REVENUE

3 Months Ended

Jan. 31, 2023

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 three months ended January 31, 2023 are as follows (in thousands):

	January 31, 2023	October 31, 2022	Change
Contract assets	$101,540	$93,978	$7,562
Contract liabilities	83,876	58,757	25,119
Net contract assets	$17,664	$35,221	($17,557)

The increase in the Company's contract assets during the first quarter of fiscal 2023 mainly reflects additional unbilled receivables on certain customer contracts using an over-time recognition model in excess of billings on certain customer contracts at both the ETG and FSG.

The increase in the Company's contract liabilities during the first quarter of fiscal 2023 principally reflects the receipt of advance deposits on certain customer contracts mainly at the FSG.

The amount of revenue that the Company recognized during the first quarter of fiscal 2023 that was included in contract liabilities as of the beginning of fiscal 2023 was $20.3 million.

Remaining Performance Obligations

    As of January 31, 2023, the Company had $580.3 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 $251.8 million of this amount during the remainder of fiscal 2023 and $328.5 million thereafter, of which a little over half is expected to occur in fiscal 2024.

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,
	2023	2022
Flight Support Group:
Aftermarket replacement parts (1)	$208,643	$150,901
Specialty products (2)	91,485	59,293
Repair and overhaul parts and services (3)	71,150	62,487
Total net sales	371,278	272,681
Electronic Technologies Group:
Electronic component parts primarily for defense, space and aerospace equipment (4)	174,578	157,468
Electronic component parts for equipment in various other industries (5)	80,481	64,868
Total net sales	255,059	222,336
Intersegment sales	(5,422)	(4,674)
Total consolidated net sales	$620,915	$490,343

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

(2)    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 as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers.

(3)    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.

(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, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems and airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, radiation assurance services and products, and high-reliability, complex, passive electronic components and rotary joint assemblies.

(5)    Includes various component parts such as electromagnetic and radio frequency 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, and high performance test sockets and adaptors.

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

	Three months ended January 31,
	2023	2022
Flight Support Group:
Aerospace	$254,540	$202,405
Defense and Space	95,642	58,655
Other (1)	21,096	11,621
Total net sales	371,278	272,681
Electronic Technologies Group:
Defense and Space	121,962	131,447
Other (2)	97,770	73,363
Aerospace	35,327	17,526
Total net sales	255,059	222,336
Intersegment sales	(5,422)	(4,674)
Total consolidated net sales	$620,915	$490,343

(1)    Principally industrial products. (2)    Principally other electronics and medical products.