Revenue recognition

3 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue is derived primarily from the sale of products in a variety of mobile, industrial and aerospace markets. A majority of the Company’s revenues are recognized at a point in time. However, a portion of the Company’s revenues are recognized over time.

Diversified Industrial Segment revenues by technology platform:



	Three Months Ended
	September 30,
	2019		2018
Motion Systems	$	766,815	$	859,573
Flow and Process Control	1,011,354		1,061,064
Filtration and Engineered Materials	925,286		994,173
Total	$	2,703,455	$	2,914,810

Aerospace Systems Segment revenues by product platform:



	Three Months Ended
	September 30,
	2019		2018
Flight Control Actuation	$	173,259	$	162,936
Fuel, Inerting and Engine Motion Control	152,214		144,046
Hydraulics	108,375		102,497
Engine Components	93,794		64,386
Airframe and Engine Fluid Conveyance	84,678		70,204
Other	18,736		20,415
Total	$	631,056	$	564,484

Total Company revenues by geographic region based on the Company's selling operation's location:



	Three Months Ended
	September 30,
	2019		2018
North America	$	2,255,751	$	2,246,091
Europe	639,138		726,310
Asia Pacific	397,714		461,640
Latin America	41,908		45,253
Total	$	3,334,511	$	3,479,294

The majority of revenues from the Aerospace Systems Segment are generated from sales to customers within North America.

Contract balances

Contract assets and contract liabilities are reported on a contract-by-contract basis. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. Payments from customers are received based on the terms established in the contract with the customer.

Total contract assets and contract liabilities are as follows:



	September 30, 2019			June 30, 2019
Contract assets, current (included within Prepaid expenses and other)	$	25,427		$	22,726
Contract assets, noncurrent (included within Investments and other assets)	1,095			1,301
Total contract assets	26,522			24,027
Contract liabilities, current (included within Other accrued liabilities)	(60,839		)	(64,668		)
Contract liabilities, noncurrent (included within Other liabilities)	(411		)	(421		)
Total contract liabilities	(61,250		)	(65,089		)
Net contract liabilities	$	(34,728	)	$	(41,062	)

During the three months ended September 30, 2019, the change in net contract liabilities was due to timing differences between when revenue was recognized and advance payments were received. During the three months ended September 30, 2019, approximately $18 million of revenue was recognized that was included in the contract liabilities at June 30, 2019.

Remaining performance obligations

Our backlog represents written firm orders from a customer to deliver products and, in the case of blanket purchase orders, only includes the portion of the order for which a schedule or release has been agreed to with the customer. We believe our backlog represents our unsatisfied or partially unsatisfied performance obligations. Backlog at September 30, 2019 was $5,022 million, of which approximately 87 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.