Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.2.2
Revenue
 9 Months Ended
Oct. 01, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On October 1, 2022, we had $547.1 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $426.5 million of our remaining performance obligations as revenue over the next twelve months and the balance thereafter.
We recognized $7.3 million and $6.5 million during the three months ended and $13.3 million and $15.1 million during the nine months ended October 1, 2022 and October 2, 2021, respectively, in revenues that were included in the contract liability balance at the beginning of the period.
The Company's contract assets and contract liabilities consist primarily of costs and profits in excess of billings and billings in excess of cost and profits, respectively. The following table presents the beginning and ending balances of contract assets and contract liabilities during the nine months ended October 1, 2022:
(In thousands) Contract Assets Contract Liabilities
Beginning Balance, January 1, 2022
 $ 25,941  $ 28,495 
Ending Balance, October 1, 2022
 $ 31,263  $ 29,838 
The Company recognizes an asset for certain, material costs to fulfill a contract if it is determined that the costs relate directly to a contract or an anticipated contract that can be specifically identified, generate or enhance resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. Such costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods to which the asset relates. Start-up costs are expensed as incurred. Capitalized fulfillment costs are included in Inventories in the accompanying Consolidated Balance Sheets. Should future orders not materialize or it is determined the costs are no longer probable of recovery, the capitalized costs are written off. As of October 1, 2022, the Company has capitalized $1.6 million of costs. As of December 31, 2021, the Company did not have material capitalized fulfillment costs.
The following table presents our revenue disaggregated by Market Segments as follows:
Nine Months Ended Three Months Ended
(In thousands) October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021
Aerospace Segment
Commercial Transport
 $ 211,721  $ 143,550  $ 78,389  $ 57,549 
Military
 41,336  54,847  12,463  17,064 
General Aviation
 48,748  41,131  14,751  12,109 
Other
 21,056  26,874  6,574  9,044 
Aerospace Total 322,861  266,402  112,177  95,766 
Test Systems Segment
Aerospace & Defense
 53,880  62,454  19,261  16,075 
Test Systems Total 53,880  62,454  19,261  16,075 
Total $ 376,741  $ 328,856  $ 131,438  $ 111,841 
The following table presents our revenue disaggregated by Product Lines as follows:
Nine Months Ended Three Months Ended
(In thousands) October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021
Aerospace Segment
Electrical Power & Motion
 $ 132,757  $ 102,742  $ 46,155  $ 38,650 
Lighting & Safety
 90,339  76,929  29,740  25,461 
Avionics
 67,453  47,355  24,172  14,491 
Systems Certification
 6,656  7,937  3,985  6,099 
Structures
 4,600  4,565  1,551  2,021 
Other
 21,056  26,874  6,574  9,044 
Aerospace Total 322,861  266,402  112,177  95,766 
Test Systems 53,880  62,454  19,261  16,075 
Total $ 376,741  $ 328,856  $ 131,438  $ 111,841