Contract Assets, Contract Costs and Contract Liabilities

3 Months Ended

Apr. 02, 2021

Revenue from Contract with Customer [Abstract]

Contract Assets, Contract Costs and Contract Liabilities

Activity related to contract assets, contract costs and contract liabilities was as follows:

	April 2, 2021		December 31, 2020		$ Change		% Change
In thousands
Contract assets	$	114,601	$	108,645	$	5,956	5.5	%
Contract costs, current portion	$	5,050	$	3,511	$	1,539	43.8	%
Contract costs, noncurrent portion	$	7,205	$	8,311	$	(1,106)	(13.3)	%
Contract liabilities, current portion	$	32,622	$	39,073	$	(6,451)	(16.5)	%
Contract liabilities, noncurrent portion	$	12,120	$	11,019	$	1,101	10.0	%

Contract Assets

The increase in contract assets was primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the three-month fiscal period ended April 2, 2021. This increase was primarily related to work performed and not yet billed on the A-10 program and certain fuzing programs, partially offset by amounts billed on the JPF program with the USG. There were no significant impairment losses related to the Company's contract assets during the three-month fiscal periods ended April 2, 2021 and April 3, 2020.

Contract assets includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts were as follows:

	April 2, 2021		December 31, 2020
In thousands
Contract changes, negotiated settlements and claims for unanticipated contract costs	$	3,184	$	3,178

Contract Costs

At April 2, 2021, costs to fulfill a contract and costs to obtain a contract were $10.3 million and $2.0 million, respectively. At December 31, 2020, costs to fulfill a contract and costs to obtain a contract were $9.3 million and $2.5 million, respectively. These amounts are included in contract costs, current portion and contract costs, noncurrent portion on the Company's Condensed Consolidated Balance Sheets at April 2, 2021 and December 31, 2020.

8. CONTRACT ASSETS, CONTRACT COSTS AND CONTRACT LIABILITIES (CONTINUED)

Contract Costs - continued

The increase in contract costs, current portion was primarily attributable to the addition of costs to fulfill the K-MAX® program and the reclassification of a portion of costs to fulfill the K-MAX® program and certain structures programs from contract costs, noncurrent portion, partially offset by the amortization of contract costs. For the three-month fiscal periods ended April 2, 2021 and April 3, 2020, amortization of contract costs was $1.9 million and $2.5 million, respectively.

The decrease in contract costs, noncurrent portion was primarily attributable to the the reclassification of a portion of costs to fulfill the K-MAX® program and certain structures programs to contract costs, current portion.

Contract Liabilities

The decrease in contract liabilities, current portion was primarily due to revenue recognized on a JPF direct commercial sales ("DCS") contract, K-MAX® spares and support and the SH-2G program for New Zealand, partially offset by advances received for K-MAX® spares and support and the SH-2G program for New Zealand. Revenue recognized related to contract liabilities, current portion was $9.4 million and $14.7 million in the three-month fiscal periods ended April 2, 2021 and April 3, 2020, respectively.

The increase in contract liabilities, noncurrent portion was due to advances received for a JPF DCS contract. For the three-month fiscal periods ended April 2, 2021 and April 3, 2020, the Company did not recognize revenue against contract liabilities, noncurrent portion