Revenue recognition

3 Months Ended

Sep. 30, 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
	September 30,
	2022		2021
Motion Systems	$	906,014	$	828,672
Flow and Process Control	1,204,464		1,085,423
Filtration and Engineered Materials	1,376,295		1,256,056
Total	$	3,486,773	$	3,170,151

Aerospace Systems Segment revenues by product platform:

	Three Months Ended
	September 30,
	2022		2021
Flight Control Actuation	$	182,841	$	177,353
Fuel, Inerting and Engine Motion Control	141,221		122,319
Hydraulics	77,190		73,341
Engine Components	151,259		141,608
Airframe and Engine Fluid Conveyance	52,954		54,033
Other	25,190		24,004
Meggitt Aerospace	115,347		—
Total	$	746,002	$	592,658

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

	Three Months Ended
	September 30,
	2022		2021
North America	$	2,834,920	$	2,384,974
Europe	753,932		761,970
Asia Pacific	588,398		568,134
Latin America	55,525		47,731
Total	$	4,232,775	$	3,762,809

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, 2022		June 30, 2022
Contract assets, current (included within Prepaid expenses and other)	$	95,148	$	28,546
Contract assets, noncurrent (included within Investments and other assets)	27,089		794
Total contract assets	122,237		29,340
Contract liabilities, current (included within Other accrued liabilities)	(129,930)		(60,472)
Contract liabilities, noncurrent (included within Other liabilities)	(105,267)		(2,225)
Total contract liabilities	(235,197)		(62,697)
Net contract liabilities	$	(112,960)	$	(33,357)

Net contract liabilities at September 30, 2022 increased from the June 30, 2022 amount primarily due to acquiring Meggitt plc ("Meggitt") contract liabilities in excess of Meggitt contract assets. During the three months ended September 30, 2022, approximately $19 million of revenue was recognized that was included in the contract liabilities at June 30, 2022.

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, 2022 was $10.2 billion, of which approximately 82 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.