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Revenue recognition
 12 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue recognition Revenue recognition
Revenue is derived primarily from the sale of products in the aerospace & defense, in-plant & industrial equipment, transportation, off-highway, energy, and HVAC & refrigeration 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.
Disaggregation of revenue
Revenue from contracts with customers is disaggregated by technology platform for the Diversified Industrial Segment, by market segment for the Aerospace Systems Segment and by geographic location for the total Company.
The Diversified Industrial Segment is an aggregation of several business units, which manufacture a broad range of motion-control systems and components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. Contracts consist of individual purchase orders for standard product, blanket purchase orders and production contracts. Blanket purchase orders are often associated with individual purchase orders and have terms and conditions which are subject to a master supply or distributor agreement. Individual production contracts, some of which may include multiple performance obligations, are typically for products manufactured to the customer's specifications. Revenue in the Diversified Industrial Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time for installation services or in situations where the product has no alternative use and we have an enforceable right to payment.
Diversified Industrial Segment revenues by technology platform:
202420232022
Motion Systems$3,706,055 $3,830,062 $3,489,431 
Flow and Process Control4,672,741 4,939,356 4,616,270 
Filtration and Engineered Materials6,078,350 5,936,275 5,236,345 
Total$14,457,146 $14,705,693 $13,342,046 
The Aerospace Systems Segment produces engine and airframe components and systems, which are utilized on virtually every major commercial and military aircraft. Contracts generally consist of blanket purchase orders and individual long-term production contracts. Blanket purchase orders, which have terms and conditions subject to long-term supply agreements, are typically associated with individual purchase orders. Revenue in the Aerospace Systems Segment is typically recognized at the time of product shipment, but a portion of revenue may be recognized over time in situations where the customer controls the asset as it is produced or the product has no alternative use and we have an enforceable right to payment.
Aerospace Systems Segment revenues by market segment:
202420232022
Commercial original equipment manufacturer ("OEM")$1,778,928 $1,461,279 $889,649 
Commercial aftermarket1,814,395 1,363,965 514,727 
Defense OEM1,125,324 905,328 705,988 
Defense aftermarket753,813 628,929 409,198 
Total$5,472,460 $4,359,501 $2,519,562 
Total revenues by geographic region based on the Company's selling operation's location:
202420232022
North America$13,512,303 $12,689,719 $10,216,292 
Europe3,915,691 3,777,507 3,156,024 
Asia Pacific2,277,466 2,379,791 2,290,557 
Latin America224,146 218,177 198,735 
Total$19,929,606 $19,065,194 $15,861,608 
The majority of revenues from the Aerospace Systems Segment is generated from sales 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:
20242023
Contract assets, current (included within Prepaid expenses and other)$136,814 $123,705 
Contract assets, noncurrent (included within Investments and other assets)21,063 23,708 
Total contract assets157,877 147,413 
Contract liabilities, current (included within Other accrued liabilities)(183,868)(244,799)
Contract liabilities, noncurrent (included within Other liabilities)(77,957)(78,239)
Total contract liabilities(261,825)(323,038)
Net contract liabilities$(103,948)$(175,625)
Net contract liabilities at June 30, 2024 decreased from the prior year amount due to timing differences between when revenue was recognized and the receipt of advance payments. During 2024, approximately $178 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 June 30, 2024 was $10.9 billion, of which approximately 73 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.