Revenue recognition

6 Months Ended

Dec. 31, 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				Six Months Ended
	December 31,				December 31,
	2023		2022		2023		2022
Motion Systems	$	917,966	$	913,415	$	1,860,280	$	1,819,429
Flow and Process Control	1,122,400		1,173,260		2,303,861		2,377,724
Filtration and Engineered Materials	1,474,107		1,451,709		2,968,860		2,828,004
Total	$	3,514,473	$	3,538,384	$	7,133,001	$	7,025,157

Aerospace Systems Segment revenues by primary market:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2023		2022		2023		2022
Commercial original equipment manufacturer ("OEM")	$	424,768	$	383,038	$	843,384	$	647,348
Commercial aftermarket	437,762		351,606		828,968		556,246
Military OEM	263,313		234,057		526,378		404,728
Military aftermarket	180,631		167,726		336,704		274,107
Total	$	1,306,474	$	1,136,427	$	2,535,434	$	1,882,429

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,
	2023		2022		2023		2022
North America	$	3,234,158	$	3,079,738	$	6,527,249	$	5,914,658
Europe	947,584		942,070		1,889,299		1,696,002
Asia Pacific	583,920		599,135		1,138,325		1,187,533
Latin America	55,285		53,868		113,562		109,393
Total	$	4,820,947	$	4,674,811	$	9,668,435	$	8,907,586

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, 2023		June 30, 2023
Contract assets, current (included within Prepaid expenses and other)	$	120,750	$	123,705
Contract assets, noncurrent (included within Investments and other assets)	23,750		23,708
Total contract assets	144,500		147,413
Contract liabilities, current (included within Other accrued liabilities)	(226,388)		(244,799)
Contract liabilities, noncurrent (included within Other liabilities)	(78,549)		(78,239)
Total contract liabilities	(304,937)		(323,038)
Net contract liabilities	$	(160,437)	$	(175,625)

Net contract liabilities at December 31, 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 six months ended December 31, 2023, approximately $113 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 December 31, 2023 was $10.8 billion, of which approximately 74 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.