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Segment and Geographic Information (Notes)
 3 Months Ended
Mar. 31, 2023
Revenue [Abstract]  
Segment Reporting Disclosure . 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 Chief Operating Decision Maker ("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 unmanned aerial vehicle ("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; support of the heavy lift K-MAX® manned helicopter; and development of 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 Ended
March 31,
2023		April 1,
2022
In thousands
Net sales:
Engineered Products$123,326 $81,452 
Precision Products37,971 47,549 
Structures33,245 29,047 
Net sales$194,542 $158,048 
Operating income (loss):
Engineered Products$19,356 $11,042 
Precision Products1,674 3,409 
Structures(237)(617)
Corporate expense(10,006)(10,548)
Other unallocated expenses, net(1)
(2,159)(229)
Operating income$8,628 $3,057 
Interest expense, net9,604 2,481 
Non-service pension and post retirement benefit income, net(381)(5,263)
Other (income) expense, net(571)504 
(Loss) earnings before income taxes$(24)$5,335 
(1) Other unallocated expenses, net include restructuring and severance costs and net (gain) loss on sale of assets.
3. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Disaggregation of Revenue

The following tables disaggregate segment revenue by major product line:
For the Three Months Ended
March 31, 2023
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$20,023 $5,586 $18,805 $44,414 
Safe and Arm Devices— 26,242 — 26,242 
Commercial, Business & General Aviation59,685 5,013 12,504 77,202 
Medical24,935 — 1,936 26,871 
Industrial & Other18,683 1,130 — 19,813 
Total revenue$123,326 $37,971 $33,245 $194,542 
For the Three Months Ended
April 1, 2022
Engineered ProductsPrecision ProductsStructuresTotal
In thousands
Defense$9,653 $5,322 $16,255 $31,230 
Safe and Arm Devices— 37,322 — 37,322 
Commercial, Business & General Aviation32,378 3,767 10,813 46,958 
Medical21,149 — 1,979 23,128 
Industrial & Other18,272 1,138 — 19,410 
Total revenue$81,452 $47,549 $29,047 $158,048 

The following table disaggregates total revenue by product types.
For the Three Months Ended
March 31, 2023
Engineered ProductsPrecision ProductsStructuresTotal
Original Equipment Manufacturer45 %2 %17 %64 %
Aftermarket18 %5 %— %23 %
Safe and Arm Devices— %13 %— %13 %
Total revenue63 %20 %17 %100 %
For the Three Months Ended
April 1, 2022
Engineered ProductsPrecision ProductsStructuresTotal
Original Equipment Manufacturer41 %2 %18 %61 %
Aftermarket11 %4 %— %15 %
Safe and Arm Devices— %24 %— %24 %
Total revenue52 %30 %18 %100 %
3. REVENUE AND SEGMENT INFORMATION (CONTINUED)

Disaggregation of Research and Development Costs

The following table presents research and development costs by segment:

For the Three Months Ended
March 31,
2023		April 1,
2022
In thousands
Engineered Products$2,439 $2,243 
Precision Products3,458 2,803 
Structures10 67 
Total research and development costs$5,907 $5,113 

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 Ended
March 31,
2023		April 1,
2022
In thousands
Net (decrease) increase in revenue due to change in profit estimates$(1,269)$905 

In the three-month fiscal period ended March 31, 2023, the net decrease in revenue was primarily related to cost growth on certain structures and precision products contracts, partially offset by favorable cost performance on the joint programmable fuze ("JPF") contract with the U.S. Government ("USG") and the JASSM contract. In the three-month fiscal period ended April 1, 2022, the net increase in revenue was primarily related to favorable cost performance on the JPF contract with the USG, partially offset by cost growth on certain structures programs and legacy fuzing contracts.
3. REVENUE AND SEGMENT INFORMATION (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 March 31, 2023 and December 31, 2022, and the portion of backlog the Company expects to recognize revenue on over the next twelve months is as follows:
March 31, 2023(1)
December 31, 2022
(in thousands)
Engineered Products$369,713 $322,452 
Precision Products111,750 134,903 
Structures251,531 263,581 
  Total Backlog$732,994 $720,936 
(1) The Company expects to recognize revenue on approximately 73% of backlog as of March 31, 2023 over the next twelve months.