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Revenue from Contracts with Customers
 9 Months Ended
Dec. 28, 2024
Revenue from Contracts with Customers [Abstract]  
Revenue from Contracts with Customers

3. Revenue from Contracts with Customers

 

Disaggregation of Revenue

 

The following table disaggregates total revenue by end market which is how we view our reportable segments (see Note 12):

 

   Three Months Ended   Nine Months Ended 
   December 28,
2024		   December 30,
2023		   December 28,
2024		   December 30,
2023		 
Aerospace/Defense   $143.2   $129.2   $435.5   $377.0 
Industrial    251.2    244.7    763.1    769.6 
Total   $394.4   $373.9   $1,198.6   $1,146.6 

 

The following table disaggregates total revenue by geographic origin:

 

   Three Months Ended   Nine Months Ended 
   December 28,
2024		   December 30,
2023		   December 28,
2024		   December 30,
2023		 
United States   $348.9   $329.0   $1,061.4   $1,012.3 
International    45.5    44.9    137.2    134.3 
Total   $394.4   $373.9   $1,198.6   $1,146.6 

 

The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time:

 

   Three Months Ended   Nine Months Ended 
   December 28,
2024		   December 30,
2023		   December 28,
2024		   December 30,
2023		 
Point-in-time    97%   98%   97%   98%
Over time    3%   2%   3%   2%
Total    100%   100%   100%   100%

 

Remaining Performance Obligations

 

Remaining performance obligations represent the transaction price of orders meeting the definition of a contract for which work has not been performed or has been partially performed and excludes unexercised contract options. The duration of the majority of our contracts, as defined by ASC Topic 606, is less than one year. The Company has elected to apply the practical expedient, which allows the Company to exclude remaining performance obligations with an original expected duration of one year or less. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $516.2 at December 28, 2024. The Company expects to recognize revenue on approximately 66% and 88% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter.

 

Contract Balances

 

The timing of revenue recognition, invoicing and cash collections affects accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the consolidated balance sheets. These assets and liabilities are reported on the consolidated balance sheets on an individual contract basis at the end of each reporting period.

 

Contract Assets (Unbilled Receivables) - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized when (1) the cost-to-cost method is applied and (2) such revenue exceeds the amount invoiced to the customer.

 

As of December 28, 2024 and March 30, 2024, current contract assets were $7.1 and $6.9, respectively, and were included within prepaid expenses and other current assets on the consolidated balance sheets. The increase in contract assets was primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations prior to billing, partially offset by amounts billed to customers during the period. As of December 28, 2024 and March 30, 2024, the Company did not have any contract assets classified as noncurrent on the consolidated balance sheets.

 

Contract Liabilities (Deferred Revenue) - The Company may receive a customer advance or deposit, or have an unconditional right to receive a customer advance, prior to revenue being recognized. Since the performance obligations related to such advances may not have been satisfied, a contract liability is established. Advance payments are not considered a significant financing component as the timing of the transfer of the related goods or services is at the discretion of the customer.

 

As of December 28, 2024 and March 30, 2024, current contract liabilities were $22.7 and $22.5, respectively, and were included within accrued expenses and other current liabilities on the consolidated balance sheets. The increase in current contract liabilities was primarily due to advance payments received and the reclassification of a portion of advance payments received from the noncurrent portion of contract liabilities partially offset by revenue recognized on customer contracts. For the three and nine months ended December 28, 2024, the Company recognized revenues of $2.4 and $14.0 that were included in the current contract liability balance as of March 30, 2024. For the three and nine months ended December 30, 2023, the Company recognized revenues of $4.2 and $13.5 that were included in the current contract liability balance at April 1, 2023.

 

As of December 28, 2024 and March 30, 2024, noncurrent contract liabilities were $19.1 and $19.9, respectively, and were included within other noncurrent liabilities on the consolidated balance sheets. The decrease in noncurrent contract liabilities was primarily due to the reclassification of a portion of advance payments received to the current portion of contract liabilities.

 

Variable Consideration

 

The amount of consideration to which the Company expects to be entitled in exchange for goods and services is not generally subject to significant variations. However, the Company does offer certain customers rebates, prompt payment discounts, end-user discounts and the right to return eligible products. The Company estimates this variable consideration using the expected value amount, which is based on historical experience. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company adjusts the estimate of revenue at the earlier of when the amount of consideration the Company expects to receive changes or when the consideration becomes fixed. Accrued customer rebates were $37.1 and $38.0 at December 28, 2024 and March 30, 2024, respectively, and were included within accrued expenses and other current liabilities on the consolidated balance sheets.