Revenue recognition

3 Months Ended

Sep. 30, 2023

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,
	2023		2022
Motion Systems	$	942,314	$	906,014
Flow and Process Control	1,181,461		1,204,464
Filtration and Engineered Materials	1,494,753		1,376,295
Total	$	3,618,528	$	3,486,773

Aerospace Systems Segment revenues by primary market:

	Three Months Ended
	September 30,
	2023		2022
Commercial original equipment manufacturer ("OEM")	$	418,616	$	264,310
Commercial aftermarket	391,206		204,640
Military OEM	263,065		170,671
Military aftermarket	156,073		106,381
Total	$	1,228,960	$	746,002

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

	Three Months Ended
	September 30,
	2023		2022
North America	$	3,293,091	$	2,834,920
Europe	941,715		753,932
Asia Pacific	554,405		588,398
Latin America	58,277		55,525
Total	$	4,847,488	$	4,232,775

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, 2023		June 30, 2023
Contract assets, current (included within Prepaid expenses and other)	$	110,055	$	123,705
Contract assets, noncurrent (included within Investments and other assets)	24,334		23,708
Total contract assets	134,389		147,413
Contract liabilities, current (included within Other accrued liabilities)	(222,759)		(244,799)
Contract liabilities, noncurrent (included within Other liabilities)	(53,854)		(78,239)
Total contract liabilities	(276,613)		(323,038)
Net contract liabilities	$	(142,224)	$	(175,625)

Net contract liabilities at September 30, 2023 decreased from the June 30, 2023 amount primarily due to timing differences between when revenue was recognized and the receipt of advance payments. During the three months ended September 30, 2023, approximately $56 million of revenue was recognized that was included in the contract liabilities at June 30, 2023.

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, 2023 was $10.8 billion, of which approximately 81 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.