Revenue

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

On September 30, 2023, we had $604.3 million of remaining performance obligations, which we refer to as total backlog. In conjunction with the customer bankruptcy discussed in Note 1, we have removed all outstanding backlog, approximately $19.9 million, related to such customer. We expect to recognize approximately $505.3 million of our remaining performance obligations as revenue over the next twelve months and the balance thereafter.

We recognized $9.3 million and $7.3 million during the three months ended and $22.1 million and $13.3 million during the nine months ended September 30, 2023 and October 1, 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 nine months ended September 30, 2023:

(In thousands)	Contract Assets		Contract Liabilities
Beginning Balance, January 1, 2023	$	27,349	$	33,209
Ending Balance, September 30, 2023	$	39,654	$	27,029

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 September 30, 2023 and December 31, 2022, the Company capitalized $4.2 million and $2.5 million of costs, respectively.

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

	Nine Months Ended				Three Months Ended
(In thousands)	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Aerospace Segment
Commercial Transport	$	308,016	$	211,721	$	101,724	$	78,389
Military Aircraft	44,335		41,336		16,687		12,463
General Aviation	60,656		48,748		16,193		14,751
Other	23,076		21,056		7,500		6,574
Aerospace Total	436,083		322,861		142,104		112,177
Test Systems Segment
Government & Defense	57,831		53,880		20,818		19,261
Test Systems Total	57,831		53,880		20,818		19,261
Total	$	493,914	$	376,741	$	162,922	$	131,438

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

	Nine Months Ended				Three Months Ended
(In thousands)	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Aerospace Segment
Electrical Power & Motion	$	185,712	$	132,757	$	64,312	$	46,155
Lighting & Safety	116,967		90,339		38,496		29,740
Avionics	83,011		67,453		22,347		24,172
Systems Certification	19,832		6,656		6,535		3,985
Structures	7,485		4,600		2,914		1,551
Other	23,076		21,056		7,500		6,574
Aerospace Total	436,083		322,861		142,104		112,177
Test Systems	57,831		53,880		20,818		19,261
Total	$	493,914	$	376,741	$	162,922	$	131,438