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Revenue Recognition
 12 Months Ended
Dec. 31, 2024
Revenue Recognition [Abstract]  
Revenue Recognition

NOTE 3: REVENUE RECOGNITION

Disaggregated revenue

The following table summarizes total revenue by the Company’s segments:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Revenue:

 

 

 

 

 

 

 

 

 

Engine Services

 

$

4,644,739

 

 

$

4,049,868

 

 

$

3,723,312

 

Component Repair Services

 

 

592,422

 

 

 

513,416

 

 

 

427,166

 

Total revenue

 

$

5,237,161

 

 

$

4,563,284

 

 

$

4,150,478

 

 

The following table presents revenues from customers that contributed to more than 10% of revenues:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Customer A

 

 

21.8

%

 

 

24.7

%

 

 

25.6

%

 

The following table presents revenues from external customers by end market:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Commercial Aerospace

 

$

3,066,463

 

 

$

2,460,624

 

 

$

2,250,074

 

Military & Helicopter

 

 

973,813

 

 

 

968,136

 

 

 

884,492

 

Business Aviation

 

 

1,046,914

 

 

 

968,965

 

 

 

887,008

 

Other

 

 

149,971

 

 

 

165,559

 

 

 

128,904

 

 

$

5,237,161

 

 

$

4,563,284

 

 

$

4,150,478

 

 

Contract assets and liabilities

Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing or reimbursable costs related to a specific contract. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. The following table provides information about contract assets and contract liabilities from contracts with customers:

 

 

As of December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Contract assets

 

$

915,940

 

 

$

811,113

 

 

$

676,527

 

Less: allowance for credit loss

 

 

(740

)

 

 

(700

)

 

 

(700

)

Contract assets, net

 

$

915,200

 

 

$

810,413

 

 

$

675,827

 

Contract liabilities

 

$

400,025

 

 

$

355,651

 

 

$

210,078

 

 

Changes in contract assets and contract liabilities primarily result from the timing difference between our performance of services and payments from customers. The Company recognized revenue that was included in the beginning of period contract liability balance of approximately $355.7 million and $210.1 million for the years ended December 31, 2024 and 2023, respectively.

Remaining performance obligations

As of December 31, 2024, the Company had approximately $1.9 billion of remaining performance obligations, which primarily relates to the Company’s engine utilization contracts that are satisfied over multiple years. Of this amount, the Company expects approximately 30% to be satisfied over the next two years and the remainder thereafter. The expected timing of the satisfaction of performance obligations is dependent on the timing of the customer’s maintenance requirements and as such, the timing of the revenue recognition is subject to estimation uncertainty. The Company excludes from its remaining performance obligation balance the value of remaining performance obligations for its fixed price and time & material contracts, as the performance obligations for these contracts generally have an original expected duration of one year or less.