Revenue Recognition and Contracts with Customers

12 Months Ended

Mar. 31, 2024

Change in Contract with Customer, Asset and Liability [Abstract]

Revenue Recognition and Contracts with Customers

4. REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time. Additionally, the Company disaggregates revenue based on the end market where products and services are transferred to the customer. The Company’s principal operating segments and related revenue are discussed in Note 20, Segments.

The following table shows disaggregated net sales satisfied overtime and at a point in time (excluding intercompany sales) for the years ended March 31, 2024, 2023, and 2022:

	Year Ended March 31,
	2024		2023		2022
Systems & Support
Satisfied over time	$	317,242	$	322,043	$	308,637
Satisfied at a point in time		707,667		594,417		518,679
Revenue from contracts with customers		1,024,909		916,460		827,316
Amortization of acquired contract liabilities		2,721		2,500		5,859
Total Systems & Support revenue		1,027,630		918,960		833,175
Interiors
Satisfied over time	$	135,872	$	189,710	$	402,194
Satisfied at a point in time		28,541		21,892		27,323
Revenue from contracts with customers		164,413		211,602		429,517
Amortization of acquired contract liabilities		—		—		12
Total Interiors revenue		164,413		211,602		429,529
Total revenue	$	1,192,043	$	1,130,562	$	1,262,704

The following table shows disaggregated net sales by end market (excluding intercompany sales) for the years ended March 31, 2024, 2023, and 2022.

	Year Ended March 31,
	2024		2023		2022
Systems & Support
OEM Commercial	$	368,340	$	333,809	$	244,636
OEM Military		261,918		260,943		276,947
MRO Commercial		162,331		123,435		92,299
MRO Military		183,108		165,814		176,073
Non-aviation		49,212		32,459		37,361
Revenue from contracts with customers		1,024,909		916,460		827,316
Amortization of acquired contract liabilities		2,721		2,500		5,859
Total Systems & Support revenue	$	1,027,630	$	918,960	$	833,175
Interiors
OEM Commercial	$	161,923	$	207,672	$	400,482
OEM Military		—		108		15,429
MRO Commercial		1,683		2,713		11,154
MRO Military		—		—		1,052
Non-aviation		807		1,109		1,400
Revenue from contracts with customers		164,413		211,602		429,517
Amortization of acquired contract liabilities		—		—		12
Total Interiors revenue		164,413		211,602		429,529
Total revenue	$	1,192,043	$	1,130,562	$	1,262,704

Contract Assets and Liabilities

Contract assets primarily represent revenues recognized for performance obligations that have been satisfied or partially satisfied but for which amounts have not been billed. This typically occurs when revenue is recognized over time but the Company's contractual right to bill the customer and receive payment is conditional upon the satisfaction of additional performance obligations in the contract, such as final delivery of the product. Contract assets are typically derecognized when billed in accordance with the terms of the contract. The Company pools contract assets that share underlying risk characteristics and records an allowance for expected credit losses based on a combination of prior experience, current economic conditions and management’s expectations of future economic conditions, and specific collectibility matters when they arise. Contract assets are presented net of this reserve on the accompanying consolidated balance sheets. For the years ended March 31, 2024, 2023, and 2022 credit loss expense and write-offs related to contract assets were immaterial.

Contract liabilities are recorded when customers remit contractual cash payments in advance of the Company satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. Contract liabilities other than those pertaining to forward loss reserves are derecognized when or as revenue is recognized.

Contract modifications can also impact contract asset and liability balances. When contracts are modified to account for changes in contract specifications and requirements, the Company considers whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications that are for goods or services that are not distinct from the existing contract, due to the significant integration with the original good or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification to an existing contract on the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at relative stand-alone selling price, they are accounted for as a new contract and performance obligation, and are recognized prospectively.

Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. The following table summarizes the Company’s contract assets and liabilities balances:

	March 31, 2024			March 31, 2023			Change
Contract assets	$	74,289		$	86,740		$	(12,451	)
Contract liabilities		(65,358	)		(44,558	)		(20,800	)
Net contract asset	$	8,931		$	42,182		$	(33,251	)

The change in contract assets is the result of amounts billed in excess of revenue recognized during the year ended March 31, 2024. The change in contract liabilities was the result of the receipt of additional customer advances in excess of revenue recognized during the year ended March 31, 2024. For the period ended March 31, 2024, the Company recognized $17,325 of revenue that was included in the contract liability balance at the beginning of the period.

Performance Obligations

Customers generally contract with the Company for requirements in a segment relating to a specific program, and the Company’s performance obligations consist of a wide range of engineering design services and manufactured components, as well as spare parts and repairs. A single contract may contain multiple performance obligations consisting of both recurring and nonrecurring elements.

As of March 31, 2024, the Company has the following unsatisfied, or partially unsatisfied, performance obligations that are expected to be recognized in the future as noted in the table below. The Company expects options to be exercised in addition to the amounts presented below.

	Total		Less than 1 year		1-3 years		4-5 years		More than 5 years
Unsatisfied performance obligations	$	1,673,278	$	986,814	$	675,978	$	10,486	$	—