Revenue | Note 3 – Revenue The Company’s revenues are generated primarily from the sale of manufactured products bui lt to customer specifications. The Company also generates revenue from design, development and engineering services, in addition to the sale of excess inventory. Revenue is measured based on a consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a manufactured product to a customer. The Co mpany’s contracts with customers are short-term in nature. Customers are generally billed when the product is shipped or as services are performed. Under the majority of the Company’s manufacturing contracts with customers, the customer controls all of the work-in-progress as products are being built. Revenues under these contracts are recognized progressively based on the cost-to-cost method. For other manufacturing contracts, the customer does not take control of the product until it is completed. Under t hese contracts, the Company recognizes revenue upon transfer of control of product to the customer . Revenue from design, development and engineering services is recognized over time as the services are performed. The Company assumes no significant obligati ons after shipment as it typically warrants workmanship only. Therefore, the warranty provisions are generally not significant. If the Company had recorded revenue, but not issued an invoice, a contract asset is recognized. The contract asset is transferr ed to accounts receivable when the entitlement to payment becomes unconditional. Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a cus tomer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of sales . Disaggregation of revenue In the following table s , revenue is d isaggregated by market sector. The table s also include a reconciliation of the disaggregated revenue with the reportable operating segments . Reportable Operating Segments Three Months Ended June 30, 2018 (in thousands) Americas Asia Europe Total Market Sector: Industrials $ 45,138 $ 55,919 $ 16,711 $ 117,768 A&D 94,066 1,518 6,924 102,508 Medical 59,383 34,101 3,564 97,048 Test and instrumentation 47,333 41,552 17,185 106,070 Computing 141,417 17,528 1,692 160,637 Telecommunication 39,461 36,907 192 76,560 External revenue 426,798 187,525 46,268 660,591 Elimination of intersegment sales 7,480 10,103 87 17,670 Segment revenue $ 434,278 $ 197,628 $ 46,355 $ 678,261 Six Months Ended June 30, 2018 Americas Asia Europe Total Market Sector: Industrials $ 97,867 $ 109,576 $ 34,885 $ 242,328 A&D 182,480 2,648 15,247 200,375 Medical 114,375 72,364 7,596 194,335 Test and instrumentation 93,202 80,785 34,297 208,284 Computing 227,638 32,428 4,109 264,175 Telecommunication 83,355 74,992 883 159,230 External revenue 798,917 372,793 97,017 1,268,727 Elimination of intersegment sales 14,146 19,957 134 34,237 Segment revenue $ 813,063 $ 392,750 $ 97,151 $ 1,302,964 Reportable Operating Segments Three Months Ended June 30, 2017 (as adjusted) (in thousands) Americas Asia Europe Total Market Sector: Industrials $ 56,053 $ 52,094 $ 16,607 $ 124,754 A&D 93,047 917 6,116 100,080 Medical 48,139 33,822 4,874 86,835 Test and instrumentation 37,766 38,655 12,395 88,816 Computing 116,547 23,166 2,518 142,231 Telecommunication 45,239 31,222 434 76,895 External revenue 396,791 179,876 42,944 619,611 Elimination of intersegment sales 8,643 14,604 66 23,313 Segment revenue $ 405,434 $ 194,480 $ 43,010 $ 642,924 Six Months Ended June 30, 2017 (as adjusted) Americas Asia Europe Total Market Sector: Industrials $ 110,150 $ 97,885 $ 33,905 $ 241,940 A&D 186,456 1,049 12,475 199,980 Medical 95,740 66,299 9,721 171,760 Test and instrumentation 70,420 73,349 20,797 164,566 Computing 194,360 42,732 5,398 242,490 Telecommunication 93,153 62,386 1,239 156,778 External revenue 750,279 343,700 83,535 1,177,514 Elimination of intersegment sales 16,475 30,084 119 46,678 Segment revenue $ 766,754 $ 373,784 $ 83,654 $ 1,224,192 F or the six months ended June 30, 2018 and 2017 , 95.3% and 95.6 %, respectively , of the Company’s revenue was recognized as products and services are transferred over time . |