Revenue from Contracts with Customers

9 Months Ended

Dec. 28, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

3. Revenue from Contracts with Customers

Disaggregation of Revenue

The Company operates in four business segments with similar economic characteristics, including nature of the products and production processes, distribution patterns and classes of customers. Revenue is disaggregated within these business segments by our two principal end markets: aerospace and industrial. Comparative information of the Company’s overall revenues for the three- and nine-month periods ended December 28, 2019 and December 29, 2018 are as follows:

Principal End Markets 

	Three Months Ended
	December 28, 2019						December 29, 2018
	Aerospace		Industrial		Total		Aerospace		Industrial		Total
Plain	$	67,753	$	19,123	$	86,876	$	58,733	$	20,573	$	79,306
Roller		17,332		14,497		31,829		17,763		17,078		34,841
Ball		6,103		12,372		18,475		5,513		11,207		16,720
Engineered Products		24,958		14,881		39,839		23,670		16,916		40,586
	$	116,146	$	60,873	$	177,019	$	105,679	$	65,774	$	171,453

	Nine Months Ended
	December 28, 2019						December 29, 2018
	Aerospace		Industrial		Total		Aerospace		Industrial		Total
Plain	$	205,346	$	59,026	$	264,372	$	172,938	$	62,373	$	235,311
Roller		54,288		46,985		101,273		52,805		54,906		107,711
Ball		16,619		36,990		53,609		14,534		38,298		52,832
Engineered Products		73,596		48,768		122,364		76,403		48,097		124,500
	$	349,849	$	191,769	$	541,618	$	316,680	$	203,674	$	520,354

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of orders meeting the definition of a contract under Accounting Standards Codification (ASC) 606 for which work has not been performed or has been partially performed and excludes unexercised contract options. The duration of many of our contracts, as defined by ASC 606, is less than one year. The Company has elected to apply the practical expedient that allows companies to exclude remaining performance obligations with an original expected duration of one year or less. Performance obligations having a duration of more than one year are concentrated in contracts for certain products and services provided to the U.S. government or its contractors. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $263,231 at December 28, 2019. The Company expects to recognize revenue on approximately 73% and 94% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter.

Contract Balances

The timing of revenue recognition, invoicing and cash collections affects accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the consolidated balance sheets.

Contract Assets (Unbilled Receivables) - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized when (1) the cost-to-cost method is applied and (2) such revenue exceeds the amount invoiced to the customer.

Contract Liabilities (Deferred Revenue) - The Company may receive a customer advance or deposit, or have an unconditional right to receive a customer advance, prior to revenue being recognized. Since the performance obligations related to such advances may not have been satisfied, a contract liability is established. Advance payments are not considered a significant financing component as the timing of the transfer of the related goods or services is at the discretion of the customer.

These assets and liabilities are reported on the consolidated balance sheets on an individual contract basis at the end of each reporting period. As of December 28, 2019 and March 30, 2019, accounts receivable with customers, net, were $121,847 and $130,735, respectively. The tables below represent a roll-forward of contract assets and contract liabilities for the nine-month period ended December 28, 2019:

Contract Assets - Current (1)
Balance at March 30, 2019	$	1,895
Additional revenue recognized in excess of billings		3,298
Less: amounts billed to customers		(2,661	)
Balance at December 28, 2019	$	2,532

⁽¹⁾ Included within prepaid expenses and other current assets on the consolidated balance sheets.

Contract Liabilities – Current (2)
Balance at March 30, 2019	$	10,121
Payments received prior to revenue being recognized		9,223
Revenue recognized		(13,143	)
Reclassification (to)/from noncurrent		(482	)
Balance at December 28, 2019	$	5,719

⁽²⁾ Included within accrued expenses and other current liabilities on the consolidated balance sheets. During the first nine months of fiscal 2020, the Company recognized revenues of $7,319 that were included in the contract liability balance at March 30, 2019.

Contract Liabilities – Noncurrent (3)
Balance at March 30, 2019	$	587
Payments received prior to revenue being recognized		454
Reclassification (to)/from current		482
Balance at December 28, 2019	$	1,523

⁽³⁾ Included within other non-current liabilities on the consolidated balance sheets.

As of December 28, 2019, the Company did not have any contract assets classified as noncurrent on the consolidated balance sheet.