REVENUE

3 Months Ended

Jan. 31, 2024

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, 2024 are as follows (in thousands):

	January 31, 2024	October 31, 2023	Change
Contract assets	$108,888	$111,702	($2,814)
Contract liabilities	96,117	87,556	8,561
Net contract assets	$12,771	$24,146	($11,375)

The increase in the Company's contract liabilities during the first quarter of 2024 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 2024 that was included in contract liabilities as of the beginning of fiscal 2024 was $26.7 million.

Remaining Performance Obligations

Backlog, which the Company believes to be the equivalent of its remaining performance obligations, represents contractually committed or firm customer orders. As of January 31, 2024, the Company had $1,444.3 million of remaining performance obligations associated with firm contracts pertaining to the majority of the products offered by the ETG and FSG. The Company

will recognize net sales as these obligations are satisfied. The Company expects to recognize $952.6 million of this amount during the remainder of fiscal 2024 and $491.7 million thereafter, of which the majority 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):

	Three months ended January 31,
	2024	2023
Flight Support Group:
Aftermarket replacement parts (1)	$395,154	$208,643
Repair and overhaul parts and services (2)	135,582	71,150
Specialty products (3)	87,980	91,485
Total net sales	618,716	371,278
Electronic Technologies Group:
Electronic component parts primarily for defense, space and aerospace equipment (4)	220,646	174,578
Electronic component parts for equipment in various other industries (5)	65,296	80,481
Total net sales	285,942	255,059
Intersegment sales	(8,295)	(5,422)
Total consolidated net sales	$896,363	$620,915

(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):

	Three months ended January 31,
	2024	2023
Flight Support Group:
Aerospace	$461,241	$254,540
Defense and Space	138,772	95,642
Other (1)	18,703	21,096
Total net sales	618,716	371,278
Electronic Technologies Group:
Defense and Space	135,776	121,962
Other (2)	100,610	97,770
Aerospace	49,556	35,327
Total net sales	285,942	255,059
Intersegment sales	(8,295)	(5,422)
Total consolidated net sales	$896,363	$620,915

(1)    Principally industrial products.

(2)    Principally other electronics and medical products.