Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.3
Revenue
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On September 30, 2023, we had $604.3 million of remaining performance obligations, which we refer to as total backlog. In conjunction with the customer bankruptcy discussed in Note 1, we have removed all outstanding backlog, approximately $19.9 million, related to such customer. We expect to recognize approximately $505.3 million of our remaining performance obligations as revenue over the next twelve months and the balance thereafter.
We recognized $9.3 million and $7.3 million during the three months ended and $22.1 million and $13.3 million during the nine months ended September 30, 2023 and October 1, 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 nine months ended September 30, 2023:
(In thousands) Contract Assets Contract Liabilities
Beginning Balance, January 1, 2023
 $ 27,349  $ 33,209 
Ending Balance, September 30, 2023
 $ 39,654  $ 27,029 
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 September 30, 2023 and December 31, 2022, the Company capitalized $4.2 million and $2.5 million of costs, respectively.
The following table presents our revenue disaggregated by Market Segments as follows:
Nine Months Ended Three Months Ended
(In thousands) September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022
Aerospace Segment
Commercial Transport
 $ 308,016  $ 211,721  $ 101,724  $ 78,389 
Military Aircraft
 44,335  41,336  16,687  12,463 
General Aviation
 60,656  48,748  16,193  14,751 
Other
 23,076  21,056  7,500  6,574 
Aerospace Total 436,083  322,861  142,104  112,177 
Test Systems Segment
Government & Defense
 57,831  53,880  20,818  19,261 
Test Systems Total 57,831  53,880  20,818  19,261 
Total $ 493,914  $ 376,741  $ 162,922  $ 131,438 
The following table presents our revenue disaggregated by Product Lines as follows:
Nine Months Ended Three Months Ended
(In thousands) September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022
Aerospace Segment
Electrical Power & Motion
 $ 185,712  $ 132,757  $ 64,312  $ 46,155 
Lighting & Safety
 116,967  90,339  38,496  29,740 
Avionics
 83,011  67,453  22,347  24,172 
Systems Certification
 19,832  6,656  6,535  3,985 
Structures
 7,485  4,600  2,914  1,551 
Other
 23,076  21,056  7,500  6,574 
Aerospace Total 436,083  322,861  142,104  112,177 
Test Systems 57,831  53,880  20,818  19,261 
Total $ 493,914  $ 376,741  $ 162,922  $ 131,438