REVENUES (Tables)

3 Months Ended

Dec. 31, 2021

REVENUES

Schedule of disaggregation of revenue by reportable segment

	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	28,075	$	62,842	$	41,037	$	131,954
U.S. Government		42,169		643		2,244		45,056
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010
Geographic location:
United States	$	60,687	$	38,741	$	22,975	$	122,403
International		9,557		24,744		20,306		54,607
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010
Revenue recognition method:
Point in time	$	28,558	$	50,835	$	12,821	$	92,214
Over time		41,686		12,650		30,460		84,796
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010

Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2020 are presented in the table below:

	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	27,604	$	53,864	$	36,722	$	118,190
U.S. Government		39,012		676		4,796		44,484
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674
Geographic location:
United States	$	57,538	$	37,045	$	23,266	$	117,849
International		9,078		17,495		18,252		44,825
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674
Revenue recognition method:
Point in time	$	26,946	$	42,367	$	8,868	$	78,181
Over time		39,670		12,173		32,650		84,493
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674

Revenue Recognition

Payment terms with our customers vary by the type and location of the customer and the products or services offered. Arrangements with customers that include payment terms extending beyond one year are not significant. The transaction price for these contracts reflects our estimate of returns and discounts, which are based on historical, current and forecasted information to determine the expected amount to which we will be entitled in exchange for transferring the promised goods or services to the customer. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one to two years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Under the typical payment terms of our long term fixed price contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of costs incurred as the work progresses.

For our overtime revenue recognized using the output method of costs incurred, contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several months to one or more years, and the estimation of these costs requires judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change. In addition, in the USG segment, we recognize revenue as a series of distinct services based on each day of providing services (straight-line over the contract term) for certain of our USG segment contracts. Under the typical payment terms of our service contracts, the customer pays us in advance of when services are performed. In addition, in the Test segment, we use milestones to measure progress for our Test segment contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts.