REVENUE

3 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

Contract Balances

Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer. Contract liabilities (deferred revenue) represent customer advances and billings in excess of revenue recognized and are included within accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheet.

Changes in the Company’s contract assets and liabilities for the three months ended January 31, 2020 are as follows (in thousands):



	January 31, 2020		October 31, 2019		Change

Contract assets		$44,823		$43,132		$1,691
Contract liabilities	26,148		23,809		2,339
Net contract assets		$18,675		$19,323		($648	)

The increase in the Company's contract assets during the first quarter of fiscal 2020 mainly occurred within the ETG and principally reflects additional unbilled receivables on certain customer contracts using an over-time recognition model in excess of billings on certain customer contracts made during the quarter.

The increase in the Company's contract liabilities during the first quarter of fiscal 2020 mainly occurred within the FSG and principally reflects the receipt during the quarter of new customer deposits on certain customer contracts in excess of reductions to contract liabilities from customer deposits recognized as revenue.

The amount of revenue that the Company recognized during the first quarter of fiscal 2020 that was included in contract liabilities as of the beginning of fiscal 2020 was $13.4 million.

Remaining Performance Obligations

As of January 31, 2020, the Company had $403.8 million of remaining performance obligations associated with contracts with an original duration of greater than one year pertaining to the majority of the products offered by the ETG and the FSG's specialty products and

aftermarket replacement parts product lines. The Company will recognize net sales as these obligations are satisfied. The Company expects to recognize $214.9 million of this amount during the remainder of fiscal 2020 and $188.9 million thereafter, of which the majority is expected to occur in fiscal 2021.

Disaggregation of Revenue

The following table summarizes the Company’s net sales by product line for each operating segment (in thousands):



	Three months ended January 31,
	2020			2019
Flight Support Group:
Aftermarket replacement parts ⁽¹⁾		$168,267			$159,497
Repair and overhaul parts and services ⁽²⁾	69,287			67,163
Specialty products ⁽³⁾	63,513			60,553
Total net sales	301,067			287,213

Electronic Technologies Group:
Electronic component parts for defense, space and aerospace equipment ⁽⁴⁾	160,713			137,750
Electronic component parts for equipment in various other industries ⁽⁵⁾	47,698			46,679
Total net sales	208,411			184,429

Intersegment sales	(3,203		)	(5,496		)

Total consolidated net sales		$506,275			$466,146


⁽¹⁾	Includes various jet engine and aircraft component replacement parts.


⁽²⁾	Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft.


⁽³⁾	Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh.

⁽⁴⁾

Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems, and technical surveillance countermeasures equipment.


⁽⁵⁾	Includes various component parts such as electromagnetic and radio interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies and silicone material for a variety of demanding applications.

The following table summarizes the Company’s net sales by industry for each operating segment (in thousands):



	Three months ended January 31,
	2020			2019
Flight Support Group:
Aerospace		$239,923			$235,173
Defense and Space	50,253			41,534
Other ⁽¹⁾	10,891			10,506
Total net sales	301,067			287,213

Electronic Technologies Group:
Defense and Space	133,110			115,219
Other ⁽²⁾	54,963			49,915
Aerospace	20,338			19,295
Total net sales	208,411			184,429

Intersegment sales	(3,203		)	(5,496		)

Total consolidated net sales		$506,275			$466,146


⁽¹⁾	Principally industrial products.

⁽²⁾

Principally other electronics and medical products.