10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 53
Table of Contents
Contract Assets and Liabilities
Unbilled receivables (contract assets) primarily represent revenues recognized for performance obligations that have
been satisfied but for which amounts have not been billed. These are included as Receivables on the Consolidated
Balance Sheets. Contract advances (contract liabilities) relate to payments received from customers in advance of the
satisfaction of performance obligations for a contract. We do not consider contract advances to be significant financing
components as the intent of these payments in advance are for reasons other than providing a significant financing
benefit and are customary in our industry.
Total contract assets and contract liabilities are as follows:
October 1,
2022
$
614,760
296,899
$
317,861
Unbilled receivables
Contract advances
Net contract assets
October 2,
2021
$
546,764
263,686
$
283,078
The increase in contract assets reflects the net impact of additional unbilled revenues recorded in excess of revenue
recognized during the period. The increase in contract liabilities reflects the net impact of additional deferred revenues
recorded in excess of revenue recognized during the period. As of October 1, 2022, we recognized $180,789 of
revenue that was included in the contract liability balance at the beginning of the period.
Remaining Performance Obligations
As of October 1, 2022, the aggregate amount of the transaction price allocated to the performance obligations that are
unsatisfied (or partially unsatisfied) was $5,200,000. We expect to recognize approximately 44% of that amount as
sales over the next twelve months and the balance thereafter.
Disaggregation of Revenue
See Note 21 - Segments, for disclosures related to disaggregation of revenue.
Note 3 - Acquisitions, Divestitures and Equity Method Investments
Acquisitions
On February 21, 2022, we acquired TEAM Accessories Limited ("TEAM") based in Dublin, Ireland for a purchase
price, net of acquired cash, of $14,885, consisting of $11,832 in cash and contingent consideration with an initial fair
value of $3,053. TEAM specializes in Maintenance, Repair and Overhaul ("MRO") of engine and airframe
components. This operation is included in our Aircraft Controls segment. The purchase price allocation is subject to
adjustments as we obtain additional information for our estimates during the measurement period.
On December 18, 2020, we acquired Genesys Aerosystems Group, Inc. ("Genesys"), headquartered in Mineral Wells,
Texas for a purchase price of $77,600, net of acquired cash. Genesys designs and manufactures a full suite of
electronic flight instrument systems and autopilot solutions. This operation is included in our Aircraft Controls segment.
Divestitures
On September 30, 2022, we sold a sonar business based in the United Kingdom previously included in our Industrial
Systems segment. We received net proceeds of $12,401 and recorded a loss of $15,379, net of transaction costs.
The loss is subject to adjustments associated with amounts currently held in escrow.
On September 20, 2022, we sold assets of a security business based in Northbrook, Illinois previously included in our
Space and Defense Controls segment. We received net proceeds of $9,823 and recorded a loss of $4,112, net of
transaction costs. The loss is subject to adjustments associated with amounts currently held in escrow.
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