v3.25.4
Revenue recognition
 6 Months Ended
Dec. 31, 2025
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 EndedSix Months Ended
December 31,December 31,
2025202420252024
Motion Systems$893 $804 $1,717 $1,653 
Flow and Process Control1,114 1,059 2,272 2,185 
Filtration and Engineered Materials1,461 1,390 2,922 2,871 
Total$3,468 $3,253 $6,911 $6,709 
Aerospace Systems Segment revenues by market segment:
Three Months EndedSix Months Ended
December 31,December 31,
2025202420252024
Commercial original equipment manufacturer ("OEM")$561 $447 $1,100 $881 
Commercial aftermarket619 531 1,213 1,052 
Defense OEM305 285 599 547 
Defense aftermarket221 227 435 458 
Total$1,706 $1,490 $3,347 $2,938 
Total Company revenues by geographic region based on the Company's selling operation's location:
Three Months EndedSix Months Ended
December 31,December 31,
2025202420252024
North America$3,422 $3,199 $6,872 $6,532 
Europe1,019 897 1,979 1,832 
Asia Pacific680 596 1,296 1,176 
Latin America53 51 111 107 
Total$5,174 $4,743 $10,258 $9,647 
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:
December 31,
2025		June 30,
2025
Contract assets, current (included within Other current assets)$177 $149 
Contract assets, noncurrent (included within Other long-term assets)19 16 
Total contract assets196 165 
Contract liabilities, current (included within Other current liabilities)(198)(211)
Contract liabilities, noncurrent (included within Other long-term liabilities)(106)(71)
Total contract liabilities(304)(282)
Net contract liabilities$(108)$(117)
Net contract liabilities at December 31, 2025 decreased from the June 30, 2025 amount primarily due to timing differences between when revenue was recognized and the receipt of advance payments. During the six months ended December 31, 2025, approximately $93 million of revenue was recognized that was included in the contract liabilities at June 30, 2025.
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, 2025 was $11.7 billion, of which approximately 70 percent is expected to be recognized as revenue within the next 12 months and the balance thereafter.