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Segment and Geographic Information (Notes)
 9 Months Ended
Sep. 30, 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; proprietary spring energized seals, springs and contacts; and wheels, brakes and related hydraulic components for helicopters and fixed-wing and UAV aircraft.

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 Nine Months Ended
September 30,
2022		October 1,
2021		September 30,
2022		October 1,
2021
In thousands
Net sales:
Engineered Products$92,052 $84,399 $263,269 $235,134 
Precision Products46,282 63,584 135,098 195,656 
Structures33,670 31,853 92,451 103,056 
Net sales$172,004 $179,836 $490,818 $533,846 
Operating income (loss):
Engineered Products$14,156 $14,931 $40,665 $29,595 
Precision Products5,730 13,792 11,689 46,274 
Structures71 330 (1,376)(871)
Corporate expense(20,196)(10,487)(42,728)(31,166)
Other unallocated income (expenses), net(1)
685 (2,604)(2,467)(7,425)
Operating income$446 $15,962 $5,783 $36,407 
(1) Other unallocated expenses (income), net include costs from the TSA, restructuring and severance costs, (gain) loss on sale of business, and net loss (gain) 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
September 30, 2022
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$13,356 $5,171 $20,805 $39,332 
Safe and Arm Devices— 37,460 — 37,460 
Commercial, Business & General Aviation39,852 2,457 11,006 53,315 
Medical21,782 — 1,859 23,641 
Industrial & Other17,062 1,194 — 18,256 
Total revenue$92,052 $46,282 $33,670 $172,004 
For the Three Months Ended
October 1, 2021
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$15,856 $7,263 $19,898 $43,017 
Safe and Arm Devices— 49,393 — 49,393 
Commercial, Business & General Aviation29,711 4,953 10,082 44,746 
Medical20,123 — 1,873 21,996 
Industrial & Other18,709 1,975 — 20,684 
Total revenue$84,399 $63,584 $31,853 $179,836 
For the Nine Months Ended
September 30, 2022
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$32,351 $17,122 $53,158 $102,631 
Safe and Arm Devices— 96,345 — 96,345 
Commercial, Business & General Aviation109,874 18,119 33,138 161,131 
Medical65,614 — 6,155 71,769 
Industrial & Other55,430 3,512 — 58,942 
Total revenue$263,269 $135,098 $92,451 $490,818 
For the Nine Months Ended
October 1, 2021
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$38,941 $21,516 $65,951 $126,408 
Safe and Arm Devices— 148,985 — 148,985 
Commercial, Business & General Aviation81,643 20,727 31,464 133,834 
Medical59,800 — 5,641 65,441 
Industrial & Other54,750 4,428 — 59,178 
Total revenue$235,134 $195,656 $103,056 $533,846 
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
September 30, 2022October 1, 2021
Engineered ProductsPrecision ProductsStructuresTotalEngineered ProductsPrecision ProductsStructuresTotal
Original Equipment Manufacturer40 %2 %19 %61 %35 %3 %18 %56 %
Aftermarket14 %3 %— %17 %12 %5 %— %17 %
Safe and Arm Devices— %22 %— %22 %— %27 %— %27 %
Total revenue54 %27 %19 %100 %47 %35 %18 %100 %
For the Nine Months EndedFor the Nine Months Ended
September 30, 2022October 1, 2021
Engineered ProductsPrecision ProductsStructuresTotalEngineered ProductsPrecision ProductsStructuresTotal
Original Equipment Manufacturer41 %4 %19 %64 %34 %5 %19 %58 %
Aftermarket12 %4 %— %16 %10 %4 %— %14 %
Safe and Arm Devices— %20 %— %20 %— %28 %— %28 %
Total revenue53 %28 %19 %100 %44 %37 %19 %100 %

Disaggregation of Research and Development Costs

The following table presents research and development costs by segment:

For the Three Months EndedFor the Nine Months Ended
September 30,
2022		October 1,
2021		September 30,
2022		October 1,
2021
In thousands
Engineered Products$2,106 $1,826 $6,470 $6,429 
Precision Products1,812 540 7,599 3,378 
Structures19 174 196 197 
Total research and development costs$3,937 $2,540 $14,265 $10,004 
5. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Disaggregation of Assets

Summarized asset information by business segment is as follows:
September 30,
2022		December 31,
2021
In thousands
Engineered Products$1,044,671 $623,899 
Precision Products289,680 250,146 
Structures133,232 125,027 
Corporate(1)
96,951 199,410 
Total identifiable assets(2)
$1,564,534 $1,198,482 
(1) For the periods presented, the corporate identifiable assets are principally comprised of cash, short-term and long-term deferred income tax assets, cash surrender value of life insurance policies and fixed assets.
(2) Identifiable assets are assets at their respective net carrying values segregated as to segment and corporate use.

The increase in total assets was primarily due to the acquisition of Aircraft Wheel and Brake in the Engineered Products segment, partially offset by a decrease at Corporate due to the cash used to purchase Aircraft Wheel and Brake.

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 Nine Months Ended
September 30,
2022		October 1,
2021		September 30,
2022		October 1,
2021
In thousands
Net (decrease) increase in revenue due to change in profit estimates$(892)$(937)$580 $(1,518)

In the three-month fiscal period ended September 30, 2022, the net decrease in revenue was primarily related to cost growth on certain structures programs and legacy fuzing contracts, partially offset by favorable cost performance on memory and measuring programs. The net reductions in revenue in the three-month fiscal period ended October 1, 2021 was primarily related to cost growth on certain missile fuzing contracts, partially offset by favorable cost performance on certain structures programs.

In the nine-month fiscal period ended September 30, 2022, the net increase in revenue was 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 reduction in revenue in the nine-month fiscal period ended October 1, 2021 was primarily related to cost growth on certain structures programs and missile fuzing contracts, partially offset by favorable cost performance on the JPF contract with the USG.
5. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Other - continued

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 September 30, 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:
September 30,
 2022(1)
December 31,
2021
(in thousands)
Engineered Products$286,164 $169,144 
Precision Products175,332 180,082 
Structures304,441 351,697 
  Total Backlog$765,937 $700,923 
(1) The Company expects to recognize revenue on approximately 65% of backlog as of September 30, 2022 over the next twelve months.