Revenue recognition

9 Months Ended

Mar. 31, 2021

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				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Motion Systems	$	820,514	$	778,840	$	2,197,971	$	2,297,961
Flow and Process Control	1,081,570		1,015,430		2,955,643		2,969,033
Filtration and Engineered Materials	1,245,298		1,163,581		3,477,632		3,157,248
Total	$	3,147,382	$	2,957,851	$	8,631,246	$	8,424,242

Aerospace Systems Segment revenues by product platform:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Flight Control Actuation	$	174,067	$	175,871	$	499,432	$	529,553
Fuel, Inerting and Engine Motion Control	129,866		159,837		384,937		471,525
Hydraulics	75,430		114,763		222,193		333,523
Engine Components	145,819		181,173		436,119		454,572
Airframe and Engine Fluid Conveyance	49,190		83,555		141,737		247,356
Other	24,572		29,382		73,107		74,146
Total	$	598,944	$	744,581	$	1,757,525	$	2,110,675

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,
	2021		2020		2021		2020
North America	$	2,354,251	$	2,507,566	$	6,598,238	$	7,107,655
Europe	788,498		726,577		2,087,030		2,018,301
Asia Pacific	561,274		430,500		1,586,375		1,292,054
Latin America	42,303		37,789		117,128		116,907
Total	$	3,746,326	$	3,702,432	$	10,388,771	$	10,534,917

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, 2021		June 30, 2020
Contract assets, current (included within Prepaid expenses and other)	$	35,616	$	30,827
Contract assets, noncurrent (included within Investments and other assets)	2,089		1,497
Total contract assets	37,705		32,324
Contract liabilities, current (included within Other accrued liabilities)	(52,834)		(51,278)
Contract liabilities, noncurrent (included within Other liabilities)	(3,910)		(3,232)
Total contract liabilities	(56,744)		(54,510)
Net contract liabilities	$	(19,039)	$	(22,186)

At March 31, 2021, 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, 2021, approximately $29 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 March 31, 2021 was $6,185 million, of which approximately 87 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.