REVENUE

6 Months Ended

Apr. 30, 2021

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 six months ended April 30, 2021 are as follows (in thousands):

	April 30, 2021	October 31, 2020	Change
Contract assets	$59,881	$60,429	($548)
Contract liabilities	31,451	25,631	5,820
Net contract assets	$28,430	$34,798	($6,368)

The increase in the Company's contract liabilities during the first six months of fiscal 2021 mainly occurred within the ETG and principally reflects the receipt 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 six and three months ended April 30, 2021 that was included in contract liabilities as of the beginning of fiscal 2021 was $14.9 million and $3.7 million, respectively.

Remaining Performance Obligations

As of April 30, 2021, the Company had $451.2 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 $219.6 million of this amount during the remainder of fiscal 2021 and $231.6 million thereafter, of which the majority is expected to occur in fiscal 2022.

Disaggregation of Revenue

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

	Six months ended April 30,		Three months ended April 30,
	2021	2020	2021	2020
Flight Support Group:
Aftermarket replacement parts (1)	$254,328	$309,459	$135,894	$141,192
Repair and overhaul parts and services (2)	93,118	121,916	50,706	52,629
Specialty products (3)	82,168	121,656	43,680	58,143
Total net sales	429,614	553,031	230,280	251,964
Electronic Technologies Group:
Electronic component parts primarily for defense, space and aerospace equipment (4)	345,348	329,675	178,259	168,962
Electronic component parts for equipment in various other industries (5)	121,291	97,691	64,830	49,993
Total net sales	466,639	427,366	243,089	218,955
Intersegment sales	(11,700)	(5,976)	(6,718)	(2,773)
Total consolidated net sales	$884,553	$974,421	$466,651	$468,146

(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 (TSCM) 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, silicone material for a variety of demanding applications and rugged small form-factor embedded computing solutions.

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

	Six months ended April 30,		Three months ended April 30,
	2021	2020	2021	2020
Flight Support Group:
Aerospace	$298,082	$428,578	$163,026	$188,655
Defense and Space	110,298	104,395	56,254	54,142
Other (1)	21,234	20,058	11,000	9,167
Total net sales	429,614	553,031	230,280	251,964
Electronic Technologies Group:
Defense and Space	291,453	272,601	149,361	139,491
Other (2)	137,911	112,706	74,004	57,743
Aerospace	37,275	42,059	19,724	21,721
Total net sales	466,639	427,366	243,089	218,955
Intersegment sales	(11,700)	(5,976)	(6,718)	(2,773)
Total consolidated net sales	$884,553	$974,421	$466,651	$468,146

(1)    Principally industrial products.

(2)    Principally other electronics and medical products.