Revenue Recognition and Contracts with Customers

12 Months Ended

Mar. 31, 2022

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

Revenue Recognition and Contracts with Customers

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 on 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 21, Segments.

The following table shows disaggregated net sales satisfied over time and at a point in time (excluding intercompany sales) for the years ended March 31, 2022, 2021, and 2020:

	Year Ended March 31,
	2022		2021		2020
Systems & Support
Satisfied over time	$	490,082	$	464,874	$	578,117
Satisfied at a point in time		534,472		576,886		738,158
Revenue from contracts with customers		1,024,554		1,041,760		1,316,275
Amortization of acquired contract liabilities		5,859		15,062		34,486
Total revenue		1,030,413		1,056,822		1,350,761
Aerospace Structures
Satisfied over time	$	402,194	$	746,545	$	1,378,866
Satisfied at a point in time		27,323		42,850		129,690
Revenue from contracts with customers		429,517		789,395		1,508,556
Amortization of acquired contract liabilities		12		23,502		40,800
Total revenue		429,529		812,897		1,549,356
	$	1,459,942	$	1,869,719	$	2,900,117

The following table shows disaggregated net sales by end market (excluding intercompany sales) for the years ended March 31, 2022 and 2021:

	Year Ended March 31,
	2022		2021		2020
Systems & Support
Commercial aerospace	$	406,151	$	396,841	$	737,885
Military		511,455		552,323		436,166
Business jets		49,165		36,701		61,338
Regional		22,956		24,862		43,761
Non-aviation		34,827		31,033		37,125
Revenue from contracts with customers		1,024,554		1,041,760		1,316,275
Amortization of acquired contract liabilities		5,859		15,062		34,486
Total revenue	$	1,030,413	$	1,056,822	$	1,350,761
Aerospace Structures
Commercial aerospace	$	376,936	$	481,845	$	879,690
Military		16,481		137,466		116,846
Business jets		28,255		158,156		422,681
Regional		6,445		11,558		89,318
Non-aviation		1,400		370		21
Revenue from contracts with customers		429,517		789,395		1,508,556
Amortization of acquired contract liabilities		12		23,502		40,800
Total revenue		429,529		812,897		1,549,356
	$	1,459,942	$	1,869,719	$	2,900,117

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 typically derecognized when billed in accordance with the terms of the contract. The Company pools contract assets that share underlying risk characteristics and records an allowance for expected credit losses based on a combination of prior experience, current economic conditions and management’s expectations of future economic conditions, and specific collectibility matters when they arise. Contract assets are presented net of this reserve on the accompanying consolidated balance sheets. For the years ended March 31, 2022 and 2021, credit loss expense and write-offs related to contract assets were immaterial.

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 the Company’s 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 the Company’s contract assets and liabilities balances:

	March 31, 2022			March 31, 2021			Change
Contract assets	$	101,893		$	139,937		$	(38,044	)
Contract liabilities		(172,862	)		(305,116	)		132,254
Net contract liability	$	(70,969	)	$	(165,179	)	$	94,210

The Company recognized revenue due to changes in estimates associated with performance obligations satisfied or partially satisfied in previous periods of $6,884. The change in contract assets is the result of revenue recognized in excess of amounts billed during the year ended March 31, 2022, as well as the reclassification of approximately $43,189 of contract assets as held for sale on the accompanying consolidated balance sheet as of March 31, 2022. The change in contract liabilities is the result of revenue recognized in excess of the receipt of additional customer advances during the period, as well as certain customer advance repayments settled during the year ended March 31, 2022, and the reclassification of approximately $2,551 of contract liabilities as held for sale on the accompanying consolidated balance sheet as of March 31, 2022. For the period ended March 31, 2022, the Company recognized $76,223 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 March 31, 2022 and 2021, were $65 and $5,299, respectively. Noncurrent contract liabilities presented in other noncurrent liabilities on the accompanying consolidated balance sheets as of March 31, 2022 and 2021, were $1,099 and $100,737, respectively.

Performance Obligations

Customers generally contract with the Company for requirements in a segment relating to a specific program, and the Company’s performance obligations consist of a wide range of engineering design services and manufactured components, as well as spare parts and repairs for OEMs. A single contract may contain multiple performance obligations consisting of both recurring and nonrecurring elements.

As of March 31, 2022, 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	$	1,805,723	$	1,049,616	$	739,662	$	16,443	$	2

Of the total unsatisfied performance obligations included in the table above as of March 31, 2022, approximately $622,018 related to the assets held for sale as of March 31, 2022, as disclosed in Note 3.