REVENUE

9 Months Ended

Jul. 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 Sheets. 

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

	July 31, 2020	October 31, 2019	Change
Contract assets	$59,113	$43,132	$15,981
Contract liabilities	22,863	23,809	(946)
Net contract assets	$36,250	$19,323	$16,927

        The increase in the Company's contract assets during the first nine months of fiscal 2020 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.

        The amount of revenue that the Company recognized during the nine and three months ended July 31, 2020 that was included in contract liabilities as of the beginning of fiscal 2020 was $17.4 million and $.9 million, respectively. 

Remaining Performance Obligations

        As of July 31, 2020, the Company had $363.8 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 as well as certain products of 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 $84.3 million of this amount during the remainder of fiscal 2020 and $279.5 million thereafter, of which the majority is expected to occur in fiscal 2021.

Contract Estimates

        Changes in estimates did not have a material effect on net income from consolidated operations for the nine and three months ended July 31, 2020.

Disaggregation of Revenue

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

	Nine months ended July 31,		Three months ended July 31,
	2020	2019	2020	2019
Flight Support Group:
Aftermarket replacement parts (1)	$412,088	$500,714	$102,629	$173,992
Repair and overhaul parts and services (2)	154,517	216,887	32,601	76,270
Specialty products (3)	164,584	197,879	42,928	69,754
Total net sales	731,189	915,480	178,158	320,016
Electronic Technologies Group:
Electronic component parts primarily for defense, space and aerospace equipment (4)	494,864	459,445	165,189	160,031
Electronic component parts for equipment in various other industries (5)	143,421	155,564	45,730	56,098
Total net sales	638,285	615,009	210,919	216,129
Intersegment sales	(8,643)	(16,371)	(2,667)	(3,821)
Total consolidated net sales	$1,360,831	$1,514,118	$386,410	$532,324

⁽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):

	Nine months ended July 31,		Three months ended July 31,
	2020	2019	2020	2019
Flight Support Group:
Aerospace	$543,205	$742,555	$114,627	$258,157
Defense and Space	157,664	137,272	53,269	49,769
Other (1)	30,320	35,653	10,262	12,090
Total net sales	731,189	915,480	178,158	320,016
Electronic Technologies Group:
Defense and Space	413,883	390,046	141,282	138,875
Other (2)	167,861	162,063	55,155	56,525
Aerospace	56,541	62,900	14,482	20,729
Total net sales	638,285	615,009	210,919	216,129
Intersegment sales	(8,643)	(16,371)	(2,667)	(3,821)
Total consolidated net sales	$1,360,831	$1,514,118	$386,410	$532,324

⁽¹⁾ Principally industrial products.

(2) Principally other electronics and medical products.