Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.23.3
Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
Below are the sales and operating profit (loss) by segment for the three and nine months ended September 30, 2023 and October 1, 2022, and a reconciliation of segment operating profit (loss) to loss before income taxes. Operating profit (loss) is net sales less cost of products sold and other operating expenses excluding interest and corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment.
Nine Months Ended Three Months Ended
(In thousands) September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022
Sales:
Aerospace $ 436,217  $ 322,871  $ 142,116  $ 112,177 
Less Inter-segment Sales (134) (10) (12) — 
Total Aerospace Sales 436,083  322,861  142,104  112,177 
Test Systems 57,831  53,899  20,818  19,261 
Less Inter-segment Sales —  (19) —  — 
Total Test Systems Sales 57,831  53,880  20,818  19,261 
Total Consolidated Sales $ 493,914  $ 376,741  $ 162,922  $ 131,438 
Segment Measure of Operating Profit (Loss) and Margins
Aerospace
 $ 10,342  $ (7,085) $ (7,464) $ (6,859)
2.4  % (2.2) % (5.3) % (6.1) %
Test Systems
 (8,521) (4,125) (1,781) (2,312)
(14.7) % (7.7) % (8.6) % (12.0) %
Total Segment Measure of Operating Profit (Loss) 1,821  (11,210) (9,245) (9,171)
0.4  % (3.0) % (5.7) % (7.0) %
Deductions from Segment Measure of Operating Profit (Loss):
Net Gain on Sale of Business (3,427) (11,284) —  — 
Interest Expense, Net of Interest Income
 17,381  5,812  5,991  2,519 
Corporate Expenses and Other
 15,712  16,847  5,582  5,570 
Loss Before Income Taxes $ (27,845) $ (22,585) $ (20,818) $ (17,260)
During the the three and nine months ended September 30, 2023, $3.6 million reduction to inventory and $7.5 million of allowance for estimated credit losses associated with a bankrupt customer was recorded to Aerospace Operating Profit (Loss). See Note 1 for further discussion. During the nine months ended September 30, 2023, $5.8 million was recognized in sales related to the reversal of a deferred revenue liability assumed with an acquisition and associated with a customer program within our Test Systems Segment which is no longer expected to occur, which also benefits operating loss for the period. Absent that benefit, Test Systems’ operating loss was $14.3 million. Corporate expenses and other for the nine months ended September 30, 2023, includes income of $1.8 million associated with the reversal of a liability related to an equity investment, as we will no longer be required to make the associated payment. This amount is included in Other Income, Net of Other Expense in the Consolidated Condensed Statement of Operations. In the nine months ended October 1, 2022, $6.0 million of the AMJP grant was recognized as an offset to the cost of products sold in the Aerospace segment.
Total Assets:
(In thousands)
 September 30, 2023 December 31, 2022
Aerospace
 $ 497,054  $ 481,416 
Test Systems
 117,648  111,513 
Corporate
 16,169  22,102 
Total Assets
 $ 630,871  $ 615,031