Parker-Hannifin Corp Q4 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : I've got one that's probably for Lee. Can you guys talk about what kind of friction you're seeing in your own operations from safety protocols that you've had to put in as part of your processes, whether that's changing how the U-shaped cells are laid out or anything like that or additional costs that you've incurred and if that's meaningful to your results? And then are there plans for you to be able to improve those processes and eliminate some or all of those frictions as we go forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Fair enough. Maybe on capital allocation, Tom, we're getting down to net debt in the low 3, probably by this time next year, it's going to be in the 2.5, maybe a little bit better than that even. Depending on how the recovery goes. When -- how are you guys thinking about when to reenter the M&A market in a meaningful fashion, what kind of leverage metrics do you need to get down to before you look at that? And how is the cultivation of the pipeline going in the meantime?