REVENUE (Notes)

12 Months Ended

Oct. 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 Consolidated Balance Sheets.    

    Changes in the Company’s contract assets and liabilities during fiscal 2023 and 2022 are as follows (in thousands):

	October 31, 2023	October 31, 2022	Change
Contract assets	$111,702	$93,978	$17,724
Contract liabilities	87,556	58,757	28,799
Net contract assets	$24,146	$35,221	($11,075)

The increase in the Company's contract assets during fiscal 2023 principally reflects additional unbilled receivables on certain customer contracts using an over-time recognition model in excess of billings, mainly at the FSG, as well as the contract assets of certain businesses acquired during fiscal 2023. The increase in the Company's contract liabilities during fiscal 2023 principally reflects the receipt and billings of advance deposits on certain customer contracts, mainly at the FSG, as well as the contract liabilities of certain businesses acquired during fiscal 2023.     

The amount of revenue that the Company recognized during fiscal 2023 that was included in contract liabilities as of the beginning of fiscal 2023 was $43.9 million.

Remaining Performance Obligations

    As of October 31, 2023, the Company had $722.9 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 $421.4 million of this amount during fiscal 2024 and $301.5 million thereafter, of which more than half is expected to occur in fiscal 2025.

Disaggregation of Revenue

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

	Year Ended October 31,
	2023	2022	2021
Flight Support Group:
Aftermarket replacement parts (1)	$1,040,502	$694,900	$535,217
Repair and overhaul parts and services (2)	366,566	264,986	208,215
Specialty products (3)	363,117	295,326	183,657
Total net sales	1,770,185	1,255,212	927,089
Electronic Technologies Group:
Electronic component parts primarily for    defense, space and aerospace equipment (4)	918,374	672,147	709,621
Electronic component parts for equipment in various other industries (5)	306,848	300,328	249,549
Total net sales	1,225,222	972,475	959,170
Intersegment sales	(27,302)	(19,365)	(20,577)
Total consolidated net sales	$2,968,105	$2,208,322	$1,865,682

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

(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):

	Year ended October 31,
	2023	2022	2021
Flight Support Group:
Aerospace	$1,257,650	$876,254	$660,867
Defense and Space	434,229	316,460	224,236
Other (1)	78,306	62,498	41,986
Total net sales	1,770,185	1,255,212	927,089
Electronic Technologies Group:
Defense and Space	603,414	545,384	599,570
Other (2)	438,189	340,311	284,834
Aerospace	183,619	86,780	74,766
Total net sales	1,225,222	972,475	959,170
Intersegment sales	(27,302)	(19,365)	(20,577)
Total consolidated net sales	$2,968,105	$2,208,322	$1,865,682

(1)    Principally industrial products.

(2)    Principally other electronics and medical products.