Revenue recognition

9 Months Ended

Mar. 31, 2022

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,
	2022		2021		2022		2021
Motion Systems	$	895,839	$	820,514	$	2,568,166	$	2,197,971
Flow and Process Control	1,197,590		1,081,570		3,386,417		2,955,643
Filtration and Engineered Materials	1,360,643		1,245,298		3,875,843		3,477,632
Total	$	3,454,072	$	3,147,382	$	9,830,426	$	8,631,246

Aerospace Systems Segment revenues by product platform:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Flight Control Actuation	$	189,162	$	174,067	$	555,657	$	499,432
Fuel, Inerting and Engine Motion Control	132,990		129,866		393,554		384,937
Hydraulics	77,519		75,430		222,435		222,193
Engine Components	149,269		145,819		430,346		436,119
Airframe and Engine Fluid Conveyance	55,617		49,190		161,993		141,737
Other	27,758		24,572		79,365		73,107
Total	$	632,315	$	598,944	$	1,843,350	$	1,757,525

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,
	2022		2021		2022		2021
North America	$	2,645,106	$	2,354,251	$	7,451,153	$	6,598,238
Europe	829,392		788,498		2,344,533		2,087,030
Asia Pacific	560,250		561,274		1,735,574		1,586,375
Latin America	51,639		42,303		142,516		117,128
Total	$	4,086,387	$	3,746,326	$	11,673,776	$	10,388,771

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, 2022		June 30, 2021
Contract assets, current (included within Prepaid expenses and other)	$	25,132	$	34,190
Contract assets, noncurrent (included within Investments and other assets)	551		1,884
Total contract assets	25,683		36,074
Contract liabilities, current (included within Other accrued liabilities)	(52,479)		(51,211)
Contract liabilities, noncurrent (included within Other liabilities)	(1,848)		(3,080)
Total contract liabilities	(54,327)		(54,291)
Net contract liabilities	$	(28,644)	$	(18,217)

Net contract liabilities at March 31, 2022 increased from the June 30, 2021 amount primarily due to a decrease in contract assets resulting from customer billings. During the nine months ended March 31, 2022, approximately $38 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 March 31, 2022 was $7,761 million, of which approximately 88 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.