year.
Notes Receivable from Participants
Generally, the Plan has a loan provision which allows active participants to borrow a minimum of five hundred dollars up to the lesser of (a) 50 percent of their account balance or (b) fifty thousand dollars less the largest outstanding loan balance in the last 12 months. Participants may not borrow or withdraw any funds from their RIA account. Participant loans must be repaid over a period from one year to 4 1/2 years for general purpose loans and up to 10 years for residential loans. The applicable interest rate is equal to one percent above the published prime rate on the date of the loan. During the plan year, the CARES Act temporarily modified these plan loan terms. Because of various acquired plan transfers, some participant loans may have interest rates and repayment terms that differ from the Plan’s loan provisions. Notes receivable from participants are measured at their unpaid principal balance plus any accrued interest. Upon final liquidation of participant accounts, delinquent loans are reclassified as distributions.
2. Summary of Significant Accounting Policies
The financial statements of the Parker Retirement Savings Plan (the Plan) are prepared using the accrual method of accounting.
Investment Valuation
The Plan’s investments, except for the fully benefit-responsive investment contract, are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See Note 6 for further discussion). The fully benefit-responsive investment contract is measured at contract value. Contract value is the amount participants normally would receive if they were to initiate permitted transactions under the terms of the Plan. (See Note 5 for further discussion).
Purchases and sales of securities are reflected on a trade-date basis. Dividend income is recorded on the ex-dividend date. Interest and other income are recorded as earned on the accrual basis.
Costs incidental to the purchase and sale of securities, such as brokerage commissions and stock transfer taxes, as well as investment advisory fees, are charged to the investment fund to which they relate and are netted against dividend and interest income. Certain administrative costs and expenses incurred by the Plan are paid out of the Plan’s assets, and Parker-Hannifin Corporation (the Company) pays the remainder.
Risks and Uncertainties
Management believes the Plan’s investments are well diversified and do not create a significant concentration of interest rate, market or credit risk. However, due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ accounts and the amount reported in the Statements of Net Assets Available for Benefits. Participants assume all risk in connection with any decrease in the fair value of any securities in all the investment funds. Although the annual rates of return for the contracts held in the Contract Income Fund are guaranteed by major insurance companies and banks, the Company does not make any representations as to the financial capability of such companies or their ability to make payments under the contracts.
7
Other
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Benefit distributions are recorded when paid.
Subsequent Events
The Plan has evaluated subsequent events that have occurred through the date these financial statements were issued. On
January 1, 2021, the former employees of LORD Corporation (Lord) and Exotic Metals Forming Company LLC (Exotic), acquired corporations by the Company, became eligible to participate in the Plan. Effective February 2, 2021, investments of $736,894 and $141,827, respectively, were transferred from the Lord plans and Exotic plan into the Plan. Additionally, the Plan assumed notes receivable from participants of the Lord plans and Exotic plan in the amounts of $6,035 and $3,075, respectively. No subsequent events occurred that required adjustment to these financial statements.
3. Vesting, Withdrawals and Distributions
Contributions are always fully vested, except for the RIA contributions. Upon completion of three years of employment, RIA contributions become fully vested and may be withdrawn from the Plan only after termination. In general, participants’ accounts are disbursed from the Plan after termination of employment, but under certain circumstances, a portion of their accounts may be withdrawn while still actively employed, subject to certain limitations and restrictions.
After participants terminate employment for any reason, accounts may be distributable to the participant or to the participant’s designated beneficiary. Distribution from the Plan may be deferred until the age of 701/2 if the participant’s account exceeds five thousand dollars. Distributions are made either in a single payment, quarterly installments or annuity purchase. Upon participant request, the Plan also allows the distribution of Parker common shares for amounts held in the Parker Stock Fund and Parker Stock Match Fund. The Plan provides that mandatory or involuntary lump-sum distributions in an amount more than one thousand dollars, but less than five thousand dollars, shall only be made in the form of an automatic rollover IRA. Dividends received by the Parker Stock Match Fund are either paid to the participants quarterly or annually or reinvested quarterly, at the participants’ election.
4. Plan Investments
The following represents the fair value of Plan investments at December 31, 2020 and 2019:
2020
2019
Cash and cash equivalents
$
335
$
157
Mutual funds
924,494
880,578
Equity securities
2,053,781
1,899,584
Common/Collective funds
1,708,429
1,724,759
Self-directed brokerage account
67,986
13,175
Other securities
194,197
156,966
Total Plan investments at fair value
$
4,949,222
$
4,675,219
8
5. Contract Income Fund
The Contract Income Fund holds a portfolio of separate account and synthetic guaranteed investment contracts (GICs) and other short-term securities. The fund is fully benefit-responsive and associated investments are reported at contract value. Contract value is the relevant measure for fully benefit-responsive investment contracts since it is the amount received by participants if they were to initiate permitted transactions under the terms of the Plan. Contract value represents contributions, plus earnings, less participant withdrawals and administrative expenses.
The following represents the disaggregation of contract value between types of investment contracts held by the Plan at December 31, 2020 and 2019:
2020
2019
Short-term investment fund
$
13,238
$
28,471
Fixed maturity synthetic GICs
63,095
61,839
Constant duration synthetic GICs
462,148
392,223
$
538,481
$
482,533
Fixed maturity synthetic GICs generally consist of an asset or collection of assets and a benefit responsive, book value wrap contract purchased for the portfolio. The wrap contract provides book value accounting for the asset and assures that book value, benefit responsive payments will be made for participant directed withdrawals. The crediting rate of the contract is set at the start of the contract and typically resets every quarter. Generally, fixed maturity synthetics are held to maturity. The initial crediting rate is established based on the market interest rates at the time the initial asset is purchased, and it will have an interest crediting rate of not less than zero percent.
Constant duration synthetic GICs consist of a portfolio of securities and a benefit responsive, book value wrap contract purchased for the portfolio. The wrap contract amortizes gains and losses of the underlying securities over the portfolio duration, and assures that benefit responsive payments will be made at book value for participant directed withdrawals. The crediting rate on a constant duration synthetic GIC resets every quarter based on the book value of the contract, the market yield of the underlying assets, the market value of the underlying assets and the average duration of the underlying assets.
Withdrawals and transfers resulting from certain events, including employer-initiated events and changes in the qualification of the Plan may limit the ability of the fund to transact at book or contract value. These events may cause liquidation of all or a portion of a contract at market value. The Plan Administrator does not believe that the occurrence of any event which would limit the Plan’s ability to transact at book or contract value is probable.
9
6. Fair Value Measurements
The following is a summary of Plan investments measured at fair value on a recurring basis at December 31, 2020:
Total
Quoted Prices In Active Markets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Cash and cash equivalents
$
335
$
335
$
—
$
—
Mutual funds
924,494
924,494
—
—
Equity securities
2,053,781
2,053,781
—
—
Self-directed brokerage account
67,986
67,986
—
—
Total Plan investments in the fair value hierarchy
3,046,596
$
3,046,596
$
—
$
—
Plan investments measured at net asset value (a)
1,902,626
Plan investments at fair value
$
4,949,222
The following is a summary of Plan investments measured at fair value on a recurring basis at December 31, 2019:
Total
Quoted Prices In Active Markets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Cash and cash equivalents
$
157
$
157
$
—
$
—
Mutual funds
880,578
880,578
—
—
Equity securities
1,899,584
1,899,584
—
—
Self-directed brokerage account
13,175
13,175
—
—
Total Plan investments in the fair value hierarchy
2,793,494
$
2,793,494
$
—
$
—
Plan investments measured at net asset value (a)
1,881,725
Plan investments at fair value
$
4,675,219
(a)Plan investments measured at net asset value per share (or its equivalent) as a practical expedient to fair value have not been classified in the fair value hierarchy. These amounts are being presented in the tables above to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Net Assets Available for Benefits.
Refer to Note 1 for fund information included in the fair value tables above. The following is a description of the valuation methodologies used to measure the fair values in the tables above. There have been no changes in the methodologies used to measure fair value at December 31, 2020 and 2019.
Cash and cash equivalents: Valued at cost, which approximates fair value.
Mutual funds and equity securities: Measured at fair value using quoted market prices.
Self-directed brokerage account: Valued at the closing price reported on the open market of the individual securities.
Plan investments measured at net asset value per share and excluded from the fair value hierarchy are common/collective funds in the amount of $1,708,429 and $1,724,759, at December 31, 2020 and 2019, respectively and the PIMCO Total Return Portfolio fund in the amount of $194,197 and $156,966, at December 31, 2020 and 2019, respectively. These Plan investments can be redeemed daily, without restriction on the timing of the redemption. Redemption of the entire investment balance generally requires at least 30-days' notice. At December 31, 2020 and 2019, the Plan had no unfunded commitments related to these investments.
The primary investment objective of all investment funds is to obtain a maximum total return and capital appreciation in an amount that at least equals various market-based benchmarks.
10
7. Tax Status
The Internal Revenue Service has determined and informed the Company, by letter dated April 4, 2017, that the terms of the Plan and related trust, outlined in its determination filing on January 26, 2016, comply with applicable sections of the Internal Revenue Code (IRC). Since the filing, the Plan has been amended to provide for various administrative changes. The Plan Administrator believes that the Plan continues to be designed and operated in compliance with the applicable provisions of the IRC.
United States generally accepted accounting principles require plan management to evaluate uncertain tax positions taken by the Plan. The Plan Administrator has concluded that, as of December 31, 2020 and 2019, there were no uncertain tax positions taken or expected to be taken by the Plan. The Plan has not recognized any interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress.
8. Plan Termination
Although it has not expressed any intent to do so, the Company, by action of its Board of Directors, without further approval by the shareholders, has the right to amend, modify, suspend, or terminate the Plan in its entirety, or for any subsidiary or operating location. No amendment, modification, suspension, or termination may permit assets held in trust by the trustee to be used for or diverted to purposes other than for the exclusive benefit of participants or their beneficiaries. If the Plan is terminated, all participant accounts would become fully vested.
9. Party-In-Interest
Certain Plan investments are managed by Fidelity. Fidelity Management Trust Company, a subsidiary of Fidelity, is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions. Callan LLC is the Plan's investment advisor. The Plan invests in several Callan sponsored funds which qualify as party-in-interest transactions.
The Plan also holds shares of Parker-Hannifin Corporation common stock. Investment activity related to these shares qualify as party-in-interest transactions.
10. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of Net Assets Available for Benefits per the financial statements at December 31, 2020 and 2019, to Form 5500:
2020
2019
Net Assets Available for Benefits per Financial Statements
$
5,603,025
$
5,285,580
Adjustment from contract value to fair value for fully benefit-responsive GICs
20,443
6,819
Adjustment for deemed distributed participant loans1
(4,571)
(3,668)
Net Assets Available for Benefits per Form 5500
$
5,618,897
$
5,288,731
As a result of the adjustments above, Net income per Form 5500 is $330,167, a $12,722 increase from Net increase per the Statement of Changes in Net Assets Available for Benefits.
1Notes receivable from participants are reported on the Form 5500 as participant loans and are considered to be plan investments, while classified as notes receivable from participants in the Plan’s financial statements.
11
Parker Retirement Savings Plan
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year)
December 31, 2020
EIN 34-0451060
(Dollars in Thousands)
(a)
(b) Identity of issue, borrower, lessor, or similar party
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value
(d) Cost
(e) Current value
*
Fidelity Investments
Money Market Funds
**
$
335
Vanguard Group, Inc.
Vanguard Institutional Index Fund
**
519,882
*
Callan Open Architecture Trust
Callan Small Cap Equity Fund
**
215,078
Vanguard Group, Inc.
Vanguard Extended Market Index Fund
**
157,837
Vanguard Group, Inc.
Vanguard Total Bond Market Index Fund
**
108,768
Dodge & Cox
Dodge and Cox International Stock Fund
**
88,130
Vanguard Group, Inc.
Vanguard Total International Stock Index Fund - Institutional Shares
**
49,877
*
Callan Open Architecture Trust
Callan Glidepath Retirement Income Fund
**
39,385
*
Callan Open Architecture Trust
Callan Glidepath 2015 Fund
**
37,560
*
Callan Open Architecture Trust
Callan Glidepath 2020 Fund
**
172,479
*
Callan Open Architecture Trust
Callan Glidepath 2025 Fund
**
336,753
*
Callan Open Architecture Trust
Callan Glidepath 2030 Fund
**
287,650
*
Callan Open Architecture Trust
Callan Glidepath 2035 Fund
**
219,794
*
Callan Open Architecture Trust
Callan Glidepath 2040 Fund
**
167,409
*
Callan Open Architecture Trust
Callan Glidepath 2045 Fund
**
84,522
Callan Open Architecture Trust
Callan Glidepath 2050 Fund
**
85,175
*
Callan Open Architecture Trust
Callan Glidepath 2055 Fund
**
39,073
*
Callan Open Architecture Trust
Callan Glidepath 2060 Fund
**
18,228
*
Callan Open Architecture Trust
Callan Glidepath 2065 Fund
**
3,044
*
Callan Open Architecture Trust
Callan Diversified Real Assets Fund
**
2,279
*
Participant Investments
BrokerageLink Account: various stocks, mutual funds and REITs directed by participants
**
67,986
Mellon Investments Corporation
Contract Income Fund
**
558,924
*
Parker-Hannifin Corporation
Parker Stock Fund (1,537,513 Shares)
**
355,381
*
Parker-Hannifin Corporation
Parker Stock Match Fund (5,815,461 Shares)
**
1,306,239
PIMCO Investments LLC
Short-Term Investment Funds
**
21,438
PIMCO Investments LLC
PIMCO Private US Government Sector Fund, 2.83%, 1/1/2040
**
41,526
PIMCO Investments LLC
PIMCO Private Real Return Bond Sector Fund, 2.28%, 5/1/2035
PIMCO Private International Sector Fund, 0.40%, 5/1/2033
**
4,254
12
Parker Retirement Savings Plan
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year)
December 31, 2020
EIN 34-0451060
(Dollars in Thousands)
(a)
(b) Identity of issue, borrower, lessor, or similar party
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value
(d) Cost
(e) Current value
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
AbbVie Inc; Common Stock; 47,233 Shares
**
5,061
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Advanced Micro Devices Inc; Common Stock; 49,969 Shares
**
4,583
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Alexion Pharmaceuticals Inc; Common Stock; 17,780 Shares
**
2,778
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Alphabet Inc; Common Stock; 9,787 Shares
**
17,146
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Alphabet Inc; Common Stock; 453 Shares
**
794
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Altria Group Inc; Common Stock; 69,278 Shares
**
2,900
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Amazon.com Inc; Common Stock; 6,373 Shares
**
20,756
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Ameren Corp; Common Stock; 13,372 Shares
**
1,044
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Analog Devices Inc; Common Stock; 52,269 Shares
**
7,722
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Apple Inc; Common Stock; 166,468 Shares
**
22,089
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Applied Materials Inc; Common Stock; 39,027 Shares
**
3,368
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
AutoZone Inc; Common Stock; 1,691 Shares
**
2,005
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Bank of America Corp; Common Stock; 142,218 Shares
**
4,311
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Baxter International Inc; Common Stock; Fractional Share
**
10
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Best Buy Co Inc; Common Stock; 14,118 Shares
**
1,417
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Biogen Inc; Common Stock; 5,637 Shares
**
1,380
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Booking Holdings Inc; Common Stock; 1,160 Shares
**
2,584
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Booz Allen Hamilton Holding Co; Common Stock; 13,882 Shares
**
1,210
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Boston Scientific Corp; Common Stock; 119,660 Shares
**
4,302
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Bristol-Myers Squibb Co; Common Stock; 63,803 Shares
**
3,989
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Cigna Corp; Common Stock; 23,978 Shares
**
4,992
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Capital One Financial Corp; Common Stock; 42,995 Shares
**
4,250
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Ceridian HCM Holding Inc; Common Stock; 22,434 Shares
**
2,390
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Charter Communications Inc; Common Stock; 9,157 Shares
**
6,058
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Chevron Corp; Common Stock; 56,823 Shares
**
4,799
13
Parker Retirement Savings Plan
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year)
December 31, 2020
EIN 34-0451060
(Dollars in Thousands)
(a)
(b) Identity of issue, borrower, lessor, or similar party
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value
(d) Cost
(e) Current value
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Coca-Cola Co/The; Common Stock; 111,419 Shares
**
6,110
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Comcast Corp; Common Stock; 96,666 Shares
**
5,065
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
CONSTELLATION BRANDS INC-A; Common Stock; 17,218 Shares
**
3,772
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
COUPA SOFTWARE INC; Common Stock; 5,619 Shares
**
1,904
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Crown Holdings Inc; Common Stock; 29,093 Shares
**
2,915
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Deere & Co; Common Stock; 11,043 Shares
**
2,980
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Diamondback Energy Inc; Common Stock; 48,247 Shares
**
2,335
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Eastman Chemical Co; Common Stock; 37,107 Shares
**
3,747
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Elanco Animal Health Inc; Common Stock; 62,520 Shares
**
1,917
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Facebook Inc; Common Stock; 18,608 Shares
**
5,083
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
FedEx Corp; Common Stock; 6,560 Shares
**
1,703
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
FleetCor Technologies Inc; Common Stock; 13,397 Shares
**
3,655
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Hartford Financial Services Gr; Common Stock; 41,495 Shares
**
2,032
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Honeywell International Inc; Common Stock; 23,724 Shares
**
5,046
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Johnson & Johnson; Common Stock; 12,357 Shares
**
1,945
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Lam Research Corp; Common Stock; 9,234 Shares
**
4,374
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Estee Lauder Cos Inc/The; Common Stock; 9,673 Shares
**
2,575
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Leidos Holdings Inc; Common Stock; 18,561 Shares
**
1,951
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
ELI LILLY & CO; Common Stock; 27,745 Shares
**
4,684
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Lowe's Cos Inc; Common Stock; 35,544 Shares
**
5,705
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Lyft Inc; Common Stock; 53,745 Shares
**
2,640
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
MASTERCARD INC - A; Common Stock; 32,486 Shares
**
11,595
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
McKesson Corp; Common Stock; Fractional Share
**
4
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Merck & Co Inc; Common Stock; 22,071 Shares
**
1,820
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
MICROSOFT CORP; Common Stock; 115,210 Shares
**
25,625
14
Parker Retirement Savings Plan
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year)
December 31, 2020
EIN 34-0451060
(Dollars in Thousands)
(a)
(b) Identity of issue, borrower, lessor, or similar party
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value
(d) Cost
(e) Current value
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Morgan Stanley; Common Stock; 91,671 Shares
**
6,282
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
NETFLIX INC; Common Stock; 9,952 Shares
**
5,381
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
NextEra Energy Inc; Common Stock; 92,272 Shares
**
7,119
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Norfolk Southern Corp; Common Stock; 25,595 Shares
**
6,082
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Northrop Grumman Corp; Common Stock; 9,347 Shares
**
2,848
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
NVIDIA Corp; Common Stock; 5,030 Shares
**
2,627
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
O'Reilly Automotive Inc; Common Stock; 10,413 Shares
**
4,713
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Paylocity Holding Corp; Common Stock; 7,131 Shares
**
1,468
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
PayPal Holdings Inc; Common Stock; 28,328 Shares
**
6,634
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Pioneer Natural Resources Co; Common Stock; 15,001 Shares
**
1,717
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Procter & Gamble Co/The; Common Stock; 51,154 Shares
**
7,118
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Progressive Corp/The; Common Stock; 33,659 Shares
**
3,328
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Raytheon Technologies Corp; Common Stock; 30,453 Shares
**
2,178
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
salesforce.com Inc; Common Stock; 19,146 Shares
**
4,260
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Stanley Black & Decker Inc; Common Stock; 19,242 Shares
**
3,436
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
TJX Cos Inc/The; Common Stock; 58,107 Shares
**
3,968
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
T-Mobile US Inc; Common Stock; 28,401 Shares
**
3,830
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Tesla Inc; Common Stock; 3,057 Shares
**
2,157
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Thermo Fisher Scientific Inc; Common Stock; 10,733 Shares
**
5,002
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Truist Financial Corp; Common Stock; 83,522 Shares
**
4,003
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
UnitedHealth Group Inc; Common Stock; 19,998 Shares
**
7,013
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Vertex Pharmaceuticals Inc; Common Stock; 7,659 Shares
**
1,810
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Wells Fargo & Co; Common Stock; 135,543 Shares
**
4,091
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Workday Inc; Common Stock; 10,115 Shares
**
2,424
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
XCEL ENERGY INC; Common Stock; 44,797 Shares
**
3,006
15
Parker Retirement Savings Plan
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year)
December 31, 2020
EIN 34-0451060
(Dollars in Thousands)
(a)
(b) Identity of issue, borrower, lessor, or similar party
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value
(d) Cost
(e) Current value
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Yum! Brands Inc; Common Stock; 36,785 Shares
**
3,993
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Zimmer Biomet Holdings Inc; Common Stock; 27,367 Shares
**
4,223
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Eaton Corp PLC; Common Stock; 38,543 Shares
**
4,630
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Linde PLC; Common Stock; 15,016 Shares
**
3,957
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Medtronic PLC; Common Stock; 30,392 Shares
**
3,578
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Trane Technologies PLC; Common Stock; 27,672 Shares
**
4,017
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
Chubb Ltd; Common Stock; 26,708 Shares
**
4,132
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
NXP Semiconductors NV; Common Stock; 38,849 Shares
**
6,192
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
PROLOGIS INC; REIT; 37,916 Shares
**
3,779
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
SBA COMMUNICATIONS CORP; REIT; 6,787 Shares
**
1,915
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
SUN COMMUNITIES INC; REIT; 9,246 Shares
**
1,412
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
VENTAS INC; REIT; 59,967 Shares
**
2,968
J. P. Morgan Inv. Mgmt Co - J. P. Morgan Analyst Large Cap Core Fund
CASH INCLUDING MONEY MARKET AND FUTURES ACCOUNTS
**
1,750
*
Participant Loans
Participant Loans -- 4.25% - 10.25%, maturing through 2031
**
72,470
Total Investments
$—
$
5,580,616
* Denotes Party-in-Interest
** Cost information is not required for participant-directed investments
16
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrator of the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
PARKER RETIREMENT SAVINGS PLAN
BY:
Parker-Hannifin Corporation,
Plan Administrator
BY:
/s/ Todd M. Leombruno
Todd M. Leombruno
Executive Vice President and Chief Financial Officer
Parker-Hannifin Corporation,
Plan Administrator
June 25, 2021
17
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in the Registration Statements (Form S-8 Nos. 333-130123 and 333-186733) pertaining to the Parker Retirement Savings Plan of Parker-Hannifin Corporation of our report dated June 25, 2021, with respect to the financial statements and supplement schedule of the Parker Retirement Savings Plan included in this Annual Report (Form 11-K) as of and for the year ended December 31, 2020.
