Revenue recognition

9 Months Ended

Mar. 31, 2020

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				Nine Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Motion Systems	$	778,840	$	899,948	$	2,297,961	$	2,615,878
Flow and Process Control	1,015,430		1,105,176		2,969,033		3,181,440
Filtration and Engineered Materials	1,163,581		1,030,296		3,157,248		3,008,650
Total	$	2,957,851	$	3,035,420	$	8,424,242	$	8,805,968

Aerospace Systems Segment revenues by product platform:



	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Flight Control Actuation	$	175,871	$	191,664	$	529,553	$	544,270
Fuel, Inerting and Engine Motion Control	159,837		165,642		471,525		466,950
Hydraulics	114,763		123,416		333,523		334,806
Engine Components	181,173		71,779		454,572		207,812
Airframe and Engine Fluid Conveyance	83,555		79,299		247,356		218,371
Other	29,382		20,298		74,146		60,680
Total	$	744,581	$	652,098	$	2,110,675	$	1,832,889

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



	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
North America	$	2,507,566	$	2,398,975	$	7,107,655	$	6,893,872
Europe	726,577		786,123		2,018,301		2,226,983
Asia Pacific	430,500		458,122		1,292,054		1,385,736
Latin America	37,789		44,298		116,907		132,266
Total	$	3,702,432	$	3,687,518	$	10,534,917	$	10,638,857

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:



	March 31, 2020			June 30, 2019
Contract assets, current (included within Prepaid expenses and other)	$	27,793		$	22,726
Contract assets, noncurrent (included within Investments and other assets)	1,476			1,301
Total contract assets	29,269			24,027
Contract liabilities, current (included within Other accrued liabilities)	(66,374		)	(64,668		)
Contract liabilities, noncurrent (included within Other liabilities)	(3,438		)	(421		)
Total contract liabilities	(69,812		)	(65,089		)
Net contract liabilities	$	(40,543	)	$	(41,062	)

At March 31, 2020, the change in net contract liabilities was primarily due to timing differences between when revenue was recognized and the receipt of advance payments. During the nine months ended March 31, 2020, approximately $29 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 March 31, 2020 was $5,543 million, of which approximately 87 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.