Revenue recognition

9 Months Ended

Mar. 31, 2024

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,
	2024		2023		2024		2023
Motion Systems	$	942,667	$	1,017,974	$	2,802,947	$	2,837,403
Flow and Process Control	1,185,622		1,298,204		3,489,483		3,675,928
Filtration and Engineered Materials	1,537,354		1,550,927		4,506,214		4,378,931
Total	$	3,665,643	$	3,867,105	$	10,798,644	$	10,892,262

Aerospace Systems Segment revenues by primary market:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2024		2023		2024		2023
Commercial original equipment manufacturer ("OEM")	$	471,870	$	398,502	$	1,315,254	$	1,045,850
Commercial aftermarket	482,477		381,883		1,311,445		938,129
Military OEM	260,818		244,451		787,196		649,179
Military aftermarket	193,548		169,724		530,252		443,831
Total	$	1,408,713	$	1,194,560	$	3,944,147	$	3,076,989

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,
	2024		2023		2024		2023
North America	$	3,438,587	$	3,364,157	$	9,965,836	$	9,278,815
Europe	1,026,035		1,054,157		2,915,334		2,750,159
Asia Pacific	554,991		590,017		1,693,316		1,777,550
Latin America	54,743		53,334		168,305		162,727
Total	$	5,074,356	$	5,061,665	$	14,742,791	$	13,969,251

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, 2024		June 30, 2023
Contract assets, current (included within Prepaid expenses and other)	$	132,237	$	123,705
Contract assets, noncurrent (included within Investments and other assets)	17,976		23,708
Total contract assets	150,213		147,413
Contract liabilities, current (included within Other accrued liabilities)	(211,777)		(244,799)
Contract liabilities, noncurrent (included within Other liabilities)	(72,306)		(78,239)
Total contract liabilities	(284,083)		(323,038)
Net contract liabilities	$	(133,870)	$	(175,625)

Net contract liabilities at March 31, 2024 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 nine months ended March 31, 2024, approximately $169 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 March 31, 2024 was $10.8 billion, of which approximately 76 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.