FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 53
Table of Contents
Note 4 - Receivables
Receivables consist of:
October 2,
2021
$
395,674
546,764
7,842
(4,351)
$
945,929
Accounts receivable
Unbilled receivables
Other
Less allowance for credit losses
Receivables, net
October 3,
2020
$
363,089
493,734
5,025
(6,313)
$
855,535
We securitize certain trade receivables in transactions that are accounted for as secured borrowings (the
"Securitization Program"). We maintain a subordinated interest in a portion of the pool of trade receivables that are
securitized. The retained interest, which is included in Receivables in the Consolidated Balance Sheets, is recorded at
fair value, which approximates the total amount of the designated pool of accounts receivable. See Note 9,
Indebtedness, for additional disclosures related to the Securitization Program. See Note 24, Subsequent Events, for
additional information related to the Securitization Program.
Over-time contract receivables are primarily associated with prime contractors and subcontractors in connection with
U.S. Government contracts, as well as commercial aircraft and satellite manufacturers. Amounts billed for over-time
contracts to the U.S. Government were $11,330 at October 2, 2021 and $10,286 at October 3, 2020. Unbilled
recoverable costs and accrued profits under over-time contracts to be billed to the U.S. Government were $32,245 at
October 2, 2021 and $34,223 at October 3, 2020. Unbilled recoverable costs and accrued profits principally represent
revenues recognized on contracts that were not billable on the balance sheet date. These amounts will be billed in
accordance with contract terms, generally as certain milestones are reached or upon shipment. Unbilled amounts
expected to be collected beyond one year are not material. In situations where billings exceed revenues recognized,
the excess is included in contract advances.
There are no material amounts of claims or unapproved change orders included in the Consolidated Balance Sheets.
There are no material balances billed but not paid by customers under retainage provisions.
Concentrations of credit risk on receivables are limited to those from significant customers who are believed to be
financially sound. Receivables from Boeing were $209,653 at October 2, 2021 and $249,424 at October 3, 2020 and
receivables from Lockheed Martin were $88,744 at October 2, 2021 and $79,015 at October 3, 2020. We perform
periodic credit evaluations of our customers’ financial condition and generally do not require collateral.
Note 5 - Inventories
Inventories, net of reserves, consist of:
October 2,
2021
$
231,406
315,762
65,927
$
613,095
Raw materials and purchased parts
Work in progress
Finished goods
Inventories, net
October 3,
2020
$
235,906
327,990
59,147
$
623,043
There are no material inventoried costs relating to over-time contracts where revenue is accounted for using the costto-cost method of accounting as of October 2, 2021 and October 3, 2020.
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