Revenue recognition

3 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue recognition

Revenue recognition

Revenue is derived primarily from the sale of products in the aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and 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.

Diversified Industrial Segment revenues by technology platform:

	Three Months Ended
	September 30,
	2024		2023
Motion Systems	$	848,549	$	942,314
Flow and Process Control	1,125,634		1,181,461
Filtration and Engineered Materials	1,481,975		1,494,753
Total	$	3,456,158	$	3,618,528

Aerospace Systems Segment revenues by market segment:

	Three Months Ended
	September 30,
	2024		2023
Commercial original equipment manufacturer ("OEM")	$	433,235	$	418,616
Commercial aftermarket	520,829		391,206
Defense OEM	262,291		263,065
Defense aftermarket	231,471		156,073
Total	$	1,447,826	$	1,228,960

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

	Three Months Ended
	September 30,
	2024		2023
North America	$	3,333,660	$	3,293,091
Europe	934,580		941,715
Asia Pacific	579,911		554,405
Latin America	55,833		58,277
Total	$	4,903,984	$	4,847,488

The majority of revenues from the Aerospace Systems Segment are 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:

	September 30, 2024		June 30, 2024
Contract assets, current (included within Other current assets)	$	150,052	$	136,814
Contract assets, noncurrent (included within Investments and other assets)	19,353		21,063
Total contract assets	169,405		157,877
Contract liabilities, current (included within Other accrued liabilities)	(179,333)		(183,868)
Contract liabilities, noncurrent (included within Other liabilities)	(89,633)		(77,957)
Total contract liabilities	(268,966)		(261,825)
Net contract liabilities	$	(99,561)	$	(103,948)

Net contract liabilities at September 30, 2024 decreased from the June 30, 2024 amount primarily due to timing differences between when revenue was recognized and the receipt of advance payments. During the three months ended September 30, 2024, approximately $81 million of revenue was recognized that was included in the contract liabilities at June 30, 2024.

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, 2024 was $11.0 billion, of which approximately 73 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.