Revenue recognition

3 Months Ended

Sep. 30, 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
	September 30,
	2021		2020
Motion Systems	$	828,672	$	657,141
Flow and Process Control	1,085,423		924,125
Filtration and Engineered Materials	1,256,056		1,076,096
Total	$	3,170,151	$	2,657,362

Aerospace Systems Segment revenues by product platform:

	Three Months Ended
	September 30,
	2021		2020
Flight Control Actuation	$	177,353	$	158,102
Fuel, Inerting and Engine Motion Control	122,319		118,963
Hydraulics	73,341		75,918
Engine Components	141,608		149,037
Airframe and Engine Fluid Conveyance	54,033		47,362
Other	24,004		23,796
Total	$	592,658	$	573,178

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

	Three Months Ended
	September 30,
	2021		2020
North America	$	2,384,974	$	2,096,165
Europe	761,970		615,572
Asia Pacific	568,134		485,148
Latin America	47,731		33,655
Total	$	3,762,809	$	3,230,540

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, 2021		June 30, 2021
Contract assets, current (included within Prepaid expenses and other)	$	25,936	$	34,190
Contract assets, noncurrent (included within Investments and other assets)	2,471		1,884
Total contract assets	28,407		36,074
Contract liabilities, current (included within Other accrued liabilities)	(45,439)		(51,211)
Contract liabilities, noncurrent (included within Other liabilities)	(2,250)		(3,080)
Total contract liabilities	(47,689)		(54,291)
Net contract liabilities	$	(19,282)	$	(18,217)

At September 30, 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 three months ended September 30, 2021, approximately $21 million of revenue was recognized that was included in the contract liabilities at June 30, 2021.

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, 2021 was $6,783 million, of which approximately 85 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.