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Segment and Geographic Information (Notes)
 6 Months Ended
Jul. 01, 2022
Revenue [Abstract]  
Segment Reporting Disclosure
5. REVENUE AND SEGMENT INFORMATION

The Company is organized based upon the nature of its products and services, and is composed of three operating segments, each overseen by a segment manager. These segments are reflective of how the Company’s Chief Executive Officer, who is its CODM, reviews operating results for the purposes of allocating resources and assessing performance. The Company has not aggregated operating segments for purposes of identifying reportable segments.

The Engineered Products segment serves the aerospace and defense, industrial and medical markets providing sophisticated proprietary aircraft bearings and components; super precision, miniature ball bearings; and proprietary spring energized seals, springs and contacts.

The Precision Products segment serves the aerospace and defense markets providing precision safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; restoration, modification and support of the Company's SH-2G Super Seasprite maritime helicopters; manufacture and support of the heavy lift K-MAX® manned helicopter, the K-MAX TITAN unmanned aerial system and the KARGO UAV unmanned aerial system, a purpose built autonomous medium lift logistics vehicle.

The Structures segment serves the aerospace and defense and medical end markets providing sophisticated complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and medical imaging solutions.

Summarized financial information by business segment is as follows:
For the Three Months EndedFor the Six Months Ended
July 1,
2022		July 2,
2021		July 1,
2022		July 2,
2021
In thousands
Net sales:
Engineered Products$89,765 $78,956 $171,217 $150,735 
Precision Products41,267 71,539 88,816 132,072 
Structures29,734 31,899 58,781 71,203 
Net sales$160,766 $182,394 $318,814 $354,010 
Operating income (loss):
Engineered Products$15,467 $9,758 $26,509 $14,664 
Precision Products2,550 19,429 5,959 32,482 
Structures(830)(1,521)(1,447)(1,201)
Corporate expense(11,984)(10,314)(22,532)(20,679)
Other unallocated expenses, net(1)
(2,923)(2,520)(3,152)(4,821)
Operating income$2,280 $14,832 $5,337 $20,445 
(1) Other unallocated expenses, net include costs from the TSA, restructuring and severance costs, loss on sale of business, and net (gain) loss on sale of assets.
5. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Disaggregation of Revenue

The following tables disaggregate segment revenue by major product line:

For the Three Months Ended
July 1, 2022
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$9,342 $6,629 $16,098 $32,069 
Safe and Arm Devices— 21,563 — 21,563 
Commercial, Business & General Aviation37,644 11,895 11,319 60,858 
Medical22,683 — 2,317 25,000 
Industrial & Other20,096 1,180 — 21,276 
Total revenue$89,765 $41,267 $29,734 $160,766 
For the Three Months Ended
July 2, 2021
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$11,857 $7,259 $20,664 $39,780 
Safe and Arm Devices— 58,006 — 58,006 
Commercial, Business & General Aviation26,860 4,872 9,398 41,130 
Medical21,025 — 1,837 22,862 
Industrial & Other19,214 1,402 — 20,616 
Total revenue$78,956 $71,539 $31,899 $182,394 
5. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Disaggregation of Revenue - continued

For the Six Months Ended
July 1, 2022
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$18,995 $11,951 $32,353 $63,299 
Safe and Arm Devices— 58,885 — 58,885 
Commercial, Business & General Aviation70,022 15,662 22,132 107,816 
Medical43,832 — 4,296 48,128 
Industrial & Other38,368 2,318 — 40,686 
Total revenue$171,217 $88,816 $58,781 $318,814 
For the Six Months Ended
July 2, 2021
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$23,085 $14,253 $46,053 $83,391 
Safe and Arm Devices— 99,592 — 99,592 
Commercial, Business & General Aviation51,932 15,774 21,382 89,088 
Medical39,677 — 3,768 43,445 
Industrial & Other36,041 2,453 — 38,494 
Total revenue$150,735 $132,072 $71,203 $354,010 

Impacts from Current Economy

The U.S. economy is experiencing broad and rapid inflation and rising interest rates, as well as supply issues in material, services and labor due to economic policy, the coronavirus ("COVID-19") pandemic and, more recently, the war in Ukraine. These impacts are likely to persist through 2022 and beyond. We cannot predict the impact on the Company’s end markets or input costs nor the ability of the Company to recover cost increases through pricing.

The Company has implemented strategies to limit the risk COVID-19 poses to its operations with a continued focus on the health of its employees and the satisfaction of its customers’ requirements. Despite all of these efforts, the effects of the pandemic have adversely impacted our commercial end markets, more specifically Commercial, Business and General Aviation customers. Management is encouraged by the recoveries for these products and the strong order intake seen in the first six months of 2022. The extent and duration of time to which COVID-19 may adversely impact the Company depends on future developments, which continue to be uncertain and unpredictable.
5. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Disaggregation of Revenue - continued

The following table disaggregates total revenue by product types.
For the Three Months EndedFor the Three Months Ended
July 1, 2022July 2, 2021
Engineered ProductsPrecision ProductsStructuresTotalEngineered ProductsPrecision ProductsStructuresTotal
Original Equipment Manufacturer43 %6 %18 %67 %34 %3 %18 %55 %
Aftermarket13 %7 %— %20 %9 %4 %— %13 %
Safe and Arm Devices— %13 %— %13 %— %32 %— %32 %
Total revenue56 %26 %18 %100 %43 %39 %18 %100 %
For the Six Months EndedFor the Six Months Ended
July 1, 2022July 2, 2021
Engineered ProductsPrecision ProductsStructuresTotalEngineered ProductsPrecision ProductsStructuresTotal
Original Equipment Manufacturer42 %5 %18 %65 %34 %5 %20 %59 %
Aftermarket12 %5 %— %17 %9 %4 %— %13 %
Safe and Arm Devices— %18 %— %18 %— %28 %— %28 %
Total revenue54 %28 %18 %100 %43 %37 %20 %100 %

Disaggregation of Research and Development Costs

The following table presents research and development costs by segment:

For the Three Months EndedFor the Six Months Ended
July 1,
2022		July 2,
2021		July 1,
2022		July 2,
2021
In thousands
Engineered Products$2,121 $1,781 $4,364 $4,603 
Precision Products2,984 1,436 5,787 2,838 
Structures110 21 177 23 
Total research and development costs$5,215 $3,238 $10,328 $7,464 
5. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Other

For contracts in which revenue is recognized over time, the Company performs detailed quarterly reviews of the progress and execution of its performance obligations under these contracts. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the schedule (e.g., the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g., to estimate increases in wages and prices for materials and related support cost allocations), execution by subcontractors, the availability and timing of funding from customers and overhead cost rates, among other variables. Based upon these reviews, the Company will record the effects of adjustments in profit estimates each period. If at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, a provision for the entire anticipated contract loss is recorded at that time.

Net changes in revenue associated with cost growth on the Company's over time contracts were as follows:
For the Three Months EndedFor the Six Months Ended
July 1,
2022		July 2,
2021		July 1,
2022		July 2,
2021
In thousands
Net increase (decrease) in revenue due to change in profit estimates$567 $(3,446)$1,472 $(581)

In the three-month and six-month fiscal periods ended July 1, 2022, the net increases in revenue were primarily related to favorable cost performance on the joint programmable fuze ("JPF") contract with the U.S. Government ("USG"), partially offset by cost growth on certain structures programs and legacy fuzing contracts.

The net reductions in revenue in the three-month and six-month fiscal periods ended July 2, 2021 were primarily related to cost growth on certain structures programs and missile fuzing contracts, partially offset by favorable cost performance on the completion of the SH-2 program with New Zealand. Additionally, for the six-month fiscal period ended July 2, 2021, the net decrease in revenue was offset by favorable cost performance on the JPF contract with the USG.

Unfulfilled Performance Obligations

Unfulfilled performance obligations ("backlog") represents the transaction price of firm orders for which work has not been performed and excludes unexercised contract options and potential orders under ordering-type contracts. Backlog at July 1, 2022 and December 31, 2021, and the portion of backlog the Company expects to recognize revenue on over the next twelve months is as follows:
July 1,
 2022(1)
December 31,
2021
(in thousands)
Engineered Products$224,563 $169,144 
Precision Products196,406 180,082 
Structures353,939 351,697 
  Total Backlog$774,908 $700,923 
(1) The Company expects to recognize revenue on approximately 59% of backlog as of July 1, 2022 over the next twelve months.