Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.2
Revenue
 6 Months Ended
Jul. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On July 1, 2023, we had $611.1 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $502.0 million of our remaining performance obligations as revenue over the next twelve months and the balance thereafter.
We recognized $10.6 million and $8.9 million during the three months ended and $19.5 million and $11.2 million during the six months ended July 1, 2023 and July 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 six months ended July 1, 2023:
(In thousands) Contract Assets Contract Liabilities
Beginning Balance, January 1, 2023
 $ 27,349  $ 33,209 
Ending Balance, July 1, 2023
 $ 34,573  $ 28,260 
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 Work in Progress within 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 July 1, 2023 and December 31, 2022, the Company capitalized $3.4 million and $2.5 million of costs, respectively.
The following table presents our revenue disaggregated by Market Segments as follows:
Six Months Ended Three Months Ended
(In thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Aerospace Segment
Commercial Transport
 $ 206,292  $ 133,332  $ 112,079  $ 69,243 
Military Aircraft
 27,648  28,873  13,584  13,897 
General Aviation
 44,463  33,997  25,015  18,130 
Other
 15,576  14,482  7,704  8,020 
Aerospace Total 293,979  210,684  158,382  109,290 
Test Systems Segment
Government & Defense
 37,013  34,619  16,072  19,837 
Test Systems Total 37,013  34,619  16,072  19,837 
Total $ 330,992  $ 245,303  $ 174,454  $ 129,127 
The following table presents our revenue disaggregated by Product Lines as follows:
Six Months Ended Three Months Ended
(In thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Aerospace Segment
Electrical Power & Motion
 $ 121,400  $ 86,602  $ 67,946  $ 42,135 
Lighting & Safety
 78,471  60,599  41,918  31,388 
Avionics
 60,664  43,281  30,923  24,406 
Systems Certification
 13,297  2,671  7,620  1,669 
Structures
 4,571  3,049  2,271  1,672 
Other
 15,576  14,482  7,704  8,020 
Aerospace Total 293,979  210,684  158,382  109,290 
Test Systems 37,013  34,619  16,072  19,837 
Total $ 330,992  $ 245,303  $ 174,454  $ 129,127