Quarterly report [Sections 13 or 15(d)]

Revenue

v3.25.1
Revenue
 3 Months Ended
Mar. 29, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
On March 29, 2025, we had $673.0 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $508.3 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter.
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:
(In thousands) Contract Assets Contract Liabilities
Beginning Balance, January 1, 2025
 $ 54,171  $ 28,171 
Ending Balance, March 29, 2025
 $ 56,040  $ 31,099 
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 $1.9 million revision of estimated costs to complete a certain long-term mass transit Test contract, which was recorded in the first quarter of 2025. The revision resulted in reduced revenue recognized during the three months ended March 29, 2025 due to lower estimates of the percentage of work completed on the program. The increase in contract liabilities reflects the net impact of new customer advances or deferred revenues recorded in excess of revenue recognized.
We recognized $11.6 million and $9.2 million during the three months ended March 29, 2025 and March 30, 2024, respectively, in revenues that were included in the contract liability balance at the beginning of the period.
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. The Company capitalized fulfillment costs of $5.3 million and $8.3 million on March 29, 2025 and December 31, 2024, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was $3.3 million and $0.3 million for the three months ended March 29, 2025 and March 30, 2024, respectively.
The following table presents our revenue disaggregated by Market Segments as follows:
Three Months Ended
(In thousands) March 29, 2025 March 30, 2024
Aerospace Segment
Commercial Transport
 $ 137,542  $ 121,430 
Military Aircraft
 33,263  17,079 
General Aviation
 15,243  19,551 
Other
 5,327  5,578 
Aerospace Total 191,375  163,638 
Test Systems Segment
Government & Defense
 14,561  21,436 
Test Systems Total 14,561  21,436 
Total $ 205,936  $ 185,074 
The following table presents our revenue disaggregated by Product Lines as follows:
Three Months Ended
(In thousands) March 29, 2025 March 30, 2024
Aerospace Segment
Electrical Power & Motion
 $ 100,080  $ 83,124 
Lighting & Safety
 49,671  41,787 
Avionics
 28,234  25,594 
Systems Certification
 5,068  4,448 
Structures
 2,995  3,107 
Other
 5,327  5,578 
Aerospace Total 191,375  163,638 
Test Systems 14,561  21,436 
Total $ 205,936  $ 185,074