Revenue Recognition and Contracts with Customers Contract Assets and Liabilities (Notes)

9 Months Ended

Dec. 31, 2019

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

Revenue from Contract with Customer [Text Block]

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 upon 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 13, Segments.

The following table shows disaggregated net sales satisfied overtime and at a point in time (excluding intercompany sales) for the three and nine months ended December 31, 2019 and 2018:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
Integrated Systems
Satisfied over time	$	76,267	$	66,208	$	224,442	$	205,379
Satisfied at a point in time	188,739		175,370		558,015		515,547
Revenue from contracts with customers	265,006		241,578		782,457		720,926
Amortization of acquired contract liabilities	8,377		8,172		26,126		25,789
Total revenue	273,383		249,750		808,583		746,715
Aerospace Structures
Satisfied over time	$	330,657	$	434,870	$	1,075,141	$	1,385,368
Satisfied at a point in time	28,582		47,547		100,455		137,390
Revenue from contracts with customers	359,239		482,417		1,175,596		1,522,758
Amortization of acquired contract liabilities	8,220		6,559		30,027		22,980
Total revenue	367,459		488,976		1,205,623		1,545,738
Product Support
Satisfied over time	$	58,962	$	64,942	$	179,383	$	189,174
Satisfied at a point in time	4,862		4,227		13,418		14,276
Total revenue from contracts with customers	63,824		69,169		192,801		203,450
	$	704,666	$	807,895	$	2,207,007	$	2,495,903

The following table shows disaggregated net sales by end market (excluding intercompany sales) for the three and nine months ended December 31, 2019 and 2018:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
Integrated Systems
Commercial aerospace	$	145,026	$	124,453	$	413,263	$	378,117
Military	93,405		87,486		277,009		258,488
Business jets	10,358		16,369		43,897		43,939
Regional	8,166		7,048		24,026		21,004
Non-aviation	8,051		6,222		24,262		19,378
Revenue from contracts with customers	265,006		241,578		782,457		720,926
Amortization of acquired contract liabilities	8,377		8,172		26,126		25,789
Total revenue	$	273,383	$	249,750	$	808,583	$	746,715
Aerospace Structures
Commercial aerospace	$	208,943	$	230,556	$	681,471	$	756,661
Military	27,394		54,275		83,773		178,679
Business jets	98,370		181,511		330,178		541,520
Regional	24,523		7,807		80,155		24,342
Non-aviation	9		8,268		19		21,556
Revenue from contracts with customers	359,239		482,417		1,175,596		1,522,758
Amortization of acquired contract liabilities	8,220		6,559		30,027		22,980
Total revenue	$	367,459	$	488,976	$	1,205,623	$	1,545,738
Product Support
Commercial aerospace	$	47,206	$	53,596	$	148,552	$	158,158
Military	12,455		11,383		32,726		32,637
Business jets	418		350		1,383		2,143
Regional	3,144		3,840		9,408		10,512
Non-aviation	601		—		732		—
Total revenue from contracts with customers	63,824		69,169		192,801		203,450
	$	704,666	$	807,895	$	2,207,007	$	2,495,903

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 recognized when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. The Company performs ongoing evaluations of the potential impairment of its contract assets based on prior experience and specific matters when they arise. No impairments to contract assets were recorded for the period ended December 31, 2019.

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 our 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, which 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 our contract assets and liabilities balances:

	December 31, 2019			March 31, 2019			Change
Contract assets	$	265,190		$	326,667		$	(61,477	)
Contract liabilities	(376,522		)	(450,051		)	73,529
Net contract liability	$	(111,332	)	$	(123,384	)	$	12,052

The Company recognized revenue due to changes in estimates associated with performance obligations satisfied or partially satisfied in previous periods of $2,347. The decrease in contract assets is the result of $76,667 in contract assets liquidated as part of the assignment of the E2-Jets contract to ASTK partially offset by revenue recognized in excess of amounts billed during the period ended December 31, 2019. The decrease in contract liabilities is the result of revenue recognized in excess of the receipt of additional customer advances during the period as well as $12,641 in contract liabilities liquidated as part of the assignment of the E2-Jets contract to ASTK. For the period ended December 31, 2019, the Company recognized $72,293 of revenue that was included in the contract liability balance at the beginning of the period. Noncurrent contract assets presented in other, net on the accompanying consolidated balance sheets as of December 31, 2019 and March 31, 2019, were $23,315 and $34,185, respectively. Noncurrent contract liabilities presented in other noncurrent liabilities on the accompanying consolidated balance sheets as of December 31, 2019 and March 31, 2019, were $112,059 and $156,332, respectively.

Performance Obligations

Customers generally contract with the Company for requirements in a segment relating to a specific program. A single contract may contain multiple performance obligations consisting of both recurring and nonrecurring elements.

As of December 31, 2019, 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	$	4,142,321	$	1,798,557	$	1,320,852	$	519,786	$	503,126