Revenue

6 Months Ended

Jul. 01, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

On July 1, 2023, we had $611.1 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $502.0 million of our remaining performance obligations as revenue over the next twelve months and the balance thereafter.

We recognized $10.6 million and $8.9 million during the three months ended and $19.5 million and $11.2 million during the six months ended July 1, 2023 and July 2, 2022, respectively, in revenues that were included in the contract liability balance at the beginning of the period.

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 during the six months ended July 1, 2023:

(In thousands)	Contract Assets		Contract Liabilities
Beginning Balance, January 1, 2023	$	27,349	$	33,209
Ending Balance, July 1, 2023	$	34,573	$	28,260

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 Work in Progress within 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. As of July 1, 2023 and December 31, 2022, the Company capitalized $3.4 million and $2.5 million of costs, respectively.

The following table presents our revenue disaggregated by Market Segments as follows:

	Six Months Ended				Three Months Ended
(In thousands)	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Aerospace Segment
Commercial Transport	$	206,292	$	133,332	$	112,079	$	69,243
Military Aircraft	27,648		28,873		13,584		13,897
General Aviation	44,463		33,997		25,015		18,130
Other	15,576		14,482		7,704		8,020
Aerospace Total	293,979		210,684		158,382		109,290
Test Systems Segment
Government & Defense	37,013		34,619		16,072		19,837
Test Systems Total	37,013		34,619		16,072		19,837
Total	$	330,992	$	245,303	$	174,454	$	129,127

The following table presents our revenue disaggregated by Product Lines as follows:

	Six Months Ended				Three Months Ended
(In thousands)	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Aerospace Segment
Electrical Power & Motion	$	121,400	$	86,602	$	67,946	$	42,135
Lighting & Safety	78,471		60,599		41,918		31,388
Avionics	60,664		43,281		30,923		24,406
Systems Certification	13,297		2,671		7,620		1,669
Structures	4,571		3,049		2,271		1,672
Other	15,576		14,482		7,704		8,020
Aerospace Total	293,979		210,684		158,382		109,290
Test Systems	37,013		34,619		16,072		19,837
Total	$	330,992	$	245,303	$	174,454	$	129,127