Quarterly report pursuant to Section 13 or 15(d)

Revenue

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Revenue
 6 Months Ended
Jun. 29, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On June 29, 2024, we had $633.4 million of outstanding performance obligations, which we refer to as total backlog. We expect to recognize approximately $561.5 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter.
We recognized $9.0 million and $10.6 million during the three months ended and $15.2 million and $19.5 million during the six months ended June 29, 2024 and July 1, 2023, 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 June 29, 2024:
(In thousands) Contract Assets Contract Liabilities
Beginning Balance, January 1, 2024
 $ 46,321  $ 22,888 
Ending Balance, June 29, 2024
 $ 53,291  $ 18,448 
The increase in contract assets reflects the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period, partially offset by a $3.5 million revision of estimated costs to complete certain long-term mass transit Test contracts. The revision resulted in reduced revenue recognized during the three and six months ended June 29, 2024 due to lower estimates of the percentage of work completed on the programs. The decrease in contract liabilities reflects the net impact of revenue recognized in excess of new customer advances or deferred revenues recorded.
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. Capitalized fulfillment costs were $3.0 million and $4.7 million on June 29, 2024 and December 31, 2023, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was
approximately $2.7 million and $3.0 million for the three and six months ended June 29, 2024. No amortization of fulfillment costs was recorded in 2023.
The following table presents our revenue disaggregated by Market Segments as follows:
Six Months Ended Three Months Ended
(In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
Aerospace Segment
Commercial Transport
 $ 249,829  $ 206,292  $ 128,399  $ 112,079 
Military Aircraft
 41,860  27,648  24,781  13,584 
General Aviation
 38,566  44,463  19,015  25,015 
Other
 10,326  15,576  4,748  7,704 
Aerospace Total 340,581  293,979  176,943  158,382 
Test Systems Segment
Government & Defense
 42,607  37,013  21,171  16,072 
Test Systems Total 42,607  37,013  21,171  16,072 
Total $ 383,188  $ 330,992  $ 198,114  $ 174,454 
The following table presents our revenue disaggregated by Product Lines as follows:
Six Months Ended Three Months Ended
(In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
Aerospace Segment
Electrical Power & Motion
 $ 173,452  $ 121,400  $ 90,328  $ 67,946 
Lighting & Safety
 88,241  78,471  46,454  41,918 
Avionics
 54,565  60,664  28,971  30,923 
Systems Certification
 7,812  13,297  3,364  7,620 
Structures
 6,185  4,571  3,078  2,271 
Other
 10,326  15,576  4,748  7,704 
Aerospace Total 340,581  293,979  176,943  158,382 
Test Systems 42,607  37,013  21,171  16,072 
Total $ 383,188  $ 330,992  $ 198,114  $ 174,454