Revenue recognition

6 Months Ended

Dec. 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				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Motion Systems	$	843,655	$	720,315	$	1,672,327	$	1,377,456
Flow and Process Control	1,103,404		949,949		2,188,827		1,874,074
Filtration and Engineered Materials	1,259,144		1,156,238		2,515,200		2,232,334
Total	$	3,206,203	$	2,826,502	$	6,376,354	$	5,483,864

Aerospace Systems Segment revenues by product platform:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Flight Control Actuation	$	189,142	$	167,263	$	366,495	$	325,365
Fuel, Inerting and Engine Motion Control	138,245		136,107		260,564		255,070
Hydraulics	71,575		70,845		144,916		146,763
Engine Components	139,469		141,264		281,077		290,301
Airframe and Engine Fluid Conveyance	52,343		45,186		106,376		92,548
Other	27,603		24,738		51,607		48,534
Total	$	618,377	$	585,403	$	1,211,035	$	1,158,581

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,
	2021		2020		2021		2020
North America	$	2,421,073	$	2,147,822	$	4,806,047	$	4,243,987
Europe	753,171		682,960		1,515,141		1,298,532
Asia Pacific	607,190		539,953		1,175,324		1,025,101
Latin America	43,146		41,170		90,877		74,825
Total	$	3,824,580	$	3,411,905	$	7,587,389	$	6,642,445

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, 2021		June 30, 2021
Contract assets, current (included within Prepaid expenses and other)	$	20,638	$	34,190
Contract assets, noncurrent (included within Investments and other assets)	1,944		1,884
Total contract assets	22,582		36,074
Contract liabilities, current (included within Other accrued liabilities)	(46,313)		(51,211)
Contract liabilities, noncurrent (included within Other liabilities)	(2,220)		(3,080)
Total contract liabilities	(48,533)		(54,291)
Net contract liabilities	$	(25,951)	$	(18,217)

Net contract liabilities at December 31, 2021 increased from the June 30, 2021 amount primarily due to a decrease in contract assets resulting from customer billings, partially offset by a decrease in contract liabilities due to satisfaction of performance obligations. During the six months ended December 31, 2021, approximately $30 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 December 31, 2021 was $7,148 million, of which approximately 87 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.