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Revenue Recognition and Contract Balances
 3 Months Ended
Mar. 29, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition and Contract Balances Revenue Recognition and Contract Balances
Approximately 60% of the Company’s revenue was recognized at a point in time, with the remaining 40% of revenue recognized over time. The Company disaggregates its revenue from contracts with customers by customer type and geographic region for each segment, as management believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.
First Quarter Ended
March 29, 2026
First Quarter Ended
March 29, 2026
Customer TypeGeographic Region (c)
(in millions)U.S. Govt. (a)Other (b)TotalUnited StatesEuropeAsia
All Other
Total
Net sales:
Digital Imaging$185.4 $631.5 $816.9 $402.7 $224.1 $125.6 $64.5 $816.9 
Instrumentation30.8 330.6 361.4 143.3 113.8 60.1 44.2 361.4 
Aerospace and Defense Electronics100.7 176.8 277.5 169.3 72.2 24.1 11.9 277.5 
Engineered Systems88.2 16.1 104.3 103.2 — 0.1 1.0 104.3 
Total$405.1 $1,155.0 $1,560.1 $818.5 $410.1 $209.9 $121.6 $1,560.1 
(a) U.S. Government sales include sales as a prime contractor or subcontractor.
(b) Primarily commercial sales
(c) Geographic region by destination
First Quarter Ended
March 30, 2025
First Quarter Ended
March 30, 2025
Customer TypeGeographic Region (c)
(in millions)U.S. Govt. (a)Other (b)TotalUnited StatesEuropeAsia
All Other
Total
Net sales:
Digital Imaging$161.7 $595.3 $757.0 $355.9 $188.2 $139.7 $73.2 $757.0 
Instrumentation27.3 316.0 343.3 148.0 102.5 58.8 34.0 343.3 
Aerospace and Defense Electronics90.2 152.3 242.5 159.1 50.9 23.0 9.5 242.5 
Engineered Systems92.6 14.5 107.1 106.3 — 0.3 0.5 107.1 
Total$371.8 $1,078.1 $1,449.9 $769.3 $341.6 $221.8 $117.2 $1,449.9 
(a) U.S. Government sales include sales as a prime contractor or subcontractor.
(b) Primarily commercial sales
(c) Geographic region by destination
With the exception of the Engineered Systems segment, net sales in each segment are primarily derived from fixed-price contracts. Net sales in the Engineered Systems segment are typically between 45% and 55% fixed-price contracts in a given reporting period, with the balance of net sales derived from cost-reimbursable type contracts. For the first quarter ended March 29, 2026, approximately 46% of net sales in the Engineered Systems segment was derived from fixed-price contracts.
Contract Liabilities
Balance at
Contract Liabilities by Balance Sheet Location (in millions)
March 29, 2026
December 28, 2025
Accrued liabilities$404.4 $369.6 
Other long-term liabilities32.6 33.6 
Total contract liabilities$437.0 $403.2 
The Company recognized revenue of $95.2 million during the first quarter ended March 29, 2026, from contract liabilities that existed at the beginning of the year.
Remaining Performance Obligations
Remaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the period end date and exclude unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity). As of March 29, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,867.4 million. The Company expects approximately 71% of remaining performance obligations to be recognized into revenue within the next 12 months, with the remaining 29% recognized thereafter.
Changes in Contract Estimates at Completion
For over time contracts using the cost-to-cost method, the Company has an Estimate at Completion (“EAC”) process in which management reviews the progress and execution of the performance obligations. This EAC process requires management’s judgment relative to assessing risks, estimating contract revenue, determining reasonably dependable cost estimates and making assumptions for scheduling and technical issues. The majority of revenue recognized over time uses an EAC process. Since certain contracts extend over a long period of time, the impact of revisions in cost and revenue estimates during the progress of work may adjust the current period earnings through a cumulative catch-up basis. This method recognizes, in the current period, the cumulative effect of the changes on current and prior quarters. Additionally, if the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident. Contract cost and revenue estimates for significant contracts are generally reviewed and reassessed quarterly.
The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in the first quarter of 2026 was $8.6 million of favorable operating income compared with $2.3 million of favorable operating income in the first quarter of 2025, with the first quarter of 2026 primarily related to favorable changes within the Digital Imaging segment. None of the effects of changes in estimates on any individual contract were material to the condensed consolidated statements of income (loss) for any period presented.