Revenue

9 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) commercial space, semiconductor and other commercial applications.

Revenue is recognized when performance obligations under the terms of the contract with a customer of the Company are satisfied. A portion of the Company's contracts are from purchase orders ("PO's"), which continue to be recognized as of a point in time when products are shipped from the Company's manufacturing facilities or at a later time when control of the products transfers to the customer. Under the revenue standard, the Company recognizes certain revenue over time as it satisfies the performance obligations because the conditions of transfer of control to the applicable customer are as follows:

•Certain military contracts, which relate to the provisions of specialized or unique goods to the U.S. government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation ("FAR"). The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process.

•For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company's use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin.

As a result of control transferring over time for these products, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company elected to use the cost to cost input method of progress based on costs incurred for these contracts because it best depicts the transfer of goods to the customer based on incurring costs on the contracts. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

The following table represents a breakout of total revenue by customer type:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Commercial revenue	$	13,086	$	11,863	$	34,629	$	29,729
Military revenue	8,767		9,591		27,765		35,540
Total	$	21,853	$	21,454	$	62,394	$	65,269

The following table represents revenue by end market:

	Three Months Ended June 30,				Nine Months Ended June 30,
Net Sales	2023		2022		2023		2022
Aerospace components for:
Fixed wing aircraft	$	8,726	$	10,351	$	28,307	$	30,310
Rotorcraft	4,067		4,067		11,960		11,982
Energy components for power generation units	7,005		4,899		16,729		12,902
Commercial product and other revenue	2,055		2,137		5,398		10,075
Total	$	21,853	$	21,454	$	62,394	$	65,269

The following table represents revenue by geographic region based on the Company's selling operation locations:

	Three Months Ended June 30,				Nine Months Ended June 30,
Net Sales	2023		2022		2023		2022
North America	$	15,391	$	17,051	$	47,037	$	53,339
Europe	6,462		4,403		15,357		11,930
Total	$	21,853	$	21,454	$	62,394	$	65,269

In addition to the disaggregated revenue information provided above, approximately 47% and 58% of total net sales for the nine months ended June 30, 2023 and 2022, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time. 

Contract Balances

The following table contains a roll forward of contract assets and contract liabilities for the period ended June 30, 2023:

Contract assets - Beginning balance, October 1, 2022	$	10,172
Additional revenue recognized over-time	28,955
Less amounts billed to the customers	(30,108)
Contract assets - Ending balance, June 30, 2023	$	9,019

Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2022	$	(807)
Payments received in advance of performance obligations	(1,531)
Performance obligations satisfied	1,435
Contract liabilities (included within Accrued liabilities) - Ending balance, June 30, 2023	$	(903)

There were no impairment losses recorded on contract assets as of June 30, 2023 and September 30, 2022.

Remaining performance obligations

As of June 30, 2023, the Company has $122,826 of remaining performance obligations, the majority of which are anticipated to be completed within the next twelve months.