Revenue recognition

6 Months Ended

Dec. 31, 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				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Motion Systems	$	720,315	$	752,306	$	1,377,456	$	1,519,120
Flow and Process Control	949,949		942,249		1,874,074		1,953,604
Filtration and Engineered Materials	1,156,238		1,068,381		2,232,334		1,993,667
Total	$	2,826,502	$	2,762,936	$	5,483,864	$	5,466,391

Aerospace Systems Segment revenues by product platform:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Flight Control Actuation	$	167,263	$	180,423	$	325,365	$	353,682
Fuel, Inerting and Engine Motion Control	136,107		159,474		255,070		311,687
Hydraulics	70,845		110,385		146,763		218,760
Engine Components	141,264		179,605		290,301		273,400
Airframe and Engine Fluid Conveyance	45,186		79,123		92,548		163,802
Other	24,738		26,028		48,534		44,763
Total	$	585,403	$	735,038	$	1,158,581	$	1,366,094

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

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
North America	$	2,147,822	$	2,344,338	$	4,243,987	$	4,600,089
Europe	682,960		652,586		1,298,532		1,291,724
Asia Pacific	539,953		463,840		1,025,101		861,554
Latin America	41,170		37,210		74,825		79,118
Total	$	3,411,905	$	3,497,974	$	6,642,445	$	6,832,485

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:

	December 31, 2020		June 30, 2020
Contract assets, current (included within Prepaid expenses and other)	$	32,401	$	30,827
Contract assets, noncurrent (included within Investments and other assets)	1,908		1,497
Total contract assets	34,309		32,324
Contract liabilities, current (included within Other accrued liabilities)	(49,360)		(51,278)
Contract liabilities, noncurrent (included within Other liabilities)	(3,420)		(3,232)
Total contract liabilities	(52,780)		(54,510)
Net contract liabilities	$	(18,471)	$	(22,186)

At December 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 six months ended December 31, 2020, approximately $27 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 December 31, 2020 was $5,762 million, of which approximately 83 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.