Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.1
Revenue
 3 Months Ended
Apr. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On April 1, 2023, we had $578.5 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $498.7 million of our remaining performance obligations as revenue over the next twelve months and the balance thereafter.
We recognized $14.1 million and $6.0 million during the three months ended April 1, 2023 and April 2, 2022, 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 three months ended April 1, 2023:
(In thousands) Contract Assets Contract Liabilities
Beginning Balance, January 1, 2023
 $ 27,349  $ 33,209 
Ending Balance, April 1, 2023
 $ 30,299  $ 28,570 
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 Condensed 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 April 1, 2023 and December 31, 2022, the Company capitalized $3.0 million and $2.5 million of costs, respectively.
The following table presents our revenue disaggregated by Market Segments as follows:
Three Months Ended
(In thousands) April 1, 2023 April 2, 2022
Aerospace Segment
Commercial Transport
 $ 94,213  $ 64,089 
Military Aircraft
 14,064  14,976 
General Aviation
 19,448  15,867 
Other
 7,872  6,462 
Aerospace Total 135,597  101,394 
Test Systems Segment
Government & Defense
 20,941  14,782 
Test Systems Total 20,941  14,782 
Total $ 156,538  $ 116,176 
The following table presents our revenue disaggregated by Product Lines as follows:
Three Months Ended
(In thousands) April 1, 2023 April 2, 2022
Aerospace Segment
Electrical Power & Motion
 $ 53,454  $ 44,467 
Lighting & Safety
 36,553  29,211 
Avionics
 29,741  18,875 
Systems Certification
 5,677  1,002 
Structures
 2,300  1,377 
Other
 7,872  6,462 
Aerospace Total 135,597  101,394 
Test Systems 20,941  14,782 
Total $ 156,538  $ 116,176