Revenue recognition

3 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue recognition

Revenue recognition

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,
	2020		2019
Motion Systems	$	657,141	$	766,815
Flow and Process Control	924,125		1,011,354
Filtration and Engineered Materials	1,076,096		925,286
Total	$	2,657,362	$	2,703,455

Aerospace Systems Segment revenues by product platform:

	Three Months Ended
	September 30,
	2020		2019
Flight Control Actuation	$	158,102	$	173,259
Fuel, Inerting and Engine Motion Control	118,963		152,214
Hydraulics	75,918		108,375
Engine Components	149,037		93,794
Airframe and Engine Fluid Conveyance	47,362		84,678
Other	23,796		18,736
Total	$	573,178	$	631,056

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

	Three Months Ended
	September 30,
	2020		2019
North America	$	2,096,165	$	2,255,751
Europe	615,572		639,138
Asia Pacific	485,148		397,714
Latin America	33,655		41,908
Total	$	3,230,540	$	3,334,511

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, 2020			June 30, 2020
Contract assets, current (included within Prepaid expenses and other)	$	31,169		$	30,827
Contract assets, noncurrent (included within Investments and other assets)	2,098			1,497
Total contract assets	33,267			32,324
Contract liabilities, current (included within Other accrued liabilities)	(46,290		)	(51,278		)
Contract liabilities, noncurrent (included within Other liabilities)	(2,917		)	(3,232		)
Total contract liabilities	(49,207		)	(54,510		)
Net contract liabilities	$	(15,940	)	$	(22,186	)

At September 30, 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 three months ended September 30, 2020, approximately $18 million of revenue was recognized that was included in the contract liabilities at June 30, 2020.

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, 2020 was $5,064 million, of which approximately 85 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.